Why is there such a large price difference between palm kernel oil and palm oil? This is a common question when people try to understand these two oils. Although both come from palm trees, their prices differ significantly due to differences in raw material sources, extraction processes, uses, and market demand. （Palm Oil Processing Plant）

First, regarding raw material sources, palm oil is extracted from the pulp of the palm fruit, while palm kernel oil is extracted from the kernel of the palm fruit. The yield of palm pulp is far greater than that of the kernel, so the supply of palm oil is relatively abundant, and its price is more stable. Palm kernels, on the other hand, are produced in smaller quantities, and the extraction process is more complex, resulting in a limited supply of palm kernel oil, and naturally, a higher price.

Second, the complexity of the extraction process is also an important factor affecting the price. Palm pulp has high oil content, relatively simple extraction process and low cost; However, the extraction of palm kernel oil requires more elaborate technology and higher processing cost, which directly pushes up its price.

Third, the difference in use also determines the difference in market demand. Palm oil is mainly used in food processing, such as cooking oil, cake making, etc., which is in great demand and widely used. Because of its unique chemical properties, palm kernel oil is more used in high-end cosmetics, medicine and industry, and its market positioning is higher, so its price is more expensive.

Last, the relationship between market supply and demand is also an important factor of price difference. As a basic product, palm oil has a large scale of production and consumption, and its price fluctuation is relatively small. Palm kernel oil, because of its special use, has a small elasticity of market demand, and a slight fluctuation in supply may lead to drastic price changes.

On the whole, the price difference between palm kernel oil and palm oil is determined by many factors, including the scarcity of raw materials, the complexity of extraction process, the orientation of use and the relationship between market supply and demand. Therefore, when shopping, it is most important to choose the right product according to the actual demand.