Nutiva is now raising prices on select Coconut Oil SKU’s. This price increase will effect our larger sized: 54 oz, 1 gallon and 5 gallon products.
For now we intend to hold the line on the 15 0z and 29 oz sizes.
The world price of coconut oil has more than doubled in the past 18 months.
We suggest people consider buying in larger bulk sizes, to help offset some of the price increases.
The rising prices are due to many trends including Drought, Climate Change, Surging Demand for Coconut Products, Fed Policy and “Hot Money”, and Food Inflation.
1. Weather-The major coconut-growing regions of the Philippines, Thailand, and Sri Lanka, have experienced dry weather, resulting in about a 30% decline in tree-nut production. This might improve in the latter half of 2011, but it’s still uncertain. Additionally, poor weather conditions in Australia and South America, has affected other crops–driving up many commodities. Expect to see many more weather-related issues impact food production. For example western Canada has seen record snow levels this winter. Canadian farmers are concerned the ground will be so wet in late spring due to flooding conditions from snow that many crops won’t get planted. One aspect of climate change to note: extreme weather may well become more common as CO-2 levels rise–and our rain forests are “clear cut”.
2. Demand –There’s a world-wide rising demand for cooking oils, including soy, palm, and coconut oils. Plus the huge surge in sales of coconut water and coconut milk is creating more demand for all coconut products.
3. “Hot Money”- The US Federal Reserve Bank is undertaking the unprecedented act of printing trillions of US Dollars–for loans to large banks and hedge funds. These funds are not for building US factories or infrastructure. Instead they are being invested in the “speculation” of commodities and other investments. With the historic collapse of the real-estate boom continuing to gain speed, the Fed hopes inflation will stem the red ink of price declines. We have created a true “casino economy”. As Rep. Ron Paul has reminded Americans many times, our founding fathers–George Washington and Thomas Jefferson–warned us never to hand over the keys to the money-printing presses to foreign bankers. With the formation in 1913 of the Federal Reserve, we lost control of our economy and have paid dearly since.
4. Food Inflation- In general, food inflation is rising. Most supermarkets have postponed raising prices in order to maintain market share. But many people feel that this will change, and 2011 may well see strong increases. Interestingly, the US government considers food and fuel “non-essential”, so these numbers are not included in total inflation reports. Is it any wonder the price of gold keeps going up, while US printing presses flood the world with more paper money?
We live in interesting times. Please be assured, Nutiva® is working hard to supply quality organic foods at reasonable prices. We specialize in bulk sizes, and we’re doing everything we can to streamline our operations to be as efficient as possible.