21 Jul 2022

Cooking oil cost making businesses feel the burn

6:55 pm on 21 July 2022

The cost of cooking oil is skyrocketing and those who use it to make their living are feeling the burn.

Doe Donuts managers Shenine Dube, left, and Grace Tauber.

Doe Donuts managers Shenine Dube, left, and Grace Tauber. Photo: Finn Blackwell/RNZ

Shenine Dube and Grace Tauber run Doe Donuts in Auckland's Grey Lynn, pumping out sweet treats for their punters.

They need at least 60 litres of oil for their deep-fryers, and the cost has jumped.

The pair said that sunflower oil was a key ingredient in their product, but after the price skyrocketed, it no longer became viable to use, opting for the cheaper canola oil

Dube estimated the price had doubled in recent times.

Sha Xian Snack on Dominion Road told RNZ they were feeling the impact of higher prices.

Manager Shi Yan Wen said rising prices had made him more mindful in the kitchen.

"Before the pandemic, the price of a 20L barrel of soy oil was about $40, now is almost $80."

He said his kitchen had become more frugal with how much oil was used.

Supply had also quickly becoming a problem, as suppliers were limiting purchases.

"We've had to buy some oil from the supermarket, which is even more expensive."

Down the road, Sean, of Huai Yang A Noodle Less Ordinary, said they did not want customers having to pay more as a consequence.

He said that there was not much he could do.

"We've already put prices up, but we don't want to do it too much as that puts too much pressure on the customer."

The United Nations Food and Agriculture organisation said the vegetable oil index was about 30 percent up, year on year.

The Restaurant Association New Zealand said 80 percent of the cooking oil supplied for kitchens came from overseas.

Chief executive Marisa Bidiois said poor crop and supply restrictions abroad had driven the price up.

"On average, according to our most recent survey to members, we're seeing a 60 percent increase in some cooking oil costs, it's pretty significant."

The Brewers Co-Operative in the CBD said customers could not afford to head out as much anymore.

Venue manager Dan Greenside said cooking oil was just the most recent in a long list of price hikes.

He said it was one of the many things that had gone up, leaving food profits down.

Greenside suggested the government could remove levies, such as the increased alcohol excise rates, to help cut other kitchen costs

Until then, restaurants are doing what they can while prices go up.

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