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There are a number of ways to produce oil from avocados, each has it's advantages and disadvantages, generally the trade-off is between quantity and quality. The average avocado contains 10-20% oil. Typically, in the first step the entire fruit of the avocado is crushed, however the pit is discarded before processing because it is mildly toxic. Then the remaining pulp is ground up and water is added. The oil then floats to the top and can be skimmed off. Similar to olive oil, lower temperature processings (less than 95 degrees) is labeled "cold pressed." In order to facilitate breaking down the pulp and oil separation, heated water is often added, though this reduces the quality, both in terms of flavor and shelf stability.
Another method of separation includes the use of a centrifuge, which spins the pulp (usually with less water) causing the oil to separate because it has a lower density.
wow please help me get a test batch going? i have these huge avos at home! they will work very well! can you use a avo that is a bit rotten?