How to Start a Palm Oil Processing Company – Sample Business Plan Template

Date:2015-03-03/ FAQ/ Chat online/ Technical support
how to start a palm oil processing company
1. Find a good location

Since you won’t be selling to consumers directly, it won’t be necessary to site your processing plant near a nearby market. You should be more concerned with being closer to palm plantations or areas with an abundance of palm trees.

However, if you can be situated closer to both the plantations and marketplace; it will be an added advantage for you. Secondly, your location should be free of unnecessary human and animal movements; yet very accessible for vehicles. This is best because there should be high level of hygiene around your plant.

2. Get the necessary equipment

In the past, palm oil was processed in “oil pots” made in the ground. The processing then involved rubbing and squeezing the palm kernel fruits until the oil was extracted. However, this old method is very wasteful, as it leaves some significant amount of oil left on the kernel fruits that could have been converted into more palm oil.

But nowadays, machines are used to process palm oil. This modern method is more hygienic, and it helps to extract all the palm oil on kernel fruits without leaving any quantity to waste. You should also know that most machines for processing palm oil can be imported or fabricated locally at a cheaper rate. Examples of equipments necessary for palm oil processing business

    Palm Fruit Stripper
    Nut Fiber Separator
    Pounding Machine
    Mechanical Screw Press
    Barrels or surface tanks for storage purposes

3. Setup your processing plant

You may need to seek the services of professionals to help construct the needed infrastructure and also install the processing machines.

4. Hire people to work with you

You will need to hire someone who would operate the palm oil processing machine. If you are planning to have more than one machine, then you would need to hire an operator for each machine. You would also need to hire other employees, such as a security personnel, administrative staff, and so on.

5. Create market awareness

Approach prospective marketers and encourage them to buy from your company. One smart way to retain them for a long term is to offer high quality palm oil at discounted prices. You should also encourage your customers to tell others about your business.

In addition, you can also establish a retail outlet to sell your palm oil. If you decide to go this route, you can create a competitive advantage by branding your gallons and fortifying your palm oil with vitamin A.

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