How to start a palm oil processing business in nigeria?

Date: 2017-06-08/ FAQ/ Chat online/ Technical support
Are you interested in starting a palm oil processing business in nigeria? Do you need a sample palm oil processing business plan? Then, let us discuss an in-depth plan on how to start palm oil processing business in nigeria?
palm oil processing plant
palm oil processing plant
Large capacity palm oil processing plant

Processed palm oil is used for cooking. it is used in every American home for this purpose. Indonesia and Malaysia are the leading exporters of palm oil while India, China, United States, European Union and Pakistan are the primary importers of this product. It is also used as a major ingredient in processed food, detergent, soap and cosmetic. All you need is just the basic knowledge and training in palm oil processing technology which you can easily obtain by searching on the Internet and consulting a veteran in the field.

First step——Make a Palm Oil Processing Plant Strategy:
palm oil extraction line
Palm oil extraction line

Making a good palm oil processing business strategy is the first step in starting a company or oil mill. Study the requirements of palm oil processing business in terms of technology, capital, market, and competition. Visit websites to get knowledge on the economic scope and statistics of the industry in your region. Study the operation of established industries to be aware of their working process.

Make a strategy including a proposed location, target market, start-up capital, operational cost, and other finances. Obtain the necessary financing for your business,for instance, as of the year 2016 a palm oil processing machine which can process 400 to 500 pounds, costs around $70,000. Before choosing a location for your palm oil processing plant, you will need to consider the market, availability of the raw material and mode of transport. A good location will be very close to the target market and the source of raw material. For instance, a palm tree or kernel nut field so as to reduce the supply and transportation cost.

Second step——Complete Palm Oil Processing Plant:
palm oil processing plant
Palm oil processing plant

Our integrated palm oil processing plant is composed of all necessary machines for oil extraction which have solid and durable structures, fine properties and good adaptability. The plant is featured of safe, reasonable cost, excellent quality, high level of automation, continuous operation, and advanced technology.

The global consumption of palm oil is rising, due to its low price and efficient commodity with many different uses. Palm oil extracting from fresh fruit bunches (FFB) is now the world’s most used vegetable oil, making the plantation of oil palm tree and the extraction of palm oil great investment projects. Below is one of the most common use process of palm oil processing.

Third step——Palm Oil Extraction Process:
palm oil processing process flow chart
Process flow chart of palm oil processing plant

Palm oil processing include bunches reception and threshing of the kernel nut, sterilization of the bunches, palm oil extraction and clarify of the oil, storage and recovery. As all of these processes require the use of machines, you will have to buy the good quality machines for each process.

A good quality palm oil processing plant will save you a lot of time and money in the long term. So it is necessary that you choose the machines carefully. For effective running of your palm oil processing plant, you will need to hire competent employees. Advertise vacancies for candidates experienced in the field of palm oil processing industry. You will need to hire a technician, an assistant, a storekeeper, from about 5 to 10 other staff members, a quality control official, sales, administrative and security officials.

Starting a palm oil business is a big achievement for any entrepreneur, but maintaining one is another issue. There are many challenges that face every entrepreneur when starting a palm oil mill. However, with determination and careful planning, you can overcome all of these problems.

Challenges and Solutions of Palm Oil Processing Business:
palm oil processing process
Complete set of palm oil processing process

Due to the rising economic difficulty in 2016, it can be difficult for you to find a financial institution that will finance your project. Palm oil processing is a highly capital intensive industry. So you have to think about alternative financial sources.

Starting a business is like a roller coaster ride, filled with the rise and falls. Palm oil processing is also labor and management intensive industry.
Getting a perfect location for your oil mill plant is very difficult.
Because of the location, you will also face problems with means of transport and power supply. So you would have to set up your own generators. This will increase the cost.
The supply of raw material will also be a problem during scarcity season. The best way to deal with this problem is to have your own palm tree farm.
You will also experience difficulty in transporting bunches of palm tree from the farm to the plant. The same problem may also arise when transporting the oil from plant to the market.

Feel free to contact us if you are willing for a customized palm oil processing plan! Just tell us your situation such as location, factory size, planned cost, capacity requirements and so on. Then we can offer you the best tailor-made solution for your business.

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