What are the advantages of starting a small scale palm oil processing business in Malaysia?

There are many advantages to starting a small scale palm oil processing business in Malaysia. First, there is a large demand for palm oil at home and abroad. Second, the local large-scale palm oil mill plants are highly competitive, while small palm oil mill plants are relatively rare. Third, large palm oil mill plants need to handle a business license, but small scale palm oil mills are not required. Next I will introduce the advantages of investing in a small scale palm oil processing business in Malaysia.

palm oil processing businessAdvantages of strating palm oil processing business in Malaysia

1. Palm oil is a local pillar industry, with great demand both at home and abroad;

Malaysia is one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably. And the exports of palm oil of Malays is more than 17 million mt a year. In 2020, it exported 12.95 million mt of processed palm oil (PPO) and 4.42 million mt of CPO. In addition, palm oil exports are expected to grow again in 2021and 2022.

Malaysia's palm oil Export & Imports Statistics: January – December 2021

COUNTRY JAN – DEC 2021 JAN – DEC 2020 CHANGE (MT) CHANGE (%)
INDIA 3,592,811 2,745,081 847,730 30.88
CHINA 1,872,865 2,730,660 (857,795) (31.41)
NETHERLANDS 989,967 1,072,952 (82,985) (7.73)
TURKEY 703,588 615,872 87,716 14.24
KENYA 672,715 520,758 151,957 29.18
PAKISTAN 609,807 1,003,601 (393,794) (39.24)
PHILIPPINES 579,752 693,441 (113,689) (16.39)
JAPAN 421,193 433,022 (11,829) (2.73)
IRAN 404,320 321,106 83,214 25.91
SOUTH KOREA 347,522 453,278 (105,756) (23.33)
TOTAL 10,194,540 10,589,771 (395,231) (3.73)

Source : The above data comes from MPOB

Major Exporters Countries of Malaysian Palm Oil: January – December 2021

COUNTRY JAN – DEC 2021 JAN – DEC 2020 CHANGE (MT) CHANGE (%)
INDIA 3,592,811 2,745,081 847,730 30.88
CHINA 1,872,865 2,730,660 (857,795) (31.41)
NETHERLANDS 989,967 1,072,952 (82,985) (7.73)
TURKEY 703,588 615,872 87,716 14.24
KENYA 672,715 520,758 151,957 29.18
PAKISTAN 609,807 1,003,601 (393,794) (39.24)
PHILIPPINES 579,752 693,441 (113,689) (16.39)
JAPAN 421,193 433,022 (11,829) (2.73)
IRAN 404,320 321,106 83,214 25.91
SOUTH KOREA 347,522 453,278 (105,756) (23.33)
TOTAL 10,194,540 10,589,771 (395,231) (3.73)

Source : The above data comes from MPOB

In addition to meeting foreign demand, palm oil is also the main local edible oil, and the local demand is also large. In the year 2020/21, the domestic consumption of palm oil in Malaysia was around 3.37 million metric tons. Malaysia’s domestic consumption made up only a fraction of its total palm oil output, and it exports most of the palm oil it produces.

palm oil consumption in Malaysia Palm oil consumption in Malaysia from 2011/2012 to 2020/2021(in 1,000 metric tons)

2. Malaysian local large scale palm oil mills are highly competitive, while small scale palm oil mill plants are relatively rare.

As we all know, Malaysia is a big palm oil producer country, and its palm oil extraction technology is also the most advanced. The processing capacity of local large-scale palm oil mill plants is as high as tens of tons or even hundreds of tons per hour. The competition among the large oil mill plants is great. So what are the advantages of starting a small scale palm oil processing business in Malaysia? (Related reading: Large scale palm oil machine with capacity 60tph 80tph 100tph)

palm oil processing machine Large scale palm oil processing machine

In fact, there are not only large-scale palm plantations but also small-scale scattered palm plantations in Malaysia. For small farmers, in addition to selling palm fruit to large palm oil mills, they can also produce palm oil by themselves, which allows them to earn more money.

In addition to this favorable advantage, our Malaysian client told we that local oil palm orchards ignore the natural shedding of palm fruit, which also causes certain losses. If there is small scale palm oil processing machine can recover and process raw materials, and can also obtain high-quality crude oil. It is because some intelligent customers have considered these aspects that they are beginning to consider buying small scale palm oil processing facilities from other countries to make palm oil.

Henan Glory Company's small palm oil processing equipment is specially developed and manufactured according to the characteristics of African countries. Our palm oil extraction technology is no less than Malaysia. It is not only suitable for home use, but also suitable for small businesses. It has the features of the quality of equipment is good, the investment is low and the return is fast.

small palm oil processing machine Small scale palm oil processing machine produced by Henan Glory Company

3. There is no need to apply for a business license for small scale palm oil mill plant.

If you want to do palm oil processing business in Malaysia, you need to apply for a business license from the government when you reach a certain scale. And our small palm oil processing machine can be directly put into production, saving the cumbersome application process. (Read more: What are the factors to be considered before embarking on palm oil processing business in Malaysia?)

4. Small investment cost and fast return.

Finally, there is little competition and there is a market. Compared with the large-scale palm oil processing production line, the palm oil produced by small scale palm oil processing facilities can be exported directly or directly sold to local palm oil refineries for refining. The market is not a problem at all, and the investment can be paid back in a few days or months!

If you want to do small scale palm oil processing business in Malaysia and want to buy palm oil processing machine at factory price, please contact us and tell us your processing capacity, we will recommend suitable equipment and provide you with more professional services! Customers’ success is DOING’ s success!

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