What factors effect the development of Nigeria palm oil processing business?

There are three major factors effect the development of Nigeria palm oil processing business. They are: oil yield of oil palm tree is low, most come from the wild groves. Palm oil processing technology is inefficient , most palm oil can't be extract out efficiently and so on.

1.Production of palm oil is largely dominated by wild groves which are low yielding compared to large oil palm plantations.

Palm oil is primarily produced in three ways – through the collection of palm fruit (fresh fruit bunches) from wild groves, private plantations managed by individual farmers, and large coproate or government owned plantations. Among of them the major sources is collection of palm fruit (fresh fruit bunches) from wild groves.

palm oil processing processOil palm plantations in Nigeria

2. The ownership structure of the wild groves fail to incentivize investment in their maintenance and upgrading.

3. Inefficient palm oil processing technologies are used. Most palm oil can't be extract out efficiently. About 10% palm oil still remains in the pressed palm cake.

local palm oil processing machineLocal palm oil processing machine in Nigeria

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