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Investing in palm oil and kernel oil production for export

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Palm Oil is known to be an excellent source of bio available calcium and least allergic of all edible oil. The demand-supply gap thereby opens up opportunities for investors in this sector.

After thorough research, it is found out that the demand for palm kernel oil, for commercial, home and even industrial purposes will continue to increase and this is the same for other by-products, making it a lucrative business with rewarding incomes.

The demand for the various palm oil by-products is high and will continue to be so because Cosmetics, Food, Animal Feed, Soap Manufacturing, Confectioneries, and Bio-diesel industries, among others need them for their products.
Production And Packaging Plan

Two different types of production processes could be employed. The processes consist of different sections including; procurement and storage, production, processing and storage sections, and packaging.

The local distributors can help distribute the finished products. There are exporters already waiting to purchase the products in bulk.
Equipment for this business include; bunch thresher, boiler, nuts and fibre separator, screw press, oil storage tanks and storage drums, gallons, scoopers, bowls, basins, among others.

The product packing line comprises oil, which will be packaged into different kegs from one litre to 25liters for both palm oil and kernel oil. And even in drums of 200 liters.

Production cost most times is low, because 70% of the staff required to work in the factory normally comes from the community. The end products (value chain) from the proposed project include:
• Refined palm oil
• Crude palm oil
• Refined palm kernel oil
• Crude palm kernel oil
• Palm kernel cake for animal feed production
• Palm kernel sludge
• Crushed palm kernel shell for bio-fuel

The plants and machinery for setting up the project, both producing and packaging are available locally. However, arrangements can be made for foreign machines on request from China, South Korea, Japan and India etc. Details, including bankable feasibility studies could be got on request.

Marketing Strategies
The numerous processing industries as well as local dealers are the first targeted customers. Cosmetics, food, animal feed, soap manufacturing, confectioneries, and bio-diesel industries, among others are target markets. Distributors can as well target the West African, African, European and American markets. Details of this also available on request.

Sales Forecast
Sales forecast is very important for the growth of any business, as it enables investors to determine what the market is like. From results gathered from studies, it is discovered that palm fruit processing business commands huge sales volume in and outside the country.

Palm fruit processing in Nigeria has its peak and off-peak seasons and with proper planning and storage it could be available throughout the year.
Marketing Plans

There are strategic plans on ground to ensure the best distribution network for easy access of the product by the final consumer.
Financial Implications And Projections

The cost of establishing this project varies depending on the type of products investors intend to go into, location and other related factors.

Investment Analysis
Products Crude/Refined palm oil Crude/refined Palm kernel oil Palm Kernel Cake for animal feed production Others-(Palm kernel sludge Crushed palm kernel shell for bio-fuel
Payback period Within 1 year Within 1 year Within 1 year Within 1 year
Return on investment 152% 185% 120% 87%

For the funding, the Central Bank of Nigeria (CBN) has earmarked funds to fund and encourage investors in this sector.
Counseling is available on how to establish and run the project profitably.
• For enquiries contact: 08034494437(WhatsApp), 08023664368. E-mail: ubagodwin@yahoo.com


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