How To Start Palm Oil Processing Mill Business In Nigeria (2018-2019 Guide)
Palm oil is such a natural product that provides a kind of seasonal business for the people and helps a lot of entrepreneurs earn thousands and even millions depending on how much profit the investment is worth. There comes a particular season in Nigeria when people store a lot of palm oil in drums and kegs so cheaply pending the season in which the price will go up again.
When the season of scarcity comes, it will be the right time to resell the drums and kegs of palm oil stored so far at higher prices to earn higher profits. During this season, people make millions reselling palm oil in the market. The palm oil business is so profitable and anyone can venture into it with little or heavy capital.
There are places in Nigeria where you can buy this product at cheap prices and places where you can resell at profitable prices. All these will be talked about in this article.
What do you understand by the term “Red Palm Oil”?
The red palm oil is the natural oil that is extracted from the palm fruits. The red palm oil is such an essential product cherished and used by almost everybody both in Nigeria and the rest of the world. There is no single family that neglects it. It’s used everywhere by the people to prepare stew and it also serves purposes such as the benefits it gives to the human health.
When taken in the right proportion, it heals the human body so quickly, provides natural vitamin E which is far more effective than the vitamin E tablets.
Though it’s been known that the red palm oil helps to cure some critical conditions of the eyes, it causes cholesterol if not taken in the moderate proportion. This is the particular reason the people in the eastern part of Nigeria take only little of it occasionally while preparing stew.
How to Start the Palm Oil Business in Nigeria
The palm oil business can be run in two dimensions in Nigeria:
- Planting the palm tree
- Buying and reselling the palm oil product
- Planting the Palm Tree
One of the crucial things to keep in mind while going into palm tree plantation is getting several acres of land. The soil must also be examined to ensure that it is suitable for palm tree plantation because the production quality will depend solely on the compatibility of the soil on which the palm tree is planted.
Once the palm trees have been planted, the period of incubation takes between 6 – 10 years before the final harvesting will take place.
The owner of the plantation may decide to sell the palm kernel directly to the people who process it, or alternatively, set up a processing mill for the extraction of the red palm oil.
Summarily, launching a palm tree plantation requires:
- Securing a piece of land
- Examining the soil for compatibility or suitability
- Getting unlimited access for your palm products
- Planting the palm tree
- Being patient for 6 – 10 years to harvest
- Harvesting your palm products
How to Set Up a Palm Oil Processing Mill In Nigeria
- Install the milling machines for personal use: This is the system of using the milling machines to process the palm kernel harvested in a self-established palm tree plantation or that of others that is brought for a milling hire. When the milling machine is hired, it’s paid for including the operating service.
- Renting Out the Milling Machine: This is the situation whereby the milling machine is rented out to the people who can go about the oil processing all alone.
- Buying and Reselling the Palm Oil Product
When planning to buy and resell the palm oil product, the following tips may be helpful:
- Get a shop for the palm oil business
- Find out where the product can be purchased so cheaply
- Transport the product to your own location
- Sell the product profitably
Get a Shop for the Palm Oil Product
Securing a shop for your palm oil business is the pioneer step to take when preparing for the season in which the product will be sold out at the best possible prices. Getting this in place long before the palm oil business season sets in would be so easy. It will also exonerate you from the trials of renting a shop at a higher cost.
Your shop is the final destination to which the potential customers are directed to buy the product. You can begin to give the people your shop address description long before the marketing season comes.
Find out Where the Finished Product Can be Purchased so Cheaply
When it comes to buying the palm oil product at cheaper prices to be stored for the marketing season, the best place to go is the mill where the palm kernel is processed. This is where you can get the product at the cheapest possible price and resell to make substantial profits in the season to come.
Once you can get enough funds to buy this product from the mill, you’ll make thousands and even millions when the business season comes.
Transport the Goods to Your Own Location
In preparation for the palm oil marketing season, you’ll have to make a place and set it up properly and safely to store the drums and kegs of palm oil you’ve been able to buy so far.
A room must be set aside and, right inside; planks must be spread on the floor of the room where the kegs and drums will be arranged. This is done purposely to ensure that the breeze that is coming from the ground does not affect the oil till the time they’ll be sold.
People who don’t understand this preservative measures run into heavy losses when it is time for them to bring the kegs and drums of palm oil out for sale.
Sell the Palm Oil Product Profitably
When the marketing season comes, you’ll have to transport the kegs and drums of palm oil stored so far to the shop you’ve rented earlier. This is the time of making the profits you’ve been anticipating for long ago. This is the time you’ll be making your thousands and even millions.