Many Nigerians believe that the only time you can gain in Palm Oil Production Business in Nigeria is only when you stock it up and sell it the next season when it is scares.
In Nigeria alone, a lot of people have become millionaire or make their first millions through this business and this includes people like Orji Uzor Kalu and this means any one can profit in this business too, provided you have enough capital and business guide(like this one) to start it up.
One outstanding thing about starting up a Palm Oil Business in Nigeria and gaining from it is that just like the popular Rice, Beans and Garri items, palm oil business can be sold all over every states in Nigeria and likewise internationally like in West African countries like Ghana etc. and in Far East countries such as Malaysia, Indonesia etc.
By the way,
What is Palm Oil?
Palm oil is a type of edible vegetable oil that is derived from the palm fruit, grown on the African oil palm tree. Palm oil can be present in a wide variety of products and soups, including baked goods etc.
Estimated profit in Palm Oil Production Business in Nigeria
Profits from Palm Oil Production Business in Nigeria can really be benefiting since it is a common consumed and international product. Whether you own a palm oil plantation or producing/extracting palm oil; you will still be making some money too.
In a roughly estimation, a 20-25 liters of palm oil cost about #4,000-#5,000 each; this can varies depending on your location either locally or internationally and time (this post is written in 2017).
The price can be higher or lower but whatever the case maybe; you will still recover your gain or profit in this Palm Oil Production Business.
Know that, there are high tendencies of selling higher and making more gains during its scarcity period.
Cost of setting up Palm Oil Business in Nigeria
In this business of Palm Oil Production Business in Nigeria, one of the hindrances that you might experiences is capital.
Well, if you already have a startup capital then you are good to go but if not, then you can get a loan to set up your business.
Here are ways and places to get loan for your palm oil production business.
Ways to get loan for your Palm Oil Production in Nigeria
- Cooperative societies; these are some known societies or groups which are known for allocating loans with interests. They are most times known as private loaners or investors.
- Some Nigeria Banks; like First Bank, Access bank, UBA or so etc. are known for granting loans with fair interest. You can walk up to any of these banks branches and enquiry the procedure for taking loans, and know if you meet up with the requirement.
- The government; government agricultural agencies have set up organizations which do assist individuals with funds to set up eloquent business provided you have a good business proposal.
- Microfinance banks; these banks lends out funds to loan seekers with interests. Make sure you have a good business proposal for setting up your Palm Oil Production Business in Nigeria
- Personal Loan lenders; there are lots of quick loan lenders online who can lend out loans with interest and without collateral. They might require some information’s like national ID, Bank verification Numbers (BVN), driving license etc. if you intend to borrow from them, make sure you properly and vigorously research about them before you deal with them because some fraudster are using this opportunity to scam people.
The By-Products of Palm oil
The amazing thing about setting up a Palm Oil Business is that you can also gain from its by-products.
This fruits can be used for so many other benefits which can also be a source of income.
Whether you own a palm oil plantation or you own a palm oil mining company, you can still gain from the by-products of palm oil, the oil secret there is to find companies who are in need of these by-products you have and sell it to them.
Some of these by-products are used for;
- Personal care and cosmetics; most cosmetics or personal care companies, uses some palm oil by products like palm kernel to make creams and soaps.
- Foods and snacks manufactures; some foods and snacks companies use some of palm oil by-products to produce their goods. You can walk up to them to require their needs and supply to them.
- Biofuel and energy; there are companies out there who specializes in turning palm oil or its byproducts into biofuel and energy for fuel and crude oil substitute. Thus, you can also supply top the.
- Animal feeds; most some of animal feeds constitute and are made up of palm oil byproducts like palm kernel which provides nutrients to the animals. They will be needed in higher quantities.
- Pharmaceutical companies; companies whom produces drugs also requires the byproducts of palm oil.
Benefits of Palm oil to the body
Before we jump into the discussion on how to set up a Palm Oil Business in Nigeria, let’s quickly look at the amazing health benefit of these fruits we want to invest in.
Palm oil, also known as virgin palm/red oil has been around for many years. This palm oil can be derived from the oil palm tree, Elaeis Guineensis. Some people do believe that it has greater benefits than coconut oil and palm kernel oil because of its much benefit which are;
- Lessens the risk of stroke; these amazing fruit can help in lessening stroke. Many studies has backed these up by stating that palm oil can significantly reduce the risk of suffering an attack of stoke. It is says that palm oil has the anti-inflammatory and cholesterol-lowering properties and reverses atherosclerosis buildup in the blood vessels of the brain which reduces the incidence of ischemic stroke.
- Helps to decrease cancer tendencies; palm oil has anticancer nutrient known as tocotriencol which helps in blocking and mops up harmful free radical and prevents them from causing oxidative injury to vital body organs. This help in fighting against cancers in the pancreas, liver, breast, stomach, colon, prostate. This palm oil also initiates apoptosis, a process that leads to an automated death of mutated cancerous cells in the body.
- Improves the heart health; palm oil is also known to improve and enhance cardiovascular health in several ways. The tocotriennols and mixed carotenes found in ample quantities in palm oil have contributed greatly to this. Also the protective anti-inflammatory phytonutrients in palm oil helps to block and reverse the process of atherosclerosis and los protection from heart attack and hypertension.
- Improves healthy skin; the present of tocotrienols, vitamin E and carotenes in palm oil can help put the skin in good condition by protecting it from harmful ultraviolet rays.
- Helps to Improve vision; one of the popular qualities of palm oil is its effective aid in improving the sight. Palm oil has enough qualities of vitamins, alpha and beta carotenes which are important precursors in the synthesis of vitamin A. Also many studies have linked palm oil to help in the decrease of cataracts and macular degeneration which are the popular causes of blindness.
- Palm oil also aid in boosting hormonal balance and the vitamins in it also help in preventing vitamin deficiencies in pregnant women and children.
Starting up a Palm Oil Production Business in Nigeria
Being in palm oil production business in Nigeria means choosing one from many branches of this business; though some people believe they can start up all the branches of it; if you have the capital you are free to do so. So therefore in this guide, I will be listing and them explaining them all;
- Palm trees plantation Business; this business is all about having a large farmland of palm trees grown neatly. Many people prefer to start up this business because it’s the main root of palm oil production business where other branches come to purchase the palm fruits from, in other way, if there is no palm trees plantation, other palm oil production business will not exist.
To start up this business, you will need the following;
- Capital; almost every business needs a capital, this are funds which you will need to purchase lands, seedlings, pay your workers and purchase other equipment’s needed in your farmland. In cases where you don’t have capital for starting up your business, there are government agencies, banks, cooperative societies etc. that can offer loans to you (I explained them above).
- A good business plan or proposal; like capital; a good business needs a business plan. In this business plan you should write the steps in you intend to follow to improve your business, the cost of setting it up and your estimated profit in the long run. Remember, this business proposal can also aid you if you intend to collect loan.
- Very large hectares of farmland in a good area; if you have seen a palm tree then I suppose you understand what I mean when I said that you will need very large hectares of farmland. Palm trees needs space, keep that in mind when purchasing your farmland or planting your palm fruits.
Also keep in mind that you will need a fertile land with good soil PH. These are one of the secret of planting good fruits.
- Good species or seedlings of palm fruits; if you want your palm fruits or palm trees to grow when and produce good fruits, then you should make research of good palm fruits or seedlings and purchase them, (another secret of making it in this business). Now a seeding should cost about #100-#150 (this might varies) and you will need about 1000-1500 pieces of them (though this depends on the size of your land). In about 2-3 years, your crops should have grown well for harvest
- Source of water; every crop needs water to grow, make provision for the availability of water for your crop so you won’t loss them to the lack of it. You should also keep in mind that palm fruits need water to grown well.
- Workers; if you intend to do this only then you must be ready to spare enough strength. The truth is that you can’t do this only; you will need few workers to help in planting, watering and inspecting the crops till they germinate and also for harvesting. The need for few or more workers is that it helps the crops to grow uniformly for good harvesting.
Palm oil processing or mining;
another good palm oil production business in Nigeria is palm oil processing or mining. This business is all about having some oil processing machines or oil mining machines that will extract the palm oil from the fruits.
This is indeed a very good business opportunity because the very problem that most farmers are having is on how to extract their palm fruits into palm oil.
Though, some farmers have a local way of extracting it but they are most times unhygienic, requires much workers and very stressful. In this business, you might want to rent out your mining machines to farmers who need them or you can personally mine your palm oil and sell them to buyer (you can even combine them both). Whichever way you want, just know that you will be making addition profits from them.
In other to set up this business, you will need the following;
(Note; the procedure for capital and business proposal are same as that of palm oil plantation business)
- Business plan or proposal.
- Large Land; for setting up the mining or processing machines and storage tanks or containers.
- Workers; these are workers who will operate the machine for effectiveness.
- Storage tanks or containers; these are tankers for storing up the processed palm oil.
- Buyers; of course you will need them; you don’t intend to store up your palm oil forever. Market your product to available buyers.
Buying and selling of palm oil
A lot of people might be interested in palm oil production business in Nigeria but don’t really have a means of capital for palm oil plantation or palm oil processing or mining.
Well you don’t have to give up because you also are part of this business by buying palm oil from miners in large quantities and reselling them to retailers.
The good thing about this business is that you don’t need much capital unlike that of palm tree plantation and palm oil mining. And also, you get to buy the palm oil in low amount as a wholesaler.
What you need in this business are;
- Business plan
- Storage room or storage tanks
- And buyers (you will need a whole lot of them).
So, these are all you need to know about palm oil production business in Nigeria. You can choose the type that will favor you or if you have the capital you can start up in all.