Wednesday, 2 November 2016

How to start palm oil production business in Nigeria

Palm oil is reddish in color made from palm kernel fruits,it is one of the common cooking ingredient majorly used in Africa,Brazil and South East Asia.
  It also serves as industrial purposes such as manufacturing of soaps,washing powders ,margarine, and personal care products.Most of the European traders who partner with West Africa countries usually purchase palm oil for commercial and home use.
  Indonesia and Malaysia are best known in the world for producing and exporting palm oil producing
countries.
  In 2012,the annual income received by Indonesia and Malaysia together,as the top best palm oil producing countries generated a total revenue of $40 billion which has also increased their country's GDP(Gross Domestic Product).
  Most of the palm oil consumed in Nigeria are mainly produced in the south-south and south-east region,states best known for these are Akwa ibom,Anambra,Edo,Ogun,Cross-river,Enugu,Imo,Abia,Ekiti,Delta and Rivers.

Palm oil business it has being ignored and overlooked by so many Nigerians maybe due to its nature but this is the type of business that has being making many millionaires.
  Do you wish to venture into this type of business?But dont know the best way to go about it?this post is actually for you, i will be listing detailed procedures on how to start this business and make profit from it.This type of business is not for everyone because it is very strenuous.

1.  Raise some capital
   Starting this type of business can be capital intensive,so the first move you need to make is to raise some money depending on the type of scale you want to run ,it can cost between the rate of #200,000 to #1million.You can borrow loans maybe from family,friends and government grants.

2.Acquire a size-able piece of land
   Deciding on the size of land you want to use depending on your capital,it can be in plot,acres and hectares.
  Acquiring a piece of land is not a problem but can you maintain the longevity?mostly for those who resides in an rural area here in Nigeria,beefs and jealousy can set in by those who sold the land for you,once they see that it is generating income.So its adviceable you have to go through long and legal process in other not fall in the wrong hands of land sellers.
  Contact NIFOR(Nigerian Institute for oil palm research)they are the ones that will decide on the specific number of hectares or plots of land that you can use for palm oil tree plantation.


3.Hire skilled laborers
  Like i said before this type of business is very strenuous and is not best done alone,it requires a full work force team.The laborers will help in the clearing of the land needed for palm oil plantation and same goes when milling the palm kernel fruits this will make work easier and convenient for you.
  The number of laborers needed will depend on the size of land,mostly it ranges from 10 to 15 men.

4.Palm oil tree plantation
  Planting a palm oil tree requires a very long process,the best time to start plantation are early August,October and December.

  •  crop type:palm kernel seedlings,you can purchase that from NIFOR it will cost #150 per each seedlings.
  • Weather type:It needs a lot of sunshine and a bit rainfall in other to produce a large fruits of palm kernel
  • Planting method:Dig a sizeable holes for plantation,take out the seedlings off the nursery,take them to plantation land  and plant them over there.
  • Harvest period:it can take more than 3years before you can harvest.
  • Seek an expert on this field of palm oil plantation for better recommendation
 If you can't go through this planting process,then consider purchasing from those who are into this line of business.

5.Palm Kernel Milling 
  Extracting palm oil from palm kernel fruits requires a long process because it will involve the use of
machinery or if you are still knowledgeable about the
traditional days of extraction,the boiling,pounding and filteration these are some of process i personally know.But on the hand,it is adviceable to use palm oil extraction machine to make your work easier and faster.

6.Proper storage
  Mostly palm oil product are mostly stored in big barrels and 25liters gallon,dont bother about spoilage because one good thing about this palm oil
is that it can stay as long as 2-6 months.It should also
be kept in a safe place to avoid being stolen.

7.Transport/Sell your product
  In other to have more sales,you must have some sales marketing skills,you know how hard it is for you to to convince a Nigerian to patronise your product without giving them deep and solid reason to purchase your product
  Have a targeted place where you know that your palm oil product is in high demand and can easily be purchased.
  If you decide to sell in large quantities then think of conveying and marketing your product to some of those  states in Nigeria that are not much into palm oil business,states like Lagos,Abuja,Kano,Plateau,etc.The need for it will be very relevant over there because it is an urban area where most of the citizens are not much into local business,this will also increase your revenue if you follow the right channel.
  Conclusion:
 Starting this type of business requires full commitment,hardwork and a mindset,dont be too
much in a hurry to start making millions through it over night.
  One way you can achieve that is to get feedbacks from the people you supplied it to,if the outcome is a positive one boom! you are on way to build a million naira business for yourself in due time.

 


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