How much does it cost to set up a small scale palm oil processing plant for beginners?

Palm oil is one of the most versatile and widely used vegetable oils worldwide, and it comes from the palm fruits of the oil palm trees. For beginners who want to enter the palm oil industry, setting up a small scale palm oil processing plant can be a profitable venture. However, understanding the cost to set up a small scale palm oil processing plant is essential for financial planning and success. This article will explore the cost to set up a small scale palm oil processing plant for beginners.

Land and Location Costs

The first step in setting up a small scale palm oil processing plant is to acquire a suitable piece of land. Land cost vary greatly depending on its location, accessibility, and size. In rural areas where oil palm trees is primarily grown, land may be cheaper than in urban or developed areas. If you already own land, this can significantly reduce your initial cost. If not, budgeting to buy or lease land should be your main cost consideration.

On-site photo of the construction of a small scale palm oil processing plant

Small Scale Palm Oil Processing Plant Construction Cost

Setting up a small scale palm oil processing plant also involves building a physical structure to house the palm oil processing plants. The cost here depends on the sizes of the small scale palm oil processing plants, the building materials, and local construction rates. A basic but practical design of a small scale palm oil processing plant for beginners may include space for sterilization, threshing, pressing, clarification, and storage. This cost may range from a few thousand dollars to tens of thousands of dollars, depending on the location and complexity of the small scale palm oil processing plant.

Palm Oil Processing Plants Cost

The core of any palm oil processing plants is its processing plants. Small scale palm oil processing plants usually require a range of palm oil processing plants to sterilize palm fruits, thresh to separate the palm fruits from the bunches, press to extract palm oil, and clarify/filter palm oil to remove impurities. Therefore, the cost to set up a small scale palm oil processing plant varies according to the processing capacity and actual configuration of the palm oil processing plants. Henan Glory Company is committed to the design and production of palm oil processing plants, and can provide a variety of single-machine plants and large, medium and small scale palm oil processing production lines.

For the single-machine plants required in a small scale palm oil processing plant, if your palm plantation covers an area of 110 hectares, we recommend our 500kg/h single screw palm oil press to you, whose screw is made of wear-resistant alloy steel and one-piece casting process, which is not only of good quality but also very wear-resistant. In addition, our 500kg/h single screw palm oil press has two power systems, diesel and electric, to meet the needs of different regions. The cost of purchasing the 500kg/h single screw palm oil press you need ranges from about $950-1250, which may vary depending on the power system.

500kg/h single screw palm oil press

If your palm plantation covers an area of more than 220 hectares, we recommend our 1-2t/h double screw palm oil press to you. It consists of two pressing screws and a pressing chamber, which can automatically adjust the pressure of the pressing chamber, not only with a higher oil yield, but also not easy to clog. The cost of purchasing the 1-2t/h double screw palm oil press you need ranges from about $6000-8000. In addition, if you want to expand the production scale of a small scale palm oil processing plant in the future, it can be connected with other plants to form a complete palm oil production line.

1-2t/h double screw palm oil press

For the production line required in a small scale palm oil processing plant, we recommend a simple and highly automated palm oil processing production line, which consists of three sets of plants: palm fruit thresher, palm oil press and filter. This palm oil processing production line is very suitable for beginners who want to set up a small scale palm oil processing plant. Among them, the palm fruit thresher can help you remove palm fruits from the bunches. The palm fruit removal rate is above 95%. The filter can filter out impurities in crude palm oil and improve the quality of red palm oil. The cost of this program is approximately between US$6,000 and US$12,000.

Simple and highly automated palm oil processing production line

Labor and Management Costs

Hiring skilled and experienced workers is essential for the efficient operation of a small scale palm oil processing plant. Setting up a small scale palm oil processing plant requires planning for recruiting and training palm plantation workers, palm oil processing plants operators and managers. Labor cost vary depending on the location and the number of employees required. Based on the installation and commissioning of palm oil processing plants, Henan Glory Company can provide personnel operation training for customer companies to reduce personnel training costs.

Engineers from Henan Glory Company conducting plants training

Other Costs

Setting up a small palm oil processing plant for beginners must consider the additional costs of starting a palm oil plant. These costs include permit and license fees, insurance premiums, and potential environmental management systems to comply with regulations and minimize the ecological footprint of the palm oil plant. Besides, investing in quality control testing plants is also essential to ensure that the palm oil produced meets international standards for export or local sale.

Setting up a small scale palm oil processing plant is a major investment, with cost ranging from tens of thousands of dollars to hundreds of thousands of dollars. Beginners should carefully plan their budgets, taking into account initial capital expenditures and ongoing operating costs. If you are planning to enter this industry, you may wish to contact us. Our Henan Glory Company specializes in palm oil processing, and we can help you from plant layout design to installation and put it into practice. In addition, we have projects in Nigeria, Cameroon, Liberia, Cote d'Ivoire, Tanzania and other countries. If you want to know the specific cost to set up a small scale palm oil processing plant, please contact us! We will give a detailed quotation based on your actual configuration.