What are the local factors to consider before starting a palm oil processing business in Nigeria?

Industry news / Chat on line / Give me a price / Date: March 23, 2020

Palm oil is the most consumed edible oil worldwide. It is especially in high demand in Nigeria, where it is used in almost every home for cooking and few other purposes. Presently, more and more investors have realized the value of starting a palm oil processing business, and they are trying to find out the local factors to consider before starting a palm oil processing business in Nigeria? If you are one of them, the following analysis will be helpful.

1. Have a business plan.

A business plan is very important if you intend to go into palm oil processing business. You need to do a market research. Making a good palm oil processing business plan is the first step in starting a company or oil mill. Study the requirements of palm oil processing business in terms of technology, capital, market, and competition.

While doing the market research,You would have to find out where is best to supply and your market base. Finding out where your competitors are doing which is right to follow them and what they are doing wrong to improve on their businesses.

Besides, a business plan would state what size of palm oil production your business should be, you daily or weekly oil production volume, your estimated profit margin from the palm oil business based on the feasibility study carried out. It would also state what number of workers the business would employ, the budget for salaries and so much more.

palm oil processing business planMaking a good palm oil processing business plan is the first step in starting a palm oil processing business

2. Source for capital.

Loan from bank and look for investors are the main methods to start a palm oil processing business. If you are ready to do palm oil business in Lagos Nigeria, you are very lucky. As Nigerian president Buhari was reelected since February this year, he has been making action to encourage the development of palm oil processing business which includes finance support. This is definitely good news for most people who want to loan from bank to start palm oil processing business.

But before loaning from the bank, you need to make sure your proposal and business plan are well prepared as these would your business an edge when applying for loans as it would enable the loan lenders( i.e the commercial bankers or other financial institutions ) gauge your business’s worth and viability, hence the ability to repay the loan you are requesting for.

3. Acquire land.

Of course you need land to put the necessary palm oil processing machines. It could be your own or a land which is leased. According to the suggestion of Henan Doing Company engineer, the location of your palm oil mill is best near the oil palm plantations. The mainly reasons are: First, palm fruit bunches need to be processed within 48 hours, or the acid value will increase and the FFB will be rancid easily. Second, the location of your palm oil mill near the oil palm plantation can help people save more time and transport cost.

It will be better for you if the traffic near the palm oil mill is convenient. It means that your palm oil and other palm fruit by-products can be transport to the consumers easily.

palm oil processing plantWe need a land to put the necessary palm oil processing machine

4. Collect enough raw material(Palm fruit bunches)

The major raw material needed in Palm oil production process is the ripe Palm fruits harvested from palm trees.

In Lagos Nigeria raw material is sufficient and cheap. So you can get enough palm fruit easily. Ripe Palm fruits can be sourced from oil palm plantations or small farmers.

palm oil processing plant Ripe palm fruit is the main raw material of palm oil mill

5. Solve the water supply

You will need a constant water supply for the boiling/steaming of the palm fruit during processing. It has to be clean because hygiene is of utmost importance in palm oil processing process.

6. Hire workers

You need palm oil processing factory workers, engineers, driver and other relevant staffs to assist you in running the day to day activities in your Palm Oil production business in Lagos Nigeria.

palm oil processing plantHire workers is also the important factor to starting palm oil processing business in Nigeria

7. Solve the power supply:

You need public electricity supply to power your palm oil processing machines and equipment, though not reliable. But, if you budget is enough, you can choose to buy a generator to generate electricity in case public electricity supply fails.

8. Know what machines are needed in palm oil production process:

Depending on how many tons do you want to process one day, the machines you need may vary.

palm oil processing machineThis is large scale palm oil processing machine photo, besides this, we also supply other types palm oil processing machine

The most common machines found in a palm oil mill are the palm fruit sterilizer, palm fruit thresher, palm fruit digester, palm oil press machine, crude palm oil clarification machine, boiler, and so on. If your budget is enough, you can buy the whole palm oil processing machine. But if your budget is limited, you can use manual laborers to replace the palm oil machine. For example you can use manual laborers replace the palm fruit threshing machine.

9. Purchase and install the palm oil processing machine.

Henan Doing Company have installed many palm oil mill projects in Nigeria. Now these palm oil mill all running well. If you want to buy palm oil processing machine, Henan Doing Company maybe a good choice. Doing Group can supply palm oil processing machine with different capacity different configuration.

After you buy palm oil processing machine from Henan Doing Company, we will send engineers to guide the installation till the palm oil mill running well.

palm oil processing plant Small scale palm oil processing plant project in Nigeria

palm oil refinery plant Semi-continuous palm oil refinery plant project in Nigeria

10.Sell palm oil to market:

To sell your palm oil, you will need to visit major markets. You can sell your palm oil to edible oil market, supermarket or other industries in Nigeria that uses palm oil as a major source of raw material for production.

red palm oilThe red palm oil can be sold to market, supermarket or other industries in Nigeria

In addition to the above factors, there are some others need to be considered when starting a palm oil processing business in Nigeria. As a reliable palm oil processing machine supplier who has built many palm oil mill projects in Indonesia, Malaysia, Nigeria, Congo, Cote d'Ivoire, Uganda, Mexico and so on. We are particularly willing to give you some useful advice to help you to set up your own palm oil mill plant.

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