In this era of oil price going down and other economic challenges, there is no gainsaying in the fact that people are turning to agriculture and agribusiness sector has also proven to be lucrative over the years.
This is why we are looking at palm oil business.
Palm oil business has taken a new look in Nigeria and anyone can start this business with desire, big goal and hard work. For those who live in the Niger Delta regions, even in the villages or Lagos Suburbs, they can start this business with no machinery investment as there are already places where they can mill and produce their oil.
Palm oil extraction is a mega business. It requires working hard like any other business. As you are reading this now, there are lots of people who are stockpiling palm oil in gallons to sell at the end of year season for big pay. It should not surprise you also that a small ragolis water bottle oil is now N300. Let us now see how you can start this business.
How To Start This Business:
It has been known that most people fail in business because they do not always write down their plans with pen and paper, therefore they move seemingly aimlessly in the operation processes of their business. This is a tragedy. My advice is that you write down your business plans before you ever start,
Your business plan should include financing of your business, operation and business profit projection as well as how to carry out this business.
This is the fundamental issue of worry to most people starting out a business. You must address this first.
There are lot of palm oil plantations in various states in Nigeria, Kenya, South Africa, Zimbabwe, Ghana etc . And most of the owners of these palm plantations are directly involved in leasing of plantations for a period of years or sales of palm nut in bunches.
This is the secret.
This is the secret.
One of the best ways to enter this business therefore is to look for palm tree plantation owners and lease from them for years. You could rent for three to six years and harvest your nuts all year round. This is very lucrative if well managed. All you have to do is hire workers who will clear grasses and prune the palm trees on contract basis.
The second option is to start a plantation farm of yours but this is not needed as this will take years to mature. You could also buy fresh nuts in bunches from plantation owners as they harvest.
You can have Palm oil extraction equipment fabricated locally or imported. The necessary equipment needed are Boiler, Nut Fiber Separator, Pounding machine, and Mechanical Screw, Press as well as surface tanks for storage.
Once you have purchased and installed these machines, you are good to go with your oil processing business. If you are running a medium to large scale business, it is important you hire worker(s).
Let me point this clearly. Do not be afraid if you do not have all the equipment but want to start. This is because you could carry your palm nuts to milling machines and get it done there for a fee. That is why they were established.
Ready to start?
As I mentioned earlier, write down your business plan. Also create a smart marketing plan. Once you are ready with your palm oil, approach prospective marketers, and offer them great prices with high quality production.
You can also market your product by establishing retail and wholesale outlets to sell your product.
There are also overflow of income during processing of palm oil. This is because product such as palm cake and kernel which is another money spinning products is derived there. And there are merchants who buy only the kernel to extract the oil that is oil. You could also extract the oil and sell.