Business Plan on Palm Oil Production in Ecuador

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Palm oil production is a good investment for edible oil processing business, especially in Malaysia, Indonesia, Thailand, Nigeria (Nigeria Palm Oil Production >>), Guatemala, Colombia  and Ecuador , who are the main producer of oil palm tree and oil palm fruits. Here in this article, let's talk about the palm oil production in Ecuador and how to make your business plan on starting your palm oil production factory in Ecuador.

Undertake Palm Oil Processing Project for Both Small and Large Production

palm oil production business plan
Complete Palm Oil Production Plant Design and Construction

As of 2017, palm oil made up to 50 percent of oils consumed worldwide. In most countries, palm extracts are used to make soups, pottage and stews. This amazing plant - oil palm has the most versatile use and its market is worth billions.

Benefits of Investing in Palm Oil Production in Ecuador

If you live in Ecuador there are quite a few benefits that favors you in Investing on a palm oil production company.

  • Rich Resources of Oil Palm Tree: Palm trees are widely available across all parts of the county and this factor makes it easy to start oil palm processing business.
  • Easy to Get Cheap Palm Fruits: Ecuadorian coastal region offers a favorable climate for palm trees to thrive. Most people who live around the coastal area are palm tree farmers and you can buy cheap oil palm fruits for your oil extraction factory.

There are 3 major products that can be extracted from palm fruits: crude palm oil, palm kernel oil and palm kernel expeller. The oils can be extracted from both oil palm ftuis and palm kernels. If you want to invest heavily in the palm oil industry, you are suggested to buy some land and plant oil palm trees for commercial purposes. (Related Post: Palm Kernel Oil Production >>)

How to set up a company and Invest on Palm Oil Processing Plant in Ecuador

palm oil production plant design
Palm Oil Extraction Section (left), Palm Oil Refining Section (right)

  • Factory Location: To start your own plant, look for a suitable location and calculate the estimated cost of setting up the plant. You will need money for buying machineries, construction equipment, buying land or leasing buying raw materials, hiring employees, paying utility bills and running the entire oil processing plant.
  • Raise Funds for starting the oil processing plant. If you can't raise enough capital, borrow money from friends, bank loans and sponsors.
  • Build Palm Oil Production Plant: Buy all machinery and equipment for processing and extracting palm oil, and establish the palm oil milling factory.
  • Apply for Licenses and permit for running the palm oil plant. Get insurances if necessarily.
  • Hire qualified employees with background knowledge in industrial processing or any other related field.
  • Collect Fresh Palm Fruit Bunches (FFB): If you don't have your own palm tree farm, buy palm tree fruits from farmers and reliable supplies.
  • Operate Your Palm Oil Plant: Start the extraction process of palm oil. Pack the oils in quality packets and branded containers that will attract customers to buy or try your palm oil products.
  • Marketing and Selling: Start arketing and selling your products through different media channels. Use commercials and any other suitable advertisement mode that you think might help your business grow.

What's the Cost of Palm Oil Production Machines for Setting Up a Edible Oil Mill Plant?

Equipment price and construction cost is what investors are most concerned. In fact, the cost of building a complete edible oil mill plant for processing palm fruits is affected by many factors. Here ABC Machinery lists some of the main factors:

  • Production Output: Capacity is the key factors that affect the equipment cost. The larger the capacity, the higher the cost.
  • Processing Technology: Complete and automatic palm oil processing technology cost more than simple processing technology.
  • Equipment Quality: The quality of equipment varies greatly from manufacturer to manufacturer. For the same machine, some manufacturer use very thick steel plate, while  some may just use very thin steel plate. Besids, some equipment are made from stainless steel, while others might be made of ordinary carbon steel.
  • Clients' Requirment on Final Products: For some oil mill plant, the final product is crude palm oil in bulk, while others might be RBD palm oil in bottles (crude palm oil refining process), or even palm oil soap (palm oil fractionation process).

When choose the manufactuer of palm oil production machine, be a rational business man choose a reliable partner so that to get a perfect business plan and establish a cost-effective palm oil production mill.

Palm Oil Production Vs Vegetable Oil Production

The businesses opportunities of investing on palm oil production plant are quite impressive! 

Who needs palm oil? Why does it have such a huge demand? Unlike other vegetable oils, palm oil is highly versatile and it's used in making coffee cream, margarine, ice cream, condensed milk, etc. The oil has unique consistency features that allows it to resist high heat temperatures. These unique qualities make it the best oil for frying and cooking. In most countries, palm oil is a highly sought-after product in restaurants, food processing firms and homes. Read more about palm oil extraction machines >>

vegetable oil vs palm oil production
Why Invest in Palm Oil Production?

As the world population continues to grow, the demand for palm products is expected to increase. Human consumption and the numerous diverse uses of palm oil will contribute to an increase in demand for this versatile product. If you want to reap the benefits and succeed in business, Invest on Palm Oil Processing Plant in Ecuador and you will be surprised by its huge returns.

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