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Palm Kernek Oil Processing - Profitable Business in Nigeria

If you are looking for a profitable business opportunity in Nigeria, then Palm Kernel Oil Processing Business in Nigeria is a good option to consider. Palm kernel oil is a cheap source of oil used in the production of of numerous products such as soaps, vegetable ghee, margarine, ice cream, cooking oil, bio-fuel etc..

start palm kernel oil mill business in Nigeria

Start Palm Kernel Oil Mill Business in Nigeria

Additionally, a by-product of palm kernel oil processing is palm kernel cake, a fiber-rich product used in the production of livestock feed. For all of its uses and for its by-product, palm kernel oil has seen rising demand, which has not yet been matched by supply. This gap provides an ideal opportunity to capitalize on for investors looking to enter the Nigerian market. (Related Equipment: Palm Kernel Oil Extraction Machine Price in Nigeria >>)

How to Setup Small Scale Palm Kernel Oil Mill Plant in Nigeria?

How to start palm kernel oil mill business in Nigeria? Many people may don't know to start it and how much it would cost? If you don't have too much budget and have no experiences in palm kernel oil produciton, a Small Scale Palm Kernel Oil Mill Plant would be a BEST choice to enter palm kernel oil processing industry in Nigeria. Here, we list the steps involved in setup a small scale oil production plant to start palm kernel oil mill business in Nigeria.

small scale palm kernel oil production mill plant
Small Scale Palm Oil Mill Plant at Low Cost

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  • Step 1: Business Plan

A business plan is the first step towards starting any business. It helps determine the amount of capital required and how it should be used. In a way, it acts as a road-map for the business operations. It is also a key document in helping secure additional capital, whether through strategic partnership or lending, if required. (Related Article: Palm Oil Business Plan >>)

  • Step 2: Start-up Capital

This is the initial investment required to set up a palm kernel oil factory. Since palm kernel oil production is a capital intensive process, you will need considerable cash upfront. For example, for a 5 tons capacity palm kernel oil mill, you will need an initial investment of roughly around 20 million Naira and above. This cost can vary depending on the location of land chosen, land-size and capacity of palm kernel production plant decided upon etc.. If you don't have the necessary funds to start your business as the sole proprietor, then you can exercise options such as entering into a partnership or sourcing capital from the bank of industry or other lending institutions in Nigeria.

  • Step 3: Choosing Location & Setting Up Factory

Finding land is an important step. You will want to choose a location suited for production purposes yet not too isolated where distance becomes a hindrance for operation. Once the land has been bought, you need to build the factory, which will house your raw materials and your entire oil production line.

  • Step 4: Business Registration

To make your business a legitimate entity in Nigeria, you will need to register it with Corporate Affairs Commission of Nigeria {CAC}. You can register your business as a limited liability company or you can simply register a business name.

  • Step 5: Machine & Equipment

The typical machine and equipment for a small scale palm kernel oil production plant includes: palm kernel cracker, palm kernel separator, palm kernel roaster, palm kernel oil press machine, oil filter, oil refining machine, oil storage tank, oil dispatch pump and weighing machine. Roughly 3~10 million Naira can get you all these machines, locally made, with a production capacity of 1~30 ton/day. However, if your budget does not allow this, then you can seek to reduce costs by negotiating on the cost of machines and by reducing the production capacity of your production line. (Related Post: Palm Kernel Oil Refining Process >>)

oil pressing machine for small scale palm kernel oil mill business
Oil Pressing Machine for Small Scale Palm Kernel Oil Mill Business

  • Step 6: Power Supply

Your electricity supply will come from PHCN. However, because the supply can be unreliable, you will need to invest in a stand-by generator of a capacity of 50KVA and above to ensure there are no disruptions in your production line due to power failures at PHCN.

  • Step 7: Procurement Of Raw Materials & Hiring Of Workforce

The main raw material needed is the palm kernel nut. It is sourced from oil plantations in the south of Nigeria and found in abundance during the rainy season, which is from May to September. You will need to actively carry out recruitment to hire your workforce which will range from hiring workers for the production line to hiring management level staff.

  • Step 8: Begin Production

With the palm kernel oil mill plant established, you can now start producing palm kernel oil. A typical palm kernel oil production process involves palm kernel nut crushing, followed by kernel nut roasting, expulsion of oil from kernel and collection and storage of the oil. The extracted oil is in crude form. It can be stored and sold directly as is or it can be taken for further refining.

  • Step 9: Marketing

Being a new business in the market, you will want to invest heavily into an aggressive marketing strategy to announce your entry into the market, create brand awareness and establish a strong consumer base.

small scale palm kernel oil processing plant for sales
Complete Palm Kernel OIl Mill Plant

These are the typical steps involved in starting a palm kernel oil mill business in Nigeria. We hope this will give a clearer picture to investors, who are considering entering Nigeria's palm kernel oil market , of what to expect if they decide to capitalize on this opportunity. (Related Post: Cost of Setting up a Palm Oil Mill in Nigeria >>)

how to start your own production line with best business plan

Palm Kernel Oil Milling Process

Palm Kernel Shell Separation: Palm kernel and nut can be obtained by crushing the kernel. The palm kernel can always be used as fuel in the boiler room. Shucking can accelerate the oil yield, accelerate the quality of crude oil and cake, reduce the wear of equipment, increase the reasonable production of palm oil processing equipment.

Palm Nut Crushing: The shelled palm nut is relatively large. Direct oil pressing will damage the machine and the oil yield is not high. Usually, we need to crush the palm nut to meet the requirements of the palm kernel oil pressing process. The Palm Kernel Crushing Machine in Nigeria is mainly tooth roll crusher.

Palm Nut Steaming and Stir-frying: The purpose of steaming and stir-frying is to make oil cells completely destroyed through the action of temperature and water, so that protein denaturation, grease aggregation, grease viscosity and surface tension decrease, the elasticity and plasticity of the blank is adjusted, and the enzymes are passivated. The main equipment for steaming and frying is the steaming wok.

Palm Kernel Oil Pressing: The method of extracting oil by extruding the oil from the oil with the help of external mechanical forces. The widely used oil extraction machine for palm kernel oil extraction is screw oil press machine.

Palm Oil Clarification/Filter: The impurities in the oil are separated by clarification and filter to obtain relatively pure palm kernel crude oil. (Related Equipment: Oil Filter Press Machine >>)

Palm Kernel Oil Refinery: The palm kernel oil obtained through the above steps is of high quality and ready for direct consumption. If you have special requirements, special USES you can send the crude palm kernel oil to oil refining plant for high quality palm kernel oil.

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