Techno-economic Analysis for Palm Oil Production Benefits in Business Setup

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Techno-economic analysis is the quantitative analysis and evaluation of the economic effects of technological activities, also known as techno-economic argument. It is one of the important means of modern project management. To successfully start a palm oil business or to successfully obtain benefits from investing in palm oil processing industry, technical and economic analysis is very necessary.

techno-economic palm oil production business benefits analysis
Business Plan Guidline: Techno-Economic Analysis of Palm oil Production Benefits

ABC Machinery is a globally-recognized palm oil machine manufacturer and supplier, boasting extensive abilities of equipment manufacturing, business plan design and palm oil production benefits calculation that have setup multiple palm oil processing projects in Nigeria, Brazil, Indonesia, Thailand, Malaysia, etc. 

Why Make Techno-Economic Bnefits Analysis for Palm Oil Production Business?

Techno-economic analysis is the quantitative analysis and evaluation of the economic effects of technical activities, also known as techno-economic justification. It is one of the important tools of modern management of engineering projects for palm oil production business. Through qualitative and quantitative analysis by applying techno-economic theories and methods, a economically favorable and reasonable techno-economic palm oil production benefits analysis for your business plan is settled. The technical and economic analysis for a palm oil processing business generally consists of the following five aspects:

In order to successfully determine a palm oil milling project, in addition to the above analysis work, but also the total investment required for palm oil mill project, the amount of investment by year installment, the cost of products after production, profitability, payback period, the main material indicators consumed during the construction of the project and the production process for accurate quantitative calculation. The basic data used in the calculation of the indicators, such as, fixed asset investment, working capital, palm oil production cost, product output, sales revenue, etc., especially the key data such as market forecast and price, must be accurate because it will directly affect the quality of project evaluation.

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Steps To Analysis the Palm Oil Production Benefits for Your Business

  • Determine the business objectives 

Any technical program is proposed to meet a certain need or to solve a practical problem, therefore, before the economic analysis of palm oil production, the objectives and requirements to be achieved by the technical program should be determined first, which is the primary premise of the economic analysis work. (Read more: how to start palm oil business in philipines>>)

  • According to the palm oil processing project requirements, list various possible technical solutions

  • Economic Benefit Analysis and Calculation 

The economic palm oil production benefits analysis of technical solutions mainly includes enterprise economic benefit analysis and national economic benefit analysis.  

The enterprise economic benefit analysis is to analyze and calculate the benefits, costs, profitability and borrowing capacity of the project from the perspective of the enterprise under the conditions of the current national financial and taxation system and price system, in order to determine whether the program is feasible. 

The national economic benefit analysis is to analyze the cost of the program and its contribution to the country from the perspective of the country as a whole, in order to examine the economic rationality of the investment behavior.

  • Comprehensive Analysis and Evaluation

By conducting economic benefit analysis of technical solutions, the solution with the best economic palm oil production benefits can be selected, but it is not necessarily the optimal solution. Economic efficiency is the main but not the only criterion for choosing a solution. The decision to choose a solution is not only related to its economic factors, but also to its political, social, environmental and other benefits. Therefore, each option must be analyzed and evaluated comprehensively. (Learn more: cost of setting up a palm oil mill in nigeria>>)

In short, in the comprehensive evaluation of options, in addition to economic indicators such as product output, quality and labor productivity of the enterprise, other aspects involved in each option, such as demolition of houses, occupation of farmland and environmental protection, must be analyzed in detail and the pros and cons of each aspect must be weighed. Only then can an appropriate final conclusion be reached. For more information about making analysis for plam oil processing benefits, welcome to contact us at no cost!

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