GROUNDNUT OIL PRODUCTION BUSINESS
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- 1 GROUNDNUT OIL PRODUCTION BUSINESS
This free groundnut oil production business plan template will give you needed guide on how to start and profit from groundnut oil manufacturing business. The cost and source of quality groundnut oil processing machine and equipment needed for the commercial processing of groundnut oil. The packaging of the finished product and the feasibility report on groundnut oil production business are discussed in this groundnut oil production business plan template.
|Demand and Supply Dynamics|
Groundnut is an oil seed crop that has been recognized as an important source of raw materials for the food and beverage industry. It is a good source of protein and oil for various industrial uses. The demand for groundnut oil is on the increase because it is a vegetable oil, which is used among the household in Nigeria. The application of groundnut oil meets the specific requirements of various industries, including pharmaceutical, cosmetics, food and beverage and textile industries.
Groundnut seed, which is the raw material for this product is grown in commercial quantity in Nasarawa Eggon local government area of Nasarawa State. This makes the venture very attractive for potential industrialists.
Project Engineering of groundnut oil production business
The plant is expected to produce 1,200 litres of groundnut oil per annum. Raw Materials Requirements
The raw materials required for the extraction of oil are groundnut seed and chemical – hexanes.
|Quantity||5 metric tones|
|Cost||5 metric tones @ N25,000/MT||125,000|
Production Process in groundnut oil production business
The common method used in production of groundnut oil is as follows: The groundnut is dehusked, roasted and passed into seed crusher to facilitate pressing. The crushed seeds are fed into screw press expeller to extract the oil and separate it from the pressed cake residue. The oil is passed into refining unit. The sediment left over from the refining process of the crude oil is useful in margarine making and other things.
Machinery and Equipment Requirements:
Equipment required for groundnut oil extraction are seed dryer, seed crusher, oil expeller machine, oil filter press, pumps and stainless tank.
Sources: Local and Imported
Labour/Manpower Requirement of groundnut oil production business
Number of People Required: 8
In-plant = Yes
Out-pla = Yes
Both = Yes
Preliminary Financial Analysis of groundnut oil production business
|Cost of Fixed Assets (Investment)||N’000|
|4||Plant & Machinery||2,000,000|
|7||Preliminary & Pre-operational expenses.||200,000|
|Salaries and wages||208,000|
|Overhead and utilities||32,050|
|Total working capital||271,075|
|1200 liter @ N350/annum||4,200,000|
0.75% of preceding cost of production 2,962,050 Gross margin (%) 51.8% Source: RMRDC, Abuja 2003.