Palm kernel oil production business plan

Palm kernel oil production business plan

palm kernel oil production business planAre you interested in starting a palm kernel oil production business? Do you need a business plan or feasibility study on palm kernel oil production business? Then my advice for you is to read through this article.

Palm kernel oil is used domestically for cooking, plus its used in virtually every African home just for this purpose. It is also used industrially as a major ingredient in the manufacturing of soap, cosmetics etc.. Its industrial demand is derived from its varied and broad used in food and chemical industries.

Living in a country like Nigeria or Malaysia? etc where palm fruit is planted and harvested in large quantity, then you can consider venturing into the palm kernel oil production business. Palm kernel oil production in Nigeria is a huge business opportunity as products are always in short supply compared to the rising demands both domestically,industrially and as export commodity.

This information is a concise guide that explains everything you should understand starting a palm kernel oil extraction business. If you seem to be interested in this company, then continue reading to find out more with what it entails.

Starting a Palm Kernel Oil Production Company – Sample Business Plan Template

      1.  Begin by writing your Palm kernel oil production business plan Writing a great Palm kernel oil production business plan is a crucial part of starting a successful business. The business plan shows in step by step process of  how palm kernel oil is being produced. It can help you know upfront, the business requirements, the loopholes you may likely face, your market analysis and strategies etc.It also may include the financial summary, as well as other details that assist you to plan your business perfectly before and after you start. Even after starting the company, your business plan will help you focus on your goals. Although having and following your own business plan will not likely guarantee that your company will succeed, lacking one usually leads to huge failure.
      2. Source for fundsPalm kernel oil production business requires huge capital outlay. The cost of starting a Palm kernel extracting plant in Nigeria may cost between 5million to 30million naira on a small scale industry and 100 million and above for large scale supply.If will be able to afford all needed capital for your palm kernel oil extracting business, then you may start and run the business as a sole proprietorship. But, if you would need extra funding then you may consider going into partnership. Better still you may consider other funding options for either equity funding or loan facilities in your area.
      3. Choosing a location for your palm kernel oil extraction business
        Location is one area that most people address with levity. In making your choice of location of your palm kernel oil extracting business you have to consider the access to your target market, the market size. Consider the amount of space needed for production, storage and admin offices. What type of buildings will you be willing to have in the site: aluminium based structures, bricks etc. You must ensure that your location has advantage of steady power supply and other basic amenities like good road network.
      4. Buy the palm kernel oil extracting machines:
        Palm Kernel Oil Expeller:  The palm kernel oil expeller cost about N1,850,000 locally fabricated with about 45%  to 60 % oil extraction ability from kernel.
        Palm kernel oil filter press: The palm kernel oil filter press will cost about N1.7 million locally fabricated
      5. Production Process of Palm kernel oil
  • Cleaning
  • Size reduction
  • Flaking
  • Steam conditioning
  • Screw pressing (expeller)
  • Filter press
  • Palm kernel oil
  • Storage system for the extracted palm kernel oil

Palm kernel oil production process involves the cleaning of the kernel,
size reduction of the palm kernel: The size reduction increases the surface area of the kernels and there by helping in the flaking process
Flaking: flaking is the granding process of the palm kernels. This is done using a roller mill machine
steam conditioning: The palm kernel flake is then heated up to reduce the moist contnent of the palm kernel flake.
Screw and pressing: After the palm kernel flake has been well cooked to reduce the moist contnent and enhance oil extractions from flake, its then fed into the screw press which compresses the meal as it passes through the screw barrel. This copresses the oil out through the perforation of the bars of the press barrel


Lot of the processes mentioned in the previous method can be skipped. The modern method now which equally has mechines fashioned for the process has the below palm kernel oil extraction process:
1. Cleaning: At this process of palm kernel oil extraction, the kernels are washed to remove all dirts and impuritities
2. Srew pressing: The screw pressing can be done by the expeller machine directly. The expeller machine squeezes the kernel into meal or powdery form and thereafter presses the kernel oil out
3. Filter press: Originally the extracted palm kernel oil is always black. Its the work of the filter press to filter the oil from particles thus having a clear palm kernel oil



Detailed 5 years and 10 years feasibility studies & palm kernel oil production business plan

Below is the detailed palm kernel oil production business plan & feasibility studies

[donationlocker] Below is the detailed feasibility studies and business plan for the palm kernel oil production  [/donationlocker]

About umoh

The CEO and founder of Business Ideas Incubation Services.Our services includes: Professional business plan writing for venture capital, market research and analysis, Feasibility studies and startup business consulting.+2348140970926

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