Palm oil is one of the most profitable and fastest moving farm produce in Nigeria. It is a business you’ll venture into, and you will be sure of making good income. It sells all the time, and at a good rate, too. On this post, we’ll be examining how to start a profitable palm oil milling and production business with 5 million to 10 million naira and where to get the best palm oil in Nigeria.
This post is to guide someone who is about to start oil milling and production, and it is also to guide anyone who intends to trade palm oil by buying and selling. This post will be a great guide you cannot neglect. Now, let us get into details.
How to Start a Profitable Palm Oil Milling and Production Business with 5 million to 10 million Naira and Where to get the Best Palm Oil in Nigeria
Before you think of getting into palm oil milling and production, you have to have good capital of about 5 million naira to 10 million naira. In another way, you should have about 1 million naira and above before you think of buying, selling, and distribution of palm oil. We are going to break down the best ways to go about setting up this business in Nigeria.
How to Start a Profitable Palm Oil Milling and Production Business with 5 million to 10 million Naira
1. For oil milling and production, you should have about 5 million naira and above before thinking of venturing into it.
2. When you have this amount, the first thing to do is to learn the ways to make this business profitable for you, and the best way to do it. You should learn from someone who is successful in the business for over some years.
3. Let’s say you have 5 million naira as budget, it is enough to secure a hectare of land or more in a rural location in Southern Nigeria, and still have some left to fabricate the machine. The best thing to do is to buy land, cultivate palm oil trees, and buy another small sized land, half plot, for the processing.
You should know that your palm oil tree farm should be different from the place you do the oil milling and processing. The oil milling area should be close to a busy location or market where you can easily source for your raw materials of palm kernels.
4. The higher the budget, the higher your chances of setting up a good palm oil production business. If you have 10 million naira, you can buy up to 3 hectares of land for the palm tree cultivation, and have enough to buy another one plot in a busy location for your oil milling and preparation.
5. When learning this business, you’ll get to know that southern states are good for palm trees plantation especially the states of Edo, Ondo, Akwa Ibom, Cross River, Enugu, Ebonyi, Imo, Abia, Rivers, Delta, Bayelsa, Anambra, and so on.
6. While shopping for location and land for your palm plantation and milling, you need to avoid overpriced locations. You should do your best to cut down on your expenses in every possible way.
7. After sourcing and getting land, you prepare the plantation and plant your palm trees. You should get the best variety of palm trees for yourself. You should also take care of the plantation with the best practices you have learned. Surely, it will be breed good income for you.
8. Next is setting up the milling location. Since you are still new to the business and do not have much customers, your best bet is to build an open shelter with only roof and iron poles guarding where the milling machine will be. It should be like the setting of a rural open market.
This location should be in a secure location where you won’t be afraid of theft of the machine.
After constructing the open space, you contact local fabricators and producers of the machine to produce it for you. The cost of the machine should be around 1 million naira or more. The bigger the machine, the bigger the price. In addition, the bigger the machine, the better, because of expansion in case business starts moving.
9. When you are done setting it up, the next step is local advertising where you talk to the people around of the existence of the mill, the amount you charge for your services, and all. You mill and produce for people while waiting for your own plantation to get mature for harvest. If you plant the Tenera Palm Tree variety, your palm plantation should be ready for harvest in 4 years.
Before then, you process for other people. You can also rent the palm trees and plantations of other people to process it for them. There are lots of people who do not have time to process their own palm trees. You pay them rent and process it for them.
10. Your oil milling and processing should be in the best way and form in such a way that the oil you produce is one of the best around you. It should be clean and pure without addictives. This is the reason why we suggested you learn from the best doing the business in the area, and also improve on what he or she does.
11. For the marketing of your finished product, little marketing is needed, except you want to brand it. You can easily sell the products in the nearest market. However, if you intend branding your products, then you need to do some marketing, especially outside your locality.
You can go to wholesalers in urban areas, mall owners, and supermarket owners, advertising your palm oil to them. You can even strike a deal with them to supply and after sales, you should be paid. Note that you need to know how reliable the person is before taking this route.
12. The pricing of the oil should be affordable. Once it is affordable and good in taste and look, customers would always return to buy your products. By recommendation, you get more customers, you produce more, and you sell more.
When the business expands, you should expand with it. You acquire more hectares of palm plantations, expand your palm oil milling factory, and add other related business. You can add palm kernel breaking and processing, animal food processing like pig feed, and even begin broom and mat processing through the material you get from other parts of your palm tree.
Where to get the Best Palm Oil in Nigeria? Which State has the Best Palm Oil in Nigeria?
There are variety of places in Nigeria you can get good palm oil. In this section of the post, we’ll be looking at where to get the best palm oil in Nigeria and which state has the best Palm in Nigeria to guide you properly.
You can get good palm oil from any of these states in Nigeria:
1. Enugu State
2. Ebonyi State
3. Imo State
4. Edo State
5. Akwa Ibom State
6. Cross River State
7. Ondo State
8. Abia State
9. Anambra State
10. Delta State
11. Rivers State
12. Bayelsa State
Which States have the Best Palm Oil in Nigeria?
1. Enugu State
2. Ebonyi State
3. Imo State
4. Edo State
5. Akwa Ibom State
Which States are the Largest Producers of Palm Oil in Nigeria?
1. Edo State
2. Cross River State
3. Akwa Ibom State
4. Imo State
5. Ondo State
Where to get the Best Palm Oil in Nigeria?
The best palm oil in Nigeria is the one processed and produced ar Nsukka area of Enugu State. This palm oil is very edible and suitable for any type of food and use. It has a great taste, and lasts very well in storage.
The palm oil is not actually as cheap as the ones you will find in other locations in Nigeria but it is very good when it is used. It has superior taste and utility value.
The trusted vendor for Nsukka Palm Oil to get it supplied to you anywhere in Nigeria and abroad at an affordable price is EVURA Food. You can contact them through WhatsApp or Call or Text to 08143058610.
This post has effectively treated the topic of how to start a profitable palm oil milling and production business with 5 million to 10 million naira and where to get the best palm oil in Nigeria.