In Nigeria Palm oil is one of the most essential cooking needs. In fact, there is virtually no household in Nigeria that does not use Palm oil for cooking. Asides from this it is also a potent source of vitamin A. This fact makes the palm oil business one of the most lucrative business one can invest in.
As of the time of this article, Nigeria is the second largest producer of Palm oil in the world after Malaysia. The reason for this is not farfetched. We can attribute it to the high demand among the Nigerian populace. If you are looking to make huge profit by investing in the Palm oil business whether on a large or small scale, then this article is for you. In this article, we will discuss expressly all that you need on how to start palm oil business in Nigeria.
What do I need to start palm oil business in Nigeria?
Before you know how to start palm oil business in Nigeria, we believe that it is essential to know the major requirements. This is because you are new to the business, and head diving into it all without first considering the nitty gritty can be disastrous. Therefore, here are some of the things you need to have in place before you can start the business.
Capital:
Whether you are starting this business on a large or small scale, you most definitely need capital. You will need this to start your palm oil business, and we believe you must factor the following into your capital.
- Rental Cost
- Cost of Hiring employees
- Farm maintenance cost
- Transportation cost
- Cost of purchasing seedlings
- Processing machine cost
- Land acquisition or rental cost
Labour:
Since this is an Agricultural business you will definitely need helping hands. That is, you will need to hire laborers to assist you with the processing. This includes the tractor operator, harvesters, etc. Basically, the number of hands you will require hinges on the scale of your palm oil business. Whether large or small.
Arrange with suppliers
In case you are not the one producing the palm oil directly it is important that you make arrangements with suppliers. You can purchase from this suppliers at subsidized rates and sell to consumers. In fact , you can make contacts with suppliers in states such as Delta, Ondo, Akwa Ibom, Bayelsa, Rivers, where there are large scale producers.
How to start pal oil business in Nigeria – A step by step Guide
As we have mentioned earlier, palm oil business is very lucrative. You can only make great profit only if you do it properly. On this note, it is important to understand fully the pros and cons of the business. Basically, palm oil business is in 3 categories. These are Palm tree plantation palm oil mill, and Palm oil sales. All these are very lucrative. You can decide to invest in the three or chose any.
- Palm Tree Plantation:
If you are in a rush to make quick profits, then this business might not be the right choice for you. This is because the palm oil business requires patience and perseverance. To start Palm tree plantation, you will need to have a large expanse of land. Asides from this, the location must be easily accessible to your customers and the soil must support palm tree plantation. You will need about a thousand seedlings when starting out. This costs about N150, 000. Which means a seedling goes for N150.
- Palm oil Extraction mill:
Palm oil Extraction mill is also a good way to earn good profit in the palm oil business. In fact, it is not as expensive as having a palm tree plantation. Basically, all that you need to start is the installation of milling machines. You will need them to help in processing palm kernel seeds into palm oil. Asides from this, you can also leverage this milling machine for commercial usage. You can rent it out to individuals who wishes to process their palm kernel and make good cash in return.
- Palm oil Sales:
This is the most common of the three. Most investors into palm oil business invest in this aspect of palm oil business. This makes the competition fierce when compared with the other two. Basically, all you need to do is to purchase the palm oil in large quantities. In fact, you could buy and keep for months until when the demand is higher. This will help in making good profit.
Conclusion:
If you are looking to start palm oil business in Nigeria, we believe this article should give you a picture of what it takes to start. Palm oil business is lucrative, but it requires patience and perseverance. It is important to note that.