HOW TO START PALM OIL PRODUCTION, PROCESSING, DISTRIBUTION AND MARKETING BUSINESS
Are you aware that you can make money from that palm oil in your kitchen? Many people buy palm oil in kegs instead of in bottles so that can store in for periods when the product is scarce and price of palm oil climbs up. You can make much money this season just by reselling stored palm oil when the price increases.
Red palm oil is natural extract from palm tree fruit. Apart from being an essential ingredient in cooking, palm oil is an important raw material in some manufacturing industries. One of the most lucrative areas in this business is palm oil processing. Unfortunately, many people close their eyes to this opportunity because they consider it a ‘dirty’ business.
Palm Oil Processing Business
Processing of oil palm fruit to give edible oil can be achieved using various procedures which are discussed below.
1. Local Processing: In this practice, palm oil is processed the traditional way. This is achieved without the use of any machine.
2. Small Processing Unit: Machines are employed which have the capacity to process 2,000 kilogrammes of fresh palm oil fruit bunches per hour.
3. Medium Processing Unit: This machine can process 3,000 – 8,000 kilogrammes of fresh palm oil fruit bunches per hour.
4. Industrial Processing Mills: This type of processing involve the use of large plants that process more than 10,000 kilogrammes of fresh palm oil fruit bunches per hour to international standard.
Features Of Quality Palm Oil
It is very Important that you get the right quality as Palm-Oil can be differentiated by the levels of its processing.
==> Grade A: SPO
==> Grade B: TPO
==> Grade C: SLUDGE
==> Grade D: ROUGH
==> Grade A: SPO – Low Water Content: This is the best quality palm oil. It is suitable for human consumption, use in food industries and as raw material for industries such as in soap making.
==> Grade B: TPO- High Water Content: This type of palm oil is used for manufacturing soap e.g black soap.
Grades B, C and D are not suitable for the purpose of palm oil reselling business. Instead, they are mostly used as raw materials in soap making companies.
Asides for cooking purpose, red palm oil is also used in the production of soap (and detergent), candle, cosmetics (and cream), lubricants, bread making, glue, bio-diesel and plastics.
What You Need To Know About The Business Of Reselling Palm Oil
Palm oil has two different seasons. The highest period which is when you can buy palm oil in bulk and store because it is available in excess and cheap . This season comes between February and May. The second season which is between September to December is a very good time to resell stored palm oil. Palm oil is sold for N2,800 to N3,500 per 25litre keg during peak periods. This same amount of oil can go for N8000 to N10,000 if you buy in large quantities, store and resell.
Who Can Start Palm Oil Business?
Palm oil business is not restricted to local people or local areas. With whatever amount of money you have in your hands, you can start buying and selling palm oil, making millions annually.
Who Do You Sell Your Palm Oil To?
If you want to supply palm oil continuously, you should target palm oil retailers. These people do not store but re-sell immediately. If your oil is of good quality, you can always get a retailer especially when the commodity becomes scarce.
Where To Buy Palm Oil?
You can purchase palm oil in bulk from Okitipupa in Ondo State, Okomu Benin City in Edo State and some Eastern part of the country like Enugu.
I do not recommend that people pile up money in the bank. There are lots of profitable businesses you can start so why wait for some meager interest. My advise is that you start something is NOW. Though the beginning may be small and rough, as long as you are well prepared and equipped, you will come out successful.