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How To Start A Palm Oil Business In Nigeria (Full Business Plan)

Discussion in 'Business & Economy' started by Admin, May 3, 2018.

  1. Admin

    Admin Administrator

    Are you interested in starting a palm oil business in Nigeria? Are
    you passionate about starting a palm oil business? Do you know
    that lot of people are making it big time with this palm oil
    I know of a man in our community that build his house from the
    money he generated from palm oil business. If that is what you
    want, I assure you are at the right junction! Keep calm, grab your
    pen, sit comfortably as you digest this post.
    Right from onset, many Nigerian entrepreneurs are too drifted into
    the business of technology, online business, oil and gas and lot of
    others without the critical gaze upon what palm oil business has in
    stock for them.
    Apparently, Palm oil could be seen as viscid reddish liquid
    obtained from oil palm kernel appearing to be one of thriving
    business in Nigeria. With its base in Africa. Palm oil can be used in
    cooking as well as production of some materials by industries.
    Also recognized for its medicinal and curative importance.
    Palm oil business in Nigeria is abruptly corrosive as many states
    that has palm trees knew not the value of such lucrativeness of
    the product. It is clearly visualized that, palm tree duly has its
    multi-usefulness compare to any other tree or plant around the
    globe, talk of the local brooms, palm mat, crafted hats, baskets
    even the liquid call palm wine is such a business to reckon with.
    Out of all this product, palm oil has been the leading one since
    most people can't actually cook without it and that has changed
    any marketer or manufacturer's perception towards the
    agricultural sector.
    Truly, there are many phases of this business as not everyone
    would wish to participate in all the specializations involve. These
    sectors of palm oil business include;

    1. Palm Tree Plantation
    A lucrative sector of palm oil business is by planting palm tree on
    commercial level and thereby harvesting it for sales as it goes
    directly to the milling industry for processing.
    While the risk to run this business, you have to fathom the right
    variety as it is the main key to its success. Dura variety is a
    notable one in Africa which is feature with small pulp and thick
    shell. Just know them well!

    2. Palm Oil Milling
    This business entails your ability to use machines in extracting
    palm oil from its kernel with high rate of intelligence in the field.
    You would have to purchase harvested palm kernel from local
    farmers and you would start marketing it extensively. Though it is
    capital intensive in terms of labour, machines and raw materials.
    But you would overlook the cost if you are really interested in the
    3. Sales of Palm Oil in Bulk
    At this phase, you are entitled to buy and sell processed palm oil
    at any quantity depending on your investment decisions. You
    could buy and sell continuously or buy and keep to sell when the
    price rises in the future. They all worth investing on.
    Let us now see how you can start this palm oil business and make
    good profit from it in the long term.

    4.Capital Investment
    The first thing you need to venture into this business is capital.
    Though, there is no fixed amount of capital you must have, it all
    depends on how large or small you want to start.
    You can start small with at least ₦50,000 depending on the sector
    you want to focus on. Have it in mind that this done after you have
    decided on the sector you want to venture into in the palm oil

    5.Targeted Market
    Your sector determines your target market. So, at this level, you
    must work towards a successful and practicable market research
    so as to weigh your market forces.
    Instances where you wish to start any of this phase of business,
    you must be very careful by choosing either selling to international
    markets called exporting or locally in Nigeria. But I would
    recommend urban areas as your market target because this is
    where the product is highly needed and consume!

    6.Effective Supplier
    One of the ways you can become successful in this business is by
    having a reliable, trusted and steady suppliers that would help you
    in the distribution of raw materials.
    Western and South-East Nigeria possesses good source of
    supplier and palm oil marketers. States like Ondo, Osun, Enugu,
    Anambra and Edo are good source you can consult.

    You must have a durable transportation system to be able to move
    your products from your location to where it will be needed. You
    wouldn't just start this business without a perfect means of
    transportation. Because most of your business transaction would
    revolve round it.

    This is very important. If adequate storage facility is not put in
    place, it will possibly affect the quality of the products which will
    also affect the price.
    Resourcefully, you should encode your palm oil business with
    some high rate of virtue. This includes; honesty, trustworthiness,
    customers friendly and lots of others. Hold on to them, they help too!.

    Source::: gistdeck