Palm oil is one of the highly sought after and vital cooking need in Nigeria. With no form of argument, you will not find any home in Nigeria where palm oil is not used for cooking. Besides the cooking which it is used for, palm oil is used for industrial purposes, one of which is the role it plays in the manufacturing of soaps. This is one of the reasons palm oil business in Nigeria very lucrative one in Nigeria.
Nigeria, currently, sits behind Malaysia as the second largest producer of palm oil in the world. And the reason for the high production can be attributed only to the high demand for it. If you have an interest in doing any business, the business of palm oil should be your best plug.
In this article, you will learn all you need and the step-by-step approach to start the business.
Things you need to start palm oil business?
Before you start palm business, you must first know the things you need:
Irrespective of whether you are starting palm oil business, big or small, you need capital to begin with. Here are the things you should consider their cost:
- Farm maintenance
- Seedlings purchase
- Processing machine
- Land acquisition
Agricultural business needs labor. As such, you must employ people to work with you. This is where machine operators and harvesters come in. note that the number of employees needed will depend on the size of your palm oil business.
If you are not the direct producer of the palm oil, you will need to liaison with suppliers to buy at a reduced rate and sell to your customers. Areas where you can find suppliers include Ondo, Delta, Bayelsa, Akwa Ibom, Rivers, etc.
How to start palm oil business?
If you want to start a palm oil business in Nigeria, follow the steps below:
1. Palm Tree Plantation
If you are interested in making quick money, this business is not the kind you should engage in, because palm oil business requires time. You need a large portion of land that can be easily accessible to your customers. Nearly 1000 seedlings are needed and at an estimated cost of 150.00 seedling, you will need 150, 000 to start with.
2. Palm Oil Extraction Mill
You need this to maximize your profit. And the good thing about it is that it is not as costly as getting the seedlings. Essentially, you need to install this machine to before you start.
3. Palm Oil Sales
To make more profit, you need to learn the art of buying. Not just buying alone, you must learn to have a good storage by buying when the price is low to resell when the price goes up. This will ensure you make a high profit.