Setting up a palm oil extraction plant is one of profitable business in Nigerian. In Nigeria, palm oil is an important component in their daily needs. Thus, palm oil is popular and has a high demand at home. Compared to large demand of palm oil, the Nigeria produced less palm oil ----only 1.4 million tons on 2021. Nowadays, Nigeria is a net importer of palm oil.
Recently, due to Indonesia's restrictions on the export of palm oil, the international demand for palm oil has been increasing. It can be seen that the palm oil industry has a bright future and the market is very large.
An aspiring entrepreneur must be able to look wide and deep when investing in a business. This article covers everything you need to know about why so many people choose to set up palm oil extraction plant in Nigeria? and how to set up a palm oil extraction plant in Nigeria? Next, let's take a deeper look.
Why so many people choose to set up palm oil extraction plant in Nigeria?
Whether a business is worth doing should be analyzed from many aspects, such as the economic value of the final product itself, market demand, national policies, etc. If it is judged from many aspects that this business is worth doing, then many people will choose to start this business, the palm oil processing business is one of these highly profitable businesses. Next, let's learn about the reasons why setting up a palm oil extraction plant in Nigeria is feasible.
1, Palm oil owns a lot of advantages and much uses
A lot of people know palm oil to be used for cooking. But palm oil owns a lot of advantages and much uses:
• Prevention of vitamin A deficiency, cancer, brain disease, and aging
• Production of soap, cosmetic, body cream, exfoliation cream, margarine, etc
• Release of stomach pain
• Production of drugs
• Treating malaria, high blood pressure, high cholesterol, dementia, etc
• Weight loss and for increasing the body’s metabolism
• Water treatment
• Production of dog and other domestic animal food
• Preservation of food
2, The market demand of palm oil is large both at home and abroad
According to the U.S. Department of Agriculture (USDA)，Nigeria consumed 2 million tons in 2021. Today, Nigeria produced just 1.4 million tons of palm oil, and data also shows that from 2012 to 2021, Nigeria imported more than 4.1 million tons aboard. The domestic market is in short supply, resulting in high palm oil prices in Nigeria. From the perspective of the world situation, Indonesia's restrictions on palm oil exports have also caused an increase in international demand for palm oil, which is very likely to lead to an increase in the price of imported palm oil. All in all, developing the palm oil processing industry in Nigeria is a business with large potential in the long run.
3, Nigeria's local government strongly supports the development of the palm oil processing industry
In 2019, the government increased financing to oil palm producers through low-interest loans, aiming to increase domestic production by 700% by 2027. Before that, in order to support local palm oil production, the government will also increase the import tariff on palm oil from the current 35% to 75%. Besides, in the future, the Nepalese government will cooperate with scientific research institutions to distribute high-quality seedlings and agricultural materials to farmers, take multiple measures to expand the palm planting area, and accelerate the development of the palm industry. All in all, taking into account the gap between the market demand and production of palm oil, the government has been working on the development and support of the palm oil industry since 2015, hoping that domestic production can catch up with demand, and eventually the surplus palm oil can be sold overseas.
How to set up a palm oil extraction plant in Nigeria?
Successfully setting up a palm oil extraction plant in Nigeria is not an easy task, we need to prepare from many aspects, such as: Capital, Sufficient raw material, Suitable factory site, Advanced palm oil processing machines, Source For Customers and so on. Please continue reading:
1, Capital
This is the money you need to begin your palm oil business. The cost to be factored into your capital should include:
• Land acquisition or land rental cost
• Cost of hiring employees
• Factory maintenance cost
• Cost of purchasing the seedlings or palm fruit
• Processing machine cost
• Cost of means of storage
• Transportation cost
2, Sufficient raw material---palm fruit
When you plan to set up a palm oil extraction plant, you need to purchase enough palm fruit or own a oil palm orchard. There are about 24 million hectares of land suitable for palm cultivation in the territory of Nigeria, which can supply sufficient palm fruit to palm oil producer and Nigeria is fully capable of achieving self-sufficiency in palm oil by expanding planting.
3, Suitable factory site
For palm oil processing business, you have to find a suitable factory site and build it. This involved some problems such as the scale of a factory and the size and number of machine. Then, HENAN GLORY is a professional company that not only manufactures palm oil processing machines but also can provide factory building designs and equipment layouts. So if you want to get factory building designs, welcome to consult more from Henan Glory company.
4, Advanced palm oil processing machines
HENAN GLORY can provide a complete set of palm oil processing machines.
• Palm fruit sterilizer--- water type sterilizer/steam type sterilizer
• Palm fruit thresher---simple type thresher/drum type thresher
• Palm fruit digester
• Double screw palm oil press
• Crude palm oil filter machine---vibrating screen+clarification machine+ plate filter machine
• Palm oil drying machine
• Palm oil tank
5, Source For Customers
You need find a solid palm oil market. You can find retailers among market sellers, cosmetologists, housewives, etc. To attract many clients, you can try other modes of marketing such as:
• Online marketing (social media, google ad, etc)
• Referral marketing
• Newspaper marketing
• Word of mouth
• Collaboration/Partnership
Besides, you can also export palm oil to overseas market. For example, you can post your palm oil ads on some famous shopping website, such as Alibaba.com, Vconnect and so on.
Henan Glory Company is a professional supplier of palm oil processing machines. So if you want to start a palm oil business but you don’t know how to do it, welcome to consult us and we will help you.
Contact information：
✅My Whatsapp/Wechat: +86 13526627860
🔗Official Web1: http://www.palmoilextractionmachine.com
🔗Official Web2: http://www.chinamachinerymanufacturer.com
