Here’s is another Money Spinning Business for you.
Palm Kernel Oil Processing Business.
Crude Palm Kernel Oil (CPKO) & Palm Kernel Cake (PKC) are the bye-products of Palm Kernel Nut(PKN)
Unless you are in the AgricBusiness Sector, You may not know the Huge Potentials in The Palm Kernel Oil when it is Sold as either Crude or Refined or as a Cake.
Palm Kernel Oil/Cake business can be run in a small, medium and large scale depending on the financial capacity of he who wants to set it up.
Palm Kernel Oil Processing Business.
Crude Palm Kernel Oil (CPKO) & Palm Kernel Cake (PKC) are the bye-products of Palm Kernel Nut(PKN)
Unless you are in the AgricBusiness Sector, You may not know the Huge Potentials in The Palm Kernel Oil when it is Sold as either Crude or Refined or as a Cake.
Palm Kernel Oil/Cake business can be run in a small, medium and large scale depending on the financial capacity of he who wants to set it up.
Palm Kernel Cakes:
are by-product gotten from the processing of oil bearing seeds. They form a very important component of animal feeds by providing the much needed protein.
That is, the left over, after the oil might have been extracted.
The Market;
Local Demand:
The demand for Crude Palm Kernel Oil (CPKO) in the local market is very Huge. As a matter of fact, the demand for it is all year round. And the profit in this business is mouth-watering.
Due to the high demand of the products, the Buyers sometimes book for the products in advance. And It is also on cash and carry basis. Sometimes, buyers even pay in advance in order to secure products.
Market Size:
Going by the detailed research, (Martins Library) Presents a detailed analysis which shows that the Demand-Supply Gap is Currently Estimated between 500,000MT-600,000 MT per annum.
Nigeria requires 1,722,000 tons of Vegetable Oils and Fats to meet the national requirements for food and non-food Uses.
are by-product gotten from the processing of oil bearing seeds. They form a very important component of animal feeds by providing the much needed protein.
That is, the left over, after the oil might have been extracted.
The Market;
Local Demand:
The demand for Crude Palm Kernel Oil (CPKO) in the local market is very Huge. As a matter of fact, the demand for it is all year round. And the profit in this business is mouth-watering.
Due to the high demand of the products, the Buyers sometimes book for the products in advance. And It is also on cash and carry basis. Sometimes, buyers even pay in advance in order to secure products.
Market Size:
Going by the detailed research, (Martins Library) Presents a detailed analysis which shows that the Demand-Supply Gap is Currently Estimated between 500,000MT-600,000 MT per annum.
Nigeria requires 1,722,000 tons of Vegetable Oils and Fats to meet the national requirements for food and non-food Uses.
From the detailed analysis of the Sector, total Palm Oil and Palm Kernel Production per Annum is Currently at about 741,800 tons.
Even though the ban on crude oil importation into the country was lifted in 2008, that has not bridged the gap.
The demand-supply gap opens up an opportunity for Investors in the sector. (Farming, Production, Logistics, Marketing)
Industrial Demand Gap:In a company in North, East, South or West, the estimated Quantity Demand (needed for production) in 3 years is 95,838 tons, while the Actual supply received was 48,000 tons leaving the company with a Supply Deficit of 47,838 tons.
Estimated Figures for 2 different companies in the South-South.
Quantity Demand(Quantity needed for production by the first company stands at 72,200 tons, while the Actual Supply received from suppliers stood at 16,300 tons, leaving a Supply Deficit of 55,900 tons
Another Company in the region needed. 34,000 tons for production and got an Actual Supply of 12,200 tons, leaving a Supply Deficit of 21,800 tons
There are over 10 Big companies in the south-East to south- south region alone and many companies in the South-west that daily needs Supply of Various Oil Palm products (Palm kernel nuts, Palm kernel Oil, Crude Palm Oil and industrial waste for livestock feeds.
The figures of the small scale companies are very large in both regions(South west and South south)
Target Market:Industrial Users book for it in advance and the population is huge.
Soap Industry, Vegetable Oil Refiners and Paints industry and individual consumers.
The cake (by product) from palm kernel oil is demanded by Livestock feed industry and by exporters.
Market Entry.The market is open in nature. Both the equipments, labour and raw materials are easily sourced.
The capital is open at every financial level.
In fact, No Need for any LPO to sell this products. (LPO is good if you can get it especially for large farming/processors).
The reason is that, procurement officers are always going about looking for these products at every level of the Value Chain. Women (educated and uneducated) form a part of the value chain and most of them trade with very low capital. N7,000 – N2m
(Your education or degree has nothing to do with this. You will learn the trade (Simple to learn, only if you will learn and get Mentoring)
The market entry and exit is one of the easiest in the agric business sector.
*** Mentoring is the KEY.***
The Major Problem: Most young people still consider farming *not prestigious* like the corporate world. But judging by the job market facts, there is just no paid job that is guaranteed(that’s if you get any at all)
My personal experience in the Field: I have met a lot of Youths (educated and uneducated) who started Observing the Business in my secondary school (1994). My sister started the business (Multiply Resources). I thought she would stop after graduation, but she didn’t. She started without a personal machine. And then I have worked in this sector for some years and discovered many
facts. After studying this business for more than 10 years now, I can tell you that this is a business you can really invest in regardless of your level of education and make good profit.
Facts about the Business
1. ***Mentoring is Key***
2. You can start at your current financial level (N7,000-N1m) and Grow to any level you desire.
3. You can start with N1m-N10m on a medium scale level or more and continue the flow. (N50m-N400m for Oil Refinery)
4. No single person can dominate the market (Maybe Dangote *Laughs*) Fortunately for us, He isn’t thinking about our Supply market, He forms part of our Buyers (In fact Some of his many companies depends on a some refined palm kernel regular supply).
Even Obasanjo's OTA Farms alone can fill the supply Gap. (Many do not know that Obasanjo's OTA farms has huge investments in the Oil Palm industry in the south-south too)
5. The Market demand is all year Round.
Market Price for Crude palm kernel oil is N190,000-N230,000 (depending on the time of the season)
6. You determine your success level and commitment level. The sky is the Limit
7. You will forget about *Seeking and applying for Jobs* if you are dedicated to it.
8. You will quit your Job very soon, if you will invest your *Head* (in Training and mentoring) *Heart*(Your Dedication and commitment) before your Invest your *Money*
9. The profits are very cool, but hardwork plus working Smart is required.
10. Continuous motivation and learning.
The Entry Points:
1. Grower (Oil Palm Farm)–Produces the Raw materials needed. Plant now, enjoy for decades to come. The Oil Palm is a perennial crop. Farmers enjoy harvest every year (Year 2 starting)
This is a very lucrative investment for those with 5-Year Plan (Those looking to retire to farming in 5 years now are advised to do this). You enjoy the Annual Harvest for 20-50 Years or beyond.
Market:
a)Palm kernel fruits (FFB)
Sells to Crude Oil and kernel processors.
b) Palm wine (another big value chain)
In fact, no part of the Oil Palm tree is wasted.
Note:
(This needs a comprehensive feasibility report and plan plus field excursion/experience at client’s request. We do this for medium-sized to Large scale investors). We only do commercial farming on Oil Palm plantation. 10 Hectares and above. It’s worth the effort and investments. Serious Investors may contact us for one-on-one consultation on the business plan.
*** Back to main Palm kernel business***
2. Middlemen. (Distributors)i) Supplier A (supplies direct to processors)
Returns on Investment (ROI) is between 5-10% Daily
In Simple English:Case Study: Palm Kernel Nut Supply (PKN)
If you invest N60,000 today in buying 1 ton of PKN and Supply tomorrow morning, you make a profit of N10,000 Instantly. You can keep doing this over and over.
Funny enough: Even with N7,000, you can buy 100kg of PKN and still make a 7%-10% ROI daily.
(Many young school leavers and housewives constitutes the low level income in this category)
If you Invest 10 tons of PKN, that’s N650,000 and your Gross earnings will be 10%-20% ROI (Since you are doing volume)
Supplying Medium companies PKN, you would need capital for 30 tons- N1.8m and your ROI is 10%-20%.
ii) Supplier B (does not have a machine but Adds Value to PKN and sells at higher margin. The supplier here enjoys a better and Higher ROI because he/she has added value to the PKN. Even though,
he/she does not have a processing machine.
3. Processors-(Sells CPKO & PKC to end users) The heart of the business.
Clearly the best option with Much Higher ROI
A breakdown is given as you read on.
4. End Users – Refines into Food, paints, etc
Not covered in this write up.
(Investors may request a detailed plan on this huge investment)
Export Demand:
The demand in the International Market is also very big. Though Malaysia, Indonesia are the major Export countries. Processors can still make a huge profit on this (on the medium scale)
Who can do it?
Youths, School Leavers, Bankers, Investors, Supply-Chain Managers, Agro-Investors, people in paid employment, Retirees, entrepreneurs, anyone interested in achieving financial freedom, etc
Breakdown.
Start-Up Palm Kernel Processing;
(CPKO+PKO)
Small Scale Factory:Minimum Capital is N150,000
A mini-Locally fabricated machine is good enough as a starting point.
The best advice in any business Venture is always to start small-medium and grow the business into a mega one.
There are machines that produces 1-10tons daily. Any investor can start with these machines.
Fabricated Machines starts from N130,000 for 1 ton machine.
10 ton machine: N2m for imported machine and About 1.2m for a fairly Used machine.
It’s easy to maintain these locally fabricated and imported machines. The whole set-up could be done in a matter of 2-6 weeks and business starts immediately. (We Can Help you in this Area with our experience in procurement of Palm Kernel Machine) - Click Here to Contact Us
The raw materials you would need would also be sourced locally as there are so many suppliers eagerly waiting to work with you.
*************************
Returns on Investment;
Important Formula to know;
PKN = Palm kernel nut)
PKO =Palm Kernel Oil,
PKC =Palm kernel cake)
Analysis of 1 ton Machine (Locally fabricated machine)
1 ton of PKN = N60,000
400kg of PKO = N92,000
540kg of PKC = N16,200
PKO + PKC – PKN = Gross profit
92,000+ 16,200- 60,000
Gross Profit = N 48,200
(Net Profit can be ascertained here because it is assumed that a small-scale processor would make use of Regular Electricity Supply which keeps the operating cost very low.)
The Machine is designed to crush 1 tons of PKN in every 24hrs and has the capacity to produce minimum of 4tons Per week.
(Note; the machine has to rest or work on alternate days for efficiency)
A weekly profit of 48,200 x 4 = N192,800 is achievable.
Working with 2 or 3 Locally Fabricated Machines makes more sense as that would increase Production and helps maximise space and time.
With 2 Machines, Gross Profits would be as high as (2 x 192,800) = N385,600 Every Week.
3 Machines; would give a Profit of (3 x 192,800) = N578,400
****************************
For Medium-Scale Investors:
10 Ton Imported Machine
The Analysis
In every 25 metric tons of good palm kernel nut (PKN) you are expected to get 10 metric tons of PKO and at least 13.5 metric tons of PKC
(Prices of PKN is varies by the season.Currently it’s at N60,000/ton in the South West Nigeria.)
A ton of PKN = N 60,000(presently)
A ton of PKO = N 230,000(presently)
A ton of PKC = N 30,000 (presently)
*****************************
25 ton of PKN = N1,500,000
10 ton of PKO = N2,300,000
13.5 ton of PKC = N405,000
PKO + PKC – PKN = Gross profit
2,300,000+ 405,000- 1,500,000
Gross Profit = N 1,205,000
(Net Profit can only be ascertained depending on your source of electricity and staffing)
The Machine is designed to crush 10 tons of PKN in every 24hrs and has the capacity to produce minimum of 40tons Per week.
Training and Knowledge Transfer:
Getting Started;
We know the importance of technical knowledge involved in running this business, so we have provided an avenue for you to acquire the skills and knowledge involved in setting up and running this
business enterprise.
**I Can say this in any Language**
Training and Knowledge Transfer:
Getting Started;
We know the importance of technical knowledge involved in running this business, so we have provided an avenue for you to acquire the skills and knowledge involved in setting up and running this
business enterprise.
**I Can say this in any Language**
DON’T GO INTO ANY BUSINESS WITHOUT GETTING PROPER TRAINING AND MENTORING.
The offer sounds and looks good, but every business has *TRADE SECRETS*
I have only shared few opportunities and I have many more to share.
Every Business has Potential Risks
There’s a lot to learn and ask. What we have in this article may not be enough to Start and sustain this business.
I have many experienced Palm Kernel Processors and Traders who have contacted me via reading this articles and made nice comments and also things to improve on (I’m open enough for helpful comments)
I have been able to share marketing tips about the business with them and the industry generally. (We rub minds)
Starters too have enjoyed a lot from the information I share.
And many have been able to find a market entry point in the palm Oil and kernel Oil value Chain.
That’s why we are here to guide you and put you through.
*Invest in your *Head* before you invest *your money*
Can my voice be louder than that?
We go as far as providing you with practical experience.
We also have training options of (On-the-Field Training) where you are able to visit the Palm Kernel Processing Factory and also gain Real-Time experience.
Training Options:
1. Ebooks:
Palm Kernel Business Report.
a) Small-Scale Business Report:(Covers production, process, etc Cost and analysis N6,000
b) Detailed Marketing Report: N10,000
It contains the contact addresses of Buyers of Palm Kernel products and by-products within Nigeria.
c) Full comprehensive Feasibility Report
Available on request.
Private One-on-One Coaching
Standard Fee; N12,500
(or N35,000 to N65,000 if its extends to On-the-Field Training for hands on experience and on-going mentoring)
Plus free Ebooks on business report and marketing report)
Opportunity for Growth:
There is always an opportunity for growth. I’ve witnessed many Kernel processors grow from having one processing machine to five-ten.
And some people also go for the big processing machine (Industrial Machine with high and optimum yield).
The Value Chain is about four: Meaning, there are about four opportunities.
To get the comprehensive Feasibility Report,
Book for Training and Consultancy, Call US on +2347030722911