CRUDE PALM KERNEL OIL EXTRACTING INDUSTRY FEASIBILITY STUDY | BUSINESS PLAN | SMALL, MEDIUM, LARGE SCALE



There are different business sizes in the palm oil and palm kernel business. It is the small, medium and large scale palm oil and palm kernel nut business. Anyone who wants to venture into the palm oil and palm kernel oil business has to decide the one he/she can successfully run depending on the capital the investors can afford. This business plan and feasibility study for palm kernel oil business is a sample, you can get a special and professional one from us which will contain all details about the palm oil or the palm kernel oil business. The different machines used for production will be mentioned and explained. The prices of the machine for processing and the addresses where you will purchase either the foreign or locally fabricated machines will be available in the feasibility study. You will find the table of content of the complete palm kernel oil business feasibility study and business plan we can deliver to you or your company investors to enable them approve capital for your business, you can also use it to get a loan (grant) from any desired bank of industry (BOI). Click Here To Contact Us.

PALM KERNEL NUT AND OIL BUSINESS
 
This is a feasibility study sample for three (4) crushing/cracking palm kernel machines of ten (10) tones capacity of palm kernel per day (small scale).

We are going to use two (2) crushing machines of ten (10) tones capacity of un-cracked palm kernel for the 1st cracking and the other two (2) machines for the second crushing of the palm kernel nuts to get the palm kernel cake (PKC).

Let’s assume that the factory has 95% efficiency of all the four (4) cracking/crushing. Now for the 2 machines, 17 tons of palm kernel will be produced in 14 working hours per day.

Let’s use 41% of Crude Palm Kernel Oil (CPKO) from the 17 tons of cracked palm kernel; this will give 6.97 tons of crude palm kernel oil (CPKO) in 14 working hours per day.

If we use 50% of Palm Kernel Cake (PKC) recovered from the 17 tons of the crushed palm kernel nut, we will have 8.5 tons of PKC produced in 14 working hours in a day.

Using the current selling prices of the Palm products per ton:
CPKO       – N230,000
PK     – N35,000 per pick up truck
PKN   – N71,000
PKO – N160,000
PKC   – N30,000
PKS   – N7,000

For one day production: price multiplied by tons
Price for Cracked Kernel Nut = N71,000 x 17 = N1,207,000
Price for produced PKC = N30,000 x 6.97 = N209,100
Price for processed CPKO = N230,000 x 8.5 = N1,955,000

Profit = Cost of CPKO + PKC - PKN
           = N1,955,000 + N209,100 - N1,207,000 =  N957,100

Profit per day = N957,100
Assumed 21 working days in a month = N20,099,100
Assumed 250 working days per month = N239,275,000

HOW TO BRING THIS PALM KERNEL BUSINESS IDEA TO LIVE?
In order for this project to succeed, an excellent relationship with the government of your state and community leaders is absolutely essential. Based on the relationships being developed through business owners in the State, the owner has every reason to expect cooperation and support for a project such as this. However, details about the kind of support the government in your state might be able to supply, and what kinds of incentives might be available, need to be worked out by the mill CEO and other directors and stakeholders. They are also needed to understand the taxes that would be applicable to this kind of enterprise.

ADVICE FROM PALM KERNEL BUSINESS PROFESSIONAL
These are professional advises given by MARTINS LIBRARY TEAM which any company that wants to go into palm kernel and palm kernel oil business must get and apply. Wise CPO and CPKO owner has understood them perfectly and is acting on it.
·        Acquire sound knowledge on different types of palm fruits species which is the company’s raw material, and the demand level before investing
§  Have a mutual relationship with third party (previous) palm oil mill and palm kernel mill professionals. This will help the company to keep tabs of their success and flaws through monitoring programs; Findings of already conducted programs is explained in this business plan. The survey will cover; the existence of similar models; Main achievements of such models; and Key challenges faced by these models.
§  Write and submit a good proposal (feasibility study and business plan attached) to investors (for grant purposes). This is the reason for this feasibility study and business plan
§  If directors have collaterals, they can go for a loan (if needed).

WORKING DAYS AND TIME FOR PALM KERNEL BUSINESS
i.             One shifts of 14 hours per day.
ii.            250 working days per year.

THE OBJECTIVE OF PALM KERNEL BUSINESS
The objective of the project embodied in this feasibility study is to enhance self-reliance in palm kernel cracking and processing industry in the Palm oil value chain thereby creating one of the most effective avenues for poverty alleviation, food security and ensuring economic stability in Nigeria. The palm kernel industry has the prospects of providing employment for millions of unskilled and semi-skilled people.

§  Palm kernel oil processing business is a profitable business that lurches millions of Naira into anyone's pocket irrespective of what you do or your qualifications. It’s an important segment of the economy that can provide significant, economic, and social impact which will affect the general public positively, both in state and country building, skill acquisition, employment opportunities and many more.
§  The feasibility study on different States shows that it had a several markets to sell cracked / crushed palm kernel, palm kernel oil, kernel husks and shells once they are processed from the industry. The prospective buyers are; local and international business men and women, cosmetic companies, drug companies, animal feed mills, power and energy suppliers, bakeries (use palm nut shells as charcoal/fuel) etc.
§  Using profitability index to determine how lucrative the business is, a viable result of 1.03 returns on business in the next year was gotten. That tells us that, after two years’ time, the business will break-even and the profit projection will emerge.

OPPORTUNITY FOR INVESTORS IN PALM OIL AND PALM KERNEL BUSINESS
§  It will create job opportunities for the public; both local villagers (unskilled labour), students on break / holidays, school dropouts, undergraduates and graduates (skilled labour)
§  It will create more market outlet for both private and public sector for both local marketing and export.
§  It will create a learning/research centre for both industrial training student of Federal and State Universities in Nigeria, Polytechnics, Catering schools, local palm kernel oil producers and people who wish to learn about palm kernel oil mill production and management.

TARGET MARKET FOR PALM OIL AND PALM KERNEL BUSINESS
The specific Market size for palm kernel oil mill industry in Cross River State is estimated at 40,000MT – 60,000MT per annum with the factory producing 17,500 tons annually. This will generate an estimated revenue of N80m – N100m annually if the company attain 100% market share. There are over 20,000 customers (mostly merchants) interested in purchasing Crude Palm Kernel Oil (CPKO) used in other secondary industries, Palm Kernel Cake (PKC) used for livestock feeds, and Palm Kernel Husks used for Electricity and Fuel annually. Nigeria spend over $435,000 USD in palm kernel oil alone. Customers (mainly Merchants in different parts in Nigeria) are willing to spend 45% of their company’s annual revenue to buy palm kernel nut products because and CPKO are mainly their raw material for reproduction.
·        Community Palm kernel Oil Dealer Associations
·        Peddlers
·        Oil Merchants
·        Speculators

MANAGEMENT TEAM FOR PALM OIL AND PALM KERNEL OIL BUSINESS
§  Production/Technical Operations is headed by a Production Manager
§  Administration Dept. is headed by an Administration Manager
§  Accounting/sales is headed by a qualified Accountant

Up to 10-100 new workers can be recruited as the mill/factory becomes fully operational. The employees will be both unskilled (loaders, tractors, truck and van drivers) and trained / skilled labour (experienced operators of the various equipment/tools) and other casuals respectively. Personnel emoluments are covered under recurrent/operating costs. The technical operatives would be given sufficient training to enable them deliver effective and efficient service which is in the overall interest of the Company and its clients.

This is a sample – Call +2347030722911 for complete Business plan and Feasibility Study. Email: martinslibrary1@gmail.com

·        Manager                                                                =        1 person
·        Equipment operators                                              =        3 people
·        Accountant                                                            =        1 person
·        Sales person                                                         =        2 people
·        Customer care                                                       =        1 person
·        Cashier                                                                 =        1 person
·        Drivers                                                                  =        2 people
·        Gateman                                                               =        2 people
·        Factory / Plant cleaners                                         =        2 people
·        Repair and maintenance                                         =        2 person
·        Loaders                                                                 =        3 people

TECHNICAL ANALYSIS FOR PALM KERNEL PROCESSING
Ø Collection of PK from the palm oil mill
Ø Loading palm kernels into Truck / Lorries
Ø Transportation of PK to kernel crushing plant PK
Ø Diesel is used during transportation in Lorries
Ø Off-loading palm kernel at kernel-crushing plant
Ø Cracking of Nuts using crusher and separator
Ø Electricity is used from grid
Ø Cleaning
Ø Screw pressing (1st pressing)
Ø Screw pressing (2nd pressing)
Ø Coarse screen filter
Ø Filter press
Ø Crude Palm Kernel Oil (CPKO) is extracted
Ø Palm kernel cake or palm kernel meal is also extracted

Note:
CPKO – Crude Palm Kernel Oil
PK     – Palm Kernel
PKN   – Palm Kernel Nut
PKO   – Palm Kernel Oil
PKC   – Palm Kernel Cake
PKS   – Palm Kernel Shell

SALES REPORT FOR PALM KERNEL PRODUCTS (CPKO, PKC, PKN)
NOTE: ROI – Returns of Investment
Assuming;
§  14 working hours             =        1 day work
§  21 working days              =        1 month work
§  250 working days  =        1 year work
§  Installed plant        =        10tons/day
§  Working hours       =        10hr/day (1 working shift)
§  10 pickup truck      =        10tons PKN/day
§  1 month                 =        21 working days
§  1 year          =        250 working days
§  Expansion             =        after 1st 3years (10% increase for each year)

Selling Price for 1 ton of PKN =        N71,000
Selling Price for 1 ton of PKO =        N230,000
Selling Price for 1 ton of PKC =        N30,000
Selling Price for 1 ton of PKS           =        N7,000

RECURRENT COST ITEMS:
Recurrent Costs are made up of raw materials, maintenance expenses, Administrative and Overhead Costs and Professional fees. 

SALARIES AND WAGES FOR PALM KERNEL BUSINESS
Administrative Expenses
Administrative expenses here include:
(a)         Staff Salaries
(b)         Rents and rates
(c)         Traveling
(d)         Licenses and Permits
(e)         Advertisement and entertainment
(f)           Taxes 

Professional Fees: Consist of the following:
(a)         Legal and Professional fees
(b)         Audit fees
(c)         Management fees
(d)         Director’s remuneration (transport inclusive) 

PROFITABILITY FOR CRUDE PALM KERNEL OIL BUSINESS
§  Profit margin, net margin, net profit or net profit ratio all refer to a measure of profitability.
§  Where net profit = revenue – cost
§  Profit margin =                Profit x 100         .
                                      Selling price or revenue

(Profit as percentage of selling price or revenue)
§  Net profit = Total sales  - Total initial investment  
Profitability Index =
Present Value of all Future Cash Flows
Initial Cash Investment

PROJECTED PROFIT AND LOSS STATEMENT FOR PALM KERNEL BUSINESS – PKN, CPKO, PKC, PKS
Year
1
2
3
4
Capacity Utilization (%)
10
10
11
12
Output (‘000tons
Price Per ton (N)




Gross Sales / Revenue (N‘m)




Less sales expresses (1%)




Less Excise Duty (5%)




Less Direct Expenses (Labour, raw material & maintenance)




Overhead (20% of Administrative expenses)




Depreciation (2%)




Additional Capital Cost




Profit before Interest & Tax (PBIT)




Profit before tax (PBT)




Add back depreciation




Less capital Allowance/Expense




Taxable Income




Less 45% Corporation tax




Profit after Tax





This is a sample – Call +2347030722911 for complete Business plan and Feasibility Study. Email: martinslibrary1@gmail.com

BUSINESS EXPANSION
With time, the factory can embark on expansion using returns from the from the palm oil mill plant. A loan can also be used for different expansion purposes as listed below;
§  Haulage services for other local farmers
§  Plantation of palm trees
§  Other farms: 20 acres of cassava plantation
§  15 acres of maize plantation
§  5 acres of piggery (yet to be built)

CONCLUSION
·        This project will bring good income to the rural people in your State, improving the economic well-being of the rural areas.
·        The factory anticipates important positive social impact both through opportunity for regular employment and through participation in organized industry. In this regard Nigerians at every level of the project, from workers to investors and owners are included.
·        It is believed that these factors will lead to reduced population pressure on the cities, by helping to make rural and urban life more attractive and productive especially in the state you want to establish this business.

This is a sample – Call +2347030722911 for complete Business plan and Feasibility Study. Email: martinslibrary1@gmail.com

This is the table of content of the complete feasibility study and business plan we will deliver to your company….

TABLE OF CONTENT
SECTION ONE – BUSINESS PLAN

1.0    INTRODUCTION
1.1    NAME OF BUSINESS
1.2    NATURE OF BUSINESS
1.3    SITE LOCATION
1.4    OFFICE ADDRESS
1.5    COMPANY PROFILE
1.6    DIRECTORS
1.7    SUBSIDIARY OF GOBONZY INT. LTD.
1.8    OBJECTIVE
1.9    PURPOSE
1.10  PROJECT STATUS
1.11  WORKING DAYS AND TIME
2.0       EXECUTIVE SUMMARY
3.0       2.1 THE PALM OIL AND KERNEL PRODUCTION CHAIN
2.2    PRODUCT REPORT DESCRIPTION
2.2.1 WHAT INDUSTRY/SECTOR IS THIS CONCEPT DIRECTLY OR INDIRECTLY RELATED TO?
2.2.2 FINAL PRODUCTS
2.3    DEFINING THE INDUSTRY
2.4    UNIQUE VALVE
2.5    INNOVATION OPPORTUNITIES
2.6    MARKET NEEDS / SOCIAL PROBLEMS AND SOLUTIONS
2.7    IS THE PRODUCT OR SERVICE FEASIBLE?
2.8    TARGETED MARKET / BENEFICIARY
2.9    MARKET SIZE
2.9.1 CRUDE PALM KERNEL OIL (CPKO) AGGREGATION AND WHOLESALING 
2.10    MARKET CHARACTERISTICS
2.11  CUSTOMER NEEDS
2.12  HOW TO BRING THIS IDEA TO LIVE?
2.13  SOCIAL/ECONOMIC VALUE
2.14  DOCUMENTATION REVIEW AND FIELD TRIP
2.15  PRODUCTS & SERVICES
2.16  PRICING
2.17  PROMOTIONS PLAN
2.18  DISTRIBUTION PLAN
3.0    PROJECT JUSTIFICATION
3.1    BASIC ASSUMPTIONS
3.2    INDUSTRY / FACTORY LOCATION AND SAFETY
3.3    AVAILABLE PROPERTY & INSTALLED CAPACITY
3.4    PROJECT DETAILS:
3.4.1 MILL OPERATIONAL EQUIPMENT / MANAGEMENT STRUCTURE (STAFFING OF THE PROPOSED PALM OIL MILL)
3.4.2 TRAINING ON BUSINESS DEVELOPMENT AND EQUIPMENT OPERATION AND MAINTENANCE
3.5    TECHNICAL ANALYSIS / PRODUCTION PROCESS
3.6    MILESTONE:
3.7    RAW MATERIALS REQUIREMENTS
3.8    EQUIPMENTS - MILL REQUIREMENTS
4.0    FINANCIAL PLAN
4.1    FINANCIAL ANALYSIS
4.2    FINANCIAL ASSUMPTIONS
4.3    FINANCE CHARGES
4.4    FINANCIAL PROJECTIONS
5.0    MARKET DEMAND
5.1    MARKET ANALYSIS
5.2    SUPPLY ANALYSIS
5.3    ECONOMIC VIABILITY ANALYSIS / IMPACTS OF THE PROJECT
5.4    RISK ANALYSIS
5.5    FACTORS THAT MAY AFFECT PKN AND CPKO SUPPLY
5.7    EXIT STRATEGY
APPENDIX 1



SECTION TWO - FEASIBILITY STUDY
1.0    PRODUCTION ANALYSIS
1.1    MEDIUM SCALE PALM KERNEL MILL GENERAL ANALYSIS
1.2    COST EXPENSES FOR CRACKING PALM KERNEL NUT (PKN) ONLY, USING 1TON/DAY CRUSHER
1.3    COST EXPENSES FOR CRACKING PALM KERNEL NUT (PKN) ONLY, USING 10TON/DAY CRUSHER
1.4    COST EXPENSES FOR CRACKING AND PROCESSING PALM KERNEL NUT (PKN) USING 1TON/DAY CRUSHER
1.5    COST EXPENSES FOR CRACKING AND PROCESSING PALM KERNEL NUT (PKN) USING 10TON/DAY CRUSHER
2.0    SALES REPORT
2.1    REPORT FOR PALM KERNEL NUT (CRACKING ONLY)
2.2    RETURNS ON INVESTMENT FOR PKN ONLY;
2.3    REPORT FOR PROCESSED CRACKED PALM KERNEL
2.4    RETURNS ON INVESTMENT FOR PROCESSED CRACKED PALM KERNEL NUT;
3.0    SUMMARY OF CASH FLOW PROJECTION:
3.1    FINANCIAL PROJECTIONS
4.0    PROJECTED PROFIT AND LOSS STATEMENT
4.1    RECURRENT COST ITEMS:
4.2    SALARIES AND WAGES
5.0    BREAK-EVEN ANALYSIS
5.1    PROFITABILITY
5.1.1 5 YEARS GRAPHICAL PROJECTION  
5.1.2 BAR CHART REPRESENTATION OF THE PROJECTION
6.0    BUSINESS EXPANSION
7.0    CONCLUSION




LIST OF FIGURES
Figure 1:    Life cycle of palm fruits and PKN processing
Figure 2:    Flow chat for processing palm kernel (PKN) to Crude palm kernel oil (CPKO) and palm kernel cake (PKC)

LIST OF TABLES
Table 1:
Revenue Estimates for Palm Kernel Nuts only without processing

Table 2:
Revenue Estimates for 10 pickup truck Processed Palm Kernel (Crude palm kernel oil, Palm kernel cake and palm kernel shell)

Table 3:
Items to be Finances, Operating Expenses, Annual Revenue, Net Profit (All estimates in Nigerian Naira)

Table 4:
Projected Profit And Loss Statement

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