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.
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 (
|
||||
Gross Sales / Revenue (
|
||||
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
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
OTHER SERVICES WE RENDER
1.
We
provide materials for writing projects, seminar, proposals, journals, articles
etc at every academic level [First degree (B.Sc, B.Ed, B.A., LLB,), Masters’
degree (MS.c), Doctorate degree Ph.D] etc. Visit www.martinslibrary.blogspot.com to see our library.
2.
We
provide feasibility study/business plan for businesses like:
·
Palm Oil/Palm nut
cracking
·
Fish Farm (Pond Construction
and Fingerlings)
·
Floating/Sinking Fish
feed production
·
Poultry farm (plus
marketing ideas)
·
Rabbit/Snail Farming
·
Live Stock, Breeding,
etc
·
Commercial Crop
Farming
·
Handwork/Workshop
Plan
·
Pure Water Business
·
Nylon production
·
Recharge Card Printing
·
Rubber/Plastic
Industry
·
Catering Services etc
3.
Professional
Website design (cooperate and personal)
4.
Bulk
SMS (plus reseller website)
5.
Sales
and Maintenance of Computer Systems (Software & Hardware)
6.
Sales
of ORIGINAL antivirus software (single & multiple users)
7.
Computer
training (AutoCAD, peach tree, oracle, C++, Fotran, etc)
8.
Business
Software Design
9.
Printing
Press (Graphic design, lithography, banners, poster, handbills etc)
Contact us: +234(703) 072 2911
Email:
martinslibrary1@gmail.com