Keywords: Palm Oil Mill Consultants, Business, Export, Featured, Integrated Palm Nuts, Nigeria

This article explains simple steps on how to setup a Palm Oil Mill and run it successfully. As a matter of fact, there is need for Nigerians and other African or Asian country to think of those products in which they have competitive advantage over other parts of the world. Through this global advantage the nation will look for how to develop them, through establishment of small, medium and large scale production and processing plants for palm oil mill.

It is true that the jobs in a country cannot be enough to employ everybody in a given country. Here is a tip for everyone; through this approach more jobs will be created, self - sustenance of the nation, provision for industrial raw materials and export base will be increased to a higher level. This can even create another avenue to employ the unemployed youths, men and women in the Agriculture and Food Industry.


Did you know that in the early fifties and sixties, Nigeria was a leading world producer of palm oil but she is today a net importer. Different efforts have been made recently by private individuals and government agencies to resuscitate the production of red oil by embarking on palm tree planting in different parts of Nigeria.

Currently, the cost of palm oil isn’t within reach of the average Nigerian. Its supply is by far below its demand and yet a lot of palm fruits are wasting in the forest. Aggressive entrepreneurs can exploit this opportunity by embarking on the processing of palm oil and make more profit than those in the crude oil industry.

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A Business Proposal On The Establishment Of Palm Oil Mill

Product Uses of Palm Oil
As we all know; Palm oil is used domestically for cooking and frying and industrially for the manufacture of margarine, drugs, soaps, cosmetics, and as raw material input for deodorized vegetable oil. Palm kernel, a major by product of the mill, has lots of industrial uses while palm kernel shells serve as a source of energy for small industrial concerns.

The Market Size of Palm Oil
Currently, according to the World stock market, Malaysia is the world leader in the production and international marketer of palm oil, a country that took its first “tenera variety” from Nigeria. Other countries are; Indonesia, Thailand, and Columbia.

We can offer a Feasibility Study and Business Plan with a range of micro/mini-mills with processing capacities from 500 - 1000kg ffb per hour up to 5 - 10tonnes ffb per hour or any other capacity you can afford - Click Here To Contact Us Today

The stagnation of palm plantation development; the domestic consumption and the growing industrial demand for palm oil and other factors account for the continued supply-demand gap.

The high price signals a lucrative investment in the sub-sector for anyone who ventures into palm oil milling on small, medium or large scale.

Fresh palm fruits are available for the ventures just like the industrial users await the oil extraction by those interested in the Palm oil Business.

Raw Materials of Palm Oil Mill Industry
Harvested fresh fruit bunches (ffb) are obtained from wild palm growers or small-holder plantations or estates scattered all over the rain forest belt of the country. For anyone contemplating a mill of higher output, however, incorporating one’s palm plantation is very essential.

See and Read More on the Raw Materials Here - Palm Oil Mill Machines

The Machinery and Equipment
There are mills of different capacities, costs and life spans. The least modern, mills 2.4 metric tonnes of ffb per day of eight hours, requires only seven workers, and can be powered by an 8-hp engine which takes away the drudgery of the slow traditional method.

The main components of the equipment are the stripper, boiler, digester, clarifier, water pump tank and spares. They all are obtainable locally at reasonable prices. There are more sophisticated imported machines that will be introduced to prospective investors for investment decisions.

A bottle of oil in the market today sells for between N150.00 and N300.00. The concept in this proposed project is to package the product in P.E.T bottles corked, labeled and market. There are also industrial marketing opportunities. In this case there will be need to package with drums and sell in tonnes.

The project above can be funded wholly by individuals, a co-operative societies, few friends, NARCB, State governments etc under the agricultural or small and Medium scale loan scheme. This is a profitable agricultural project that will readily attract financial assistance.

The machinery and raw materials needed for implementation are readily available locally and production technique is simple. Investors are advised to embark on this project.

To be able to determine the actual cost involvement, any prospective investor is advised to approach experienced industrial projects development consultants such as the writer for proper education and guidance.

To handle the implementation of this project professionally, prospective investors should embark upon a detailed and bankable Feasibility Studies from MARTINS LIBRARY TEAM. The writer is readily available for the feasibility studies and packaging of a bankable feasibility studies reports/ business plans. After which the construction of the factory will take place followed by procurement and installations of all the required machinery and other basic assets.

The writer will guide prospective investors professionally to ensure that good packaging, quality products and efficient/effective management is installed for profits. The writer will also assist in the sourcing of the required funds (where necessary) and obtaining NAFDAC approval.
Get a Professional Feasibility Study and Business Plan for your Business

Estimated Project Cost
The total estimated cost of establishment for the mill is N12,100,000 (Twelve Million Naira) which is broken down as follows:

Item                                                                            (Naira)
A Land and land development                                  1,000,000
Required Machinery and equipment                         3,200,000
Needed Furniture and fixtures                                   350,000
Total fixed costs                                                         4, 500,000
Working capital requirement                                     2,500,000
Preliminary expenses                                                 200,000
Contingency provision                                               350,000
TOTAL                                                                     12,100,000

* Note that Mills of higher capacity will cost more than is estimated above.

Keywords: Palm Oil Mills | Palm Kernel Crushing Plants | Palm Fruits | Coconut Oil Mills | Red Oil | Palm Trees | Proposal | Business Plans | Feasibility Study | Red Oil




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