Palm Kernel oil is one major raw material for producing cosmetics as well as household products. In this post we shall discuss how you can earn millions in this business. You can start the business with as low as N100,000.
FACTS ABOUT PALM KERNEL OIL
Palm kernel oil doesn’t have cholesterol or fatty acids. It is commonly used in cooking because it is lower in cost than other oils. It can be stored for a longer time than other vegetable oils.
HOW TO START PALM KERNEL OIL PRODUCTION IN NIGERIA
You can run palm kernel oil business in small, large or medium scale. How you want to run the business is based on your financial capacity.
This business is most profitable if you operate it in Eastern or Western Nigeria where there is abundant of Palm Kernel Nuts.
If you want you can as well setup your palm kernel oil mill, you can start by sourcing for the palm kernel nuts if you stay in the riverine area, gather the nuts to a palm kernel mill and extract the palm kernel oil. After that is done you can store the oil in drums and then supply it to those in need.
Here is the analysis for palm kernel oil production business.
(PKN = Palm kernel nut, PKO =Palm kernel oil, PKC =Palm kernel cake)
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
A ton of PKN = N 70,000 (presently)
A ton of PKO = N 1,95,000 (presently)
A ton of PKC = N 15,000 (presently)
25 ton of PKN = N1, 750,000
10 ton of PKO = N1, 950,000
13.5 ton of PKC = N 202,500
PKO + PKC – PKN = Gross profit
402,500 GP = N 402,500
The palm kernel nuts oil extracting machine is specially designed to crush 10 tons of palm kernel nuts in every day and hence it is capable of crushing 40 metric tones every week at the minimum.
Lets say you where able to make 4 transactions in one month, if you calculate this you will have 402,500 x 4 weeks = 1,610,000. Subtract your expenses lets say 300,000 (salary, maintenance, NEPA bill/generator) you still have N1,310,000 as your profit.