Business opportunity in palm oil

This means business opportunities for aspiring entrepreneurs and investors as demand has outstripped domestic supply. The income potential in the agricultural sector is magnificent and it has not been fully tapped into.

If you've been wanting to start a palm oil business and you've been wanting a step by step guide on how to do it correctly then this is a must read for you.

Many actually feels palm oil is only used for cooking but that's not true, aside serving as a cooking agent, palm oil is a medicinal product, it is used in soap production, body cream margarine and cosmetics in general, palm oil is used in the making of animal feed, water treatment chemical, also in the production of chocolate, cookies, bread, bio-diesel, ice cream, instant noodles, production of drugs, etc.

So, you can see that the market for palm oil is a huge one and with the proper guidance and knowledge you can do so well in it.

Typically, there are three main types of palm oil business you can invest in. If you have the required capital, you can invest in the three. Otherwise, you can invest in one or two and they goes thus:

Palm tree Plantation
Set up a palm Oil extraction mill
Sales/Trading of palm oil

Though sales has different branches. We will like to major on the sales aspect and the supply of palm oil to wholesalers.

Gone are the days when people thought that the only sector to make cool money in Nigeria is oil and gas. Nowadays, industries that are being overlooked are the ones raking in huge profits for the business owner.

There are different areas of the palm oil business so you can choose the best that work for you depending on your start-up capital.

Oil palm Plaintation

This particular one is capital intensive and you don't start to make money from it immediately, meaning you will have to be patient for some years before you start to make anything from it. If you are the eager one who wants to start making money from the palm oil business immediately, this isn't the best option for you.

To be able to own a palm tree plantation, you will have to acquire a large space of land and do not forget to test the soil to be sure it's appropriate for palm tree plantation as the land and soil affect the quality of the palm fruit.

Also be wise to choose a very good location that will be accessible to customers and trucks, the incubation period can take up to 5 years before harvesting and after harvesting, you can either sell the palm fruit to those processing it or you set up a milling factory to extract the oil by yourself. Finally, make sure you get a good seedling for your palm tree plantation, buy from trusted people.

Setting up a palm oil extraction mill

This is another type of palm oil business that is very lucrative but requires a lot of capital to start. It is capital intensive but not as expensive as setting up a palm tree plantation. All you need to begin is the installation of palm oil milling machines for the processing of the palm oil kernel seeds and the most beautiful part of this is that you can either use the milling machine for personal use or commercial processing whereby people with palm fruit brings their products to mill at your factory and you can also rent out this machine and make good money from it.

You can also purchase palm fruit in large quantities, mill at your factory and resell to wholesalers or consumers.

Sales/Trading

Most people prefer this type of palm oil business because it's way cheaper and it's easier to start with. This involves the buying and selling of palm oil, you buy in large quantities and resell to consumers. In order to make more profit from this, you can as well buy and store the palm oil till the supply of palm oil is low and demand is high, that time you can make higher profit at once. You can start the trading of palm oil with a very little cash.