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.
The goodness of palm oil
In case you're not aware, palm oil is the most widely consumed in Nigeria, the market size is huge and growing.
A lot of people actually thinks palm oil is only used for cooking but that's not true, palm oil is used for the following;
- Aside from 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 chemicals,
- Also, in the production of chocolate, cookies, bread, bio-diesel, ice cream, production of instant noodles and 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 3 main types of palm oil business you can invest in.
- Palm tree plantation
- Set up a palm oil extraction mill
- Sales/Trading of palm oil
Though sales has different branches, I would like to major on the sales aspect and the supply of palm oil to wholesalers.
There are different areas of the palm oil business, you can choose the best that works for you depending on your start-up capital.
Oil palm plantation
This particular one is capital intensive and don’t expect to make money from it immediately, you have to be patient for some years before making anything from it. If you are the eager one who wants to make money from the palm oil business immediately, this isn't the best option for you.
- Acquire a large space of land with good soil
- It should be accessible to customers and trucks.
- Lastly, get a good seedling
Setting up a palm oil extraction mill
This is another type of palm oil business that is very lucrative, it's capital intensive but not as expensive as setting up a palm tree plantation. You can begin with the installation of palm oil milling machines for the processing of the palm oil kernel seeds, 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.
In addition, you can also purchase palm fruit in large quantities, mill at your factory and resell to wholesalers or consumers.
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’s the best time you can make higher profit at once.
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