The palm oil business is one very lucrative business. Most especially now than ever before. This business has been one that has created millionaires in the twinkle of an eye. For this kind of business, starting at first may seem challenging. However, if you endure you will get the needed reward. There are also types of Palm oil farming. You may not necessarily own the farm for you to start earning. How? This article explains at length how one can start a palm oil business in Nigeria.
Requirements for the start of palm oil business in Nigeria
There are some requirements when starting a palm oil business in Nigeria. The business requires one to be mentally, financially, and otherwise prepared. Although, at a startup, the business is quite stressful you would start enjoying the benefits when it starts yielding profit. Here are some requirements:
1. Cost of Transportation: One of the top requirements of the palm oil business is transportation. You need to include this in your expenses. The transportation of tools and the oil input business is cost-intensive. It is only right that when you plan to set up your Palm Oil business, you include the cost of transportation.
2. Retailers: These are a set of people who would purchase palm oil in bulk from the business. These people make the palm oil available to the final consumer at a reasonable price. Although, this retailer may be very far from the Business. Do well to keep a steady communication between your retailers and the business owners. A draft of your current and future retailer would help you know if it is best to go into this business.
3. Wholesaler: Altogether your business and the middlemen are the core of your business. Yes, as part of your requirements, you need to know where your tools and instruments would be coming from. You need to know how much you are to budget for some of this material too.
Steps in starting your Palm oil business
Choose the kind of sale of palm oil you want to invest in:
The first step is to select the kind of palm oil you want to sell. Yes, this is important because it helps you choose your area of expertise. Here are some of the palm oil businesses you could do:
A. Palm Tree Plantation: This one is quite time-consuming. You would have to plant this palm kernel in large portions on your farmland. Also, you need to have adequate material for this plantation. It can take 5 to 10 years before it starts yielding good returns.
B. Create a Palm oil extraction: This process requires you to possess a processing machine to process palm kernels in large quantities.
C. Palm oil sale: This process requires you to sell Palm Oil in a way where it is already processed. It has already been smashed before selling it out. It is less cost-intensive.
2. Create a Palmoil Plant
This step requires you to simply write out your Palmoil plan so you do not make a loss in this regard. This Palmoil plan would enable you to carry out your research project very well. This plan guides your business and exchanges transactions with clients or third parties. Also, it helps you demonstrate that you know the nature of your business.
3. Register your Palm Oil Business with the Corporate Affairs Commission
The Corporate Affairs Commission help you so that your business can be recognized to the outside world as a separate entity. Additionally, it protects you from being manipulated. Today, you can register with the Corporate Affairs Commission online. Yes, after doing your thorough research you would find that this is true. There are other documents you have to bring if you want to become a registered organization.
4. Find a Storage Space
The next step is to find a place in your company to keep this palm oil when they are processed. It is not good for them to be exposed to the public because they can be stolen. Also, you can put it in a cool, dry place. This place would serve as a warehouse for you.
5. Arrange with Suppliers
You can also make arrangements with your suppliers to keep your oil. This supplier does not just give you tools but they help you with the details you need to make sure you do not make a loss in your business.
Which oil is Palm oil cheap?
This is between months between February Ending to May of every year. Palm oil is usually cheap and surplus in supply within this time range.
How much can I make with the palm oil sale?
The business of palm oil is nice. This is because it doesn’t have a single set-out season. Once you have the oil people must buy from you as long as they cook or fry.
According to a retailer “We sell 10 litres of oil sell at N1,600 and one litre sells for N800.
Which business purchases the most Palm oil?
Unilever is one of the largest palm oil purchasers in the world and a founding member of RSPO, it buys all its palm oil from certified providers.
What are the requirements for palm oil farming?
3. Cost of transportation
What are the kinds of palm oil farming?
1. Palm tree plantation
2. Sales of palm oil
3. Create a palm oil extraction
Palm oil is the real deal. Be it refining the oil, owning the farm, or selling the palm oil. This enterprise would prove to yield results for people in the country. Today, many things would be required to start the business. So, it is advised that you save up enough money for your capital and draw up a business plan.