How to set up palm oil production factory
It has been said that only solution to the present economic problem in Nigeria is by way of encouraging production. With increased production, prices of goods and services will be brought down, there will be more employment for the people both at the rural and urban centres, industries will operate at near full capacity, there will be products for export market, thereby increasing of foreign earning capacity and also less dependence on foreign goods, thereby conserving our foreign earning. Palm Oil production is one of such investments that will definitely boost Nigeria’s production. With the dwindling crude oil income, the need to diversify our economic base cannot be over-emphasised.
Benefits Of Producing Palm Oil
Palm Oil Processing is a viable investment because raw materials can be sourced at ease, the production technology is simple and feasible, and the market for end products are automatic. Establishment of the plant will have a direct impact on the development of the rural sector. That is, fresh fruit bunches will be in high demand. This will encourage the farmers to produce more and at the end of the day boost farm activities and incomes. A lot of investors are now establishing oil palm plantations because there is automatic market for palm products.
Increased income of rural dwellers is seeing as another way of achieving rural development. It will definitely encourage people to establish oil palm plantation.
The long-term effect will be increased Gross National product. Today, Malaysia that came to take oil Palm Seedlings from Nigeria is the largest producer of palm oil in the world. The major income of that country comes from oil palm.
The project will no doubt improve the standard of living of the promoters. This is because it is highly profitable. The project is highly reliable especially for investors residing in the southern part of Nigeria including Kogi and Kwara States. It is a better alternative to chasing local purchase orders (LPOS) or contracts about because daily income generation is guaranteed.
Palm Oil extraction technology is simple, hence the ease of establishment, management and maintenance.
Palm Oil is in high demand by soap makers, vegetable oil refiners and individual consumers.
You can also export the products out of the country.
In fact, an established factory will always have customers depositing in advance of production.
Production Technology/Implement Procedure
Palm Oil Production involves procurement of fresh fruit bunches (ffb) from oil palm plantation. Palm nuts are removed from the ffb. They are taken to the boiler and boiled for about 1-1½ hours. After which they are put in the digester. The digested product is put in the separator to separate the oil from the shaft and Palm Kernel nut. The Oil obtained is mixed with water and put in the clarifier where the finished product (Palm Oil is collected). Palm Kernel nut is also separated kept and later cracked. The nut obtained is what is used for palm kernel oil production. The shaft of palm kernel can also be used as source of energy and also to feed pigs.
Profitability
The Palm Oil plant has capacity of 3 tonnes per day, profit margin of N12,000 per tonne of fresh fruit bunches. This gives an annum profit of N9 million from Palm Oil Production.
Prospective investors can be assisted in the establishment of this project.
OLUMAKINDE ONI