Investing in oil palm production

Benefits

Processing of oil palm 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.  This can be argued on the premise that farm products, that is, fresh fruit bunches will be in high demand.  At lot of investors are now establishing oil palm plantation because there is automatic market for palm products.

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 paints industry 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 production plant has capacity of 3 tonnes per day, profit margin of N12,000 per tonne of fresh fruit bunches.  This gives an annual profit of N9 million from palm oil production.

Author’s contact:  08023058045, 

 olumakindeoni@yahoo.com.

OLUMAKINDE ONI