Investing in palm kernel oil, cake processing
It is widely accepted that the 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, 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 kernel oil production is one of such investments that will definitely boost Nigeria’s production.
Palm kernel oil and cakes production is one of such investments that will definitely boost Nigeria’s production.
Investment justification
Palm kernel oil crushing 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, palm kernel and the likes 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.
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 increase the Gross National Product.
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 purchased orders (LPOS) or contracts about, because daily income generation is guaranteed.
Palm kernel oil extraction technology is simple, hence the ease of establishment, management and maintenance. It is in high demand by soap makers, vegetable oil refiners and paints industry. The cake is demanded by feed millers and by exporters.
Investors can also export directly. In fact, an established factory will always have customers depositing in advance of production.
Production technology/implement procedure
Palm kernel crushing involves feeding of the machine through the hopper with already sorted and dried palm kernel. The already fed palm kernel will later undergo the process of crushing in which the oil will come out from one end, and the cake from another end.
The oil collected will be filtered and kept in storage tank ready for sale while the cake will be
packaged and bagged ready for sale to feed millers and exports.
To establish the project, procedure include among others, feasibility study preparation, plant and machinery sourcing, installation at appropriate accommodation, raw materials sourcing and commercial production take-off. Investors can be put through in all the above listed step.
Financial implication
N
Pre-investments 200,000
2 units 2.5 tons per day input per kernel
Expeller with 30 horsepower
electric motor (Primary crusher) 850,000
Sundry factory equipment including
dryer and filter press 800,000
Provision for raw materials 500,000
Accommodation 200,000 (rented space)
Miscellaneous/installation expenses 250,000
Total N2,800,000
=========
Profitability
The plant has a capacity of crushing five tons per day input. A conservative margin of N9,000 per ton of crushed input has been computed. Working for 250 days in a year, annual profit N9,225,000 is guaranteed from this project. Investors can be assisted in the establishment of this project from project conception to establishment and management, including marketing. The author can be contacted through 08023058045 or olumakindeoni@yahoo.com.
OLUMAKINDE ONI