How to Start Palm Kernel Oil Extraction Business in Nigeria

The oil that is derived from palm kernel are used for cosmetic product making and other vital industrial purposes. 

This business is one of the hidden lucrative and profitable business that many people are yet to know much about or anything at at all. Unless you are told of how lucrative this by an insider, you will never believe it makes any money let alone making millions.

 But I can tell you for certainty and for free that palm oil extraction business is a mega millions business.

Palm Fruit Showing the Kernel

Do you know that you can make N200,000 and above daily even as a medium scale producer? Are you aware that palm kernel oil product is one of the few product you can sell right at the point of production, without necessarily needing to take it to the market?

Depending on your financial capacity, It can be run in a small, medium and large scale. You may be wondering but where can one get palm kernel in large quantity? It is produced in hundreds of thousands tones in the Eastern part of Nigeria annually. All you need to do is to go set up this business around the east or you transport the product to your desired location and mill. 

It is however most profitable when you set it up where you can Palm Kernel Nuts PKN in large quantity due to transportation costs and other logistics. Ondo state is also good at the production of palm kernel too, so you may decide to source there if you're within West.

Now, Let's Take a Look at The Closer Analysis

PKN - Palm Kernel Nut. The is the nut you get when a palm kernel's hard shell is broken. That's the nut where the oil we are talking about is extracted from.

PKO - Palm Kernel Oil
. This is the actual oil that is being extracted from palm kernel nuts, the actual product or one of the main product we are talking about here. 

PKC - Palm Kernel Cake. This another product that is being derived from the palm kernel extraction process and it makes up good percentage of the palm kernel produce.

According to a reliable statistic, it is believed that in every 25 metric tons of good palm kernel nut one is expected to get 10 metric tons of Palm Kernel Oil (PKO) and another 13.5 metric tons of Palm Kernel Cake (PKC) as pure products. Below is how they are sold:

Palm Kernel Cake sold for N100,000 per tonne. The Palm Kernel Oil itself is sold for N120,000 Naira per tonne. While the Sludge goes for N100,000 Naira per tonne.

The cost of palm kernel is 80,000 Naira per tonne. You will require about ten tones to be able to extract five tone of the oils I've mentions. Ten tone will then cost N800,000. This will comfortably produce five tonnes of oil that will sells for N600,000.

Remember that it will also produce about four tonnes of cake sells for N400,000 while a ton of sludge sells for N100,000. Giving you a total N1,100,000.

When you subtract the cost of the raw material (palm kernel) which is  N800,000. You will be left with N300,000 Naira as gross profit on ten tons of palm kernel processed per day.

In a week, you will be making a whooping sum of N300,000 X 6 = ₦1,800,000

Take time and digest this, by tomorrow I will bring you the detail procedure of setting up and production. 

1 comment:

We love your contributions to our articles, kindly drop your comment, make them clean, Thanks.

Green Healthy Farm


Enter your email address:

Delivered by FeedBurner