6 Challenges in Oil Palm Processing Business

In my last post, i shared with my readers; how to start oil palm processing business venture, and from there i have decided to let you know some of the challenges that are attached to the business on the longrun.

Note: This is not to discourage you from venturing into the business, it is rather to encourage you and let you prepare yourself for the challenges before they begin to surface in your business growth.

It is capital intensive
It is also management intensive
Getting an optimal location with all the needed amenities is quite difficult.

There is every possibility that your palm oil processing will be situated in a remote area, so as to be close to the source of supply (plantation farms).

 So you should expect some difficulties transporting the bunches of palm fruits from the farm to the processing plant. 

The same problem may also be faced when transporting the processed palm oil from the plan to the marketplace.
Because of your remote location, there is every possibility that you won’t have access to power supply. 

So you would have to provide your own power supply using generators. 

This will invariably increase your operating cost.

For you to be in steady operation, you will need a consistent supply of raw materials (palm fruits) and this can prove quite a challenge especially during the scarcity period.

 A good way to tackle this problem is to have your own plantation farm or better still, increase your storage capacity. 

This will enable have a steady supply of palm oil to sell to your customer during the scarcity period.

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