Palm oil business is one of the lucrative businesses any entrepreneur can delve into and make huge profits. The youths of today want white collar jobs in the oil and gas sector but fail to tap into the income potential in the agricultural sector.
Those who are wise to go into palm oil business, always make crazy profits. So if you’re looking for a step by step guide to succeed in the palm oil business, then you should continue reading this guide.
Apart from household consumption, oil palm serves as by-product to numerous industries such as the food and beverage, cosmetics and the pharmaceutical industry among others.
Palm oil is also used in soap production, body cream, margarine and cosmetics in general. Other uses of palm oil include:
- Production of dog and other domestic animal food
- Production of canned seafood
- Water treatment chemical and lots more
How to Start a Palm Kernel farm in Nigeria
1.Source for good land:
To establish farmland, the entire farm must be properly surveyed. Certain factors are considered when choosing good farmland. These factors are:
Soil.
The soil is the part of the outer layer of the earth’s surface that is formed from a mixture of minerals and decaying organic matter. It is the normal medium of plant growth.
It constitutes a balanced ratio of sand, clay, dirt and humus which provides the micro and macronutrients needed for plant growth.
Drainage:
Water-logged land areas are not suitable for farming especially areas that are prone to erosion. Erosion can take away plant nutrient and weaken the root of the plant destroying it.
A most clayey soil will not be suitable for palm kernel production because it absorbs too much moisture and does not give room for the plant roots thereby retarding the growth of plants, rather than benefitting them.
Climate:
Climate changes should be taken into account when deciding on good farmland. The elements of climate that are most relevant are rainfall, temperature, wind. Relative humidity and sunshine are closely related to them.
Location:
Usually, palm kernel plantation is usually grown out in areas that are in the outskirts of town considering its height and potential life-risk if an accident should occur.
2.Source for viable seed:
Good quality seeds provide resistance against pest and diseases ensuring plant longevity.
It helps to provide a good root system and strengthen the plant. It also ensures that plant growth is uniform and timely maturity.
Good viable seed should have:
- long shelf life
- Great vigour
- Large field establishment
- High market value
- Good shape, proper size and colour
- Balanced moisture content for storage
- High physical purity
- Free from pest and disease
- High genetic purity
3.Farm financing:
Before starting a farm, you need a reliable source of capital. It will enable you to plan and expand the scope and volume of production.
The uses of capital in palm kernel farming cannot be thoroughly exhausted.
4.Bulk Trading of Palm Oil:
This involves investing a huge amount of money in buying and selling palm oil. In this business, investors buy palm oil in bulk, store them in large quantities and sell off when the supply of palm oil has reduced.
Let’s do a quick profit analysis of this business. Imagine buying 50 kegs of palm oil for N500,000 at N10,000 per keg and selling off to retailers at N12,500 within 3 days depending on your customer base.
5.Mode of Transportation:
This is another important investment you have to make. If you have the money to get your own vehicles, then that’s alright, otherwise, you’ll need trusted drivers to deliver palm oil to your customers all over the country.
6.Exporting Palm Oil:
If you’re planning to export palm oil to other countries, then you should consider searching online.
Alibaba is a great site to list your palm oil for sale or you can use Vconnect to search for reliable exporters online. You should do a proper background check before giving your palm oil out for export.
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