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The company attaches importance to the role and training of technical talents, actively introduces foreign technical experience,and through the perfect quality management system certification, production of marketable high and new, sharp products, thus in a variety of fuel, rice, wheat, corn, and other areas of the processing machinery and equipment have domestic advantage.

How to create a palm kernel oil factory?

September 17, 2021

Are you interested in starting a palm kernel oil processing plant? Do you need a palm kernel oil extraction business plan template or feasibility study report? Please read on.

Palm kernel oil is used for cooking domestically, and it is also used for this purpose in almost every African household. It is also an important component of industrial manufacturing. Such as soap, cosmetics, processed food and so on. Industrial demand in the food and chemical industries comes from its diverse and more versatile uses.

If you live in a country like Nigeria and Malaysia, where palm kernel oil is in great demand not only for the family but also for industry, then you can consider investing in palm kernel oil production. The entire business requires basic education and training. By consulting an experienced business or collecting online, you can easily obtain useful resources that can guide you.

This article is a short guide explaining the whole thing you want to know about starting a palm kernel oil processing plant. If you are interested in business, then you need to learn more about it.

 palm kernel oil

How to start a palm kernel oil factory---an example of a business plan template


1. Write your business plan first

A good business plan is an important part of starting a business. It helps to let you know whether you have the ability to start such a factory or whether you have such a demand, because it involves the issue of start-up capital.

It also includes market analysis, financial summary, and other details, which help you plan your career perfectly from the beginning. Even after starting everything, your business plan will help you stay focused on achieving your goals. Although having a business plan does not mean you need to be successful, it will lead to failure if you don't.


2. Source of funds

To be honest, the palm oil industry is capital intensive. The palm kernel production plant requires USD 30,000 and USD 600,000. It depends on your business, the location you choose, and many other factors.

You need about $5,000 in start-up costs, including at least 3 years of rent, business registration and agency fees, insurance and so on.

Start-up assets usually make up the remaining capital required. These include the required recurring cash expenditure (one-year forecast), start-up inventory and stocks (6 months), the cost of other assets at start-up, such as office furniture, processing equipment and machinery, office accessories, and so on.

If you can afford the entire capital, then you can run as a sole proprietorship. However, if you get funds from a third party, then you should consider joining a partner. Even better, if you can, you can get funding from the following sources, equity financing (through proximity to angel investors), debt financing (through bank loans) or through SME funding.


3. Find a suitable location

Before choosing a location for your palm kernel oil plant, you need to consider not only the availability of raw materials but also the target market. The ideal location is to be close to the market and the source of raw materials.


4. Purchase the required equipment

Palm kernel production includes the processes of washing, breaking, peeling, steaming, and then going through the spiral pressing and filtering stages. Most of these processes require machines. So you need to buy the machines needed for each section.

However, you need to remember that high-quality machines will be more reasonable in the long run and save maintenance costs. Therefore, it is more important to choose the machine carefully.


5. Hire required personnel

In order to run a palm kernel oil plant reasonably, you need to hire capable people to fill some positions. In addition to the manager (which may be you), you will need to hire technical assistants, warehouse clerk, production staff, quality control staff, security staff, sales and management staff. In short, you will need 10 to 15 employees to run your palm kernel oil plant reasonably.


6. Produce and sell products

Once you have everything, you can start production. Because the business is still very new, you need to adopt a marketing strategy to spread to attract customers.

Your customers include households, restaurants, food industry, soap and cosmetics industry, and so on. If there are many such industries around you, then you can easily approach them, convince them and buy your products.

In short, the time from developing your business plan to plant operation and operation usually spans 3-4 months. The length of time depends on your enthusiasm, capital availability, and other factors.