How To Start A Profitable Palm Kernel Oil Extraction Business In Your Town

Palm Kernel oil extraction is one of the least popular business ventures in Nigeria. Oil extracted from palm kernel is very useful in the production of cosmetic products and other important industrial uses. Palm kernel oil extraction business is very lucrative, although many people do not know this. In this article, I will provide information on how you can make huge profits from this business.

In palm kernel oil extraction business, you can make as much as N200,000 and above daily even as a medium scale producer. Palm kernel oil product requires little marketing and can be sold right at the point of production.

Palm kernel is produced majorly in the eastern part of Nigeria. To start this business, it is best to set up your business around the east for easy access to raw materials. Alternatively, if your business location is not within the eastern region you will have to transport raw materials to your location and this may incur additional expenses.

Ondo State and Edo state are also possible places where you can get your raw material because they also produce palm kernel in large quantities. Palm kernel oil production can be operated either in a small, medium or large scale depending on your finances.

Palm Kernel Oil Products

Palm kernel oil business and/or palm kernel business Is a business of many parts. We have in this business the following listed products which result from the production of palm kernel oil:

PKN – Palm Kernel Nut. When you crack the palm kernel shell, you will see a nut. It is a semi-soft substance which is readily edible by chewing. It is this palm kernel nut that is crushed to extract the palm kernel oil.
PKO – Palm Kernel Oil
.  When the palm kernel nut has been crushed, what is obtained is a whitish-yellowish material from where the palm kernel oil is extracted.

PKC – Palm Kernel Cake. After the palm kernel oil has been extracted from the palm kernel nut, what you have as a sort of excreta is the palm kernel cake. This can be used as forage for feeding farm animals or used as a component in inorganic fertilizer, drugs, and other products.

How Profitable Is Palm Kernel Oil Business In Nigeria?

The intent of any person going into business is to make profits.  Guess you want to make money from this business, hence, your interest in venturing into it. One thing that will give you an impetus or zeal to fast-track this lane is if you have an idea of how the profits come by. So, let’s look briefly at how you can be profitable in this business as a palm kernel oil businessman or businesswoman in Nigeria.

Statistics have indicated that for every 25 metric tons production of good palm kernel nut, about 10 metric tons of Palm Kernel Oil (PKO) can be extracted, alongside about 13.5 metric tons of Palm Kernel Cake (PKC) as pure products. these are not mere estimates. They have been found to be true and factual.

Palm Kernel Oil Profitability Estimates

A breakdown of how each of these products is sold in the open market is given below:

Palm Kernel Cake goes for about N100,000 per tonne while a tonne of Palm Kernel Oil is sold at approximately N120,000 Naira. The Sludge or nut is sold for about N100,000 Naira per tonne. These are all subsequent to changes. So, try to do a side-check to know the actual prices.

Palm kernel is sold for N80,000 Naira per tonne. To generate about five tonnes of oils, ten tonnes of palm kernel will be required, which of course is said to go for about N800,000. Five tonnes of palm kernel oil can be sold at about N600,000.

In addition to the palm kernel oil extracted, about four tonnes of palm kernel cake and one tonne of sludge will also be produced. Four tonnes of Palm Kernel cake can be sold for N400,000 while a tonne of sludge is sold at N100,000. Summing up the numbers, we have a total of N1,100,000.

When you deduct the cost of purchasing the palm kernel (the raw material) which is N800,000 from the total sum of N1,1,100,000, you will have a balance of N300,000 Naira as gross profit from processing ten tonnes of palm kernel daily.

On a weekly basis, the profit you will be making can be shown in the form of N300,000 X 6 = ₦1,800,000

Palm Kernel Oil Extraction Production Process

What does it take to produce palm kernel oil? Not so much. First, you need to acquire quality palm kernels from the farms or suppliers. You will then crush these using a nut-crushing machine. What follows is to heat the palm kernel seeds. Once the seeds have been sufficiently heated, crush them and send them to the mill for oil-pressing.

The oil press will the press the palm kernel seeds, from where the palm kernel oil content will be extracted via the oil exit unit. The palm kernel cake will them be expelled via the cake exit unit.

You will then collect the palm kernel oil in a container, usually a drum, or where they are much, in an over-head tank and allow it to settle. The sludge will settle first, below the oil, due to its higher density.

You will then collect the oil, and then the sludge into separate containers, ready for sale. You do not need much personnel for this business. two or three persons are enough to operate the machines and equipment efficiently.

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