The Production Process of Palm Kernel Oil Extraction

Before you proceed, you may want to read the previous article "How to Start Palm Kernel Oil Extraction Business in Nigeria".

 

Palm-Fruit-Kernel

The article tells us the viability of the business. We see that the demand for Crude Palm Kernel Oil (CPKO), palm-kernel Cake (PKC) and Palm Kernel Sludge (PKS) in the market is very Huge, and as a matter of fact, the demand for it is all year round plus the profit in this business is amazingly good.

We also see that due to the high demand of the products, the buyers sometimes book for the products in advance. Sometimes, buyers even pay in advance in order to secure products.

I won't write further about the business as the article referenced above is self explanatory. However, I present below the production process, machinery requirement and an updated profitability analysis of the business.

PRODUCTION PROCESS


In summary, the production line involves reception of good palm-kernel nuts, crushing the nuts with the nut-crusher, heating the seeds with the seed fryer so as to excite the oil molecules, and transferring the heated-crushed nuts to the oil press.

The oil press presses the seeds, and expels the oil content of the seeds through the oil exit chamber, and at the same time expels the cake through the cake exit chamber.

The crude oil is collected in drums or over-head tanks and left to settle. Since the sludge (sediments) is denser than the oil, it settles below the oil. The oil can then be collected separately from the sludge.

Two to three persons can conveniently operate the machinery. Below is a brief description of the machinery used.

1. Nut Crusher


»Function: Crushes the palm-kernel nuts and reduces it to smaller sizes so as to ease the oil extraction process.

»Price: N350, 000.

2. Electrical Seed-Fryer


»Function: Fries/roast the crushed nuts. This process heats up the crushed nuts, thereby exciting the oil molecule content of the nuts.

»Price: N480, 000.

3. Oil-Press (2T/D)



»Function: Presses the heated nuts and expels the oil content of the nuts via the oil exit chamber, while the cake is collected via the cake exit
chamber.

»Price: N450, 000

Total: N1, 280, 000.

»Note: Their is an oil press with 4T/D capacity; it costs N800,000.

From the above, you will need about two million naira (N2,000,000) to procure and install the machinery and also procure about 10tons of raw materials (palm-kernel nuts).

PROFITABILITY


~1 tone of palm-kernel nuts gives an average of 410liters of oil, 540Kg of cake, and 25Kg of sludge.

~Average price for 1tone of palm-kernel nuts is N70,000.

~Average Selling Price of the products is

»Oil = N200 per litre
»Cake = N15 per Kg
»Sludge = N20 per Kg.

So if you process 1tone, you sell:

»Oil @ N200 x 410 = N82,000
»Cake @ N15 x 540 = N8,100
»Sludge @ N20 x 25 = N500

Total sales = N90,600.

Profit = N90,600 - N70,000= N20,000

The above profit is for processing 1tone of palm kernel.

Now, if you process 2 tone per day, you get N20,000 x 2 = N40,000 per day as profit, which by extension implies a monthly profit of N1,120,000 (24days). Profit increases as production increases.

Note: If you sell your products at a bit lesser price, you will generate much more sales and still make a reasonable profit. If you are a good negotiator, you can get the nuts as low as N(60,000 - 65,000) per ton.

CONCLUSION


Palm kernel processing business is lucrative and the market for the products is vast. It even extends to the international market. Get buyers, offer them good quality products at
competitive prices, and that's it.

If you have much capital to process large quantity continuously, visit nigerian export promotion council; they will link you to exporters or international buyers.

Wishing you all the best in your Quests. - Ibrahim A Bello. AgonBello Ltd.
Share on Google Plus Share on Linked in

Attend The EPIC BLOGGING Seminar (Jan 29th - 30th, 2016)

Do you want to learn how to blog professinally like me and earn real money, I mean millions of naira every month? Then start making arrangement to attend my 2days EPIC BLOGGING Seminar taking place in Lagos on January 29th and 30th 2016. You've never seen anything like this before and believe me, you'll miss the whole world if you miss it >>> CLICK HERE FOR DETAILS
    Blogger Comment
    Facebook Comment

11 comments:

  1. Oga Darlinton, Ibrahim A. Bello is the name. You are really doing a good wok here, thanks.

    ReplyDelete
    Replies
    1. Mr Bello, how are you doing? :D Pls forgive me for being silly, not to remember the name of my own person. I have updated the post with the real name.

      Delete
  2. Mr Darlinton you have realliy enlightened me on so many biz opportunities here,most especially on this palm kernel oil biz that I have been searching for an easy guide to venture into in a big way ,your articles here are all on point.may GOD continue to bless your effort for it to be fruitful(In Jesus name)Amen.

    ReplyDelete
  3. This is nice cos I also make oil but manually. I'll like to know where I can buy those machines you mentioned so I can increase my output. Here's my add: ogooann@gmail.com.

    ReplyDelete
  4. please i like to get more info on the palm oil business

    ReplyDelete
  5. Sir, this palm kernel & Palm kernel oil biz is cool according to your explanation. But iam confused here on where to buy these machines 1. Nut Crusher 2. Electrical Seed-Fryer 3. Oil-Press (2T/D). Would you please give the address of where to buy them from.
    Finally i want know if there is no machine that can crack the nuts and separates the nuts from the shells at the sametime.? If there is such a machine how much is the cost and where can i buy it? Thanks

    ReplyDelete
    Replies
    1. Sir, this palm kernel & Palm kernel oil biz is cool according to your explanation. But iam confused here on where to buy these machines 1. Nut Crusher 2. Electrical Seed-Fryer 3. Oil-Press (2T/D). Would you please give the address of where to buy them from.
      Finally i want know if there is no machine that can crack the nuts and separates the nuts from the shells at the sametime.? If there is such a machine how much is the cost and where can i buy it? Thanks
      Having not gotten any reply from you. I have decided to re-send this inquiry again together with my email address for quick response. May God bless you for all you are doing.
      ezzyanaba@yahoo.com

      Delete
    2. I don't know where they are sold but I'm sure Mr Bello will respond to your question and provide the answer anytime he come online.

      Delete
  6. Thanks Mr Omeh, up till now i have gotten no response from Mr Bello. Please my brother if you know Mr Bello at a close range could you please call him up to get the infos i requested on where to buy those machines from him on my behalf. Thanking you in advance for your help. Prince

    ReplyDelete
  7. Thanks Mr Bello..Pls I need information on how and where to procure these machines and the cost implications as well as whether local or foreign fabricated..Tnx

    ReplyDelete
  8. Thanks for these information Mr Omeh, may God continue to bless you. However I notice that you have not mentioned anything about how much one can realise from the sale of palm kernel shell if one want to trade it rather than burn it.

    ReplyDelete

Please, no email address or phone number in your comment. Tick "Notify me" to follow the conversation and get notified whenever there is new comment!