Groundnut Oil Production Business Plan in Nigeria / Feasibility Study
Groundnut oil is a very essential product in Nigeria. Every home has a need for groundnut oil either for cooking stew, frying, baking or wiping surfaces. Groundnut oil is used for most food in Nigeria even roadside small chops. The federal government has placed a ban on the importation of groundnut oil and this has created an opportunity for local production. Groundnut oil is in high demand.
Groundnut oil is one of the most valuable legumes of Nigeria with 25% protein and 45% oil. It is mostly found in the subtropical and semi-arid regions around the world. They are a good source of protein and vitamins. It mostly grow in country with warm climates.
Nigeria is among the first five countries producing groundnut and has the largest production in West Africa. Groundnut has high demand all around the countries. It can be used for preparing Africa dishes like groundnut soup, which can be used in eating rice. It can also be used in preparation of butter, groundnut oil, peanut oil and can be eaten naturally.
One ton of groundnut oil seeds will generate 500litres of groundnut oil, 420kg of groundnut oil cake, and 40kg of groundnut oil sludge.
1 ton of groundnut oil seed= #180,000
1 litre of groundnut oil = #260
1 kg of groundnut cake = #160
So if you process 1 ton of groundnut oil seed
1 kg of groundnut sludge = #160
So if you process 1 ton of groundnut oil seed, you are most likely to get an average of #20,000.
Steps to start a Groundnut Oil business
Anyone going into groundnut oil business must have a great knowledge about it because it’s technical. It is also important to employ people who have knowledge about it, so as to get a well refined and high quality oil. It is also important to get consultant in this field who will set up the oil production chains and other processes involved in the business.
It is also important to get a business plan on what you will need to set up the business. The cost of production, the equipment required, landed properties, staffs recruitment, transportation and consultation.
This is important, you don’t just wake up and run into the market because it is profitable. You should carry out feasibility studies on the market, the cost price of production, competition and industry already available. This is to enable you know what to expect, how well to prepare and also to learn from the mistakes of others.
To place an order for GROUNDNUT OIL PRODUCTION BUSINESS PLAN & FEASIBILITY STUDY, pay N15,000 to
GTBank (Guaranty Trust Bank)
This involves registration of your company name in Corporate Affairs Commission (C.A.C) and also getting permits from other association involved in it.
Get an operating permit
This can be gotten from food regulations body like National Agency for Food and drugs Administration and control (NAFDAC) this body is a federal agency under the Federal Ministry of Health that is responsible for regulating and controlling the manufacture, importation, exportation, advertisement, distribution, sale and use of food.
We also have other bodies to obtain license from such as:
Food operating license
Company registration with ROC
This involves getting the capital you need for the business. Do you have enough money to start or do you intend to borrow from bank or other financial institutions? This business is lucrative but also involve finance.
This involves recruiting staffs, the staffs must be experienced in this field. The business is technical and requires skills, so you should employ people who knows about it so that you can produce good products.
Equipment required for Groundnut oil Production
Steel drums for storing edible oil.
Batch type solar dryer
Cans and trays for handling oil seeds
Pre-cleaner for cleaning the oil seeds
Groundnut oil production process and technology
Cleaning : Clean the groundnut seed to remove any dirt, sand, stones and other debris so as not to contaminate the oil.
Dehulling: This is removing the outer seed coat of the oil seeds.
Grinding: This involves reducing the particle size.
Heating: This leads to greater yielding of oil.
Pressing: This involves pressing the oil seeds using a lever press.
Refining: This involves removing undesirable cloudiness, color and flavor from the extracted oil.
You can get a business structures of this kind :
Customer care executives
Problems involved in Groundnut Production
Little or no access to quality groundnut seeds, insecticide, pesticides, .
Lack of fund to begin.
Lack of technical know how.
Too much attack by insects.
Our sample Groundnut Oil Production Business Plan in Nigeria can be used to access bank loans, proposal writing and grant applications. The business plan was complied after a thorough feasibility study on Groundnut Oil Production Business in Nigeria was done.