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Re: Starting An Oil Palm Plantation by kunlekunle: 12:45pm On Jun 27, 2013
okine4real: i dont want to talk now so that some people would not say am forming say i have money. But the truth is i have not adjusted the palms because from mine calculation am suppose to have between 150 to 200 palms on that farm. If i have 200 palms, that means when the palms are around 5 to 7 years i would be making like 400k per year for just oil only. But am not interested in that kind of money because considering the stress, the money is way too small for me. The minimum am looking at is 3000 palms. with that, then i know i would make money. I can do the palms in mine village because lands are way too expensive in mine village. Imagine i bought 13 plots at the rate of 200k each, did survey for about almost 300k or 400k i cant remember now, clearing cost me almost 110k. So if am to have 3000 palms i need to buy 50 acres, if i buy that kind land for mine villa, I think i might Die self because i dont have that kind of money. But The West is the best place to do these kind of business. With 4M you can secure yourself 50 Acres in Ibadan ares. That was why i asked a question here some days back, that does people selling 1 acre of land in oyo or Ibadan for 50k to 80k how real is it. Although i have seen lots around Ibadan for 80k per acre but, the westerns are known for one thing, they would always find a way to collect the lands back or another family would come and say they are the real owners of the land, and if you are not strong either physically, spiritually etc, you would either lose the land or you lose your life along with it. Am not talking from what i have read, am talking from what i have seen, it even happened to my Oga in Ikeja self. So am still thinking on what to do next. But if you a Yoruba Guy, you speck the language very well, and you are sure that, you can get real genuine land without another family coming to disturb you in the future, please go and buy the land. But remember, palm business is not for the poor, if you c=dont have cash on ground, you would not succeed or the rate at which you would succeed with slow down. Imagine you buying land for about 4.5M, do survey for about 500. plant for about 300k, clear the ground for about 400. but seedling. then you start buying your factory..... You see, its an expensive business, but if you can start it, Go ahead

Regards


my advice, dont follow those write up verbally,
you can adopt a pecking order system to survive, you asses the situation, ask questions especially from students who are mostly willing to give information for a token.

1 Like

Re: Starting An Oil Palm Plantation by okine4real: 7:34pm On Jun 27, 2013
kunlekunle:


my advice, dont follow those write up verbally,
you can adopt a pecking order system to survive, you asses the situation, ask questions especially from students who are mostly willing to give information for a token.

Could you kindly explain explicitly on what you really mean?
Re: Starting An Oil Palm Plantation by Rubyventures: 11:38pm On Jun 27, 2013
We have had our oil palm plantation for close to 10 years now, in the ogba area of benin city the problem is that the labour cost are very high and marketing for the final product . We sell the palm oil in drums is there anybody here with similar experience?
Re: Starting An Oil Palm Plantation by kunlekunle: 8:04am On Jun 28, 2013
okine4real:

Could you kindly explain explicitly on what you really mean?


was just concern about the cos implication of the project.
If cash is available you invest professionally, if not thats when you do the pecking order.
I intend to spend 400k in the first 3yrs on 10h, the 4th i;ll be planning the processing unit.
ill be liasing with some agric students for advice and adopt semi automatic operation.
will definitely get in touch probably to share exxperiences.
Re: Starting An Oil Palm Plantation by okine4real: 10:28am On Jun 28, 2013
Rubyventures: We have had our oil palm plantation for close to 10 years now, in the ogba area of benin city the problem is that the labour cost are very high and marketing for the final product . We sell the palm oil in drums is there anhybody with similar experince?

For you to make good profit, use machines in some ares not labor. Also when you want to harvest, make use of machines like the once in the video i posted or some other contributors posted. If you must make profit, make use of machines and in the long run you would have saved yourself a lot of profit. Also in terms of weeding dont hire labor, buy the machines they use in cutting grass, just like the once they use in cutting grass on Ikorodu road, i think its around 70k. If you buy like three units, it would save you more stress and lots of money, because all you need do is take your staffs to the farm and let them do the weeding. Since you are paying them salary, make use of your staff. Also another way you can get cheap labor is write a letter to NYSC. Tell them to post you about two or three CORP to your farm every year, the student must be student that read course that has to do with Agriculture. With CORPERs in your farm, you can pay them.... I dont want to put figures so Corpers dont start insulting me. All you have to do is, let there be corpers in your farm every year and with these method you would have saved your self lots of money.

kunlekunle:


was just concern about the cos implication of the project.
If cash is available you invest professionally, if not thats when you do the pecking order.
I intend to spend 400k in the first 3yrs on 10h, the 4th i;ll be planning the processing unit.
ill be liasing with some agric students for advice and adopt semi automatic operation.
will definitely get in touch probably to share exxperiences.


400k is change mine brother. On one hectare you can plat 150 palm maximum, so on 10 hectares you can plant just 1500 palms. the cost of 1500 palms is 150 multiplied by 1500 which is 225,000 Naira. buy the time you transport the palms your money would have been exhausted. So mine dear its not possible, Also there would be lots of contingencies that would come into play and if you are not financially strong, your project would not move smoothly. You should know that in Nigeria 400k is like 10 Naira, if your predicts are factual a lot of people would have gone into the business way back.

Even the land, how much do you intend to buy the 10 hectare? except you are saying you have the lands already?

Regards

1 Like

Re: Starting An Oil Palm Plantation by Rubyventures: 10:50am On Jun 28, 2013
okine4real:

For you to make good profit, use machines in some ares not labor. Also when you want to harvest, make use of machines like the once in the video i posted or some other contributors posted. If you must make profit, make use of machines and in the long run you would have saved yourself a lot of profit. Also in terms of weeding dont hire labor, buy the machines they use in cutting grass, just like the once they use in cutting grass on Ikorodu road, i think its around 70k. If you buy like three units, it would save you more stress and lots of money, because all you need do is take your staffs to the farm and let them do the weeding. Since you are paying them salary, make use of your staff. Also another way you can get cheap labor is write a letter to NYSC. Tell them to post you about two or three CORP to your farm every year, the student must be student that read course that has to do with Agriculture. With CORPERs in your farm, you can pay them.... I dont want to put figures so Corpers dont start insulting me. All you have to do is, let there be corpers in your farm every year and with these method you would have saved your self lots of money.


Thank you very much for your advice very much appreciated, do you have the make or model for the grass cutting machines or is it the type that is used for mowing lawns? Also what about the end products Palm oil, we haven't got good marketing contacts, all we get is a few market women who come to price the drums at ridiculous prices.
Re: Starting An Oil Palm Plantation by okine4real: 11:28am On Jun 28, 2013
In mine office here, a guy sells the machine used for cutting grass. Its very good. I mean its very good. The machine can even cut a head of a snake even if a snake come your way while clearing your grass. I would try and take pictures and put them up here.

As for your oil, how much is your oil? i think you should sell in 25 liters. Also i have always said these, palm oil business is capital intensive. You should get yourself a truck you can use in transporting your goods, but charge for transporting the goods any way. if you have trucks, clients would be ready to deal wit you more because they know that you would transport the goods for them immediately instead of them buying goods and there after going to look for truck that would convey there oil.

One good way you can sell your products is. Get resellers under you, You would have to give them credit any way, but the marketing point is, once you have successfully made your products known, you then start limiting the amount of credit you give.

Also make sure you have the machines that grounds PKN, If you have these machine, you would make more money rather than selling the PKN to other milling factories that has the machine.

Send me a mail on okine4real@yahoo.com. or call me on 08036541861 or 07087776267 lets see how we can market your oil here in Lagos.
Re: Starting An Oil Palm Plantation by kunlekunle: 12:30pm On Jun 28, 2013
okine4real:

For you to make good profit, use machines in some ares not labor. Also when you want to harvest, make use of machines like the once in the video i posted or some other contributors posted. If you must make profit, make use of machines and in the long run you would have saved yourself a lot of profit. Also in terms of weeding dont hire labor, buy the machines they use in cutting grass, just like the once they use in cutting grass on Ikorodu road, i think its around 70k. If you buy like three units, it would save you more stress and lots of money, because all you need do is take your staffs to the farm and let them do the weeding. Since you are paying them salary, make use of your staff. Also another way you can get cheap labor is write a letter to NYSC. Tell them to post you about two or three CORP to your farm every year, the student must be student that read course that has to do with Agriculture. With CORPERs in your farm, you can pay them.... I dont want to put figures so Corpers dont start insulting me. All you have to do is, let there be corpers in your farm every year and with these method you would have saved your self lots of money.




400k is change mine brother. On one hectare you can plat 150 palm maximum, so on 10 hectares you can plant just 1500 palms. the cost of 1500 palms is 150 multiplied by 1500 which is 225,000 Naira. buy the time you transport the palms your money would have been exhausted. So mine dear its not possible, Also there would be lots of contingencies that would come into play and if you are not financially strong, your project would not move smoothly. You should know that in Nigeria 400k is like 10 Naira, if your predicts are factual a lot of people would have gone into the business way back.

Even the land, how much do you intend to buy the 10 hectare? except you are saying you have the lands already?

Regards


cheers for the advice, im already on course and on budget.
starting from the nursery with some crops till the 4th year.
Re: Starting An Oil Palm Plantation by henrimoto(m): 1:39pm On Jun 28, 2013
Rubyventures:

Thank you very much for your advice very much appreciated, do you have the make or model for the grass cutting machines or is it the type that is used for mowing lawns? Also what about the end products Palm oil, we haven't got good marketing contacts, all we get is a few market women who come to price the drums at ridiculous prices.
@ rubyventures. if u dont go out to get market 4 ur palm oil, u wouldn't get d full profits of ur palm oil. see, d market of palm oil in nigeria is large, very large. but when u dont go out 2 search 4 it , u wouldnt know dis. do u no dat palm oil is an essential comodity in norther part of d country? y ? apart 4rm d fact dat dey dont plant and produce palm oil, d chadians, nigeriens, malians and some part of cameronians to nigeria 2 buy palm oil in large quantity through d northern part of d country. there are part of northern nigeria markets where palm oil is hotcake. (check out sokoto, kebbi,zamfara, even abuja) now, talking about marketing ur palm oil, just like okine4real said, you ve 2 give room 4 little credit facility...till u capture good awareness 4 ur palm oil. @okine4real, ruby ventures. another good thing about palm oil is this...'palm oil no dey spoil' no matter how long u leave it in d drums or kegs. and dat makes it profitable 4 u when it is scarce.(bros, palm oil dey scarce!) dis is when most palm oil traders and farmers make extra cool profit on their palm oil.. okine4real mentioned lagos to market ur oil, ibadan too is another market. as long as ur palm oil is of good taste and quality, u dont need 2 talk 2 much 2 sell ur palm oil. welcome 2 d millionaire farmers' club.

5 Likes

Re: Starting An Oil Palm Plantation by kunlekunle: 2:49pm On Jun 28, 2013
henrimoto: @ rubyventures. if u dont go out to get market 4 ur palm oil, u wouldn't get d full profits of ur palm oil. see, d market of palm oil in nigeria is large, very large. but when u dont go out 2 search 4 it , u wouldnt know dis. do u no dat palm oil is an essential comodity in norther part of d country? y ? apart 4rm d fact dat dey dont plant and produce palm oil, d chadians, nigeriens, malians and some part of cameronians to nigeria 2 buy palm oil in large quantity through d northern part of d country. there are part of northern nigeria markets where palm oil is hotcake. (check out sokoto, kebbi,zamfara, even abuja) now, talking about marketing ur palm oil, just like okine4real said, you ve 2 give room 4 little credit facility...till u capture good awareness 4 ur palm oil. @okine4real, ruby ventures. another good thing about palm oil is this...'palm oil no dey spoil' no matter how long u leave it in d drums or kegs. and dat makes it profitable 4 u when it is scarce.(bros, palm oil dey scarce!) dis is when most palm oil traders and farmers make extra cool profit on their palm oil.. okine4real mentioned lagos to market ur oil, ibadan too is another market. as long as ur palm oil is of good taste and quality, u dont need 2 talk 2 much 2 sell ur palm oil. welcome 2 d millionaire farmers' club.


i think one shd look into the processing methods in other to venture into the food and drugs industry.
Re: Starting An Oil Palm Plantation by henrimoto(m): 4:41pm On Jun 28, 2013
@ okine4real. concerning ur fears about acquisition of land in d western part of d country. its like u 're nt conversant with d life and politics of dis part of d country. ur fear and d case u sited is peculiar 2 lagos state among other western states in d country. despite dat, d case u sited is like 6 in 100. there 're still a large number of easterners and northerners who still own small or large landed property in lagos. 2 buy land in lagos, na wahala! u must nt b in a haste, u will do research tire., just 2 make sure u 're buying 4rm d right family or d right owner. buying of land outside lagos is a bit easy and straight forward, as long as u 're dealing with d right family , and after dat , get it registered with d government.( bros, ur land is secure!) ve u ever wondered why real estate developers prefer locations in ogun state dat is closer 2 lagos state? do u want 2 tell me dat there's no more bush land in lagos? why are new companies moving over 2 ogun state, buildin on large expance of land? okine4real, let me tell u 1 corect idea in acquiring a trouble free land in western nigeria apart 4rm lagos. when buying a large expence of land , apart 4rm meeting family heads and chiefs,pay a visit 2 d bale(oba) of dat community. get him involve. dats how its been done. documents are involve, its nt just a verbal thing. even in d documents involved, after d family heads ve signed, d bale too will sign (no b 4 free, u no nowww).as long as it is nt in lagos, u can get a large portion of land @ cheat rate even with peace of mind. it 's just all about networking with d right people.
Re: Starting An Oil Palm Plantation by okine4real: 5:16pm On Jun 28, 2013
This is the machine used for clearing grass. i would still upload more pic

Re: Starting An Oil Palm Plantation by igbonla(m): 7:32pm On Jun 28, 2013
okine4real: I need advice here now.. Am actually looking at buying lands in ibadan. I know they sell for 80k per acre, some people sell lower why some sell higher. Now the first thing is, are these lands for real? Looking at a situation where by some family might come years later start claiming the land. Also if i plant oil palms using 9 meter spacing, can i plant plantain in between? also how many should i plant considering the spacing?

You can get land for different prices anywhere off Ibadan down to interior Osun State. It depends on how far inside you want to go. Closer to Ibadan is more expensive and prone to fraud, the "land agents" are many these days. I bought my land for 50k per acre about 2 years ago but the price is up, the villagers are smarter now.
It is important to check the authenticity of the land, there are several ways to do that. Local checks using villagers/community folks, different interviews and then from government to know if the land is marked for some developmental work. Take this seriously, Ajimobi and Aregbe are "working like mad", many lands and under govt acquisition in Oyo state and nobody will tell you except you check. I was shown such land, thank God I had the map of govt acquired lands around Ibadan.
These checks cost money, so don't go looking for cheap help that will land you in trouble. You must also spend your money wisely so guys don't fleece you and leave you dry.
Most of the village lands don't have surveys, so that is additional cost and very huge too. You have to get your own surveyor if you don't want to pay for 20 acres and end up with 12! Govt deliberately charge so much for survey to discourage scammers (although you get reimbursed some of the survey fees by govt, if your surveyor is your wife!).

After acquiring the land, you need the survey drawing made up and registered with govt. And better to apply for the CofO immediately, you should take possession even before applying for CofO to show your presence and prevent any game.

Better to plant plantain in between the palm if you use 9m spacing for the palm trees, you should plan for about 300 to 400 plaintain per acre. This is huge income if you get good yield and market the plantain well.

All the best.

3 Likes

Re: Starting An Oil Palm Plantation by igbonla(m): 7:43pm On Jun 28, 2013
Rubyventures: We have had our oil palm plantation for close to 10 years now, in the ogba area of benin city the problem is that the labour cost are very high and marketing for the final product . We sell the palm oil in drums is there anybody here with similar experience?

What was your marketing strategy when you started the business? Perhaps you should revisit that and do a review to make it up to date.
Re: Starting An Oil Palm Plantation by igbonla(m): 7:46pm On Jun 28, 2013
kunlekunle:


was just concern about the cos implication of the project.
If cash is available you invest professionally, if not thats when you do the pecking order.
I intend to spend 400k in the first 3yrs on 10h, the 4th i;ll be planning the processing unit.
ill be liasing with some agric students for advice and adopt semi automatic operation.
will definitely get in touch probably to share exxperiences.

You need to review this plan, 400k wont go far in this business. I currently pay 50k to clear 10 acres, you are looking at 125k to clear 10ha except if you will be doing the clearing yourself.
Re: Starting An Oil Palm Plantation by kunlekunle: 6:09am On Jun 29, 2013
igbonla:

You need to review this plan, 400k wont go far in this business. I currently pay 50k to clear 10 acres, you are looking at 125k to clear 10ha except if you will be doing the clearing yourself.

it was done for 55k, i'm starting from the nursery 4500 seeds and gradually upgrade afterwards.
Re: Starting An Oil Palm Plantation by okine4real: 9:54am On Jun 29, 2013
igbonla:

You can get land for different prices anywhere off Ibadan down to interior Osun State. It depends on how far inside you want to go. Closer to Ibadan is more expensive and prone to fraud, the "land agents" are many these days. I bought my land for 50k per acre about 2 years ago but the price is up, the villagers are smarter now.
It is important to check the authenticity of the land, there are several ways to do that. Local checks using villagers/community folks, different interviews and then from government to know if the land is marked for some developmental work. Take this seriously, Ajimobi and Aregbe are "working like mad", many lands and under govt acquisition in Oyo state and nobody will tell you except you check. I was shown such land, thank God I had the map of govt acquired lands around Ibadan.
These checks cost money, so don't go looking for cheap help that will land you in trouble. You must also spend your money wisely so guys don't fleece you and leave you dry.
Most of the village lands don't have surveys, so that is additional cost and very huge too. You have to get your own surveyor if you don't want to pay for 20 acres and end up with 12! Govt deliberately charge so much for survey to discourage scammers (although you get reimbursed some of the survey fees by govt, if your surveyor is your wife!).

After acquiring the land, you need the survey drawing made up and registered with govt. And better to apply for the CofO immediately, you should take possession even before applying for CofO to show your presence and prevent any game.

Better to plant plantain in between the palm if you use 9m spacing for the palm trees, you should plan for about 300 to 400 plaintain per acre. This is huge income if you get good yield and market the plantain well.

All the best.

Nice one. Nice advice. Like as i have always said, when i want to make profit, i would always want to make sweet profit. I dont know how many acres you bought, but if i buy lets say 100 acre, how much would it cost to have a C of O ? Also you said you paid 50k for clearing 10 acres... Oboy man that is cheap man...... I paid more than 100k to clear 13 plots in Delta state. Well i have always said it that the west is the best place to do plantation business because of there cheap lands, imagine you buying one acre for 50k and i bought one plot for 180k in mine village.. I have wasted money seriously.... I would try and revisit these palm business. But the problem am having is, if i must set up these palm plantation in Ibadan, i must have an eye there, and better still the eye should be a family member. But i would take all your advice seriously and start planing again.

Palm plantation is very cash consuming so i must go prepare well well. if possible i would like to have 5,000 palm nursery for a start. All these making 3M profit at the end of the year, that kind of money is too small for me because if i spend lets say 9M for buying of 100 acres and i spend like 500k for clearing, another lets say 700k for survey, 1M for buying of seedling and transport, another 500k for planting. and there would still be another cost i cant put here. So if i make 3M from lets say from the 6 year, bro the money too small. but would have to go back to mine plan and re strategize again.
Re: Starting An Oil Palm Plantation by igbonla(m): 11:18am On Jun 29, 2013
okine4real:

Nice one. Nice advice. Like as i have always said, when i want to make profit, i would always want to make sweet profit. I dont know how many acres you bought, but if i buy lets say 100 acre, how much would it cost to have a C of O ? Also you said you paid 50k for clearing 10 acres... Oboy man that is cheap man...... I paid more than 100k to clear 13 plots in Delta state. Well i have always said it that the west is the best place to do plantation business because of there cheap lands, imagine you buying one acre for 50k and i bought one plot for 180k in mine village.. I have wasted money seriously.... I would try and revisit these palm business. But the problem am having is, if i must set up these palm plantation in Ibadan, i must have an eye there, and better still the eye should be a family member. But i would take all your advice seriously and start planing again.

Palm plantation is very cash consuming so i must go prepare well well. if possible i would like to have 5,000 palm nursery for a start. All these making 3M profit at the end of the year, that kind of money is too small for me because if i spend lets say 9M for buying of 100 acres and i spend like 500k for clearing, another lets say 700k for survey, 1M for buying of seedling and transport, another 500k for planting. and there would still be another cost i cant put here. So if i make 3M from lets say from the 6 year, bro the money too small. but would have to go back to mine plan and re strategize again.

The cost of CofO depends on each state and also on the person handling the processing; give or take, it may cost up to 750k for 100 acre land in Osun state. This is inclusive of govt charges and professional fees. Yes, cost to clear lands varies depending on where the land is but the general agreement is to keep cost very low especially in any farm business where labor cost can cause lots of damages. Cost of land is a big issue for farmers and you definitely do not want to spend too much to acquire land, a plot of land costing 180k is a land for residential property and cannot be a farmland. You have not wasted money, you are only paying the price to learn albeit in a very expensive manner; you waste money when you make the same mistake twice. Farming, as I know it, is not a venture for absentee farmers so you should plan on living close to the farm or hire good hands and provide excellent supervision. I will advise you visit farms and talk to farmers so you can learn more, especially from young people who are finding their way back to farm.

You will spend more than 500k to clear 100 acres in one year, I am presently doing second clearing because of the rains. You will spend this 500k like 3 or 4 times in one year or until the plantain can rescue you (if you include plantain with the palm). Survey may cost up to 700k if you negotiate hard otherwise budget between N1M to N1.5M. Planting may cost close to N1M except if you win lottery and get some cheap guys that will charge less and do a good job, you may need fertilizer and the cost varies. You will need additional 250k to 400k for metal protectors for your seedlings.
So, in agreeing with you, palm plantation is not cheap especially at the level of 5000 seedlings. Generally, farming is not cheap but you have an edge if you have the cash to spend because people will always need food to survive.

All the best.

1 Like

Re: Starting An Oil Palm Plantation by kunlekunle: 1:05pm On Jun 29, 2013
igbonla:

The cost of CofO depends on each state and also on the person handling the processing; give or take, it may cost up to 750k for 100 acre land in Osun state. This is inclusive of govt charges and professional fees. Yes, cost to clear lands varies depending on where the land is but the general agreement is to keep cost very low especially in any farm business where labor cost can cause lots of damages. Cost of land is a big issue for farmers and you definitely do not want to spend too much to acquire land, a plot of land costing 180k is a land for residential property and cannot be a farmland. You have not wasted money, you are only paying the price to learn albeit in a very expensive manner; you waste money when you make the same mistake twice. Farming, as I know it, is not a venture for absentee farmers so you should plan on living close to the farm or hire good hands and provide excellent supervision. I will advise you visit farms and talk to farmers so you can learn more, especially from young people who are finding their way back to farm.

You will spend more than 500k to clear 100 acres in one year, I am presently doing second clearing because of the rains. You will spend this 500k like 3 or 4 times in one year or until the plantain can rescue you (if you include plantain with the palm). Survey may cost up to 700k if you negotiate hard otherwise budget between N1M to N1.5M. Planting may cost close to N1M except if you win lottery and get some cheap guys that will charge less and do a good job, you may need fertilizer and the cost varies. You will need additional 250k to 400k for metal protectors for your seedlings.
So, in agreeing with you, palm plantation is not cheap especially at the level of 5000 seedlings. Generally, farming is not cheap but you have an edge if you have the cash to spend because people will always need food to survive.

All the best.

u said it all
Re: Starting An Oil Palm Plantation by fxisreal: 11:03pm On Jul 04, 2013
kunlekunle:


was just concern about the cos implication of the project.
If cash is available you invest professionally, if not thats when you do the pecking order.
I intend to spend 400k in the first 3yrs on 10h, the 4th i;ll be planning the processing unit.
ill be liasing with some agric students for advice and adopt semi automatic operation.
will definitely get in touch probably to share exxperiences.

400k for 10h? that is not enough to maintain 1500 palm farm for d first year even if you have to do 90% by yourself.
Re: Starting An Oil Palm Plantation by kunlekunle: 5:37am On Jul 05, 2013
fxisreal:

400k for 10h? that is not enough to maintain 1500 palm farm for d first year even if you have to do 90% by yourself.

just reqd 1 acre for the nursery and the rest for other crops till real palm planting.
i knew cash would be reqd in between, however i'll supplement the cash flow from the crops.
initially thats my plan.
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Re: Starting An Oil Palm Plantation by Fhemmmy: 1:39pm On Jul 05, 2013
Still learning . . .
Re: Starting An Oil Palm Plantation by felixzo1(m): 4:06pm On Jul 06, 2013
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3 Likes

Re: Starting An Oil Palm Plantation by okine4real: 1:35pm On Jul 10, 2013
For the bross talking about 400k to be spent on 10 hectares, lol.... i dont know if you are just trying to seek attention or you are serious. Let me tell you, as far as minimizing cost is concern, am one of the best at that... Am not boosting, even if me and you are placed on a job and also a particular amount of money is giving to us for the job, i bet you, i might not even spend up to 50 percent of that money. Let me tell you a general principle... In any business you do in life, the best way to cut cost is, you spend lots money first at the beginning stage, but in the long run, you would save yourself lots of cash eg. As a palm plantation owner if you have 10 hectares and you want to clear the whole land. Now buy the machine i posted here earlier, the guy said its 55k. buy like 5pc. call your family or relations. give them the machines so that you all can clear the place by your self. now 55k multiply 5pc gives you 275k, lets say 280. even if you hire labor you would spend up to 500k. Now these is the main angle you are cutting cost. Remember you are suppose to weed at least two times a year. Now how can you be spending 1M for weeding every year? that would kill your business. So the best bet is buy the machines. In business you cut cost in the long run not in short run, in Economics you would be though this.


Also when it gets to the area of harvesting and pruning of leaves. Make use of machine harvester, do not make use of labor using cutlass, they would charge you per tree i guess, and if you have quite a number of palm tree standing, you would need to hire lots of people. But if you make use of the harvester machine, with just 3 people, you can cut a lot of palms per day. The cutting edge here is, when they are using machine to harvest, before there hand gets weak, they would have harvested a lot for the day, so there fore they can close for the day and start the next day. But if you use cutlass for harvest, before you cut down 10 palm fruit, their hands would be weak. Also in farming once you are not ready to work, i mean once you are not ready to hold cutlass and work, your working cost keeps rising. Also in farming there are lots of unforeseen cost, this is what almost killed me. i was just spending money like a pig giving birth, but mine main problem was, i was not on ground, if i where to be on ground, i would have decode all the rubbish going on, on mine farm. So i would conclude by saying.... If you are not or you dont have money, oil palm plantation is not for you because one, you need a very big land, you have to clear the land. Also for you to make meaningful profit, i believe one should be looking at planting like 3000 palm. As for me if i want to do palm business, i must be able to make 10M profit every year, if i cant make these kind profit, once the essence of buying lands that is as large as mine whole village and at the end of the day am making change............ That was already while i planted about 2000 palms but although i still have to destroy them but with 2000 palms, then you can call yourself a good farmer too. I hope am not discouraging anybody here, but the fact is, in Nigeria, people tell you that, you would make 1 Billion Naira in a particular business, but they would not tell you the disadvantage of the said business, so that's why am using these thread to let people know that palm oil plantation is a very though business. Also palm oil plantation is mostly suppose to be meant for people that want to retire. when you are old, when you can really hustle any more, so with your palm oil plantation, money would be pursuing you and not the other way around. I said its a business for retired person, because since most people cant produce at a capacity of having lets say 15,000 liters every month. I also failed to mention before that, i was only setting up the plantation for mine mum that wanted to retire to the village, instead of giving her 15k every month, its better i spend the money once and for all by setting up the plantation for her. Whom knowns, she could even be lending me money is the plantation is a success. i would stop here for now.... would update here again soonest

1 Like

Re: Starting An Oil Palm Plantation by kunlekunle: 2:53pm On Jul 10, 2013
your advice is indeed a biz plan booster.
however, how much is a bunch of FFB?
please do reply.
Re: Starting An Oil Palm Plantation by fxisreal: 1:00pm On Jul 11, 2013
okine4real:
Also when it gets to the area of harvesting and pruning of leaves. Make use of machine harvester, do not make use of labor using cutlass, they would charge you per tree i guess, and if you have quite a number of palm tree standing, you would need to hire lots of people. But if you make use of the harvester machine, with just 3 people, you can cut a lot of palms per day. The cutting edge here is, when they are using machine to harvest, before there hand gets weak, they would have harvested a lot for the day, so there fore they can close for the day and start the next day. But if you use cutlass for harvest, before you cut down 10 palm fruit, their hands would be weak. Also in farming once you are not ready to work, i mean once you are not ready to hold cutlass and work, your working cost keeps rising. Also in farming there are lots of unforeseen cost, this is what almost killed me. i was just spending money like a pig giving birth, but mine main problem was, i was not on ground, if i where to be on ground, i would have decode all the rubbish going on, on mine farm. So i would conclude by saying.... If you are not or you dont have money, oil palm plantation is not for you because one, you need a very big land, you have to clear the land. Also for you to make meaningful profit, i believe one should be looking at planting like 3000 palm. As for me if i want to do palm business, i must be able to make 10M profit every year, if i cant make these kind profit, once the essence of buying lands that is as large as mine whole village and at the end of the day am making change............ That was already while i planted about 2000 palms but although i still have to destroy them but with 2000 palms, then you can call yourself a good farmer too. I hope am not discouraging anybody here, but the fact is, in Nigeria, people tell you that, you would make 1 Billion Naira in a particular business, but they would not tell you the disadvantage of the said business, so that's why am using these thread to let people know that palm oil plantation is a very though business. Also palm oil plantation is mostly suppose to be meant for people that want to retire. when you are old, when you can really hustle any more, so with your palm oil plantation, money would be pursuing you and not the other way around. I said its a business for retired person, because since most people cant produce at a capacity of having lets say 15,000 liters every month. I also failed to mention before that, i was only setting up the plantation for mine mum that wanted to retire to the village, instead of giving her 15k every month, its better i spend the money once and for all by setting up the plantation for her. Whom knowns, she could even be lending me money is the plantation is a success. i would stop here for now.... would update here again soonest

good ideas except for the bolded part

y not taken things easy i mean small small u can not get to where you are going by one walk. starting with 1 hectare alone is something & that will gives like 160 palm plantation, along the line you continuing expanding the plantation if u like and you will be getting better and smarter ideas all along.
if u are in hurry to make money before the palm grow in 4 years set-up the production mill within your farmland get yourself a truck and be buying the matured palms from farmers for production while your own plantation continuing growing.
bro a Rome can not be build in a day.

9 Likes

Re: Starting An Oil Palm Plantation by okine4real: 2:18pm On Jul 11, 2013
@ fxisrea i appreciate your contribution. I dont know how to put it here but, every man determination differ. Not that i have money, but what i know is, i want to make money in this life. When i was in the States, Precisely California, i was opportune to visit a farm. Now let me tell you folks how to make real money if you want to be a farmer. 1st, own your plantation, 2nd own your milling factory 3rd you should ask yourself, the companies that buy the palm kernel oil, what do they use it for? i was told that they refine the oil, now if they refine the oil, then your last stage is you MUST GET THE MACHINES WHICH IS USED TO REFINED PALM KERNEL OIL. Now sometimes, these might now be easy to accomplish, but if you lay down your company blue Print to your children, when you are know more, your children would follow and modernize it and someday your company would become a world class company like pressco. The problem of most business in Nigeria is, we always want to do lets say 30 percent of a particular production line and pass the rest to another company, now there is nothing wrong in passing responsibility to other companies, but if you look closely your company can achieve exactly that same responsibility your company is throwing away. only if you have patience believe and good management control.

Now back to 160 palm.. from mine calculation 160 palm would give you like 500k profit every year from the 6th year i guess, but you should put your net profit at 250k considering your running cost. Now 250 is change money if you are a young guy like me even if i dont have the money cash sha ohh lol, but if you are old and you make 250k per year, ohh boy you would be considered rich among your peers and also considering the fact that you dont really need to bother your children for cash all the time.

Now back to farming, if you must make money in farming always make sure you process the product to the last stage and sell to the market and also to people that buys from the market. eg if i where to plant cassava, i would not sell mine cassava to people in the market, rather i would employ women that would process the cassava for me, that means i would have a garri factory. so i would do yellow garri, white garri, ijebu garri, starch, i would even do london garri if they demand for it. with these method i would make more profit in the long run, than someone that just plants cassava and sells the cassava to someone that owns a garri factory. When i was in the States, i saw a farm that is as big as Lagos State. On a row, they might plant apple, millet etc Now the beautiful part is, in these farm land, you would see factories here apple fruit are been made, in fact, there are lots of factories in the farm land, there is nothing like they sell there fruits just like that, although they sell to whole sellers, but they also have their own factories in their farms. The main issue here is define your Objectives as a farmer, then pursue them with all your might, then God would see you through. But when you dont have objectives everyday, you would wait for govt to come to your aid.

The main reason while a farmers child would not want to become a farmer and rather come to Lagos and start hustling for 200k job is because, the father did not give his farm land swag. Tell me if your father own presco or okitipupa oilpalm, tell me would you go looking for job else where? dont just have farm lands, have good offices and try as mush as possible and make your company even if not world standard, make it to be one of the best in Nigeria.

If i where to be a farmer, and am a Yoruba Man, i keep on saying Yoruba because land are cheap in the west than in the east. i would be a good farmer i guess. with 10M you can buy up to 100 acre or even more in the west and the rest is history.


So to summarize the whole story, if you want to do business in oil palm, own a machine that can refine palm kernel oil and make all the profit, rather than allowing other company take away your profit.

8 Likes

Re: Starting An Oil Palm Plantation by kunlekunle: 2:33pm On Jul 11, 2013
okine4real: @ fxisrea i appreciate your contribution. I dont know how to put it here but, every man determination differ. Not that i have money, but what i know is, i want to make money in this life. When i was in the States, Precisely California, i was opportune to visit a farm. Now let me tell you folks how to make real money if you want to be a farmer. 1st, own your plantation, 2nd own your milling factory 3rd you should ask yourself, the companies that buy the palm kernel oil, what do they use it for? i was told that they refine the oil, now if they refine the oil, then your last stage is you MUST GET THE MACHINES WHICH IS USED TO REFINED PALM KERNEL OIL. Now sometimes, these might now be easy to accomplish, but if you lay down your company blue Print to your children, when you are know more, your children would follow and modernize it and someday your company would become a world class company like pressco. The problem of most business in Nigeria is, we always want to do lets say 30 percent of a particular production line and pass the rest to another company, now there is nothing wrong in passing responsibility to other companies, but if you look closely your company can achieve exactly that same responsibility your company is throwing away. only if you have patience believe and good management control.

Now back to 160 palm.. from mine calculation 160 palm would give you like 500k profit every year from the 6th year i guess, but you should put your net profit at 250k considering your running cost. Now 250 is change money if you are a young guy like me even if i dont have the money cash sha ohh lol, but if you are old and you make 250k per year, ohh boy you would be considered rich among your peers and also considering the fact that you dont really need to bother your children for cash all the time.

Now back to farming, if you must make money in farming always make sure you process the product to the last stage and sell to the market and also to people that buys from the market. eg if i where to plant cassava, i would not sell mine cassava to people in the market, rather i would employ women that would process the cassava for me, that means i would have a garri factory. so i would do yellow garri, white garri, ijebu garri, starch, i would even do london garri if they demand for it. with these method i would make more profit in the long run, than someone that just plants cassava and sells the cassava to someone that owns a garri factory. When i was in the States, i saw a farm that is as big as Lagos State. On a row, they might plant apple, millet etc Now the beautiful part is, in these farm land, you would see factories here apple fruit are been made, in fact, there are lots of factories in the farm land, there is nothing like they sell there fruits just like that, although they sell to whole sellers, but they also have their own factories in their farms. The main issue here is define your Objectives as a farmer, then pursue them with all your might, then God would see you through. But when you dont have objectives everyday, you would wait for govt to come to your aid.

The main reason while a farmers child would not want to become a farmer and rather come to Lagos and start hustling for 200k job is because, the father did not give his farm land swag. Tell me if your father own presco or okitipupa oilpalm, tell me would you go looking for job else where? dont just have farm lands, have good offices and try as mush as possible and make your company even if not world standard, make it to be one of the best in Nigeria.

If i where to be a farmer, and am a Yoruba Man, i keep on saying Yoruba because land are cheap in the west than in the east. i would be a good farmer i guess. with 10M you can buy up to 100 acre or even more in the west and the rest is history.


So to summarize the whole story, if you want to do business in oil palm, own a machine that can refine palm kernel oil and make all the profit, rather than allowing other company take away your profit.


whats stopping you moving west? you have a defined objective and vision.
goodluck.

kindly reply to my request whats the price of ffb
Re: Starting An Oil Palm Plantation by fxisreal: 4:49pm On Jul 11, 2013
okine4real: @ fxisrea i appreciate your contribution. I dont know how to put it here but, every man determination differ. Not that i have money, but what i know is, i want to make money in this life. When i was in the States, Precisely California, i was opportune to visit a farm. Now let me tell you folks how to make real money if you want to be a farmer. 1st, own your plantation, 2nd own your milling factory 3rd you should ask yourself, the companies that buy the palm kernel oil, what do they use it for? i was told that they refine the oil, now if they refine the oil, then your last stage is you MUST GET THE MACHINES WHICH IS USED TO REFINED PALM KERNEL OIL. Now sometimes, these might now be easy to accomplish, but if you lay down your company blue Print to your children, when you are know more, your children would follow and modernize it and someday your company would become a world class company like pressco. The problem of most business in Nigeria is, we always want to do lets say 30 percent of a particular production line and pass the rest to another company, now there is nothing wrong in passing responsibility to other companies, but if you look closely your company can achieve exactly that same responsibility your company is throwing away. only if you have patience believe and good management control.

Now back to 160 palm.. from mine calculation 160 palm would give you like 500k profit every year from the 6th year i guess, but you should put your net profit at 250k considering your running cost. Now 250 is change money if you are a young guy like me even if i dont have the money cash sha ohh lol, but if you are old and you make 250k per year, ohh boy you would be considered rich among your peers and also considering the fact that you dont really need to bother your children for cash all the time.

Now back to farming, if you must make money in farming always make sure you process the product to the last stage and sell to the market and also to people that buys from the market. eg if i where to plant cassava, i would not sell mine cassava to people in the market, rather i would employ women that would process the cassava for me, that means i would have a garri factory. so i would do yellow garri, white garri, ijebu garri, starch, i would even do london garri if they demand for it. with these method i would make more profit in the long run, than someone that just plants cassava and sells the cassava to someone that owns a garri factory. When i was in the States, i saw a farm that is as big as Lagos State. On a row, they might plant apple, millet etc Now the beautiful part is, in these farm land, you would see factories here apple fruit are been made, in fact, there are lots of factories in the farm land, there is nothing like they sell there fruits just like that, although they sell to whole sellers, but they also have their own factories in their farms. The main issue here is define your Objectives as a farmer, then pursue them with all your might, then God would see you through. But when you dont have objectives everyday, you would wait for govt to come to your aid.

The main reason while a farmers child would not want to become a farmer and rather come to Lagos and start hustling for 200k job is because, the father did not give his farm land swag. Tell me if your father own presco or okitipupa oilpalm, tell me would you go looking for job else where? dont just have farm lands, have good offices and try as mush as possible and make your company even if not world standard, make it to be one of the best in Nigeria.

If i where to be a farmer, and am a Yoruba Man, i keep on saying Yoruba because land are cheap in the west than in the east. i would be a good farmer i guess. with 10M you can buy up to 100 acre or even more in the west and the rest is history.
So to summarize the whole story, if you want to do business in oil palm, own a machine that can refine palm kernel oil and make all the profit, rather than allowing other company take away your profit.
if you have to plan to do all this from the very beginning am afraid you might end half way or doing nothing, except you have very large money in save and am sure if you have that large money your thinking might quite different from this hard & time consuming farming business.
those you used as an example abroad hope you know they were either in partnership or getting good support from the Govt. Govt in western country don't joke with pple interested in farming. farmers have access to very large interest free loan over there with free land.
the like of presco, okitipupa, okomo-oil, ftcocoa etc are not one man business and am sure they don't start big as they are today.
all this divestment you mention is a good idea but you need to start learning how to crawl before walking.
your own story is a good example of what am saying. you have a good business intention but you took it from the high side before you got good understanding of the business you've already in big loss.
now you knew where your mistakes comes from but no much money to continuing at the rate you started the business earlier. assuming you have started with 10% of what you had spent and keep expanding with the rest money if mistake come along you learn and continuing or even start afresh as you intend to now.
so nothing bad in having a big business ambition but you need to start from little as on the business learning.

7 Likes

Re: Starting An Oil Palm Plantation by laji(m): 3:22pm On Jul 12, 2013
@ okine4real:: i have been enjoying the topic as i am considering going into it majorly, i find it very educative and informative..God bless you okine4real, pls can you put your phone number or email address so that we can discuss at length on more ideas.
thank you.

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