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Investing In Palm Kernel Processing - Agriculture - Nairaland

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Investing In Palm Kernel Processing by Nobody: 3:20pm On Jun 27, 2014
The oil that is derived from palm kernel is used for cosmetic product making and other vital industrial purposes. This business is one of the
hidden lucrative and profitable business that many people are yet to know much about or anything at all.

Unless you are told of how lucrative this business is by an insider, you will never believe it makes any money let alone making millions.

But I can tell you for certainty and for free that palm oil extraction business is a mega millions business.

Are you aware that palm kernel oil product is one of the few product you can sell right at the point of production, without necessarily needing to take it to the market?

Depending on your financial capacity, It can be run in a small, medium and large scale. You may be wondering but where can one get palm kernel in large quantity? It is produced in hundreds of thousands tones in the Eastern part of Nigeria annually.

All you need to do is to go set up this business around the east or you
transport the product to your desired location and mill.

It is however most profitable when you set it up where you can Palm Kernel Nuts PKN in large quantity due to transportation costs and other
logistics. Ondo state is also good at the production of palm kernel too, so you may decide to source there if you're within West.

DEFINATION OF TERMS

PKN - Palm Kernel Nut. The is the nut you get when a palm kernel's hard shell is broken. That's the nut where the oil we are talking about is extracted from.

PKO - Palm Kernel Oil. This is the actual oil that is being extracted from palm kernel nuts, the actual product or one of the main product we are talking about here.

PKC - Palm Kernel Cake. This another product that is being derived from the palm kernel extraction process and it makes up good percentage of the palm kernel produce.

PKS - Palm Kernel Sludge. Is a residue collected from palm kernel oil.

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.

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Re: Investing In Palm Kernel Processing by Nobody: 2:37am On Jun 28, 2014
Not even one pics of the machine in action or idle state, that is poor
Re: Investing In Palm Kernel Processing by Nobody: 4:45am On Jun 28, 2014
aguiyi: Not even one pics of the machine in action or idle state, that is poor
You need not be fed everything. The information provided is just a bacground information. I believe any interested person will do more research to get more info he/she needs.

2 Likes

Re: Investing In Palm Kernel Processing by Nobody: 5:58am On Jun 28, 2014
agonbello: You need not be fed everything. The information provided is just a bacground information. I believe any interested person will do more research to get more info he/she needs.

Sounds like You are not in the business,probably just doing copy and paste,

1 Like

Re: Investing In Palm Kernel Processing by Nobody: 11:51am On Jun 28, 2014
aguiyi:

Sounds like You are not in the business,probably just doing copy and paste,
Yh, if you say so. The need to convince you exist not.
Re: Investing In Palm Kernel Processing by Nobody: 5:54pm On Jun 28, 2014
agonbello: Yh, if you say so. The need to convince you exist not.
@aguiyi, probably you re hustling for NIFOR
You wont go far.
Re: Investing In Palm Kernel Processing by Leyqute(m): 5:39am On Jul 14, 2014
does anyone have any idea how much oil palm seeds cost? please I need the answer ASAP
Re: Investing In Palm Kernel Processing by honeypiegirl(f): 9:39pm On Jul 14, 2014
Email info@agordglobal.com or cal 08036153665 u wil get a comprehensive report and evidence of an already existing functional and locally fabricated machines
aguiyi:

Sounds like You are not in the business,probably just doing copy and paste,
Re: Investing In Palm Kernel Processing by eazeefix: 3:24am On Jul 15, 2014
Nice thread I have an expeller that I want to resuscitate and adding to my piggery business will be following this thread closely. Pls let's not dampen the spirit of the thread by insults we are on naira land to make nairas. Learn what you can do ur own research network make ur cash smile to the bank.

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Re: Investing In Palm Kernel Processing by stanchuks(m): 6:50am On Jul 15, 2014
eazeefix: Nice thread I have an expeller that I want to resuscitate and adding to my piggery business will be following this thread closely. Pls let's not dampen the spirit of the thread by insults we are on naira land to make nairas. Learn what you can do ur own research network make ur cash smile to the bank.

Nice one!
If I may ask, where did you get your expeller from, was it locally sourced or imported?
Thanks
Re: Investing In Palm Kernel Processing by Nobody: 10:17am On Jul 15, 2014
eazeefix: Nice thread I have an expeller that I want to resuscitate and adding to my piggery business will be following this thread closely. Pls let's not dampen the spirit of the thread by insults we are on naira land to make nairas. Learn what you can do ur own research network make ur cash smile to the bank.
Thanks for the advice. Wishing you all the best in ur quest(s)
Re: Investing In Palm Kernel Processing by eazeefix: 1:37pm On Jul 15, 2014
stanchuks:

Nice one!
If I may ask, where did you get your expeller from, was it locally sourced or imported?
Thanks
Locally fabricated but I got it from the previous owner who complained it didn't work efficiently but I called in a friend who told me it is the basket and shaft that were badly designed and fabricated. will post a picture when I get back to base.
Re: Investing In Palm Kernel Processing by stanchuks(m): 6:21pm On Jul 15, 2014
eazeefix:
Locally fabricated but I got it from the previous owner who complained it didn't work efficiently but I called in a friend who told me it is the basket and shaft that were badly designed and fabricated. will post a picture when I get back to base.
ok thanks
will appreciate that, but do you know where it was purchased from or any recognised company in Nigeria that fabricates one or worse case outside Nigeria.
Re: Investing In Palm Kernel Processing by eazeefix: 8:10pm On Jul 15, 2014
stanchuks:
ok thanks
will appreciate that, but do you know where it was purchased from or any recognised company in Nigeria that fabricates one or worse case outside Nigeria.
It was somewhere in Ibadan but I can ask a friend who is into the business it appears the technology has been improved upon over the years.

1 Like

Re: Investing In Palm Kernel Processing by Nobody: 8:25pm On Jul 15, 2014
stanchuks:

Nice one!
If I may ask, where did you get your expeller from, was it locally sourced or imported?
Thanks
You can get imported oil-expeller @ AAM Ltd. Kaduna. I used their price to compose the original post
Re: Investing In Palm Kernel Processing by stanchuks(m): 7:36am On Jul 16, 2014
agonbello: You can get imported oil-expeller @ AAM Ltd. Kaduna. I used their price to compose the original post
Thanks, any idea which country the expeller is made from?
I believe Malaysia and Indonesia lead the pack!
Re: Investing In Palm Kernel Processing by stanchuks(m): 7:44am On Jul 16, 2014
agonbello: You can get imported oil-expeller @ AAM Ltd. Kaduna. I used their price to compose the original post
Tried checking AAM Ltd Kaduna online, all I could get is a Plastic company.
Any notable Web address or contact numbers?
Re: Investing In Palm Kernel Processing by Nobody: 8:26am On Jul 16, 2014
stanchuks:
Tried checking AAM Ltd Kaduna online, all I could get is a Plastic company.
Any notable Web address or contact numbers?
yes, its a plastic company. They are also into imporation and sales of various machines, they have now website yet. They import the macines mainly from china.
1s worked with them as a marketing staff.
Re: Investing In Palm Kernel Processing by stanchuks(m): 5:26pm On Jul 16, 2014
agonbello: yes, its a plastic company. They are also into imporation and sales of various machines, they have now website yet. They import the macines mainly from china.
1s worked with them as a marketing staff.
Ok, any contact person? Or better still do know any company that uses their expeller to see or know how it works. Thanks
Re: Investing In Palm Kernel Processing by billyG(m): 6:47pm On Jul 16, 2014
Chei!oil expellers frm malaysia & indonesia.no be does cuntry come obtain palm seeds frm naija in d 70's,lets hide our faces in shame.

2 Likes

Re: Investing In Palm Kernel Processing by Nobody: 9:01am On Jul 17, 2014
there is an ongoing effort to take the nation back to the glory days
Re: Investing In Palm Kernel Processing by koolsammie(m): 11:03am On Sep 20, 2014
Are there smaller machines that can process 2 to 5 tonnes?
Re: Investing In Palm Kernel Processing by Ikandah: 9:54am On Dec 29, 2014
billyG:
Chei!oil expellers frm malaysia & indonesia.no be does cuntry come obtain palm seeds frm naija in d 70's,lets hide our faces in shame.

What total dependence on petroleum has done to Nigeria.
Re: Investing In Palm Kernel Processing by famoushenddy: 8:26pm On Jun 29, 2015
NICE ONE..... BUT YOU DIDN'T STATE ON YOUR WRITE UP THAT THE OIL PRESSER NEED @LEAST A 50KVA GENERATOR OR 3PHASE ELECTRICITY POWER TO FUNCTION..... WHICH IS ONE OF THE DRAW BACK IN PKO PRODUCTION IN NIGERIA.. CALL 08169767645 FOR MORE INFO.....
Re: Investing In Palm Kernel Processing by Great500: 11:03am On Apr 02, 2016
can one buy the nuts and take to an expeller?...and if yes..how much would the owner of the expeller take for processing a ton of pkn?
Re: Investing In Palm Kernel Processing by princegeremi: 6:04pm On May 09, 2016
for the palm kernel processing business. how long does it take to process one ton. And how many tons can be processed in a day.
Re: Investing In Palm Kernel Processing by Awho(m): 8:09am On May 10, 2016
Leyqute:
does anyone have any idea how much oil palm seeds cost? please I need the answer ASAP

it depends on the quantity you need.. plus your location.
Re: Investing In Palm Kernel Processing by amisyfoodequip(f): 10:13am On May 10, 2016
Supply 5T/D Palm Kernel Oil Plant
Main Machines in Palm Kernel Oil Plant

1. Hammer Mill
Palm kernels have to be separated from palm fruits before pressing. A hammer mill or a powder mill breaks the kernels into small particles. This breaking process increases the surface area of the kernels.

2. Palm Kernel Roasting Machine
Crushed palm kernels are heated in roasting machines to rupture cell walls and reduce viscosity of palm oil. Pre-cooking is to increase the palm oil yield.

3. Palm Kernel Automatic Oil Press
As to the rich oil in palm kernels, these palm kernel particles are always sticking onto the wall thus causing breaking down. Generally palm kernel particles are subjected to flaking firstly for a pre-press.

4. 3T/D Palm Kernel Oil Refining Machine
The phospholipid content in palm oil is very low less than 200 mg per kilogram so generally dried-degumming method is taken in palm kernel oil production. Neutralized palm oil is cooled to 30℃ to remove phospholipid. Such oil refining methods can be also used in palm oil and coconut oil production.
More details: http://www.oil-press-machine.com/product/oil-production-line/5T/D-palm-kernel-oil-plant.html
Email: info@oil-press-machine.com
Re: Investing In Palm Kernel Processing by Leyqute(m): 2:29pm On May 10, 2016
Awho:


it depends on the quantity you need.. plus your location.

It's been years since I made that post... grin

I don't need 'em anymore
Re: Investing In Palm Kernel Processing by numen(m): 6:17pm On May 11, 2016
I am currently into this business and I can tell you almost everything you need. The business is not easy as advertised but it's lucrative when you get your processes working seamlessly.

The hardest part of the business is not setting up the factory or building/buying the machines, it's sourcing quality raw materials that is the problem.

A breakdown of my machine cost:

1.) Toaster - N160,000
2.) Expeller - N500,000
3.) Filter Press - N250,000
4.) 2 18 Ton Storage Tanks - N45,000 each (second hand)
5.) 10 Metal Drums - N2,800 each
6.) Electricals - N300,000 (site dependent)

1 Like

Re: Investing In Palm Kernel Processing by karlxavier(m): 6:34pm On May 11, 2016
What's the average of the amount of diesel you spend on powering your machine for one month? What is the output of the machine? If the machine attains full production, how many tonnes can be crushed in a month? Please reply
numen:
I am currently into this business and I can tell you almost everything you need. The business is not easy as advertised but it's lucrative when you get your processes working seamlessly.
The hardest part of the business is not setting up the factory or building/buying the machines, it's sourcing quality raw materials that is the problem.
A breakdown of my machine cost:
1.) Toaster - N160,000
2.) Expeller - N500,000
3.) Filter Press - N250,000
4.) 2 18 Ton Storage Tanks - N45,000 each (second hand)
5.) 10 Metal Drums - N2,800 each
6.) Electricals - N300,000 (site dependent)
What's the average of the amount of diesel you spend on powering your machine for one month? What is the output of the machine? If the machine attains full production, how many tonnes can be crushed in a month? Please reply

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