Now that we have seen the required machines & equipment, the sample temporary structure that a small scale investor can start with, let us look at the possible profit profile of a one - expeller factory set up

Profitability Profile:
Let us assume that we crush 2.5 tons of good palm kernel nuts. Using the prevailing prices currently,
Palm kernel nuts ………N140,000 per ton
Palm kernel oil …………N440,000 per ton
Palm kernel cake………. N38,000 per ton
Palm kernel sludge……...N90,000 per ton

Given the above prices, let us look at how it adds up.
The norm is that at 40% extraction rate, which is the convention in the industry, 2.5 tons of kernel nuts will yield one ton of palm kernel oil (PKO), 1.375 tons of palm kernel cake (PKC) and 0.1 of sludge (PKSL)

Profitability Calculation
Cost of raw materials 2.5 x 140,000 = N317,500

Aggregation of sales
Sale of PKO 1 x 440,000 = N440,000
Sale of PKC 1.375 x 38,000 N52,250
Sale of PKSL 0.1 x 90,000 = N9,000
Total Sales Revenue N501,250
Gross Profit 501,250 – 350,000 = N151,250
Let us roughly assume 50% Expenses N75,625
Net Profit N75,625

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Profitability Profile:
Let us assume that we crush 10 tons of good palm kernel nuts. Using the prevailing prices currently,
Palm kernel nuts ……N140,000 per ton
Palm kernel oil ………N440,000 per ton
Palm kernel cake………. N38,000 per ton
Palm kernel sludge…. .N90,000 per ton

Given the above prices, let us look at how it adds up.
The norm is that at 40% extraction rate, which is the convention in the industry, 2.5 tons of kernel nuts will yield one ton of palm kernel oil (PKO), 1.375 tons of palm kernel cake (PKC) and 0.1 of sludge (PKSL)

For 10 tons of good quality kernel nuts crushed

Yield:
PKO = 4 tons
PKC. = 5.5 tons
PKSL.= 0.4 tons


Profitability Calculation
Cost of raw materials 10 x 140,000 = N1,400,000

Aggregation of sales
Sale of PKO 4 x 440,000 = N1,760,000
Sale of PKC 5.5 x 38,000 N209,000
Sale of PKSL 0.4 x 90,000 = N36,000

Total Sales Revenue N2,005,000

Gross Profit 2,005,000 – 1,400,000 = N605,000
Let us roughly assume 50% Expenses N302,500

Net Profit N302,500

hello, please i want to know the estimate of establishing a processing factory that can process 10 tons daily, what could be the rough estimate

Jeffobinna1:
hello, please i want to know the estimate of establishing a processing factory that can process 10 tons daily, what could be the rough estimate

Jeffobina, kindly contact us with our official whatsapp number 08037788438 for the cost of the different models/ combinations of expellers and other equipment

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Watch out for an intensive online training on the business of palm kernel oil production for beginners and existing operators. The training will equip you adequately to start and run your factory profitably. Below is the course outline.

1. Business plan development-

2. Business Fund Sourcing

3. Equipment selection and Acquisition

4. Equipment maintenance and Optimization


5. Basics on palm kernel toasting on local toasters /dryers.

6. Yield determination of kernels.

7. Routine maintenance checklist.

8. Palm kernel nuts selection and quality checks and purchasing.

9 .Pricing and operations Model.

10. Sales of finished products

Get in touch for the date and time of the training.

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Watch out for an intensive online training on the business of palm kernel oil production for beginners and existing operators. The training will equip you adequately to start and run your factory profitably. Below is the course outline.

1. Business plan development-

2. Business Fund Sourcing

3. Equipment selection and Acquisition

4. Equipment maintenance and Optimization


5. Basics on palm kernel toasting on local toasters /dryers.

6. Yield determination of kernels.

7. Routine maintenance checklist.

8. Palm kernel nuts selection and quality checks and purchasing.

9 .Pricing and operations Model.

10. Sales of finished products

Get in touch for the date and time of the training.

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