A Muar Ban Lee Filter Press

Happy weekend folks

To set up the most minimum scale mechanical screw press palm kernel oil producing factory, an investor will need two expellers (Muar Ban Lee or Kung Heng) , a filter press machine, a storage facility, and sundry factory tools apart from the factory house.

I wish you a happy Sunday, folks

The brand new Muar Ban Lee expeller of 15 tons per day capacity goes for $30,000 each, so two them would cost $60,000 ex-factory

As we said earlier we are looking at a small scale palm kernel oil producing factory of two brand new Malaysian expellers at a most economic and affordable cost. We shall match the brand new Malaysian expellers with a Nigerian built filter press. This is because filter press is merely for filtration and Nigerian built filter press is very efficient and at that small scale is as good but cheaper than a Malaysian built filter press. Brand new Muar Ban Lee filter press is about $8000 and an equally efficient Nigerian built version can be gotten for about N900,000.

Good afternoon and happy weekend, folks

Assuming that a palm kernel oil producing factory house would cost the sum of N10,000,000 to obtain ( maybe renting a built up warehouse or an empty land space and erecting a temporary structure), then a 33 tons capacity storage facility to cost N3,000,000, a conservative working capital of N10,000,000, and Miscellaneous of N1,000,000

Good evening, folks

Good write up

Good morning and happy sunday, folks

Bringing all costs together we have two brand new Muar Ban Lee Expellers would cost $66,000 (N23,958,000 @N363/$) to import, one Nigerian assembled Filter Press is N900,000, one 33 tons capacity steel storage Tank N3,000,000, Factory House N10,000,000, Working Capital N10,000,000, Miscellaneous N1,000,000. Total N48,858,000.

This is great job welldone

ozornet:
Bringing all costs together we have two brand new Muar Ban Lee Expellers would cost $66,000 (N23,958,000 @N363/$) to import, one Nigerian assembled Filter Press is N900,000, one 33 tons capacity steel storage Tank N3,000,000, Factory House N10,000,000, Working Capital N10,000,000, Miscellaneous N1,000,000. Total N48,858,000.

This is roughly 50M. What is the profit like? How long does it take to make money?

Good morning folks and happy new week

mikkyray:


This is roughly 50M. What is the profit like? How long does it take to make money?

Mikkyray, thanks for your question. As we move on, we shall look at the profitability and from there ascertain the pay back period and return on investment.

Earlier we have seen that in palm kernel oil production business, the normal average yield is 40% extraction from the raw palm kernel nuts. That is to say that for illustration, if you crush 2.5 tons of good palm kernel nuts, you will get one ton of oil (PKO), 1.2 tons of cake (PKC) and 0.3 tons of sludge (PKSL).

Assume Current prices:

Palm kernel nuts (PKN) N127,000 per ton
Palm kernel oil (PKO) N310,000 per ton
Palm kernel cake (PKC) N40,000 per ton
Palm kernel sludge(PKSL) N90,000 per ton
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ozornet:
Bringing all costs together we have two brand new Muar Ban Lee Expellers would cost $66,000 (N23,958,000 @N363/$) to import, one Nigerian assembled Filter Press is N900,000, one 33 tons capacity steel storage Tank N3,000,000, Factory House N10,000,000, Working Capital N10,000,000, Miscellaneous N1,000,000. Total N48,858,000.

Very nice analysis. A few questions please :

1. What is capacity of each of the MB Lee machines?
2. What is the shipping and clearing cost. Any duty waiver for agric machines?
3. To condition the crushed flakes with steam, means a boiler is required. Is this cost included in your analysis? 4. I believe the PKC is used by animal feed millers. What is the sludge (PKSL) used for? Who are buyers of this by-product?

Thanks for throwing more light on the above

Do large integrated palm oil producers like Presco and Okomu also engage in PKO production ?

Good afternoon folks

cuteboy2:


Very nice analysis. A few questions please :

1. What is capacity of each of the MB Lee machines?
2. What is the shipping and clearing cost. Any duty waiver for agric machines?
3. To condition the crushed flakes with steam, means a boiler is required. Is this cost included in your analysis? 4. I believe the PKC is used by animal feed millers. What is the sludge (PKSL) used for? Who are buyers of this by-product?

Thanks for throwing more light on the above

Thanks cuteboy2 for your comment.

(1) Each of these MBL expellers are 15 tons per day of 24 hours (Note that one is for first press while the other will be for second press)
(2) Each 15 ton MBl expeller is $27,500 ex factory (a 20ft container from Malaysia to Nigeria is about $5,500) totaling $33,000
(3) We are assuming direct screw mechanical press which may not need flaking. However it is good processing practice in palm kernel oil production to pre- treat the kernel nuts before crushing in order to achieve maximum extraction even due direct screw press employs the double press system. Our usual recommendations to our clients is to pre-treat the kernel nuts with palm kernel nuts Toasting machine with can be fabricated locally just like the Filter Press machine.

cuteboy2:
Do large integrated palm oil producers like Presco and Okomu also engage in PKO production ?

Of course they do. Palm kernel Oil demand is so high that almost all the big vegetable oil refineries also have PKO production section but it is never enough and that is why these vegetable oil companies who the major buyers of palm kernel oil normally pay in advance by depositing cash to the Crusher's account in order to secure their future output. Their refineries are usually big requiring large amounts of palm kernel oil each to keep running continuously, as the plants are not allowed to run short or out of palm kernel oil supply in order to avoid un-planned turn around maintenance costs

Let us assume to crush 15 tons of palm kernel nuts per day

Cost of Raw materials:
Purchases N1,905,000


Yield:

PKO 6 x 310,000=N1,860,000
PKC 7.2 x 40,000 = 288,000
PKSL 1.8 x 90,000= 162,000
Total N2,310,000



Sales N2,310,000
Less purchases N1,905,000
Gross Profit N405,000

Less
Assume 50% other costs N202,500

Net Profit N202,500

ozornet:


Thanks cuteboy2 for your comment.

(1) Each of these MBL expellers are 15 tons per day of 24 hours (Note that one is for first press while the other will be for second press)
(2) Each 15 ton MBl expeller is $27,500 ex factory (a 20ft container from Malaysia to Nigeria is about $5,500) totaling $33,000
(3) We are assuming direct screw mechanical press which may not need flaking. However it is good processing practice to pre- treat the kernel nuts before crushing in order to achieve maximum extraction even due direct screw press employs the double press system. Our usual recommendations to our clients is to pre-treat the kernel nuts with palm kernel nuts Toasting machine with can be fabricated locally just like the Filter Press machine.

You did not touch on the 4th item, the uses for the PKSL.

The energy requirement to roast 15 - 25 tons/day of kernel is significant. What is the fuel source for the roaster, and what is the cost?

cuteboy2:


You did not touch on the 4th item, the uses for the PKSL.

The energy requirement to roast 15 - 25 tons/day of kernel is significant. What is the fuel source for the roaster, and what is the cost?

Sludge is the dregs and sediments that is gotten after filtration of palm kernel oil. It contains some oil and there are people especially women, who come to buy the sludge. They re-cook the sludge and extract some more oil although cheaper and darker in colour than pure palm kernel oil but normally used by laundry soap makers.

There are two models of the toaster. One that uses charcoal and another that uses electric elements as sources of heat energy.
The normal electric element toaster that contains about 2.8 tons of kernel and toasts a batch in about three and half hours is fitted with 14 electric elements of 1800 watts each. It is cheaper to use the charcoal type though, than that of the electric elements. However, the cost of toasting is an insignificant cost when compared to the value and should not be of serious concern

Good evening, folks

Good afternoon, folks

As we can see from the above analysis, palm kernel oil production is a profitable venture

Comments and questions are invited from you folks for further clarifications

ozornet:
As we can see from the above analysis, palm kernel oil production is a profitable venture

hello folks interested in pko extraction please I need guide as beginner

FemiAlmond:
hello folks interested in pko extraction please I need guide as beginner

Thanks for your interest in our thread. Keep following the thread and you could learn a lot from our posts. However, if you seriously want to set up I advise you engage our consultancy services and mentorship programme. You can get our contact from our signature below or at our Nairaland profile page.