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Phinity318:
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Phinity318:
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Investment In Palm Kernel Oil Extraction: Fast And Easy Money-Spinning Business Investment For You

Introduction
Apart from the popular Oil and Gas Business in Nigeria there other two profitable businesses in the Agroallide that are not so popular but are money spinners like Oil and Gas. The two Money Spinning businesses are Natural Rubber Processing and Palm Kernel Oil (PKO) Extraction/ Processing. They are not popular because many don’t know about them. The Palm Kernel Oil Extraction/Processing has a lot of advantages over Natural Rubber Processing for some reasonable reasons out of which Low Cost of setting it up is one and the persistent insatiable local demands for the oil is another one among others.

Palm kernel oil which is extracted from palm kernel is an edible and is an important raw material in production of food and non edible products. The Business of Palm Kernel Oil Extraction is a business that one can invest into in Nigeria without having any iota of regret. It is a business with a product that is directly or indirectly in demand by every individual homes and organisations in the country. This is a business like Oil and Gas but with the advantage of making cool money with smaller investment and without much attention of the public.


Why PKO Business Extraction is a Big Money Spinner.

A lot of people have invested huge sum of money on business that required big capital to set up without having much value for the money. The cost of setting up PKO extraction business is moderately cheaper than others like Natural Rubber Processing that requires expensive Machinery and larger number of labour force. PKO extracting business is easier to set up than others agro allied and other related businesses.

Palm Kernel Oil is a very important input material in the manufacturing industry. It is used in the production of wide range food products in Nigeria and other part of the world. Non Food industry also makes good use of PKO in large quantity.

1. Variation and fluctuation in the Forex Market do not affect the cost of getting the raw material for the production of PKO as the Palm
Kernel Nut which is the only raw material for the production of PKO is 100% locally sourced and readily available.

2. PKO does not need much warehousing or storage because of the high demand for it all year round.

3. It is cash and carry business where owners of Vegetable Oil Refineries make payment in advance for PKO.

4. Is used by Refineries for the production of Vegetable Oil for domestic use. Refined PKO is used in domestic homes and kitchens for cooking
because of its stability and longer durability of life.

5. It serves as a major raw material for the production of washing products like Detergents and /Soaps because of the lauric Acid in it that
produces lathering and foaming soaps and detergents ability in it.

6. PKO is also used for the production of other Non-edible products like cream, candle and other lubricants.

7. The technology and machinery involved in the production of PKO are not complicated but easy to install, use and manage.

8. The cost of setting up PKO Extraction business which is scalable is not as expensive as other considered money spinning businesses.

9. Palm Kernel Cake (PKC) which is a By-Product of PKO can be used alone or mixed with other items to feed animals.

10. Black soap and other non-edible products like cream, candle and lubricant among others are also produced from the Sludge gotten as
another By Product in the PKO processing.

11. PKO Extraction business is an all-year-round business as demand for it by industrial sector and domestic consumption is persistent
throughout the year.

12. Another factor that makes PKO extraction to be hot money spinning business is that its local production at present is far below the
continuous and insatiable local demands of both the nation industrial and domestic ends. This sometimes induces some buyers, especially
the Vegetable Oil Refineries owners and soap makers to pay in advance for PKO supply.


Market
The Market demand for PKO is persistent throughout the year in Nigeria. One does not need serious advertisement for the product as the demand for PKO is more than quantity locally produced. As stated above some companies make advance payment for PKO in order not to run out of stock because of low local production. Some companies are forced to import PKO into the country for the fear of running out of operation due to scarcity of the product.

PKO PROCESSING

There are 3 Methods of Extracting PKO:
1. TRADITIONAL EXTRACTION
 Buying of Kernels from Palm Oil Processors is done during the peak season and kept to dry. Under this traditional method the PKO extraction is majorly done during the dry season which involves:
 Shelling of Nuts or of Kernel Nuts
 Separation of Kernels and Shell through Clay-Bath
 Oil Extraction via frying palm kernels in old oil or simply heating the dried nuts.

2. MECHANICAL EXTRACTION
This involves the using of Mechanical Technology via screw Press and others
 KERNEL PRE TREATMENT
 SCREW PRESSING
 OIL CLARIFICATION


3. SOLVENT EXTRACTION
 KERNEL PRE TREATMENT
 OIL EXTRACTION
 SOLVENT RECOVERY
The screw press is used to crush and extract PKO from palm kernels in either a continuous or batch mode operation. It consists of a hopper, an extraction unit, oil collection and discharge unit, cake collection and discharge unit, a prime mover, and the frame. In the course of processing Palm Kernel three products finally come out of the process. While the major product is the Palm Kernel Oil two other by products produced are Palm Kernel Cake (PKC) and Sludge. In summary the major product and the two by products from the processing of Palm Kernel respectively are:
a. Palm kernel oil (PKO)
b. Palm Kernel Cake (PKC) and
c. Sludge.


THE PRODUCT

PALM KERNEL [/color]




PKO 45% Main Product
PKC 50% By-Product
SLUGE 5% By-Product
TOTAL 100%


The price of Palm Kernel Oil sometimes does change during the year which consequently reduces the price of Palm Kernels the factory owners buy during the period. Though the information in the market is not hidden but it is advisable for processors to be getting regular information from their buyers especially the PKO Refineries owners and other related buyers of PKO in the country.

TREATH TO THE PKO EXRTACTING BUSINESS
Like any other business PKO extracting business has its own challenges which if work upon will turn out to be strength. Some of the threats associated with the business PKO Extraction are but not limited to the following:
1. Bad Purchase of Palm Kernels
2. Poor buying strategy
3. Irregular Power/Electricity supply
4. Insufficient Spare Parts
5. Machinery and Tools Problems
6. Inexperience Workers
7. Insufficient Working Capital
8. Lost in transit of Finished Product


Interested Individuals in Palm Kernel Oil business will be fully guided further and the Process ,Machinery, Production and Marketing of the product any time I am contacted. There is one we invested into that we are managing in Osun State that can even be visited at any point in time.