Revenue Projection In Oil Palm Farming - Agriculture - Nairaland
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| Revenue Projection In Oil Palm Farming by Karbswell(op): 7:53am On Dec 27, 2025 |
Projected revenue in oil palm farming Written By kkfarms Generation of revenue in Oil palm farming follows a progressive trend rather get rich quick scheme .Annual yield per acre which start either from year 3 or year 4 increases against the previous years harvest hence when you are managing an oil palm farm and you are considering profitability it becomes pertinent to spread the annual returns on investment over the economic productive life of the palm trees which span across 30 years in the case of hybrid oil palm trees like the improved tenera plant . Within the first decade out of which 4 years shall be dedicated to huge investment in farmland acquisition,bush clearing, procurement of seedlings ,weeding and fertilisation and sometimes securities etc the remaining years of the palm tree plantation shall continue to witness increase revenue from sales of fresh palm oil and palm kernel year in year out . Annual yield per tree within the first decade average between 10 to 15 litres of fresh palm oil which translate to 600 to 900 litres of palm oil per acre after processing considering that an acre can only take 60 to 65 plants . At today's market value of fresh palm oil a litre is sold for 2000 naira and this when multiplied by 900 litres obtainable within the first decade will generate a total of 1.8million naira revenue per acre from a young oil palm plantation . Plant population per acre 65 Yield per tree 15 litres Price per litre 2000 naira 65 x 15 litres 975 litres of oil X 2000 naira 1,950,000 naira revenue Deduct yearly cost of farm mentainance and processing such as cost of weeding ,harvesting ,fertilizer , transportation and processing *,let's take 50 percent of revenue as cost of farm mentainance, transportation and processing palm fruits into crude palm oil (CPO) 1,950,000 - 975,000 naira Net profit 975,000 naira per acre Note ;an acre of oil palm farm that yield between 600 to 900 litres of palm oil depending on quality of seeds planted and management of farm within the first 10 years will increase oil yield per acre when the plant attains more growth in size ,this means that from 900 litres the farm can achieve 1000 to 1500 litre per acre and in the next 5 years 1,500 litres of fresh palm oil could sell for 3000 naira per litre due to inflation and this could increase the farm revenue from 1,950,000 to around 4,500,000 naira annually in the next 5 years . We have the following farmland offers for new oil palm farmers looking for farmland in 2026 140k per acre farmland in Ife reserve farm ,over 100 acres available for sale 400k per acre farmland in ijebu igbo over 50 acres available for sale 350k per acre farmland in Asa LG of kwara state ,over 50 acres available for sale You can also reach out to us for farm set up and other farm development services Call or whatsapp 07062053560
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