Are you looking for a low investment business to start either on small scale, medium or large scale that will give you a high return on investment? If yes, then am happy to bring to your attention the lucrative business of groundnut oil extraction and processing business with immense profit making opportunity inherent therein.
Groundnut oil as we all know is a day to day essential commodity that is widely used in industries and in homes for all cooking process. There is a high demand for groundnut oil with short fall in supply. The supply has recently fallen further following the ban on importation of the product thus making groundnut oil processing a fertile land for any interested investor to sow and leap huge profit.
Market Potentials of groundnut oil
Groundnut oil as earlier mentioned is used for cooking food
Used as a shortening and a base for confectioneries
Used to make peanut butter
Used in mixing and baking of flour into different products.
Groundnut oil is the most widely used edible oil and cost higher than any other edible oil. The market size for groundnut oil has always been large and with the recent ban by the federal government in the importation of this product, the market is expected to to remain large and unsaturated. With a population of over 170+ million people who use groundnut oil to cook and for the industrial process on daily basis, the market for groundnut oil can’t be more profiting.
Groundnut Seed is the major raw material needed for groundnut oil production.
Machines and equipment needed
Machines for the production of groundnut oil are easily sourced locally and easy to install and maintain.
Groundnut oil processing line consists-
- Seed preparation
- Seed pressing/ oil extraction
To achieve groundnut oil processing requires the following machines
-Oil expeller and filter pan
Groundnut oil production business requires varied investment cost according to the scale of operation. For medium scale/ large scale fully mechanized groundnut oil extraction mill, start-up capital ranges between 10 to 15 million Naira.
This above cost cover for
-Vehicle and operational expense
Profitability of groundnut oil extraction-
Below is a cost/profit for 500 liters of groundnut oil production
1 ton of groundnut seed produces 500 liters of groundnut oil – 42 kg groundnut cake – 40 kg groundnut sludge
Cost of 1 ton of groundnut oil = 200,000.
75 cl of groundnut oil = N300.
NOW DO THE CALCULATION -remember to make room for profit from cake and groundnut sludge.
The abode Calculation is for 1 ton of oil, with a milling capacity of 3.5 ton of oil per day that’s more profit.
Calculation on our feasibility report shows a minimum profit of 3,000,000 per month.( For full details get the feasibility report).
With current statistics, the cost of labor, fuel, transport and staff welfare falls below 800,000.
Note – selling finished product is never difficult as you get a lot of dealers paying in advance.
How to start-
1. Get A Business Plan/ Feasibility report
Though this business is proven from every angle to be profitable. However, you wouldn’t want to invest your hard earn money based on assumption. the first step to take is to get the business plan and feasibility report which will help acquaint you further with this business's cost and investment, how to set off and produce quality oils and what to expect, how to gain workers as well as customers.
To Get this business plan and feasibility report, you can get it from us.
We have through research and years of studying this business and its market, have prepared the complete business plan and feasibility report on the said business.
Drop your Email Address below to get it. Its free