BusinessHABPalm Oil Investment: The advent of technology has made agriculture activity easy and attractive to the emerging entrepreneurs in Nigeria, a good number of them.
Who were in subsistence scale of production have since shifted to large or commercial scale of production, a typical example is in the case of palm oil investment in Nigeria, everyone of them who engaged in palm oil business are recouping their investment. Palm oil business is one of the most lucrative businesses in the agricultural sector because of its multi-faceted uses as an industrial raw material.
Growing palm fruit or buying of palm oil fruit, get them processed into palm oil, and as well sell them is highly lucrative business in Nigeria for whoever desire to go into the business.
The business has a very profitable potential, I mean palm oil business, and it has become one of the largest income generator. Put palm oil and crude oil of today, side by side in terms of production and profitability, you will see that palm oil is truly having edge over crude oil. However, in this article, I will be showing you how to start palm oil investment in Nigeria; and I believe that you will be glad you know it.
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The demand for palm oil:
There is absolutely high demand for oil palm from those countries that used palm oil for cooking purposes or particularly, for industrial purposes. Palm oil is one agricultural product that has several usages in different parts of the world. Palm oil is used in the making of ice cream, and condensed milk and margarine; it is also used in the preparation of food and other edible products. Apart from palm oil usage in the production of food items, it is also used in the production of soaps and detergents and candle and feed stock for biodiesel, as well as, used as an alternative to different mineral oils that are used in the power station. Interestingly, palm oil is used in the cosmetics and pharmaceutical industry, and it is used in the production of drilling fluids and water treatment production.
Starting palm oil investment:
There are various investment opportunities available to whoever wishes to invest in oil palm business in Nigeria, and the investment opportunities include the following.
- Buying and selling of palm oil produces:
You can decide to start your palm oil investment by venturing into buying and selling of palm oil products in bulk. Therefore, you need some understanding about palm oil business to be able to invest in this area and make absolute profit. Investing in buying and selling of palm oil products, you can buy your products during the time prices of palm oil is low, in most cases, it is always about the time of harvest, that is around March and April of every year.
You can buy the palm oil, store the product, and once it is the off-harvest season, you can sell the products, by this time, you are selling the product at attractive prices.
And in the market, about this time, the supply of palm oil is a bit low, and there is an increase in demand.
And the price will start rising, as the sell volume increases.
Then you are on your way to making reasonable profit.
You can buy palm oil from those farmers who are producing palm oil locally.
And store the product in tankers or drums.
Or anything that will preserve the product till when you intend to sell it.
And make sure that the right time to buy the product is during the harvest season.
Once the harvest period is off.
You can then transport the product that you have bought to urban centers and sell them off.
Possibly, you can even export the product if you have enough or were stored in a large storage facility.
- Grow your palm fruit:
You can also decide to start your palm oil investment by growing the palm fruit by yourself, and growing palm fruit in most cases is the most aspect area that will ensure large scale productivity, and it can be a long term business. Having long term vision, while investing in palm oil business means high return on investment (ROI), and it will be a wonderful idea to do so.
Investment in palm oil business, the opportunities are abound in Nigeria, and it is huge and broad because palm oil fruits are not really grown adequately in Nigeria and the process aspect of its produce is not in large scale, so this gap has necessitated the need to invest largely in palm oil production. With adequate rainfall and abundance sunlight, coupled with the fertile soil that we have in Nigeria, growing of palm fruits and processing of its products can mean a big business with high profit potential in the agricultural sector.
Going into growing of palm fruits, you have to know that, investing in a large scale production will probably means large scale profit in the business, though attaining this profit margin will take time into the future, but be guaranteed that huge return on investment is guarantee too, and getting there, your profit margin is likely to frighten you.
You may equally decide to start your palm oil investment on the platform of building your processing plant because without processing of palm oil products, those engaging in buying and selling business may not have gotten products to buy and sell. So just as you have farmers who engaged in growing of palm fruits, and are not processing the products, there are those who do not grow the palm fruits, but they are buying the fruits and processed the product and sell to those who will buy and resale the products. Therefore, engaging in this area of investment in palm oil business, you are among those groups of investors who processed the products for those who buy and sell.
If you cannot process the product after setting up your processing plant, you can rent the plant to those investors who may want to buy the palm fruits from farmers and processed them for those who will buy and resale them. Therefore, to me, investment in the palm oil business is a standard for every person who may wish to invest in palm oil business in Nigeria.
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