Purchasing a Palm Oil Plantation Business

Palm oil is native to West Africa. Nigeria was previously the world’s largest producer of oil palm prior to the oil boom era, but Malaysia has taken the leading position. Oil palm plantation and allied industries is now the key stay of the Malaysian economy. The palm tree can be utilized in several ways: the leaves are utilized in making brooms and for roofing materials (in the rural areas). The bark of the fond may be peeled and woven into baskets, the key trunk may be split like sawn timbers and used within building materials, while palm wine can be obtained from the palm tree, as well as red palm oil, which is readily obtainable from the fruit bunches. Pertanian

When the fruit is processed, however, the residue obtained can be utilized as fuel (for cooking and fertilizer to improve soil nutrient).

Red palm oil is utilized in cooking, making soap, candle and margarine. Palm kernel oil may be extracted from the nut, whilst the residue obtainable in the act of palm kernel oil extraction, otherwise called palm kernel cake, is used as livestock feed.

Palm kernel oil is utilized in vegetable oil and soap making, and the shells are useful as energy source. The uses to which oil palm may be made seem non-exhaustive. This clearly suggests that investment made in the establishment of oil palm plantation is nothing but a smart one.

Industry is guaranteed for the products of oil palm plantation in this era of global food crisis.

Technical Information

To ascertain palm oil plantation, involves obtaining a good site where rich, well-drained acidic soils are abundant. The soil needs to have adequate quantities of potassium, magnesium and nitrogen. Soil tests should therefore be carried out to ascertain the nutrient status of the land. It is usually safer to use the early maturing variety called’tenera,’ which bears fruits as from the fourth year.

Other requirements include seedlings procurement, which is often obtained from reputable nurseries. Prospective investors must engage the services of agricultural experts in the length of establishing this project.

Other cultural practices are planting, regular weeding, pruning and fertilizer application.

Financial Aspect

We are recommending 50 hectares for a start. 20 hectares oil palm plantation can conveniently service a hand oil mill which will be established by the owner once the plantation starts to create fruit. To ascertain 50 hectares of plantation, the sum of N10, 500,000 will undoubtedly be required and that is broken down as follows:

Income Analysis

An adult plantation will begin to give an investor five a lot of red palm oil annually from the fourth year per hectare. 100 metric a lot of oil may be obtained annually from 20 hectares of plantation.

A huge amount of red palm oil is no less than N150, 000, while gross revenue of N15 million is obtained from red palm oil.

We are able to also get three metric a lot of palm kernels per hectare, which provides us 60 tons from 20 hectares. This translates to annual income of N4.2 million. Total income realisable is all about N19.2 million, whilst the annual operating expense is put at N5.8 million.

This leaves us with net income of N13.4 million annually for the investor for the others of his/her life. Serious-minded investors may be assisted in realising this worthwhile investment.

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