MAKE MONEY IN BUYING AND SELLING OF PALM KERNEL NUTS

The Oil Palm tree is one of the greatest economic assets a state or nation has, provided its importance is realized and potentials fully harnessed. Oil Palm products include Palm Oil, Palm Kernel Oil and Palm Kernel Cake. These can further be processed into RBD OLEIN (Cooking Oil), Vegetable Ghee, Shortenings, Margarine, CBS. CBE, Ice Cream, Dough, Creaming, Coating, and other speciality fats. Some other by-products of the Oil Palm includes Palm wine, fatty alcohols as well as intermediates. Nature so made it that all aspects of the Oil palm tree is useful and economically viable.


"Oils" is a collective term for more or less viscous, generally organic-chemical liquids. Depending on their chemical composition, a distinction may be drawn between fatty, essential, mineral and silicone oils. Fatty oils include liquid, semisolid and solid products of vegetable and animal origin.

They are also known as sweet oils.Palm kernel oil is a white to yellowish oil of vegetable origin which is solid at normal temperatures and is obtained from the kernels of the oil palm (Elaeis guineensis). It is one of the best oils. Palm kernel oil is different from palm oil, which is obtained from the flesh of the fruit.Three {3} products namely palm kernel oil,palm kernel cake and plam kernel shell {crushed} which is used as a biofuel can be gotten from palm kernel nuts.

Palm kernel oil is processed to yield edible fats, soaps and candles and is used in the confectionery, pharmaceutical and perfume industries.

Palm Kernel Oil Specifications:

FFA (%) Max: 2.5
Moisture & Impurities (%) Max: 0.3
IV: 16-19
Colour (5 1/4" Lovibond) R: 3.4-4.5
Colour (5 1/4" Lovibond) Y: 30-32


MARKET:

The market for palm kernel oil and palm kernel cake ,a bye-product in the milling of palm kernel oil is large ,expanding and sustainable hence driving the need for palm kernel nuts.
Nigeria with a population of over 140 million people ,an estimated national population growth rate of 5.7% per annum, an average economic growth rate of 3.5% per annum in the past five {5} years is a large market for palm kernel oil because of the numerous applications of the product ,all these makes palm kernel nuts a well soughted after product because it is the raw material used in the production of palm kernel oil and cake.

Palm kernel nuts has both local and international markets but more emphasis would be layed on the local market and the price for the goods acry from time to time.

The investor can get buyer of the product in Lagos ,Enugu,Aba Ibadan etc.

LOCATION AND AVAILABILITY OF PALM KERNEL NUTS:

Palm kernel nut ,a bye-product from the milling of palm oil can be sourced from oil palm plantation scattered in the rain forest region in southern Nigeria. some of the states where the nuts can be sourced include Ekiti,Edo,Ondo, Anambra, Cross River,Oyo,Abia, Enugu ETC. The nuts can be sourced bit by bit from farmers after extracting the oil from the fruits in vollages or from palm oil producing companies. The product is usually available in large quantity during raining season from may to september and extends to december.

COST AND PROFIT ANALYSIS:

Note that 13 bags of Palm Kernel nuts make 1 tone.

Cost of buying a tone in the farm = N50, 000


Cost of 30 tones = N50, 000 * 30 = N1, 500,000

Price of selling a ton in any company in Lagos is = N65, 000

Price of selling 30 tones = N65, 000 * 30 = N1, 950,000

Expenses involved include

1. Nylon bags {Big ones} and each will cost an average of N100 per bag, so for a tone of 13 bags * N100 = N1, 300 and for 30 tones N1, 300 * 30 = N39, 000

2. Miscellaneous Expenses such as feeding, transportation to the farm, accomodation for the period of 2-3 days = N11, 000. The total expenses expected on a trailer load will be approximately N50, 000 per trailer.

PROFIT MARGIN =SELLING PRICE – COST PRICE + EXPENSES

= N1, 950,000 - N1, 500,000 + N50, 000

= N400, 000

NOTE THAT: WE ARE BUYING THE PRODUCT FROM A COOPERATIVE AND THEY WILL BE RESPONSIBLE FOR THE FOLLOWING LOADING COST, TRANSPORTATION COST {EVEN TRANSIT INSURANCE}. ALSO FOR THE GRADING FEES AND OTHER NECESSARY PAPERS ON THE ROAD AND THE WHOLE PROGRAMME CAN BE CONCLUDED IN TWO WEEK

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Report Title: CRACKING AND PROCESSING OF PALM KERNEL NUTS
IN NIGERIA
Product Code: FOR A/08/2011/09

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