Palm oil is one of the cooking oil that is widely produced in
major parts of West Africa.
Ghana happens to have been of
one of the earliest and largest palm oil production country
in the world, although more recently, Malaysia and
Indonesia have become the two largest producers of the
famous palm oil in the world.
In Ghana, the demand for palm oil is very high and remains
relatively constant all through the year.
This is one reason
why the palm oil production business is a very viable one.
With a good start-up capital, and the right business
attitude, coupled with the right and necessary steps, one
could venture into the palm oil production business and see
great returns in investment.
If you are interested in venturing into this business, this
feasibility study on palm oil production business will give
you a guide on the necessary steps to take, as well as the
things you will need to start-up the business.
Grow a Palm Tree Plantation
First, you must determine whether you would want to be
growing the palm nuts for your palm oil processing
If you would want to grow a palm tree plantation,
it is very important you acquire a good land size for your
palm tree plantation.
Palm tree plantations do very well in
some parts of Ghana than others; you will want to bear
that in mind.
If you would not grow a palm tree plantation,
but rather buy palm nuts from palm farmers, you should
proceed to the succeeding steps below.
Get a Good Location
Yes! The location of your of palm oil production business is
very important to the success of your business.
It will be a
key determinant whether you will make huge sales and
profits, or not.
It is very important you get a location that is
very close to your target market.
A good market for your
palm oil production business will be urban places or region,
or areas where the production of palm oil is not done
You will have to get a good size of land to for your
palm oil production.
Depending on the scale of the palm oil
production business you would want to operate, you should
get a good land of suitable size.
Get the Equipment
To be able to produce palm oil in huge commercial
quantities, you will have to get the needed equipment for
This will require huge capital.
require machines for both the extraction process and for
storing the resulting palm oil, as well as trucks for
distributing palm oil to your market.
For a head start, these
are the machines you will need for your palm oil production
· Boiler & Kettle
· Fibre Separator
· Generator Set
· Water Storage Tank
· Distribution Trucks
Also, it is important you get good containers for your palm
Palm oil in Ghana is mostly sold in containers of 10,
20, 25, and/or 50 litres; or in barrels (for very large
You will also need to hire employees to run your palm oil
Workers who will operate the
extracting machines will be needed, as well as truck drivers
who will be concerned with distributing the palm oil to
You should know that you will spend capital in
paying these workers.
If you would not be operating your own palm tree
plantation, then it is important you establish good business
relationships with palm farmers in order to get palm nut
bunches for palm oil extraction.
Transportation to Market
Transportation is a very key aspect when operating the
palm oil production business.
Unless you do not want to
make as much profits, you will have to take this one very
If you want to make a lot from palm oil
production business, you will have to make sure that you
seriously cut down on cost of transportation. How do you
do this ?
If you do not operate a palm tree plantation, you should
make sure your palm oil production business is not located
too far away from your supplier source and your target
It is very important you procure good distribution
trucks that are in sound condition
Write a Business Plan
So many entrepreneurs do not write business plans for
their businesses; you should have one for your palm oil
There are many benefits to writing a
good palm oil processing business plan for your business.
A good reason is that it helps you to be able to attract
loans from the bank, and investors alike.
In your business plan, make sure you write down your
business name and location, your business goals, the
products your business is offering, your target market, etc.
It is also very important you put down the cost of starting
up your palm oil production business, as well as how you
intend to raise the capital.