Entrepreneurship-Manufacturing96 Comments

The oil that is derived from palm kernel are used for cosmetic product making and other vital industrial purposes. Palm kernel oil extraction business is one of the hidden lucrative and profitable business that many people are yet to know much about or anything at at all. Unless you are told of how lucrative this business is by an insider, you will never believe it makes any money let alone making millions. But I can tell you for certainty and for free that palm oil extraction business is a mega millions business.

Do you know that you can make N200,000 and above daily even as a medium scale producer? Are you aware that palm kernel oil product is one of the few products you can sell right at the point of production, without necessarily needing to take it to the market?

It can be run in a small, medium and large scale, depending on your financial capacity . You may be wondering but where can one get palm kernel in large quantity? It is produced in hundreds of thousands tones in the Eastern part of Nigeria annually. All you need to do is to go set up your palm kernel oil extraction business around the east or you transport the product to your desired location and mill.

It is however most profitable when you set it up where you can get Palm Kernel Nuts PKN in large quantity due to transportation costs and other logistics. Ondo and Edo state are also good at the production of palm kernel too, so you may decide to source it there if you are within the West.

The Analysis Of Palm Kernel Oil Extraction Business

PKN – Palm Kernel Nut. The is the nut you get when a palm kernel’s hard shell is broken. That’s the nut where the oil we are talking about is extracted from.

PKO – Palm Kernel Oil
. This is the actual oil that is being extracted from palm kernel nuts, the actual product or one of the main product we are talking about here.

PKC – Palm Kernel Cake. This another product that is being derived from the palm kernel extraction process and it makes up good percentage of the palm kernel produce.

According to a reliable statistic, it is believed that in every 25 metric tons of good palm kernel nut one is expected to get 10 metric tons of Palm Kernel Oil (PKO) and another 13.5 metric tons of Palm Kernel Cake (PKC) as pure products. Below is how they are sold:

Palm Kernel Cake sales for N100,000 per tonne. The Palm Kernel Oil itself is sold for N120,000 Naira per tonne. While the Sludge goes for N100,000 Naira per tonne.

The cost of palm kernel is 80,000 Naira per tonne. You will require about ten tones to be able to extract five tone of the oils I’ve mentions. Ten tone will then cost N800,000. This will comfortably produce five tonnes of oil that will sells for N600,000.

Remember that it will also produce about four tonnes of cake sells for N400,000 while a ton of sludge sells for N100,000. Giving you a total N1,100,000.

When you subtract the cost of the raw material (palm kernel) which is  N800,000. You will be left with N300,000 Naira as gross profit on ten tons of palm kernel processed per day.

SEE ALSO: Production Process of Palm Kernel oil

In a week, you will be making a whooping sum of N300,000 X 6 = ₦1,800,000

Take time and digest this, by tomorrow I will bring you the detail procedure of setting up the production.

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96 Comments

  • chidozie August 28, 2013

    Where can one sell these product? And also I will like to knw if the product is a seasonal product.

    Reply

    • Darlinton Omeh August 28, 2013

      Palm Kernel oil is a product in high demand, you can market it right at the point of production. It is not a seasonal product, it sells all year round.

      Reply

  • Anonymous September 1, 2013

    The palm kernel nut is not that easy to source I think or can you surgest where one can get it in raw for production.

    Reply

    • Darlinton Omeh September 1, 2013

      Palm Kernel is very easy to source. It can be found in large quantity all over the places in Ondo, Edo,Delta, Ebonyi, Abia, Imo, Enugu, and some Parts of Anambra

      Reply

  • Ovie Umusu September 10, 2013

    hello, what about the machine used in extracting the oil and how much do u think someone will need to start the business?

    Reply

    • Darlinton Omeh September 10, 2013

      Details on these will be in the next article on palm kernel. Keep on the watch

      Reply

    • Similoluwa Ogunlade September 11, 2013

      In reality this business is not this juicy. The king here is the palm kernel producer. He jacks up the price based on laws of demand and supply, this way reducing the margin the processor that mills get from the sale of PKO and the other by products at the end of the day. I left Lagos yesterday to Okitipupa, (still there now) to realize this.

      Reply

      • Darlinton Omeh February 5, 2016

        You are going to the wrong market to source for palm kernel. Okitipupa palm farmers are expert in the business. They understand the value and will not sell to you cheap. Move in dipper to the east or elsewhere

        Reply

    • Similoluwa Ogunlade September 11, 2013

      So may be it will be better to more people into oil palm farming cos even at the moment, the processors far outnumber the kernel producers

      Reply

  • Darlinton Omeh September 11, 2013

    I think you are in a wrong place. Okitipupa oil palm belongs to producers who understands the profit in palm produce including palm kernel. Therefore, they wouldn't want to sell cheap.

    The best place to source for palm kernel is within the rural producers who produce and sell in part times. Go there during the market days, buy everything in the local market and transport down to your base. Some of such place are in various markets in Delta, Ebonyi, Ondo, etc…

    Reply

  • Anonymous October 29, 2013

    Thanks for this information, Please can you set up a forum where two, three or more people can partner together, Or do you know people you are into this business but lack capital so that one can contact them to partner with them. Do you know why this this question is that someone of us are looking for plan B because we have work we are still doing now but this is for substitution since we cannot leave our job now.

    Reply

    • Anonymous January 6, 2015

      Am intending to set up a groundnut oil processing factory in a place call Jebba in Niger State.Cost of medium scale factory is about $42,000.I have fenced the land started putting up the factoryand office buildings.Reason for chossing Jebba?Steady power supply 24hrs,we can talk to partner.

      Reply

      • AdepoyigiAdeyinka June 8, 2017

        I have palm kernel oil extraction machine, we will love to work with you. 08112525029.. call for further discussions

        Reply

    • Ayoka Chimereze May 5, 2016

      Hello,

      If you are interested in going into partnership with someone that is already in the Palm Kernel Business, feel free to contact me.

      It’s a dying family business that I am try to bring back. I am from Umuahia in Abia. You can reach me on

      Reply

      • Onukwue May 2, 2017

        If you are whom I think you are, we can talk. Your father was a produce buyer in the 70s and 80s at mission hill. Send me your number and I will call back. I will be in Nigeria on 13th of this month.

        Reply

      • Joshua chibueze December 14, 2017

        Hello i am also from umuahia i will be intrested to partner with you, I have purchase a plot of land and still thinking for the right way to follow

        Reply

      • Joshua chibueze December 14, 2017

        Hello i am also from umuahia will you please allowe me to know more of this business and also partner with you

        Reply

  • Ubong Essien November 5, 2013

    I find this quite interesting. Here in Akwa Ibom, one can source for this by going to the local markets but the issue here is it's really in high demand.
    Mr. Darlinton, what i will like you to tell us is how to go about setting this processing unit. It's indeed a nice business for one to go into.

    Reply

  • vincent okoli November 11, 2013

    what and what do i need to put inplace of this business.

    Reply

  • vincent okoli November 11, 2013

    i want to do this business but i dont know how to start it.

    Reply

    • Darlinton Omeh November 11, 2013

      You need to get an apprenticeship from an existing palm kernel oil extraction company. After that, you will be good to go. Article on that will be published in the coming weeks

      Reply

      • Joshua chibueze December 16, 2017

        My question is can one start this business with the of 5m niara after having a plot of land

        Reply

    • Anonymous January 30, 2015

      hello Darlinton. do u have an idea the cost of machine and the comapny that buy vegetable oil from small scale industries..thank u

      Reply

  • Adeshile A November 11, 2013

    Hi,were can i get buyer for palm kernel

    Reply

    • murtash yusuf January 16, 2015

      Do you have? I want 10 tons every weeks if you can bring it down to our company in kano.

      Reply

      • Seun February 5, 2016

        Dear Murtash
        If you can give me a way to contact you, I might be able to help you. Seun

        Reply

    • Anonymous January 30, 2015

      were exactly are u and how many tone can u supply

      Reply

  • Anonymous February 27, 2014

    Darlington – I have read your blog on Palm Kernel and l think the return on investment (ROI) it is too good to be true, it is. Please do not ask me to do an apprenticeship. Please can advise when you plan to do a seminar on the palm kennel that l can attend..

    Reply

    • Darlinton Omeh February 5, 2016

      Really? Then runaway and leave it to others who think is not too good to be true

      Reply

      • Chris July 9, 2016

        Darlinton, how do i reach you. I think we really need to discuss about this so i can get more insight on how this works.

        Reply

        • Taiwos April 13, 2017

          @ darlinton…. I have also started my structure in one of those villages in Ondo close to my raw materials but i need a valid person to construct the machine for me cos that has been my challenge since 2016.
          I will really appreciate your contact so that i can get it started this year.

          Reply

          • AdepoyigiAdeyinka June 8, 2017

            i have a new machine for sale, contact me for further discussions

      • Mr. Darlinton, thanks for ur good work here. But am still standing here to ask the price of the palm kernel oil machine. The equipment and procedures involved.

        Reply

  • Anonymous April 12, 2014

    Am rather late but not miss out. Thanks so much Mr Dalinton for your thoughtful blog and article, i can't wait for the upcoming article mentioned above because am so much interested in PKO and PKC business.

    Reply

  • itiade adewuyi April 12, 2014

    Dont be fooled its not as easy as it is been described…else a lot of people will be in the business already

    Reply

    • Anonymous June 3, 2014

      That's what those in the business want you to keep believing. Its not easy! and yet they are still in the business and even expanding dia operations. This should send you a message.

      Reply

  • Anonymous April 12, 2014

    Dont be fooled, its not as easy as it is been described else a lot of people will be in the business and making money already

    Reply

  • fafcy May 6, 2014

    'You need to go for apprenticeship form an existing palm kernel oil extraction company. After that, you will be good to go. Article on that will be published in the coming weeks' following your quote as above< please when or how can one kick off or invest in this. Really i have been seasrching on how to start this oil business. thanks

    Reply

  • bene March 12, 2015

    Please if you need pko contact me.am based in delta state

    Reply

  • murtash yusuf May 3, 2015

    Hey guys,

    There is different model of oil extraction machines we are having now in our company based in 46 unity road kano, kano state.
    There is 6yl-100 model that extract between 4-5 tons per 24 hours., 6yl-130 model extract 8-11 ton per 24 hours, 6yl-150 model extract 9-13 tons per 24 hours.

    Who ever interested please don't hesitate to contact me at 46 unity road kano, kano state.

    Reply

    • IB COMPUTER TECHNOLOGY May 17, 2015

      kindly send ur contact nd lets do business thanks

      Reply

    • Obi March 15, 2016

      I need your contact

      Reply

    • Adedayo April 23, 2016

      Can u send d prices of machines for PKO production.

      Reply

    • IbukunoluwaOyesola October 9, 2016

      Please let people know that 4-5T in 24hours means the machine can use 4 – 5T of PKN in 24hrs not the PKO they can get in 24hours. and if you decide to make 8hrs you have to divide your production by 3

      Reply

  • Oladipo Soile June 28, 2015

    Pls contact me for the possibility of doing business together, i can supply you the palm kernet nuts or better still the Palm kernel oil(PKO)

    Reply

  • Oladipo Soile July 15, 2015

    hi, 50 litres is 9850. pls get in touch for more details.
    thanks
    Oladipo

    Reply

  • cmcconcept November 29, 2015

    Grt contributions from you all,
    admin please i need to contact you.
    thanks

    Reply

  • Shedrack O. A. December 3, 2015

    i really want to learn about this business, pls anyone needs an apprentice HOLA

    Reply

  • Limitless February 17, 2016

    This is great idea, I like it. What is the cost of the machine and other things entangled to it. Its easy to say u will make bla bla bla but.it not always true. That was how I spent hell on a view centre and made meager.

    Reply

    • Darlinton Omeh February 17, 2016

      Yes you are right, and it is also easy to destroy a potentially profitable business with poor management and blame it on the business. If people are already making money with a business you failed on, then something may be wrong with your management skill, or what do you think?

      Reply

      • Larry Jacobs March 10, 2016

        Mr.Omeh, this is a good job you are into here. I implore you to keep it. Nevertheless much as you want to ginger people to take their destinies in their hands, please be more realistic in your analysis. Update your entries to reflect current material cost etc. that will earn your site and opinion credibility. Reading your entry above, you first said 10tons of pko will come out of 25tons of pkn. in your analysis, you said 10tons of pko from 20tonspkn. which one do we believe. this will leave an interested investor, yes?

        Reply

  • Steve March 15, 2016

    The problem with Nigerians is that they always want to engage in businesses where they will hardly lift a finger and yet make millions. Business does not work like that. Dangote started business 38 years ago. Entrepreneurship is a journey with plenty of lessons to be learned along the way. Whenever I get into a business, I take the first few rounds as my learning process and do not expect to make money. I have a garment manufacturing business which took me 6 years to master before I started seeing the money. Anyone who is not patient is better off working as a civil servant. People say PKO business is not juicy, yet some people have built fortunes out of it. You can never know the secrets of a business by being an outsider. Get involved. Start on a small scale and use 1 year to learn the biz. Count any losses as part of the education. Eventually you will become a master and you will make it.

    Reply

    • Darlinton Omeh March 16, 2016

      Thats words of wisdom. Thank you Steve

      Reply

      • Oby January 7, 2018

        Darlington, please I need your contact or email. Thanks.

        Reply

    • Oby January 7, 2018

      Well said Steve, am inspired. Thanks.

      Reply

    • Mertz June 30, 2018

      i really appreciate your comment and contribution to this journey of entrepreneurship and you have said it all Mr Steven a lot of people are looking for where to get rich quick and this has been a major challenges for Africa entrepreneurs because we always think short term not long term and it has destroyed our development as individual and nation… we really need understudy great nations and great entrepreneur who have walk in this journey and emulate them i believe we will strive not just merely survive and also growth of GDP of country and create wealth.

      Reply

  • Olusegun April 21, 2016

    I want u to send me ur contact bcos i want to discuss wt u about PKO & PKC business. Thanks

    Reply

  • Akinyemi samuel sola April 29, 2016

    I have intrest on pam kanel busenes

    Reply

  • Brian May 13, 2016

    Nicely downe wealthresult.com. I am into the business of palm kernel supply and know most of what is needed for palm kernel processing. Now i am planning on getting into RGB Palm as its done in Malaysia and indoniesia.

    I currently run a blog that covers details on Palm Kernel supply and Palm Oil supply business in Nigeria, the-ahamefulas.com/difference-between-nigerias-palm-oil-and-malaysias-palm-oil please do check it out.

    Reply

  • Victor Osei Boateng May 27, 2016

    I am from Ghana and I am into production of palm kernel oil and I want buyers .
    You can contact me on

    Reply

  • Sandra May 31, 2016

    I’m interested,I already have a land for d POk production at imo state.I need to know d cost of setting up d factory and d necessary things to be put in place..pls mail me with my e_mail

    Reply

  • Ayo June 1, 2016

    Hi All,

    I have started this business in small scale, i realized 1.8Tons PKO from 5Tons of PKN. Please any experience person should advise what could be the cause

    Reply

    • usen July 1, 2016

      Hi Ayo, can we have a little discussion @usenoe twitter pls.

      thanks

      Reply

  • mba June 2, 2016

    I desire to go into this business but no enough capital. I can supply any quantity to who ever is interested. I’m from the South-South. contact me at

    Reply

    • horlarttunji September 2, 2016

      Inbox me on my account

      Reply

    • Koliah May 11, 2017

      Pls send me your contact. I need pkn. My number is 09033142782.

      Reply

  • zims June 5, 2016

    Pls what is d present price of palm kernel seed.

    Reply

  • Chris July 9, 2016

    I think alot of persons have demanded for contacts means to anyone who knows these things indept, please i think it would be nice to help provide a means of contact, so we can talk and ask questions better.

    Reply

  • Ben July 21, 2016

    I need about 120 tons per week and will be glad to get from any source

    Reply

    • tola August 4, 2017

      I have lots of tons of pkn to supply Pls contact me.

      Reply

  • princetoks August 8, 2016

    Hello Ayo, I have been in this business for over 2 decade, our company S.trois O Ventures well known by the big players in the industry. You are having less output because of the filtration material you are using, you need original filter cloths that have technical data, most importantly in the TD is the MICRON of the cloth. If you use bad cloth, you will get 4.2% oil but with polished filter cloth you will get 9.2% output. It is a bit expensive because it is imported. I sell filter cloth, filter bags, filter leaves and oil mill spare parts. Part of our customers are Sudit oil,golden oil, Polema industry,Envoy Oil, Ar-Rachid; to mention few. We can also buy khun heng machines on your behalf. Food for all.

    Reply

    • Aquilla September 12, 2016

      Please I am really interested in the PKO processing business and I am ready to be am apprentice to gain more knowledge. Please inbox me

      Reply

  • horlarttunji September 2, 2016

    Mr Darlington I just sent u a message pls reply accordingly. Thanks

    Reply

  • Taiwos April 13, 2017

    I need a contact of those who fabricate machines for palm kernel extraction.
    Is there a watsapp group for those in this room cos that will really help me.

    Reply

    • AdepoyigiAdeyinka June 8, 2017

      hello guys, i understand that some people want to buy the extraction machine, here is it. 50 horse power Palm Kernel Extraction Machine for extracting oil and shaft. Machine can process 4 to 5 tonnes in a day. Interested buyer can contact me

      Reply

  • chukwudi nweke July 30, 2017

    I guess am late but this is a business I would like to do,pls can you help me locate any place I can do my apprenticeship around aba abia state, pls am in need of it

    Reply

    • Oby January 7, 2018

      I too need a place to do my apprenticeship within Aba. Pls Darlington or anybody that can help should contact me.
      Thanks

      Reply

  • Ugwuanyi onyekachi August 9, 2017

    Darlington ,pls I’m in enugu ….how can I contact u…I need more explanations on how to set up the plants,,,,sourcing the raw material won’t be a problem

    Reply

  • Shittu AbdulHakeem September 6, 2017

    how much is does the machine cost and where do they sell it

    Reply

  • kay September 23, 2017

    Where on earth will u sell your PKC @ N100/kg. Pls revisit your sweet coded analysis and stop deceiving people out there.

    Reply

  • Fortune September 28, 2017

    For Now, Am Into Supplies Of PKN. I Need Genuine Buyers Of PKN. Or Partnership With Whoever Is Business. 07069761265

    Reply

  • Onwude Cosmas November 12, 2017

    Mr. Darlinton, this is a great job you are doing. Keep it up.

    I’m prepared to go into this business but i’m still conducting my research and feasibility studies. In fact, that’s how I came across your blog. It’s been very revealing and encouraging. It answered a lot of questions I have been asking without having any answers for some time now. However, the machinery you mentioned as requirement for a star-up looks simplistic to me. A guy I have been consulting mentioned things like pumps, electric motor, electrical work, welding equipment, spare parts/weigh bridge, laboratory for determining oil content of kernels, hopper and betting of machines. From this, it looks like you left out so many things.

    Please I need to get in contact with you for further exploring of opportunities for collaboration on this.

    Nevertheless, I advice that you be more careful in the figures you use so as not to give the impression of levity. This is because in your profitability analysis above, you wrote that 5 tonnes of PKO and 4 tonnes of PKC would come from 10 tonnes of PKN; but going by your earlier statement that 25 tonnes of PKN will produce 10 tonnes of PKO and 13.5 tonnes of PKC, the reverse should be the case.

    Great work. Keep it up!

    Reply

  • Jonaking Mega Enterprises November 24, 2017

    Pls, where can I get these machines for the palm kernel oil processing. I seriously need them now

    Reply

  • Godwin December 20, 2017

    I have local mill were I produced kanel I need buyers if there is any pls contact me with 09034188191.

    Reply

  • Ejike January 11, 2018

    pls, can i get your contact, mr Darlinton?

    Reply

  • Johnson January 18, 2018

    Please Okitipupa is my home town, I have about 5 acre of land I want to use for palm tree farming, please how can I get the processing machine, and how much will it cost?

    Reply

  • Ade March 16, 2018

    Hi, I need PKO if you can supply. please can I get your contact?

    Reply

  • Ade March 16, 2018

    I’m in need of anyone who can supply hundreds of tons of PKO, thanks.

    Reply

    • moji April 8, 2018

      let me have your contact pls, so we can talk better
      mine is 08099667293

      Reply

    • oluwabiyi peace June 14, 2018

      Pko available for supply in large quantity. Payment on delivery . Lpo can also be raised and we’ll work with it. Thanks

      08034856494

      Reply

  • Chima Egwuonwu March 16, 2018

    I have learnt a lot in this forum but there are still a lot I have to know

    Reply

  • Jibrin A. Baban-Iya May 5, 2018

    Pleas give me more details on how many litres are there in a ton of palm kernel oil.
    Thank you for your urgent reply.

    Reply

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