Entrepreneurship-Manufacturing67 Comments

Before you proceed with the production process of palm kernel oil extraction, you may want to read the previous article: How to Start Palm Kernel Oil Extraction Business.

The article tells us the viability of the business. We see that the demand for Crude Palm Kernel Oil (CPKO), palm-kernel Cake (PKC) and Palm Kernel Sludge (PKS) in the market is very Huge, and as a matter of fact, the demand for it is all year round plus the profit in this business is amazingly good.

We also see that due to the high demand of the products, the buyers sometimes book for the products in advance. Sometimes, buyers even pay in advance in order to secure products.

I won’t write further about the business as the article referenced above is self explanatory. However, I present below the production process, machinery requirement and an updated profitability analysis of the business.

Palm Kernel Oil Extraction Production Process

In summary, the production line involves reception of good palm-kernel nuts, crushing the nuts with the nut-crusher, heating the seeds with the seed fryer so as to excite the oil molecules, and transferring the heated-crushed nuts to the oil press.

Crude Palm Kernel Oil Refining Processing

Crude Palm Kernel Oil Refining Processing

The oil press presses the seeds, and expels the oil content of the seeds through the oil exit chamber, and at the same time expels the cake through the cake exit chamber.

The crude oil is collected in drums or over-head tanks and left to settle. Since the sludge (sediments) is denser than the oil, it settles below the oil. The oil can then be collected separately from the sludge.

Two to three persons can conveniently operate the machinery. Below is a brief description of the machinery used.

1. Nut Crusher

»Function: Crushes the palm-kernel nuts and reduces it to smaller sizes so as to ease the oil extraction process.

»Price: N350, 000.

2. Electrical Seed-Fryer

»Function: Fries/roast the crushed nuts. This process heats up the crushed nuts, thereby exciting the oil molecule content of the nuts.

»Price: N480, 000.

3. Oil-Press (2T/D)

»Function: Presses the heated nuts and expels the oil content of the nuts via the oil exit chamber, while the cake is collected via the cake exit
chamber.

»Price: N450, 000

Total: N1, 280, 000.

»Note: Their is an oil press with 4T/D capacity; it costs N800,000.

From the above, you will need about two million naira (N2,000,000) to procure and install the machinery and also procure about 10tons of raw materials (palm-kernel nuts).

Profitability

1 tone of palm-kernel nuts gives an average of 410liters of oil, 540Kg of cake, and 25Kg of sludge.

Average price for 1tone of palm-kernel nuts is N70,000.

Average Selling Price of the products is

»Oil = N200 per litre
»Cake = N15 per Kg
»Sludge = N20 per Kg.

So if you process 1tone, you sell:

»Oil @ N200 x 410 = N82,000
»Cake @ N15 x 540 = N8,100
»Sludge @ N20 x 25 = N500

Total sales = N90,600.

Profit = N90,600 – N70,000= N20,000

The above profit is for processing 1tone of palm kernel.

Now, if you process 2 tone per day, you get N20,000 x 2 = N40,000 per day as profit, which by extension implies a monthly profit of N1,120,000 (24days). Profit increases as production increases.

Note: If you sell your products at a bit lesser price, you will generate much more sales and still make a reasonable profit. If you are a good negotiator, you can get the nuts as low as N(60,000 – 65,000) per ton.

CONCLUSION

Palm kernel processing business is lucrative and the market for the products is vast. It even extends to the international market. Get buyers, offer them good quality products at competitive prices, and that’s it.

If you have much capital to process large quantity continuously, visit Nigerian export promotion council; they will link you to exporters or international buyers.

Wishing you all the best in your Quests.

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67 Comments

  • Anonymous June 3, 2014

    Oga Darlinton, Ibrahim A. Bello is the name. You are really doing a good wok here, thanks.

    Reply

    • Darlinton Omeh June 4, 2014

      Mr Bello, how are you doing? 😀 Pls forgive me for being silly, not to remember the name of my own person. I have updated the post with the real name.

      Reply

    • Ime Inyang April 17, 2016

      Oga mi this write up is very educative please where can i meet you for one on one discussion.

      Reply

  • Mrs Owolabi kemi June 5, 2014

    Mr Darlinton you have realliy enlightened me on so many biz opportunities here,most especially on this palm kernel oil biz that I have been searching for an easy guide to venture into in a big way ,your articles here are all on point.may GOD continue to bless your effort for it to be fruitful(In Jesus name)Amen.

    Reply

  • ifenkie June 14, 2014

    This is nice cos I also make oil but manually. I'll like to know where I can buy those machines you mentioned so I can increase my output.

    Reply

    • Amos February 29, 2016

      Please can I know to go about this manually like you said

      Reply

  • Lesile Diez June 19, 2014

    please i like to get more info on the palm oil business

    Reply

  • Anonymous July 18, 2014

    Sir, this palm kernel & Palm kernel oil biz is cool according to your explanation. But iam confused here on where to buy these machines 1. Nut Crusher 2. Electrical Seed-Fryer 3. Oil-Press (2T/D). Would you please give the address of where to buy them from.
    Finally i want know if there is no machine that can crack the nuts and separates the nuts from the shells at the sametime.? If there is such a machine how much is the cost and where can i buy it? Thanks

    Reply

    • Anonymous July 26, 2014

      Sir, this palm kernel & Palm kernel oil biz is cool according to your explanation. But iam confused here on where to buy these machines 1. Nut Crusher 2. Electrical Seed-Fryer 3. Oil-Press (2T/D). Would you please give the address of where to buy them from.
      Finally i want know if there is no machine that can crack the nuts and separates the nuts from the shells at the sametime.? If there is such a machine how much is the cost and where can i buy it? Thanks
      Having not gotten any reply from you. I have decided to re-send this inquiry again together with my email address for quick response. May God bless you for all you are doing.

      Reply

    • Darlinton Omeh July 26, 2014

      I don't know where they are sold but I'm sure Mr Bello will respond to your question and provide the answer anytime he come online.

      Reply

      • Godwin October 6, 2018

        Thanks op for creating this blog. This business is one lucrative and profitable business that can easily be started and progressed on a small scale. We are a firm of engineers and business consultants. We fabricate and install a palm kernel oil extracting factory for interested investors. We will also serve as consultants and mentors to young entrepreneurs who wish to invest in palm kernel oil production. We link crushers to suppliers of raw materials and big buyers of finished products. Call us on 08181926534 or whatsapp us with 08037788438.

        Reply

  • Anonymous August 5, 2014

    Thanks Mr Omeh, up till now i have gotten no response from Mr Bello. Please my brother if you know Mr Bello at a close range could you please call him up to get the infos i requested on where to buy those machines from him on my behalf. Thanking you in advance for your help. Prince

    Reply

  • Anonymous August 21, 2014

    Thanks Mr Bello..Pls I need information on how and where to procure these machines and the cost implications as well as whether local or foreign fabricated..Tnx

    Reply

  • Anonymous October 3, 2014

    Thanks for these information Mr Omeh, may God continue to bless you. However I notice that you have not mentioned anything about how much one can realise from the sale of palm kernel shell if one want to trade it rather than burn it.

    Reply

    • Jacko October 23, 2016

      Hello , I will like to know if you have found a place to buy your equipment ,mid yes please let me know , thanks

      Reply

  • Jibrin A. Baban-Iya February 11, 2016

    Darlington One,
    All you gave out is appreciative. Do us a favour by giving me either your contact number or email. Keep the informative work up.

    Reply

  • Larry Jacobs February 17, 2016

    I have done a little research on the machines, went as far as MBL in Malaysia. Conclusion, don’t rush into purchasing the machines. You need to consider, factory location as power supply is IMPORTANT. Running those machines on gen set will deplete your profit mercilessly. Using the small gen power local fabs will not yield encourgaing returns. But I agreed with Darlington, apprehenticeship will help a lot. Am planning to visit Okitipupa myself to see these machines in operation and get answers to some questions in my head. will feed the house back on findings once am back

    Reply

    • Darlinton Omeh February 17, 2016

      That’s a nice one Larry. Some of the machines are too heavy for Generators and requires as high as 150KVA to power which inturn will consume a lot of diesel. The most common type of gen people use are the Lister types. Pls we are expecting thee feedback from your finding when you are done.

      Reply

  • Renner Otunte February 18, 2016

    How can I get the machine. I will appreciate your response.

    Reply

  • Wale February 23, 2016

    Where can I get practical training on the palm kernel extraction business?

    Reply

  • Amos February 29, 2016

    Does it have to be so expensive aren’t there less expensive ways of starting a press….2 million? That amount will scare of young people who can effectively start and eventually grow to acquiring the bigger machines.

    Reply

  • Larry Jacobs March 14, 2016

    Hello All, Though I have not been to Okitipupa but I have been to other facilities around Lagos and spoke with old hands in the business. I came to the conclusion that IT IS NOT a business for lily livered! EXPERIENCE IS KEY! I repeat, EXPERIENCE IS KEY! You want to go into the business, don’t jump on the advice you read on the internent alone, get hands-on experience. There lots of other equipments that are needed to start the business. Storage Tanks, flow meters,Weigh, welding equipment,Vise, sufface pumps etc. knowledge of when to buy nuts, when to store oil, when to sell oil etc.

    A note of warning, most of the contributors to this topic on Nairaland are FAKE! Beware of them.

    I am still researching and will keep updating you. Though, I have made my mind about the business, I still need to fine-tune a lot of issues.

    Best of luck to you all

    Reply

    • Jacko October 23, 2016

      Please give name to where one can go get experience in Lagos , I want to go train , or anywhere near by

      Reply

  • Seleipiri Daye April 18, 2016

    Good evening Mr. Darlington Omeh. i am interested in the palm kernel business. i want to know more about it. i want to consult on this and other business. i am looking forward to hear from you. i want you to give me your email address as well as your telephone number(s).

    Please furnish me the address where the seminar is will take place this weekend.

    Thank you for your cooperation.

    Reply

  • Seleipiri Daye April 18, 2016

    Darlington i am interested in the palm kernel business.

    Reply

  • Jesus loves U. May 29, 2016

    Fellow Nigerians,
    Thx for this forum. I am writing as someone who has been in the palm processing business for about 4yrs now. My advice to prospective investor is as follows:
    1. Do you have a location with steady and cheap source of power? This is the most important factor. If you don’t, don’t put your money down.
    2. You need to be close to a palm kernel supply source. The machine in question can crush 10 tons of palm kernel(about a full 911 truck) in 2 or 3 days
    3. For the machines, you can use locally fabricated machines or refurbished foreign machines (I’m using 2 of these) or brand new crushers if you have the money.
    3. If you have met the two conditions above and wish to
    2. Are you close to a

    Reply

    • Brian August 31, 2016

      Thank you @Jesus loves you, wonder if i could contact you. I am in Calabar really want to get into the business too. Thanks for your advice again.

      Reply

    • IbukunoluwaOyesola October 9, 2016

      @Jesus Loves you do you know who can sell me PKN in abeokuta, Ogun State, and also whats the current price per tonne

      Reply

    • Jacko October 23, 2016

      Please give info on how to get machines, thanks

      Reply

    • Jacko October 23, 2016

      Please I can I contact you , I need to get machines and if you do not mind will like to come train under you for a bit of time ,thanks

      Reply

    • mustapha banji September 1, 2017

      I am interested in the palm kernel oil processing. For us it’s a forward integration. We have the site , the power facilities already. What I don’t have now is the training. Please link me up with where I can train.
      Thank you.

      Reply

    • MrKaluU December 18, 2017

      please all condition meet…..production ongoing. all i need is payers

      Reply

  • Jesus loves U. May 29, 2016

    If you have steady power and source of kernel supply and wish to go into this business, I can recommend the guy who sourced, installed and maintains my crushers to you. Despite our fear of 419 in Nigeria, you can trust him. My mill is located in Eket, Akwa Ibom state.

    Reply

    • Yetunde adedoyin June 9, 2016

      Can l have his number please, my email address is

      Reply

      • Jacko October 23, 2016

        Jesus loves you , please can I have number to the guy and will like to talk to you as well,thanks

        Reply

    • Oscar August 6, 2017

      please send me the phone number of the person who installed and maintains your crusher. my phone number is 08065314508

      Reply

    • Uchenna August 13, 2017

      @JesuslovesU.

      I will be indebted and grateful if we can talk more about the equipment source. I can verify some claims from you as well. I attacked my email address and wish I can get yours too. Thanks for the precious idea.

      Reply

    • Johnson October 25, 2017

      Pls am interested in the business, am in uyo. Pls ur contact for more discussion. Tnx

      Reply

  • ogunrinde funbi June 2, 2016

    Thanks, Mr God loves u, lay interested in the guy that sourced your machine. Call me on.

    Reply

    • ogunrinde funbi June 9, 2016

      Hello everyone, pls lam looking forward to a reliable source of getting the Palm kernel crushing machine, locally made or good tokunbo, l will like to start the business as soon as possible. Thanks.

      Reply

  • Aka August 21, 2016

    Hello,

    My question is how easy is it to sell the final product (kernel oil and cake).

    Whats the best way to find customers?

    Reply

  • lolade August 30, 2016

    hello, pls where can we get the machines. am really interested in the business cos i ve a palm tree plantation

    Reply

    • International September 27, 2018

      Hi Lolade, we are also into palm oil production. our factory used to be at Ikorodu in Lagos but we have moved to Otta area.

      The machines can be sources locally from the eastern part of Nigeria, you power with diesel and lister generators for a start.

      Regards,

      PLECK INTERNATIONAL

      Reply

  • Emekanneboh September 8, 2016

    Hello Darlinton, I want to invest in the business.Please, I need advice on where to get the machines

    Reply

  • IbukunoluwaOyesola October 9, 2016

    Hello All, i have been trying to go into this business in the past 1.5years. Finally I have purchase my equipment and are now in My warehouse in Nigeria. I am locating the PKO Mill in Abeokuta Ogun State. Which Can use between 5 – 7 tonnes of PKN per/day, so I need PKN suppliers. Please there are so many things that are not in the posts online. To get a good line which include A cleaning Sieve, An electric cooker, An expeller and a filter machine this will cost you a minimum of about $12,000 for a 5 T/day machine.

    Please Note 5T/day is the raw material it will take not the oil you will get. This means you will get between 1.8T – 2.2T of oil depending on how efficient you expeller and filter machines are

    Other Things that are required include

    A storage take for your oil, (which I am just about constructing and I heard to construct a 15MT tank can cost as much as 700K- 800K. ),

    A weight (to weigh your PKN when your seller bring them to you and to weigh you PKC , PKO and PKS when you want to sell)

    A surface pump ( at least one to pump your clean oil into your storage tank)

    A good power source or generator (your equipment does not like power outages during production) I am locating mine close to a private power plant

    Please I need to current cost of PKN, PKO and PKC in the market now to be able to plan for required funds

    Reply

    • Jacko October 23, 2016

      Ibukunoluwaoyesola , please where did you get your equipment and how much did it cost , I will like to purchase too , I want to set up in ijebu also will like to talk to you, please email me at chrisjacksonayo@gmail.com,thanks

      Reply

    • KadiriDestiny June 29, 2017

      hello Ibukunoluwa,
      thanks for the informative post. please, what does $12000 currently translate to in naira?

      Reply

    • Abidoye James Kehinde August 31, 2018

      Please I want to be buying palm kernel cake in large quantity from your factory and bring it to Kano for resellers. Can you tell me how much is Kg and the location of your factory

      Reply

  • IbukunoluwaOyesola October 9, 2016

    Challenges of Starting a Palm Kernel Oil Extraction Business
    a. It is a capital intensive project, as you will need to erect a production structure (factory) and the machines doesn’t come cheap either.

    b. It is management intensive, as you will need several people to man the various production stages.

    Reply

  • Assobur December 27, 2016

    hello, Mr Ibukunoluwa, presently the price of PK is #170,000.00 per tonne in Osun State.

    Reply

  • SKILLCONSULT December 30, 2016

    Nice write up at Op
    @ All, for your comprehensive and detailed
    business plan on oil palm from cultivation to
    processing into palm oil, palm kernel oil, palm
    kernel cake and palm kernel sludge.
    Kindly call 081-239-165-45 for your request @ an affordable price
    A trial will convince you. Regards

    Reply

  • onyisi January 4, 2017

    Pls i have a groundnut oil production line in Niger State.can my machines also process Palm Kernel Seed?i have a steam powered roaster,20 horse power expeller,oil filter machine and refinery tankof about 2000 litres..and where can i get the palm kernel seed in Osun?

    Reply

  • Dominic Olim August 10, 2017

    Please I will need more info on the palm kernel oil and groundnut oil business. I have started building a factory for it. I will also like to get link to machine suppliers as soon as possible

    Reply

    • MFONOBONG January 11, 2018

      Hyie, Dominic Olim. . kindly put me through as well if you have gotten through the suppliers.

      Reply

  • Ogunsakin Kehinde September 5, 2017

    Are the machines above same with Thresher, Boiler< presser and clarifier.. as i read in a site these are what are needed to process FFB to PKO.

    Also please can i get an email or contact mail to discuss further…

    Reply

    • Nonso November 24, 2018

      The business is no longer lucrative as it was before. In Anambra area, a bag of palm kernel (80kg) sales for #11,000. You need at least 7bags to produce 1 drum of Pko. A drum of Pko sales for 65,000. This amount is not even close to the cost of production. The PKC from this 7bags will at most be sold for 8,000. Then of what benefit is the struggle?

      Reply

  • Citizen Umoren,Umoren E September 13, 2017

    Thanks a million time for this Info, i will love to visit the producer in eket so as to buy pko for my soap production. I am base in uyo,aks.my number is 07032531758.for those that need cracker and separator can also call me for discussion on how to get it.those that need already cracked kernel can also get in touch. Citizen Umoren.

    Reply

  • Obum November 1, 2017

    Nice one. Many are willing to enter into this business but capital is just there problem.

    Reply

  • Time Warner Cable June 14, 2018

    hi very good article – thanks for sharing keep up the good work

    Reply

  • Daniel Owoseho September 4, 2018

    Thank you so much for this information. Pls is there anywhere in Benin city I can get a practical training and where and how can I buy this machines.

    Reply

  • chris Jongo September 22, 2018

    Please what can I do with my kanel shales ? And where can I buy this. Machine

    Reply

  • Godwin October 6, 2018

    Thanks op for creating this blog. This business is one lucrative and profitable business that can easily be started and progressed on a small scale. We are a firm of engineers and business consultants. We fabricate and install palm kernel oil extracting factories both on small, medium and large scale for interested investors. We will also serve as consultants and mentors to young entrepreneurs who wish to invest in palm kernel oil production. We link crushers to suppliers of raw materials and big buyers of finished products. Call us on 08181926534 or whatsapp us with 08037788438.

    Reply

  • rawlings October 15, 2018

    Hello Mr. Darlington, first of all, thank you and may God bless you foe your generosity humble concern about others success.This is an inciteful and educative post. You deserve an accolade for your selflessness in making sure that you update the information as promised, God bless you.::: Please Mr. Darlington, do you have an idea of where or how I can get the required machines “Crusher, Fryer & presser”? I hope to hear from you. Thank you.

    Reply

  • Nonso November 24, 2018

    The business is no longer lucrative as it was before. In Anambra area, a bag of palm kernel (80kg) sales for #11,000. You need at least 7bags to produce 1 drum of Pko. A drum of Pko sales for 65,000. This amount is not even close to the cost of production. The PKC from this 7bags will at most be sold for 8,000. Then of what benefit is the struggle?

    Reply

  • Okoyo Walter Columbus November 27, 2018

    Please, may I have an industrial office contact, so I can make supply of raw materials. Thank you sir.

    Reply

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