Palm oil Business and storage in Nigeria
Without discussing the meaning of palm oil, it is assumed you already know its uses as it can never be over over-emphasized. Each year a large number of people go into the palm oil business mostly because of the pressure to earn without taking into consideration the pros and cons involved. It is vital to research or learn from someone who has been engaged by asking questions.
There is a popular saying that the “Palm oil business is like blood money”, which is true, but as a newbie, relax first, let’s get it right. The purpose of every business boils down to making a profit but your risk should also be calculated to avoid losses. Now let’s get down to business.
TABLE OF CONTENTS
- What to consider before starting a Palm oil business in Nigeria as a beginner
- Capital needed for starting Palm oil business in Nigeria
- Materials needed for Palm oil business
- Best season to buy and sale your Palm oil
- Marketing, Strategy and Branding
- States with the highest production of palm oil
- Start palm oil business without capital
What to consider before starting a Palm oil business in Nigeria as a beginner
- Customer base, location and target: There is no way we talk about palm oil without mentioning storage. Most profitable palm oil business individuals made it big by storing them to sell during peak periods. Take your time to observe your location and identify your customer base to decide on the quantity to store for supply. This is because the highest duration to store palm oil is considered to be two years maximum. The button line here is to avoid storing your palm oil for too long.
- Type of palm oil: Nobody wants to cook with a bad oil. However, to avoid losing your potential customers forever always get palm oil with high quality. Note: A good palm oil is good tasting and has no odour or foul smell.
Capital needed for starting Palm oil business in Nigeria
It is quite known that the palm oil business is capital-intensive, but the good news is that retailers can start with whatever they have. In fact, you can start with no capital, but chill we shall get to talk about it.
Retailers can start with one or ten kegs while others can start with more. Whichever way we all want to make a profit at the end. For instance, a retailer that started with one keg purchased at the rate of #20,000 and sold for the rate of #30,000 during the peak period has made a reasonable profit. Imagine when you expand and double your hustle to become a wholesale with more than hundreds of kegs.
Materials needed for Palm oil business
The Palm oil business is one of the simplest businesses to start up in Nigeria. This is because much materials are not required unless you plan to go into milling. That is producing palm oil by yourself, then you have to get the equipment for milling.
As a retailer, all you need are clean kegs and mobility to carry them to the market or destination. Clean kegs are in the market or you can ask your miller to get them for you.
Best season to buy and sale your Palm oil
The best season to buy and sell your palm oil is usually between March and April because it’s in abundance and cheap during this period. The best time to sell your palm oil for a good profit is from September, as it becomes scarce.
Marketing, Strategy and Branding
This is a broad Part of the business as there are varieties of platforms merchants use to secure customers which include online and offline markets.
States with the highest production of palm oil
The palm oil business in Nigeria is a significant sector of the agricultural economy, with the country being one of the largest producers of palm oil in the world. However, Nigeria was historically one of the top producers of palm oil, particularly before the rise of Southeast Asian countries like Malaysia and Indonesia. The states in Nigeria with the highest palm oil production include: Edo, Abia, Akwa Ibom, Imo state, Bayelsa, Enugu, Anambra, Delta, Ondo and a few other states. There are other states with good and surplus palm oil, but it all depends on the closest to you or your preference.
Start a palm oil business without capital
In this case, all you have to do is to have your mobile phone or simply be creative. Most students will fall in love with this particular update because they may not be financially capable of getting kegs of palm oil to make a profit. One of the ways of doing this business with capital is by drop shipping. Drop shipping simply means advertising, posting or selling goods and products you don’t have in stock. This is most common in online vendors. Simply apply the same procedure in your palm oil business and see profits smiling into your bank account.
