Buying a Palm Oil Plantation Business

Palm oil is native to West Africa. Nigeria was once the world’s largest producer of oil palm prior to the oil boom era, but Malaysia has taken the leading position. Oil palm plantation and allied industries has become the key stay of the Malaysian economy. The palm tree can be used in a variety of ways: the leaves are used in making brooms and for roofing materials (in the rural areas). The bark of the fond could be peeled and woven into baskets, the key trunk could be split like sawn timbers and used within building materials, while palm wine may also be obtained from the palm tree, in addition to red palm oil, which will be readily obtainable from the fruit bunches. Klasifikasi Tanaman

Once the fruit is processed, however, the residue obtained can be used as fuel (for cooking and fertilizer to enhance soil nutrient).

Red palm oil is used in cooking, making soap, candle and margarine. Palm kernel oil could be extracted from the nut, while the residue obtainable in the process of palm kernel oil extraction, otherwise called palm kernel cake, can be used as livestock feed.

Palm kernel oil is used in vegetable oil and soap making, and the shells are useful as energy source. The uses to which oil palm could be made seem non-exhaustive. This clearly shows that investment made in the establishment of oil palm plantation is only an intelligent one.

Industry is guaranteed for the products of oil palm plantation in this era of global food crisis.

Technical Information

To determine palm oil plantation, involves getting a good site where rich, well-drained acidic soils are abundant. The soil needs to have adequate quantities of potassium, magnesium and nitrogen. Soil tests should therefore be carried out to determine the nutrient status of the land. It is usually more straightforward to use the early maturing variety called’tenera,’ which bears fruits as from the fourth year.

Other requirements include seedlings procurement, which may be obtained from reputable nurseries. Prospective investors must engage the services of agricultural experts in the length of establishing this project.

Other cultural practices are planting, regular weeding, pruning and fertilizer application.

Financial Aspect

We’re recommending 50 hectares for a start. 20 hectares oil palm plantation can conveniently service a palm oil mill that will be established by the owner when the plantation starts to bring fruit. To determine 50 hectares of plantation, the sum of N10, 500,000 is going to be required and that is broken down as follows:

Income Analysis

A mature plantation will start to give an investor five a lot of red palm oil annually from the fourth year per hectare. 100 metric a lot of oil could be obtained annually from 20 hectares of plantation.

A lot of red palm oil is at the least N150, 000, while gross revenue of N15 million is obtained from red palm oil.

We could also get three metric a lot of palm kernels per hectare, which provides us 60 tons from 20 hectares. This translates to annual income of N4.2 million. Total income realisable is all about N19.2 million, while the annual operating expense is put at N5.8 million.

This leaves us with net income of N13.4 million annually for the investor for the rest of his/her life. Serious-minded investors could be assisted in realising this worthwhile investment.

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