Part 1 of 2: The Major Aspects or Specialization In The Palm Oil Business Edit Part

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 Start Palm Oil Business In Nigeria.

    There is three major aspects or specialization in the palm oil business. The first aspect is Oil Palm Plantation; this is the aspect that involves planting a large number of palm trees on an acre of land or more. This aspect requires a lot of capital and a lot of patience it will take up to five years for the oil palm trees to mature. 

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    The second aspect which is oil milling is the aspect that is concerned with the extraction of palm oil from the kernels. This aspect requires you to have various machines for the extraction process. It also requires you to buy the palm product from the plantation owners if you don’t own the farm.

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    The third aspect is the Palm Oil Sale. It involves buying and selling the palm oil at any quantity. All you have to do in this aspect is to basically buy and sell the products. There are two ways of engaging in this aspect. The first is the Continuous Sale and the second is the Storage and Resell method. In the former you will purchase palm oil from the millers regularly and resell. In the latter, you buy a high quantity of palm oil and store. Because palm oil supply can be affected by seasonal changes, you might try to buy at a time when palm oil is in high supply, store it and sell at a time when it is in low supply.  The profit is higher with this method.

Part 2 of 2: Things You Need To Consider Or Put In Place If You Want To Start Palm Oil Business Edit Part

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    Find A Good Source Or Supplier: To start this business, you will need a safe, steady and reliable source or supplier. You supplier is a key determinant of your success in this business. Millers of palm oil are found in the south-east and western states in Nigeria. These states are Edo, Ondo, Anambra, Abia, Enugu, and Rivers and so on. You can also ask from people who are experienced in the sales of palm oil, for the best source.

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    Market: When starting your business, you should have a market which your product is targeting. It could be an international market if you have an interest in exporting. It could also be a local market i.e within Nigeria. If you want to sell in a large scale you would need to find retail to patronize you. It is usually best to have your market targeting the urban areas.

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    Storage facilities: Palm oil is a type of product that has to be stored somewhere. First, you will need to get a lot of containers to store the oil and you will also need storehouse, where you will be keeping it before sale.

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    Transportation: Apparently, this is very important in this business, you will need a stable means to transport the product from the millers to your store and the market. The palm oil business is a very lucrative business but it requires dedication, capital and time. It's a business that has been existence since the earliest times and it will still continue to exist. The chance of its existence is across a lifespan.

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    Good Customer Relation: For every business to survive there's a need for a good communication between both parties involved in the transaction. Thus, make sure you have a good relationship with your customers.

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Tips

  • Edit Tips Contact people who are already in the business to ensure you learn the tricks of the trade.
  • Edit Tips Take your time and learn to grow your business.
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Warnings

  • Edit Warning Consider knowing the risks of the business and how to play around them before you invest

Sources and Citations

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