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PALM KERNEL OIL REFINING AND PACKAGING IN NIGERIA; HOW VIABLE?

Every vegetable contains varying amounts of vegetable oil.  This “crude vegetable oil” is the unrefined and unprocessed oil produced from vegetables – and how it is found in the natural vegetable oil state when it is first extracted from the vegetable, whether the vegetable oil comes from corn, soybeans, oil palm, jatropha, cottonseed, etc.  To make the crude vegetable oil ready for use, it must undergo further processing and refining to take it from its crude form to a “refined vegetable oil” state.

Palm Kernel Oil is the main output of any Palm Kernel oil expelling process. Palm kernel oil consist mainly of glycerides and, like other oils in their crude form may
consist of small and variable portions of non-glyceride components as well. ln order to render the oils to an edible form, some of these non-glycerides need to be either removed or reduced to an acceptable level.

In Nigeria, Palm Kernel Oil is the major raw material for the production of edible vegetable oil. Ninety percent of what is called groundnut oil in our market today is in fact vegetable oil made from palm kernel oil (PKO). Original groundnut oil which is three times more costly than refined vegetable oil made from palm kernel oil cannot be afforded by ninety percent of Nigerian housewives.

Refining produces an edible oil with characteristics that consumers desire such as bland flavour and odour, clear appearance, light colour, stability to oxidation and suitability for frying. Two main refining routes are alkaline refining and physical refining (steam stripping, distillative neutralisation) which are used for removing the free fatty acids.

The classical alkaline refining method usually comprises the following steps:

Step 1.
Degumming with water to remove the easily hydratable phospholipids and metals.

Step 2.
Addition of a small amount of phosphoric or citric acid to convert the remaining non-hydralable phospholipids (Ca, Mg salts) into hydratable phospholipids.

Step 3.
Neutralising of the free fatty acids with a slight excess of sodium hydroxide solution, followed by the washing out of soaps and hydrated phospholipids.

Step 4.
Bleaching with natural or acid-activated clay minerals to adsorb colouring components and to decompose hydroperoxides.

Step 5.
Deodorising to remove volatile components, mainly aldehydes and ketones, with low threshold values for detection by taste or smell. Deodorisation is essentially a steam distillation process carried out at low pressures (2-6 mbar) and elevated temperatures (180-220°C).

The market for vegetable oil is national. With a population of over 165 million people and an estimated national population growth rate of 5.7% per annum ,an average economic growth rate of 3.5% per annum in the past five {5} years, Nigeria has a large market for edible oil.

The demand is high but local supply low hence the need for importation in the past. Industry data suggest that Nigerian consumers use more than one million {1,000,000} tones of vegetable oil annually.

In 2005, in order to stimulate local production and attain self sufficiency in vegetable oil production, the government introduced the presidential initiative on the development of edible oil over a period not exceeding three {3} years.

Under this initiative, attention was focused on the promotion of eleven scheduled oil seed crops which are oil palm seed, groundnut seed, Soya beans seed, cotton seed etc and production target was set for each of the crops under the programme as follow

1. Oil Palm: 1 million hectares capacity of producing 15 million fresh fruit bunches
2. Groundnut: 15 million tons annually
3. Soya beans: 670,000 1 million tons per annum
4. Seed Cotton: 1 million tons over the plan period

After about seven {7} years of the initiative, the domestic edible oil demand far exceeds the national production. The short fall in supply is estimated at about 300,000 tons per year.

From the above figures, it is clear that there is a large and sustainable market for vegetable oil in Nigeria.

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At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for start-ups and those already in business.

Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

You can order our detailed feasibility report on palm kernel oil refining and packaging in Nigeria by clicking on the link below.

Report Title: REFINING, BLEACHING, DEODORIZING AND PACKAGING OF PALM KERNEL OIL IN NIGERIA, THE FEASIBILITY REPORT.

Report Code:FORA/2014/PKOREFININGANDPACKAGING/29984670100

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