Palm kernel oil {PKO} is an important and cheap source of oil for soap manufacturers ,bio-fuel, cooking oil, vegetable ghee, Shortenings, Margarine, CBS,CBE, ice cream, dough, creaming, coating, and other specialty fats.
Palm kernel oil {PKO} is derived from the milling of cracked palm kernel nuts while palm kernel cake is a bye-product gotten from the processing of palm kernel oil. They form a very important part of the feeds of animal.
“Oils” is a collective term for more or less viscous, generally organic-chemical liquids. Depending on their chemical composition, a distinction may be drawn between fatty, essential, mineral and silicone oils. Fatty oils include liquid, semisolid and solid products of vegetable and animal origin. Palm kernel oil is a white to yellowish oil of vegetable origin which is solid at normal temperatures and is obtained from the kernels of the oil palm (Elaeis guineensis). It is one of the best oils. Palm kernel oil is different from palm oil, which is obtained from the flesh of the fruit.
Four {4} products namely palm kernel oil, palm kernel cake, palm kernel sludge and palm kernel shell {crushed} which is used as a bio-fuel can be gotten from palm kernel nuts.
The Market for the palm oil, palm kernel oil and palm kernel cake in Nigeria is huge and expanding. The estimated size of the local market is put at about N3 Billion for Palm Oil, N4.24 billion for Palm kernel oil while Palm Kernel Cake is N3.3 billion.
In 2005, in order to stimulate local production and attain self sufficiency in edible 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 tones annually
3. Soya beans: 670,000 1 million tones per annum
4. Seed Cotton: 1 million tones over the plan period
After seven {7} years of the initiative, the domestic edible oil demand far exceeds the national production. The short fall in supply estimated at about 50,000 tons per year.
This deficit in supply creates a seller’s market for the palm kernel oil in Nigeria and an opportunity for savvy investors to tap into.
There are companies in Nigeria willing and ready to palm kernel oil from sellers and the return on investment of the business is estimated between 10%- 15%.
From the above figures, it is clear that there is a large and sustainable market for palm kernel oil {PKO} in Nigeria.
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Report Title:HOW TO MAKE HUGE PROFIT SUPPLYING PALM KERNEL OIL TO LOCAL INDUSTRIES IN NIGERIA.
Report Code: FORA/08/2012/106
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