Extensive market research has revealed that palm kernel oil {PKO} is an everyday goods used by individuals as well as Industries. Thus, the market is ongoing and is not dependent on economic cycles and can be described as a FMCG (fast-moving consumer goods) commodity market, hence the need for the palm kernel nuts which is the main raw materials used in the production of palm kernel oil and cake.
Palm kernel nuts are derived from the cracking of palm nuts gotten after the milling of palm oil from the pulp of the oil palm seed.
Palm kernel oil is crushing and milling of palm kernel nuts while palm kernel cake is a bye-product gotten 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. It is one of the best oils. Palm kernel oil is different from palm oil, which is obtained from the flesh of the fruit.
They are used in the productions of soaps, confectioneries etc.
The Market palm kernel oil and palm kernel cake is huge, sustainable and expanding. The estimated size of the local market is put at about N4.24 billion for Palm kernel oil while the market for Palm Kernel Cake is estimated at N3.3 billion.
Another product that can be gotten and sold from oil palm but the market is not developed in Nigeria is Palm kernel Shell. They are required in large quantity in the production of bio-fuel, road construction amongst other uses.
The market for palm kernel oil and cake 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 palm kernel oil and cake. The demand for palm kernel oil and cake is high but due to a short fall in the supply of raw material production is low.
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 tons annually
3. Soya beans: 670,000 1 million tons per annum
4. Seed Cotton: 1 million tons 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 is estimated at about 50,000 tons per year.
From the above figures, it is clear that there is a large and sustainable market for palm kernel nuts in Nigeria, the basic raw materials used in the production of palm kernel oil and cake.
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Report Title: PALM KERNEL NUTS CRACKING AND SALES IN NIGERIA
Report Code: FORA/08/2011/09
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