Until the late 1970’s when hydrocarbon was discovered in commercial quantity in Oloibiri, present day Bayelsa state, Agriculture remained the mainstay of the economy contributing over 90% of the Gross Domestic Product (GDP) of the country as against the less than 40% it now contributes with crop production accounting for an estimated 85%, livestock 10% and the balance made up by fisheries and forestry.
Oil palm in Nigeria grows in the coastal belt which varies in depth from 100 to 150 miles and a riverine belt which follows the valleys of the Niger and Benue for a distance of about 450 miles from the sea. The main palm oil producing states includes Ogun, Ondo, Oyo, Edo, Cross River, Anambra, Enugu, Imo, Abia, Ekiti, Akwa-Ibom, Delta and Rivers.
Extensive market research has revealed that palm kernel nut is an everyday goods used by Industries. They are used in the production of palm kernel oil and cake. Palm kernel oil is used in the production of soaps and other food products while the cake is used in the production of animal feeds.
Thus, the market for palm kernel nut is ongoing and is not dependent on economic cycles.
This report seeks to examine the financial viability or otherwise of supplying palm kernel nuts to local industries in Nigeria.
The required startup capital estimate for the business is N 1,639,000 and the business is expected to generate a net profit per transaction cycle of N 311,000.
The manpower required to run the business is between 1-2 with one purchasing the commodity and the other selling to the buyers but the same person can perform the two functions.
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.
The return on investment on the trading of maize is estimated between 10%- 15%.
———————————————————————————————————————
Foraminifera Market Research Limited (www.foramfera.com) is part of a family of businesses, which includes several brands such as
Hausworth Nigeria Limited owners of
365 Home Improvement — www.365homeimprovement.com (Nigeria’s One Stop Home Improvement Portal)
365 Property Portal — www.365propertyportal.com (Property listing, building materials sales and movers in Nigeria)
Kyneli Business Support Services owners of
365 Campaigner is a complete suite of social collaboration, communication and management tools for your team. From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities.
365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals.
———————————————————————————————————————
At Foraminifera Market Research (www.foramfera.com), we provide bespoke and up to date market research reports. 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 nuts trading to local industries in Nigeria by clicking on the link below.
Report Title: HOW TO MAKE HUGE PROFIT SUPPLYING PALM KERNEL NUTS TO LOCAL INDUSTRIES IN NIGERIA.
GALLSTONE EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
GUM ARABIC EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
HARDWOOD CHARCOAL EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
COCOA BEANS TRADING AND EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
HIBISCUS FLOWER EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
HOW TO MAKE HUGE PROFIT SUPPLYING COWPEA {BEANS} TO LOCAL INDUSTRIES IN NIGERIA.
COLUMBITE EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
RAW CASHEW NUTS EXPORT IN NIGERIA
RAW CASHEW SUPPLY TO LOCAL INDUSTRY IN NIGERIA
GROUND NUTS EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
DRY SPLIT GINGER EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
Access our other Market Research Reports or investment opportunities in Nigeria by clicking on the link below
– MARKET RESEARCH REPORTS IN NIGERIA
– INVESTMENT OPPORTUNITIES IN NIGERIA
Do you require a business plan or feasibility report on the subject matter? Contact us with any of the details provided below to arrange a meeting
Office Phone Number: 01- 295 24 13 (Monday – Saturday; 8 am – 5 pm)
Mobile Number: +234 (0) 8033782777;+ 234 (0) 908 335 7733 (Monday – Saturday; 8 am – 6 pm)
E-Mail Address: enquiries@foramfera.com
CC: foraminiferamarketresearch@yahoo.com
Office Address:
61-65 Egbe- Isolo Road,
Iyana Ejigbo Shopping Arcade,
Block C, Suite 39,
Iyana Ejigbo Bus Stop,
Ejigbo, Lagos.
