Description

Groundnuts are also used for food and as an ingredient in confectionery products. After the extraction of oil, the residual cake is processed largely for animal feed, but is also used for human consumption.

Nigeria currently produces about two million MT representing 5% of world production and Foraminifera Market Research seeks to highlight the investment opportunity in the supply of groundnut seeds to local industries in Nigeria.

The market for palm and edible oil is national. With a population of over one hundred and sixty five {165,000,000} 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.

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

Oil Palm: 1 million hectares capacity of producing 15 million fresh fruit bunches
Groundnut: 15 million tones annually
Soya beans: 670,000 1 million tones per annum
Seed Cotton: 1 million tones over the plan period
After five {5} years of the initiative, the domestic edible oil demand far exceeds the national production. The short fall in supply being estimated at about 50,000 tones per year. From the above figures, it is clear that there is a large and sustainable market for edible oil in Nigeria, hence groundnut seed.

Groundnut seed is an important source of high quality and inexpensive protein and oil. With an average oil content of 40%- 55% have one of the highest oil content in oil bearing seeds.

Because of it numerous uses, groundnuts seed are in great demand and this opens an opportunity for interested investors to trade to commodity with local vegetable oil manufacturing companies in Nigeria.

The return on investment on the supply of groundnut seeds to local industries is estimated between 10%- 15%.