Agrobusiness investors in Nigeria are fast exploring the investment opportunities that exist in the Oil Palm value chain – for which a key chain is the investment in Oil Palm Plantation.
Before the discovery of crude oil in the late 1950s in Nigeria, palm oil and its derivatives accounted for nearly 50% of Nigeria’s export earnings.
Nigeria at beginning 1950s and till mid -1960s was the world’s largest producer and exporter of crude palm oil supplying 645,000 MT of palm oil across the globe and controlling almost 45% of global supply.
Those were the days of the flourishing oil palm plantations in the then Eastern region and states.
The discovery of crude oil in Nigeria resulted in the neglect of the oil palm plantations across the country and a total decline in the production and export of the Nigerian palm oil.
There is a long held believe in Nigeria that Malaysia relied on Nigeria and actually visited Nigeria to pick oil palm seedlings which were grown in the country to kick start the oil palm production revolution in Malaysia.
The sad story is that today, Malaysia from behind is now the world’s second largest exporter of crude palm oil while Nigeria from being the world’s largest producer and exporter has now become a net importer of palm oil.
Nigeria’s current production figure for crude palm oil stands at 900,000 MT while demand and consumption figures stands at 1.54 million MT, creating a short fall of about 600,000 MT.
It is estimated that Nigeria currently spends about $320,000,000 annually in the import of crude palm oil (CPO) to bridge demand and supply gaps.
More so, it is the effort and attempt at bridging the supply shortfall that presents a huge investment upside and opportunity for investment into local oil palm value chain.
Also, with the population of Nigeria expected to double to almost 400, 000,000 (Four Hundred Million) in 2050, there is no better time to invest in oil palm value chain than now.
The primary value chain and the most comprehensive and promising to invest in the Oil Palm Value Chain is the Oil Palm Plantation.
WHY YOU SHOULD INVEST IN OIL PALM PLANTATION IN NIGERIA.
The oil palm tree is one of the most useful trees ever known. Every part of the tree – from its fruit to its leaves and trunk, and to its sap – is used for one thing or the other. While the fruits are processed into palm oil and palm kernel oil, the fronds (leaves) are used for roofing houses in rural areas and camps, and the sap (palm wine) is a refreshing drink taken in many parts of Africa.
Hence, having an Oil Palm Plantation guarantees your ability to provide and sustain the following key Oil Palm Investments;
Palm Kernel Oil
Palm Kernel Cake
Palm Kernel Sludge
You should be interested in investing in Oil Palm and its value chain because presently (2016) with an estimated population of 190, 000, 000 (One Ninety Million) Nigeria annually spends a whopping $320,000.000 (Three Hundred and Twenty Million usd) in importing about 600,000 MT of crude oil palm to meet a local demand and consumption figure of 1.54 Million MT.
Think about the prospect in 2050 when Nigeria’s population is projected to grow to nearly 400 million.
With the high industrial uses for PKO which is gotten from Palm Kernel and also the very important use of the Palm Kernel Cake in the feed industry, market prospect remains very high and promising for any investor.
Are you interested in starting an Oil Palm Plantation or seeking to Invest in the Value Chain?
The first way to begin is to get a comprehensive and tailored Business Plan on your proposed Oil Palm Plantation.
OUR STANDARD OIL PALM PLANTATION BUSINESS PLAN is a comprehensive business plan that will assist you with all the needed ideas, plans, financial projections, technical inputs expectations and general road map to starting a successful OIL PALM PLANTATION.
It is tailored to your proposed farm size and capital outlay.
More so, at your request it can be extended to feature needed Investment plan and Business plans to start an ultra-modern palm oil processing mill and Palm kernel oil extraction and milling factories.
EXPECTED CONTENT OF THE OIL PALM PLANTATION BUSINESS PLAN.
OUR STANDARD OIL PALM PLANTATION BUSINESS PLAN contains key excerpts for your investment that includes but not limited to;
1. Development Time lines (Nursery raising, Transplanting, Planting, Plantation Management)
2. Financial Requirement. You need to understand all that you financially need to provide for from year 1 to harvest (3rd year).
3. Soil Suitability: You need to understand best soil and requirement that supports optimal growth.
4. Location Determination.
5. Seed selection & Choice of Variety: Why you should plant Tenera, Dura or Pisifera. (Advantages of each over the other).
6. Income Projection: How Much to Invest, Break Even Point, When to Expect Earning, Return on Investment, Maximizing Returns.
7. How much Hectare To Plant: Does a Hectare or Two make commercial sense and viability. How much hectare is considered commercially viable.
8. Work force: Labour and work force Needed
9. Inter-cropping: Why waiting for the harvest year to start and period of optimum harvest, what best crops you can inter crop to make money.
10. Processing: Opportunities In Palm Oil milling (Processing) and PKO extraction (At your request).
OUR STANDARD OIL PALM PLANTATION BUSINESS PLAN is world class, industry standard and technically in depth. We are also able to further back the plan in technical consultation, raising of nursery, consultancy for the farm set up and management.
We first speak with you to determine your exact needs and suitability as the Business plan differs for locations, farm sizes and the level of involvement in the other oil palm value chain.
We would be glad to speak to you. You can also contact us to discuss your business plan.
Agronomy & Crops Unit
Agro News Nigeria