From
being the world’s leading producer and exporter of palm oil in the 1960s,
Nigeria has fallen to being a net importer to meet the growing domestic demand.
Demand is primarily driven by the household consumers who prefer to consume the
technical palm oil (TPO) because of its flavor profile, but it is complemented
by an increasing demand for the special palm oil (SPO) which can then be
fractionated into RBD to meet the needs of industrial processors.
Though
domestic production is nearly 900,000 tons, there is an estimated overall gap
in Nigeria of between 150 and 300,000 tons of TPO and 200,000 tons of SPO, much
of which is currently met through imports.
The
Nigerian oil palm belt covers twenty-four states including with Ogun, Ondo,
Oyo, Edo, Osun, Cross River, Anambra, Enugu, Imo, Abia, Ebonyi, Ekiti,
Akwa-Ibom, Delta and Rivers as leading producers. Within the oil palm belt in
Nigeria, 80% of production comes from dispersed smallholders who harvest
semi-wild plants and use manual processing techniques.
Several
million smallholders are spread over an estimated area ranging from 1.65
million hectares to 2.4 million hectares and to a maximum of 3 million
hectares. The estimate for oil palm plantations in Nigeria ranges from 169,000
hectares (72,000 ha of estate plantations and 97,000 ha of smallholder
plantations) to 360,000 hectares of plantations.
In a
further bid to encourage local production of palm products to satisfy local
demand, importation of bulk crude and refined vegetable oil was prohibited in
2001. In response to this ban and consequently increasing demand for local
product, there has been some increase in private sector investments in the
development of new oil palm plantations and the expansion of existing ones.
Smallholdings and out grower schemes were also being promoted by the Federal
and State Governments.
Palm
oil forms an important part of the local diet in Nigeria because animal fats
such as milk and butter are hardly consumed. It is used both as a cooking
material and as an ingredient in soups, sauces and a variety of local dishes.
Consequently, there had long been a thriving market for palm oil both within
the main areas of production in eastern and western Nigeria and between these
regions and the non-palm oil producing northern region.
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 while palm kernel
cakes are used in animal feed production. The market for Palm Kernel Oil (PKO)
is very large. About 80% of all the edible vegetable oil consumed in Nigeria is
made from refined palm kernel oil.
In
Nigeria, the major buyers of palm kernel oil are vegetable oil refineries and
soap making companies and our focus would be on vegetable oil refineries and
soap making companies. We shall narrow down to vegetable oil refineries since
their demand is far above supply.
It is
estimated that only about 75% of the demand for palm kernel oil by local
vegetable oil refineries and soap making companies is being meet in Nigeria.
Extensive
market research has revealed that palm oil, palm kernel oil {PKO} and palm
kernel cake are 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.
The
company seeks to examine establish a 5,000 hectares oil palm plantation with
processing plant, producing palm oil, palm kernel oil and cake from fresh fruit
bunch {FFB}.
Report Details:
Report Type: Pre- Feasibility Report
Formats of Delivery: PDF / MS WORD
No. of Pages: 42 Pages ( Text Part) / 6 Pages (Financial Part)
Publisher: Foraminifera Market Research
Release Date: 30/08/2015
Language: English
Delivery time: 24– 48hours
Table of Contents:
EXECUTIVE SUMMARY
1.0
Business Overview
1.1
Description of the Business
1.2 Vision
and Mission Statement
1.3 Business
Objective
1.4 Value Proposition
1.5 Critical
Success Factor of the Business
1.6 Current
Status of Business
1.7
Description of the Business Industry
1.8
Contribution to Local and National Economy
2.0
Agricultural Practice
2.1 Nursery
Raising and Planting
2.1.1
Collection of seeds
2.1.2 Seed
germination
2.1.3 Raising
seedlings
2.1.4
Planting
2.1.5 Manures
and Fertilizers
2.1.6 Weeding
2.1.7 Leaf
pruning
2.1.8
Irrigation
2.1.9
Harvesting and Yield
2.1.9.1
Method of harvesting
2.1.9.2 Yield
2.2 Factors
of Production/ Cultivation
2.2.1 Soil
Type
2.2.2
Seedlings
2.2.3 Climate
2.2.4 Fruits
2.2.5
Diseases and Pests
3. Marketing Plan
3.1
Description of product
3.2 Product
Packaging and delivery
3.3 The
Opportunity
3.4 Pricing
Strategy
3.5 Target
Market
3.6
Distribution and Delivery Strategy
3.7
Promotional Strategy
3.8
Competition
4. Production Plan
4.1
Description of the Location
4.2 Raw
Materials
4.3
Production Equipment
4.4
Production Process
4.5
Production Cost
4.6 Stock
Control Process
4.7
Pre-Operating activities and expenses
4.7.1
Operating Activities and Expenses
5.0 Organizational and Management Plan
5.1 Ownership
of the business
5.2 Profile
of the promoters
5.3 Key
Management Staff
5.3.2
Management Support Units
5.4 Details
of salary schedule
6. Financial Plan
6.1 Financial
Assumption
6.2 Start up
Capital Estimation
6.3 Source of
Capital
6.4 Security
of Loan
6.5 Loan
Repayment Plan
7.0 Business Risk and mitigation factor
7.1 Business
Risks
7.2 SWOT
Analysis
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