Red palm oil business is very lucrative, it is a business that can give 50-100% profit depending on the season and availability. This is a product that is used in every home across Africa and beyond. In my State, we are very generous with palm oil when preparing food, if oil is not seen floating on top of your food then it might have yet not been used. Such food includes ekpang nkwukwor, edikang ikong soup, afang soup etc. And if you give somebody palm oil as gift still my in State, it is more valued than any other costly gift you can provide..
It is not only used in the preparation of food, palm oil is also used for soap making and other additives. Some people call it red oil whatever name you call it; the fact remains that it plays an important role in building our economy through its sales within and outside Nigeria. Even before I was born palm oil business has always been thriving the most wealthiest people back then in my village were into oil palm business especially the farming aspect.
One of my classmates in secondary did not further his education but ventured into this business. He has built a massive mansion in the village and now loads full truck of palm oil from his compound. The States with the best palm oil are Akwa Ibom, Delta, Rivers, Bayelsa, and Cross River. They are also the highest producers of palm oil in Nigeria.
DIFFERENT WAYS OF DOING RED PALM OIL BUSINESS
There are different ways of doing this business, you can buy and store to sell at off-peak period. Or you buy and sell off immediately; this one can give you more money because you will be selling in large volumes. Another way is to buy and bottle them for retail sales.
READ ALSO: How To Do Ogbono Business As A Wholeaaler
Someone started by working as a sourcing agents that came from Aba to buy in large quantities. He was charging the people #200 per gallon, he now owns palm oil milling company and he is a young man. In this article you will get to know what is required to do the business, the profit, where to buy, palm oil grades, challenges of the business, how to get customers as a starter and all that is there to know about palm oil business.
Use unique container to bottle your palm oil, make it appealing by placing a label on it. Make use of different sizes so that you can capture a wider audience.
REQUIREMENT FOR STARTING A PALM OIL BUSINESS
- Get a shop or storage house, where you can store the oil pending when you will sell them. Or where customers can be coming to buy. It should be a place that can easily be accessible.
- Purchase gallons you will use in storing the oil.
- Get training on how to know good oil. Locate someone who is experience and whom you trust  to take you through the business. He/she will teach you how to identify good oil, where to buy and when to sell.
How to start palm oil supply in NigeriaÂ
As earlier said you should be able to identify good oil from the bad ones, this is where the success or failure of the business begins. Because anybody you sell bad oil to will never want to buy from you again and might even block others from buying from you. At the same time the good oil you sell to people will retain customers and as well build them.
READ ALSO: How To Start Grain Storage Business In Nigeria
Start your palm oil business with few gallons, if possible 10-20 gallons. So that when you sell 10 the remaining ones won’t be difficult to sell. Buy re-used kegs if you are using gallons although purchasing drums is far cheaper than gallons.
Where to buy palm oil cheap in NigeriaÂ
There are many places to buy oil from, they are; Akwa Ibom, Cross River, Ondo, Edo, Delta, Imo, Anambra, Abia, Enugu Ebonyi, Rivers, Ogun, Ekiti, Bayelsa etc. This also doubles as where to buy oil palm in bulk in Nigeria.
Southern Nigeria generally are blessed with palm trees. In Akwa Ibom palm oil plantation is an inheritance, you are born to own palm trees. A place like Etim Ekpo, Ukanafun, Ikono are well favoured by this. Recently, due to population increase, people are now cultivating hybrid palm tree for commercial purpose.
Apart from the fact that AKwa Ibom has good palm tree specie they also do not mix oil. Maybe that’s why they are topping the chart for best oil producers.
Palm oil Market in Nigeria
There are many palm oil markets in Nigeria. When you get to the states where red oil is in large quantities you will get to see many markets For instance, in Akwa Ibom State we have more than 5 markets.
HOW TO KNOW GOOD PALM OIL/GRADES
Grade 1: this is the best oil; it can be stored within 8 months and above. The oil doesn’t sleep nor is it harsh, from the top to the bottom it remains the same. A little shake of the content will make the oil to flow freely; the taste is good, has a beautiful fragrance and does not foam at the top. The colour is most times dark red.
Grade 2 palm oil can be stored between 3-4 months. The oil is opposite of grade one, it is choking, sleeps from the top to bottom etc.
Grade 3 palm oil should be sold immediately or at most within a month. It is used in soap making.
You have to make a good use of your nose to distinguish good oil. Just dip your finger into the oil and smell.
The colour of palm oil may not mean the oil is bad, for instance there is a species palm tree called agric. It is not as reddish as the local one. Agric reduces in quantity for about 5 litres from its content. Most millers mixes agric and local species together to make it come out well.
HOW TO GET CUSTOMERSÂ
Put a little oil in a small container like the 50cl bottle; give them out as sample to palm oil sellers or retailers. You just have to forget about profit at this time but concentrate on building customers. In as much as you sampled quality oil the palm oil marketers will be the ones to bring other buyers to you.
For those storing have at least one customer from the onset whom you can supply oil to, he/she will in turn refer others to you and the cycle keeps enlarging that way.
HOW TO PLACE PRICE ON YOUR PALM OIL
The price of oil depends on your location. However do not over charge; for instance if you are selling immediately placing #1,000-‘#2,000 on top of the amount you bought it won’t be a bad idea. Because you wouldn’t want to pursue customers with exorbitant price. Remember it is a business and others are waiting to use their strategies to retain/woo customers.
How To Start A Profitable Palm Oil Business In Nigeria
PROFITABILITY IN PALM OIL BUSINESS
Whatever way you do your palm oil business the truth remains that it is profitable. People who store oil makes a huge amount of money in a sweep. In 2016, palm oil marketers sold their stored palm oil which they bought at the rate of #6,000 at #20,000 and above more than 100$% profit. Sometimes high demand of oil can force the price up.
For those storing palm oil you don’t have to wait until the price hits the rock, you can start selling in batches so that if the price drops you won’t have to regret and if it increases you know you are still better off for it.
Assuming you are supplying about 1,000 gallons every month for those buying and selling immediately. 1,000 multiply by #1,000 will be ons million every month, that is how lucrative the business is. Let’s also assume you stored 200 rubbers and you made #5,000 as gain for each, the profit is also 1 million, that’s why you should consider doing palm oil business today.
That’s not all, you can be an agent to distributors and wholesalers and be receiving a commission of #300-#500 for every one gallon of palm oil you sourced for purchase. Those retailing palm oil make a good profit as well. In Akwa Ibom a 50cl container of the oil goes for #400 and 37 bottles make 25 litres which is sold for #10,000. So 37 multiply by 400 gives you #14,800; that is how lucrative palm oil business is. 8 gallons of 25 litres makes a drum.
 Risk of Oil palm business in NigeriaÂ
It is a known fact that there are no businesses without challenges; palm oil has its fair share of it.
Some of those challenges are:
- Identifying good oil, if you cannot identify good oil especially people who are storing then your failure has only just begun. A bad oil will keep getting worse as it stays longer. As a result of that, you may find it difficult to sell and when you eventually do you might not get your money back.
- Unforeseen circumstances; it might be difficult to supply your client at the agreed time this could be due to truck break down on the way, which do happened every now and then. Not been able to source for the oil on time or delay by the palm oil millers etc. In situations like this you have to calm your clients down because they will be agitating. Know this if you cannot handle this situation well you will lose customers.
- Fluctuation in prices; palm oil prices are always fluctuating sometimes after agreeing on a certain price with a client, that price will shoot up, it will take wisdom and good explanation to get an understanding.
- Glut; this affects people who store palm oil mostly. In 2017 so many people stored oil thinking it will be like 2016. When people were making more than 300% profit. The product became too much available forcing the price to remain low as a result of that people who weren’t smart to observe the market loosed in the business.
- Importation; palm is being smuggled in or allowed into Nigerian market from Malaysia and other neighbouring countries. They flood the product in and sell them out at a less price than our local oil. Customers patronised them because of the price even when the quality can’t be compared to our local oil.
- Selling on credit; some of those customers may pressurize you to sell on credit. If you do, getting your money back may be a problem. Sometimes they pay you in pieces such that you cannot continue with the business anymore.
WHEN TO START STORING PALM OIL
Start buying immediately palm fruits are prevalent and the price considerably drops. That should be between January-March. Don’t wait until the price completely drops. Buy in batches, little by little until the price eventually drops. You will have nothing to lose even if the price doesn’t come down lower than you thought.
WHEN TO SELL YOUR STORED RED PALM OIL
The right time to sell your palm oil is when the rains are coming down heavily and continuously. At this time palm trees bring out less fruit or you start selling from September down to December. It can also be when you see a sharp increase in the price of palm oil in the market you start selling your own.
NOTE
Always check and turn your stored oil monthly. bring them out and sun them or use stick to stir. Place the gallons on a wood or on something. It is not advisable to place them on plain ground. There is so much to write about in palm oil business, I will keep on updating this post as much as I can. If you have any question or clarification to make, do well to use the comment box, thank you.
CURRENT PRICE of 25 litres of PALM OIL
The price of red palm oil as at today is #6,500 in Akwa Ibom State. That is the reason many trucks are loading every day because the price will soon shoot up due to increase in rainfall. Smart investors are taking advantage of the price to store the oil now.
CONCLUSION
Oil palm storage business is one of the most lucrative business in storage business. Start storing your palm oil now. We supply palm oil nationwide, minimum order is 50 gericans.
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Aside from smelling the oil, which other way can one identify a good palm oil?
Taste, the face etc
Pls can I start the business with 20,000 naira?
Yes. You can buy half bag, start and grow in it
You want to visit my farm
Am very pleased to read this. Am interested in this business but how to transport from Awka Ibom or any of the oil producing area is my major issue. Can you please put me through on how to go about.I reside in Niger State.
There are trailers that go to the North from those states
So nice a very good business, pls hw do i start up this business
I want to you is it possible
Yes. It is
Pls can u send me ur number let’s talk on this palm oil business
@Samuel 08035965405
where is your office? What is the current price now?
I don’t have an office for palm oil I only advertise for someone
Good evening Eno, please am interested in doing the palm oil business, Am staying in Lagos.How can I start and hw can I get the palm oil from the farmers?
@Confidence contact me 08035965405
Please send me your number, we need to talk
08035965405
Good morning Eno,
Am resident in Akwa ibom and will like to see you
@Eddie I am not in Akwa Ibom now except I visit which may not be anytime soon. You can contact me on 08035965405 if there is anything you want us to talk about.
Eno how much is 25 litres as at today in Akwa Ibom
#7,000
Good day, Eno.
I would like to know how can I get contact of farmers that I can buy palm oil from at Akwa Ibom. what is the current price of 25 litres of palm oil?
Call for it
I am interested in palm oil business especially the aspect of storage and selling when the price goes up. I will appreciate it if you can put me through.Thanks for this interesting write up.
Eno,what an insight in palm oil business.
Where are the exact places to get good quality palm oil with guarantee and cheaper.
Hello @Chinedu, Akwa Ibom, Cross River, Imo, Abia etc. If you mean Akwa Ibom; Ini, Etim Ekpo, Abak etc.
please how can I get buyer’s.I live in ondo state
Locate buyers around your location. Sell to market traders
How much is the current price for oil, and can I chat u up on WhatsApp??
Good day! Eno the you have anyone in akwa ibom who can supply to Lagos which is someone I can trust.
@Adeyinka, I have he is lockdown in Lagos as he came to supply. Contact me for his number
Good afternoon! Eno, I’m interested in Palm oil. Thanks for this educative write up
Good morning Eno,how can l get good palm oil to sell in Lagos
Thanks so much for this comprehensive information Eno, I’m pretty much interested.
Pls how much is the current price and how can i buy from Lagos?
Good afternoon! Eno, I’m interested in Palm oil. Thanks for giving out your knowledge,I will appreciate if you put me through.
Good afternoon! Eno, I’m interested in Palm oil business.Thanks for sharing your knowledge, I will appreciate if you put me through
@Kently contact me on 08035965405
Hi, thanks for this piece of info, can I chat you on WhatsApp for more guide lines, more so can I buy the oil at this period and keep, or the price will still come down, how do I buy from kwara
This is not the right time for storage
Thanks for sharing your knowledge on palm oil business, please can I contact you for more informations?
Ok
Please how much capital can I start with
for storage #500,000
I’m really excited for this opportunity, as you stated above you can order 50 jerrycan as minimum order, OK how can I get it to Kaduna and how much cost me for transportation?
@Sani, please call 08035965405
But on a serious note madam Eno if one really wants to start up red oil production how much will it cost for a start up????
#200k will be a good start
Thanks so much for this comprehensive information Eno, I’m pretty much interested.
Pls how much is the current price and how can i buy from Lagos?
Hello, eno I’m really appreciate you for sharing this idea, I’m in Kaduna how much cost me from akwa ibom to Kaduna for each Jerry can and I’m beginner how can I start this business?
@sANI CONTACT ME ON 08035965405
Thanks for sharing this great business idea.Am in Ibadan a fresh graduate
.I called you few minute ago and you promise to call me back..please Eno I will be expecting your call.Thank you in Addy
You can call me back if I didnt because I dont have your number anymore
Pls how much is 25lters now in akwa ibum
Oh I was so happy to find this
Eno God bless you
Amen. Thanks
Hey Eno how how is palm oil now in akwaibom and is it good to start storage now
No please, wait till January
Can i start buying and selling now.
Thank you
I’m interested in this busness but i dont know where to start hope someone here can help me out
please help
Words can not describe my feelings and sense of satisfaction after reading this your ingenious article,I have read so many articles about palm oil business but yours is outstanding and unique.More power to your elbow and I would be happier if we can run business together.I’m into palm oil business in Lagos State,this is my contact 08169834367,Thanks.
Hello Eno, good day and thanks for this lovely article. Can I chat u up? I am interested in this business. Thanks.
yes please
Good Morning Madam Eno my Name is Amaechi I will like to invest in this business, can I call for guidance. Thanks a lot
okay
Hello, Eno
I’m so impressed with what I just read. It’s like I’ve gotten an answer to what I’ve been looking for. Can I please contact you for more information? Cos I want to start this pal.oil business for long but I’ve been scared of buying a bad palmoil.
yes dear
Please ma are you still using the same number am seeing in the comments?
yes, did you try it
Pls how much one gerican of red oil now and how much can I start with..?
Hello ENO, thanks for sharing. Please how much can I use to start this business?
nothing is small even 10k can start crayfish business
Eno, your write-ups on business ideas are quite helpful to many people, including me, especially the ones on crayfish, prawns and red palm oil. I’m motivated to venture into these lines of businesses. Please can you give me further help concerning the current prices of crayfish, prawns and red palm oil in Akwa Ibom presently. Thanks.
contact me on 08035965405
Please I leave in Lagos can you supply me and how much?
yes, call for the contact of the supplier
Can i have your whatsapp number
08155196689
Good evening.
Thank you for this write up. You are blessed. Please kindly call me. I want some supply of Red Palm Oil.
Urgently need your supply.
I want to talk to you directly and urgently.
Thank you and God bless you.
@David, contact me on 08155196689
Hi Eno, I appreciate your information on palmoil business. I’m interested do you have distributor in Ibadan
hello@Ifeoluwa, no I don’t
Wow this soooo sweet Helo madam with a shop how much can I start with tell me pls
i dont know the cost pf renting a shop in your location
Hello ma, do you have any idea the current price is now
Because I have been thinking about it before I came across your writeup, I want to know the price as of now to know my bouget
Thank you
#18,000
My mum’s namesake(Eno) I love checking on your site whenever am looking for things like this because of your well-detailed explanations/information, God bless you ma.
Hello @Favour say me well to your mum, it is nice to know she is my namesake. And thanks for the compliment
So nice a very good business,
I ‘ve been looking for way to start up this business,pls reply me as soon u got my message
I want to buy from Akwa Ibom and distribute across the country. Is now the right time and how many gallons is advisable to start with
No please, it is very costly now
Thanks for this inspiring piece on palm oil trade.
nice writ up. how do you handle the issue of transportation, most importantly far distance
Thanks @Adebanji for the compliment. You have to make arrangement with commercial trucks for transporting of the product
Eno, you are a great woman, may God almighty continue to bless you in Jesus name.
Amen, thanks @Frday
Comment:please eno am a palmoil producer i need your connection am from ikono, in akwa ibom state.
Lets chat 08166196689
Keep the good work dear… More strength, much love.
Thanks Ife, yes I will as God permits
Your red palm oil business lecture is quite commendable, I love it and is of help to many people who are trying to venture into palm oil business but doesn’t know where and how to start it…. mostly I, it’s of help to me. Please I need your WhatsApp number so we can talk more about this palm oil business
Thanks @Ogar. 080 359 65405
Hello Eno Johnson, thanks for your lecture on palm oil business. My wife seems to be interested in this business and she thinks of travelling to the locals to buy from them, but am against that and would rather she locate a Depot here in Lagos where these oil producers supplies to. Pls do you know of any Depot in Lagos where palm oil can be gotten in large quantities.
I am in Aba and I want to connect with Eno Johnson for agribusiness deal
How can I know the bad oil apart from smelling
smell is the main thing to observe, although you can also use taste to identify a bad oil. Identify a fake redpalm oil is difficult and requires experience