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Palm Oil Business Plan

Introduction

Palm oil has been an important ingredient in the diet of many Nigerians. Palm oil is the world’s largest source of edible oil, accounting for 38.5 million tonnes or 25% of the global edible oil and fat production.

The global demand for palm oil is growing thus, the crop cultivation serves as a means of livelihood for many rural families, and indeed it is in the farming culture of millions of people in the country.

Hence, oil palm is often referred to as a crop of multiple values, which underscores its economic importance. The demand for domestic and industrial application of palm oil have continued to increase.

It is estimated that for every Nigerian household of five, about two litres of palm oil are consumed weekly for cooking. However, palm oil is an essential multipurpose raw material for both food and non-food industries.

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Table of content

Page

Executive Summary3
Business Description4
Products and Services6
Market Analysis7
Competitor Analysis8
Sales and Marketing Plan9
Operational Plan12
Management Plan13
Financial Plan and Projections14

Executive Summary

Overview

PATILAD Palm Oil is a start-up palm oil production and processing farm that is involved in the production, sales and distribution of quality and affordable palm oil (varieties), cracked palm Kernel, cracked kernel shell and other palm oil derivatives targeting consumers in the south-south, southeast Nigeria and also the international market. We are located in Elele, River state.

The Company

PATILAD Palm Oil is established as a limited liability company owned by Dayo Adetiloye, Adebayo Tijani, and other investors.  The farm is managed and directed by Dayo Adetiloye, a veteran in the Agric industry with 8 years’ experience and Adebayo Tijani, an experienced Agro-allied specialist with over 15 years’ experience.

Products and Services

PATILAD Palm Oil will sell Palm oil products, including palm oil (crude, technical, special, refined bleached deodorized; RBD), cracked palm Kernel, palm kernel oil (PKO), cracked kernel shell, sludge, etc. We will also offer hiring services of equipment to other palm oil millers.

We produce, process and package to meet standard organization of Nigeria and international standard. We are concerned about providing products that suit the many uses of palm oil either for edible or industrial uses.

The Market

According to United State Department of Agriculture, the crude palm oil production in Nigeria is 920,000 metric tonnes (MT) (2012), which is far below 1,315 MMT domestic demand in 2012, within the period a deficit of 470,000 were imported the same year to supplement the domestic production. This large deficit is definitely a huge market potential for small and medium-scale local palm oil millers. What is more interesting about this fact is that the crude palm oil processed locally are cheaper and of higher quality provided the right condition are ensured.

Competition

Competitors for PATILAD palm Oil are Okomu Oil Palm Plc., Golden Oil company-Onitsha, PRESCO Plc., etc.

PATILAD Palm Oil’s competitive edge includes the use of modern milling equipment which turns out high-quality products, excellent customer service, the expertise of its founders, etc.

Financial Considerations

PATILAD Palm Oil seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.

Funding for the launch of the business is provided primarily by equity from the partners and investors.

The business will reach positive cash flow in its 10th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners.  Revenue will top N46,640,000 and profit will reach about N7,827,749 in the 1st year of operation.

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