In West Africa, particularly Nigeria, the business of planting, harvesting, processing and selling palm oil used to be our thing till other parts of the world such as Indonesia and Malaysia caught up with us but nonetheless, we still have a major stake in the world market when it comes to oil palm business.
Even, the fact that these countries could leave every other natural resources and focus mainly on oil palm production and commercialisation should show you how lucrative the business is. Over years, people have made millions upon millions of Naira on the sale of this commodity both in the local and international market in the on and off seasons of the product and today, we are going to be focusing on how to make it big in oil palm business while setting up shop on the global scene – oil palm exportation. You may be tempted to ask the question…
Why Palm Oil?
Well, palm oil- because this is one of the agricultural produce that is generally accepted in every nation in the world and there is nearly no country you look to that you won’t get a market in. Palm oil is also a worthy investment because its price rarely or never crashes and the only place it goes is up so you don’t have to start worrying about a decline in your income.
If that is not enough, you should also know that asides having a lot of market all over the world, it is equally in fairly high demand in these markets.
You would be interested to know that asides from the domestic cooking which palm oil is suitable for, it also finds application in a lot of industries for manufacturing of cosmetics, food and some other personal care commodities. Palm oil is used in pharmaceutical industry to manufacture some vitamin supplements for our bodies likewise and don’t even get started on how the pet and animal feed mills also require this product in large quantities.
The business is even more lucrative because the cost of production when compared to price brings about a very huge profit margin than could be obtained on other crops. Might we remind you then that on the same palm oil, you stand to make a further 100% plus gain in its off season on the same quantity that you sold for lesser profits in the on season. Need we go on in stating the endless importance of this business?
How to deal in Palm Oil Exportation
Dealing in palm oil exportation is nearly like dealing in every other kind of exportation business only that you need to pay more attentions todetails of the market and the activities on the farmland. You could opt to just be a reseller and exporter or be a farmer yourself and have some exporting skills on the side to help you get your products to the international market. Be it as it may, we are here to provide these two categories of entrepreneur the basic knowledge needed to start up a palm oil exportation business. If you would like to cultivate and grow your own product yourself first, take all of the steps involved and then follow all other steps in this guide and if you just want to be a middleman and exporter, then only the steps here are for you.
1. Knowing when to buy
To become a successful exporter and make the best profits, you need to know when to buy. The best time to buy is during the on and peak season of oil palm which usually occur from around February till April and May. During this period of time, buy high grade and quality palm oil in large quantities and store them for the season when production of the produce would drop, referred to as the off season.
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You should know that your capital should be considered at this point because this would determine how much you can obtain at once. You should also make adequate plans for the storage of the oil palm that you have either bought or produced (for the farmers) within this period to keep it in the best shape possible before the off season. After getting necessary information on where best to get the product and having a good storage facility available,
2. Source for products
Mostly, you can get the oil palm produce in very large and cheaper quantities from areas rich in the produce such as Delta state, Bayelsa state, Imo state, Rivers state, Abia state, Akwa Ibom, Edo state and rivers state. These basically southern states are very rich in supply during the on season and would be the best place to source for your supply.
3. Source for Buyers
As earlier stated above, the off peak season is the best time to start looking for buyers of your produce. List out a potential market in different countries or one country that you want to export to and get necessary information needed to get your product out there. Compare the various exchange rates offered all around to better determine which one would give you the highest profit margin over the other and start making plans towards exporting there.
4. Haulage services.
Palm oil is usually transported in tankers like its crude oil counterpart but can also be moved in a variety of big containers too. Get a good haulage service provider to move your wares from the point of storage to the point of export. If you’re operating on a large scale, it is advisable that you have your own haulage vehicles at your disposal.
5. Exportation
Last but not the least is the exportation. Now that you have hauled the palm oil to the export point, load it onto the freight vehicle and off it goes. Know that you would be required to have had your licence to conduct such business else you end up losing both your goods and your money.
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As an exporter, you could consider the prospects of insurance for your business just to be on the safer side but with the above steps, you are on the way to making maximum profits in your palm oil exportation field.
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FOR MORE ON AGRICULTURE BUSINESS IDEAS CLICK AGRICULTURE