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How to Start a Palm Kernel Oil Extraction Business in Nigeria


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It had been stated and it’s an accepted fact that the solution to the economic challenge of Nigeria Is through production, production of goods and of such goods to produce is palm kernel oil.
Palm kernel oil, generally known as PKO is obtained from palm nut processing; palm kernel oil have already made market  and demand for palm kernel oil is high making the production of palm kernel oil a worthwhile business with quick and viable return on investment
The market demand for palm kernel oil is huge as it is used in soap production establishments, candle, food industries, cosmetics, edible oil, paint industries and also in the production of margarine and many other products- it’s a product having application and uses in major production units thus on constant demand.

Palm kernel oil extraction is in all aspect a very lucrative business to invest in reasons: - availability of raw material- the raw material for production of palm kernel oil is palm kernel nuts and you will believe me that it’s found in every look of this country, in every tribe, religion and race. Raw materials are therefore easily sourced locally. Palm kernel nuts are abundantly found in the east, west part of Nigeria, in states as Anambra, Imo, Abia, Rivers state, Delta, Akwa Ibom , Edo, Ebonyi etc
The technology for production is simple and requires no many technicalities. With plants like or comprising of nut cracker, crushing plant, screw press, bucket elevator, screw conveyor, vibrating screw, expeller and pulley system production is considered covered. Machines comes in different types and model, efficiency of machine is reliable and some have capacity of processing one to hundred metric tons per day and many others can for lesser period of time. Though incorporation in machines they are still easily sourced as they are fabricated locally.
Yet another interesting fact about this business is that it’s very easy and acquiring both technical, management and maintenance skills to run this skill are highly affordable in low prices. Investment in this business guarantee earning profit in three dynamic ways
1.       Through PKS- palm kernel shells
2.       Through PKO- palm kernel oil i.e. the extracted oil
3.       Through PKC- palm kernel cake. This is the residue after extraction.

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It is unbelievable but true that you can make up to #100,000 and above daily from palm oil extractions either as a small, medium and large scale producer. Palm kernel oil product is one of the few produce you can sell right at the point of production, without necessarily going to the market.
The article lets us know the business' suitability. We see that the interest for Crude Palm Kernel Oil (CPKO), palm-part Cake (PKC) and Palm Kernel Sludge (PKS) in the business sector is exceptionally immense, and actually, the interest for it is lasting through the year in addition to the benefit in this business is amazingly great.
We likewise see that because of the items' appeal, the purchasers some of the time book for the items ahead of time. Once in a while, purchasers even pay ahead of time keeping in mind the end goal to secure items.
I won't compose further about the business as the article referenced above is plain as day. Be that as it may, I exhibit underneath the generation process, hardware necessity and an upgraded gainfulness investigation of the business.
Generation PROCESS
In synopsis, the creation line includes gathering of good palm-part nuts, pulverizing the nuts with the nut-crusher, warming the seeds with the seed fryer to energize the oil atoms, and exchanging the warmed smashed nuts to the oil press.

The oil press presses the seeds, and ousts the oil substance of the seeds through the oil way out chamber, and in the meantime removes the cake through the cake way out chamber.
The raw petroleum is gathered in drums or over-head tanks and left to settle. Since the muck (residue) is denser than the oil, it settles beneath the oil. The oil can then be gathered independently from the muck.
A few persons can advantageously work the apparatus.
The following is a brief portrayal of the apparatus utilized.
1. Nut Crusher
2. Electrical Seed-Fryer
3. Oil-Press (2T/D)
Benefit
~1 tone of palm-piece nuts gives a normal of 410liters of oil, 540Kg of cake, and 25Kg of slime.
~Average cost for 1tone of palm-piece nuts is N70,000.
      
~Average Selling Price of the items is
»Oil = N200 per liter
»Cake = N150 per Kg
»Sludge = N200 per Kg
So in the event that you handle 1tone, you offer:
»Oil @ N200 x 410 = N82,000
»Cake @ N150 x 540 = N81,00
»Sludge @ N200 x 25 = N5000
Complete deals = N96,000.
Benefit = N90, 600 – N70, 000= N20, 000
The above benefit is for handling 1tone of palm bit.
Presently, in the event that you prepare 2 tons for every day, you get N20,000 x 2 = N40,000 every day as benefit, which by expansion infers a month to month benefit of N1,120,000 (24days). Benefit increments as generation increments
Note: If you offer your items at somewhat lesser value, you will produce a great deal more deals and still make a sensible benefit. In the event that you are a decent moderator, you can get the nuts as low as N(60,000 – 65,000) per ton.

CONCLUSION
Palm portion handling business is lucrative and the business sector for the items
is unfathomable. It even reaches out to the worldwide business sector. Get purchasers offer them great quality items at aggressive costs, and that is it. 
On the off chance that you have much money to process vast amount constantly, visit Nigerian send out advancement chamber; they will connect you to exporters or universal p
How to start;

 first get the capital  For small scale, you could with as low as #100,000 to #250,000, for medium scale, you could start with as low as #300,000 to #500,000 and for large scale you could start with #1,000,000 and above. It all depends on your financial capacity.
Location  Getting a good location helps a lot when comes to business, it is very advantageous to set it up in a location where you can have access to palm kernel nuts in large quantity in order to reduce cost of transportation and other logistics. Palm kernel is largely produced in states like Anambra, Imo, Abia, Ogun, Ondo, Edo, Delta, Akwa Ibom and Rivers therefore it is advisable to locate your factory/mill/business close to any of these states.
How to produce/extract/package and bag  This involves feeding the machine through the hopper with sorted and dried palm kernel, after which the palm kernel will undergo the process of crushing in which the oil comes out from one end of the machine and the cake will be packaged at the another end. The oil will be collected, filtered and kept in storage tank or bottled while the cake will be packaged and bagged ready for sale to feed millers, industries and exports.
How to estimate/ calculate your profit  A ton of palm kernel is sold for #80,000 naira, the palm kernel oil is sold for #120,000 per ton and palm kernel cake is sold for #100,000 per ton. In every 25 metric ton of good palm kernel nut one is expected to get 10metric tons of palm kernel oil and 13.5metric tons of palm kernel cake. You will require about 10tons of palm kernel which will cost  #80,000 to extract 5ton of oil which is sold for #60,000 and it (the 10tons of palm kernel) will also produce 4tons of cake which will also be sold for #400,000. Giving you a total of #1,100,000.
When  the cost of raw materials(palm kernel) which #80,000 is subtracted from the total gross product on the ten tons of palm kernels produced per day will be #300,000.
Cost of production/ machines
A 2 unit 2.5 ton perday input palm kernel expeller with 30 horse power electric motor (primary crusher) goes for #850,000. Sundry factor experiment equipments including dryer and filter press goes for #800,000, provision for raw material goes for #500,000. Installation expenses goes for #250,000.
A small scale project with capacity for a daily output of 10 metric tons of processed palm kernel oil and cake will cost between #17000- 1.5million. The amount is prone to increase or decrease pending on the financial ability of the promoter.
 It is recommended that you consider your capital outlay, sources of raw material, production cost and extent of market before choosing a machine of any capacity. Note machines can locally be fabricated.
The use of the mass media is also a very viable means to market the product in other to build your reputation in the business.
The business of palm kernel production is in all aspect a viable and worthwhile business and investing guarantee huge profit for investors. To start order our eBook which covers all the required information,
Table of Contents



FOREWORD
1. INTRODUCTION
2 OIL PALM
2.1 Origin of oil palm
2.1.1 Early trading in palm products
2.2 Oil palm farm systems in Africa
2.2.1 Small-scale farms
2.2.2 Medium-scale farms
2.2.3 Large-scale farms
2.3 Principles of preservation and processing methods
3. PALM OIL PROCESSING
3. 1 General processing description
3.1.1 Bunch reception
3.1.2 Threshing (removal of fruit from the bunches)
3.1.3 Sterilization of bunches
3.1.4 Digestion of the fruit
3.1.5 Pressing (Extracting the palm oil)
3.1.5.1 Batch presses
3.1.5.2 Continuous systems
3.1.6 Clarification and drying of oil
3.1.7 Oil storage
3.1.8 Kernel recovery
3.2 Process equipment design and selection criteria
3.2.1 Batch systems
3.2.2 Semi-continuous systems
3.3 Plant sizing
3.4 Process technology/capital investment considerations
4. TRADITIONAL TECHNIQUES AND INNOVATIONS IN SMALL-SCALE PALM OIL PROCESSING
4.1 Mechanical extraction
4.2 Direct screw-pressing
4.3 Hydraulic presses
4.4 Combination digester and hydraulic press systems
4.5 Combination mechanical digester and screw-press
5. PALM KERNEL OIL EXTRACTION
5.1 Mechanical extraction
5.2 Solvent extraction
5.3 Traditional method of palm kernel extraction
6. ENVIRONMENTAL CONSIDERATIONS
6.1 Treatment of solid waste products
6.2 Treatment of aqueous effluent
 BONUS
2.REFINING OF CRUDE PALM KERNNEL OIL.
ABSTRACT
This work studied the refining of crude palm kernel oil derived from the kernels within the nut of a palm fruit.
This research project was aimed at reducing the non-glycerides present in oil in their crude from using an alkali method of refining.
The crude palm kernel oil was first washed with distilled water by heating the mixture in an electric heater for about 2 hours to reduce the impurities present in the oil in their crude form, degummed with phosphoric acid and neutralized with NaOH (caustic soda).The saponification value, iodine value and acid value was analyzed and their values are: for crude palm kernel oil, 33.1, 695.45 and 746.13 respectively, for neutralized palm kernel oil, 11.22, 725.6 and 687.24 respectively viii
TABLE OF CONTENTS
Chapter One
1.1 Introduction - - - - - - - - -1
1.2 Background Of The Study - - - - - - -1
1.3 Statement Of Problem - - - - - - -4
1.4 Aims/Objective of the Study - - - - - -4
1.5 Scope of the Study - - - - - - - -5
Chapter Two
2.0 Literature Review - - - - - - - -6
2.1 Vegetable Oils - - - - - - - - -8
2.1.1 Classification of Fats and Oils - - - - - -9
2.1.2 Characteristics of oil Classes Lauric Acid Group - 10
2.1.3. Uses of Vegetable Oil - - - - - - 12
2.2 Method of Extraction of Vegetable Oil - - - - 13 ix
2.2.1 Hydraulic or Mechanical Press Extraction - - 13
2.2.2 Solvent Extraction / Leaching: - - - - - 15
2.2.3 Factors Affecting the Rate Of Leaching - - - - 17 
2.4 Methods Of Refining Of Crude Palm Kernel Oil - - 19
2.4.1 Chemical / Alkali Refining- - - - - - 19
2.4.2 Physical Refining - - - - - - - 20
2.4.3 Aim Of Refining - - - - - - - - 21
2.5 Origin Of Oil Palm (Palm kernel Oil) - - - - 22
2.5.1 Palm Oil Processing Unit Operations - - - - 25
2.5.2 Kernel Recovery - - - - - - - 26
2.5.3 Principles Of Preservation - - - - - - 27
2.6 Methods Of Treatment - Crude Palm Kernel Oil - - - 28
2.6.1 Degumming Treatment - - - - - - 28
2.6.2 Bleaching Treatment - - - - - - - 29
2.6.3. Deodorizing Treatment - - - - - - 31
2.7 Fractionation Of Palm Kernel Oil - - - - - 33
2.7.1 Dry Fractionation - - - - - - - 34
2.7.2 Detergent Fractionation - - - - - - 35
2.7.3 Solvent Fractionation - - - - - - - 35
2.7.4 Palm Kernel Oil Fractionated Products - - - - 36 x

Chapter Three
3.0 Methodology - - - - - - - - 38
3.1 Research design - - - - - - - - 38
3.2 Research setting - - - - - - - - 38
3.3 Instrument for data collection - - - - - 39
3.3.1. Material - - - - - - - - - 39
3.3.2 Equipments - - - - - - - - 39
3.3.3 Reagents - - - - - - - - - 40
3.3.4 Preparation of Reagents - - - - - - 40
3.4 Refining Procedure - - - - - - - 41
3.4.1 C.P.K.O and Distilled Water - - - - - - 41
3.4.2 C.P.K.O and Phosphoric acid - - - - - 41
3.4.3 C.P.K.O and NaOH (caustic soda) - - - - - 41
3.4.4 N.P.K.O and Distilled Water - - - - - - 42
3.5 Characterization of P.K.O - - - - - - 42
3.5.1 Physical Characterization - - - - - - 42
3.5.2 Chemical Characterization - - - - - - 43
Chapter Four
4.0 Results and Discussion - - - - - - 46
4.1 Results - - - - - - - - - 46
4.4 Analysis Table - - - - - - - - 48 xi
4.5 Discussion of Results - - - - - - - 50
Chapter Five
5.1 Conclusion - - - - - - - - 52
5.2 Recommendation - - - - - - - 52
References - - - - - - - - 55
Appendixes - - - - - - - - 56 1
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