Red Gold Riches - Business Plan on Oil Palm Plantation in Nigeria

17 Aug 2010 • by Natalie Aster
In 2005, in order to stimulate local production and attain self sufficiency in vegetable oil production in Nigeria, the government introduced the presidential initiative on the development of vegetable oil over a period not exceeding three {3} years. Under the programme, attention was focused on the promotion of eleven scheduled oil seed crops and oil palm was one and it's production target was 1 mln hectares capable of producing 15 mln fresh fruit bunches.

After 5 years of implementing the initiative ,though the production level of vegetable in the country has improved ,the domestic edible oil demands far exceeds the national production leaving a short fall in supply estimated at 300 thousand MT yearly and making the price of crude palm oil more expensive locally than in the international market.

The report “Red Gold Riches; Business Plan on Oil Palm Plantation in Nigeria” worked out for investors provides detailed the market segmentation, legal requirements,estimated cost of set-up and the expected returns on investment.

The SWOT analysis of the project is given below

  • A ready market for palm oil, palm kernel oil and palm kernel cake all year round;
  • Availability of labour locally;
  • The presence of the equipment suppliers and technical partners;
  • Professional input through professional managers and consultants;
  • Central and accessible location.
Potential Weaknesses
  • Unavailability of raw materials;
  • Availability of experts for plant maintenance;
  • Lack of adherence to business plan recommendations.
  • Proximity to the busiest markets;
  • Competitive pricing;
  • Government incentive supports agricultural business;
  • There is a large demand of palm oil, palm kernel oil and palm kernel cake;
  • Potential to create employment opportunities;
  • Possible business expansion into processing of crude palm oil, palm kernel oil and cake production;
  • Improving national economic environment;
  • High prospects due to continuing economic stability.
  • High Interest Rates;
  • Availability of quality spare parts;
  • Political instability in the years to come;
  • Instability in Government’s policies;
  • Disruption of power supply thereby causing over-reliance on generators;
  • Other competing plantations.
The report “Red Gold Riches; Business Plan on Oil Palm Plantation in Nigeria” is up-to-date and would enable the investor to make sound investment decision.

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