Are you looking for businesses to invest your money in this year? One business opportunity you can consider investing in is palm oil storage business. In this article, I am going to teach you everything you need to know concerning the palm oil storage business.
What is palm oil storage business?
Palm oil storage business involves buying and storing of palm oil in large quantities during peak or season of palm oil and then selling off when the supply of palm oil has decreased. Traders bring out their goods during this time, sell it, and make a respectable profit.
How profitable is Palm oil storage business?
This business is a very lucrative business and one of the commodities constantly in high demand in Nigeria, According to our research, in 2022 a 25 liter gallon of palm oil was sold for sixteen thousand naira during the peak and was later sold for at least twenty seven naira during the off season.
When is the right time to buy and sell?
The best time to purchase palm oil at local markets or palm oil mills is between March and May. During this time, there is typically a surplus of palm oil and prices are low. Also the best time to sell your palm oil is between September to December because at that time palm oil is scarce in the market and the demand is relatively higher than supply.
Where to Source Palm oil?
Oyo, Ondo, Edo, Cross River, Anambra, Enugu, Benue, Imo, Abia, Ekiti, Akwa-Ibom, Delta, and Rivers are the principal producing states for palm oil.
Based on our findings you can source for good palm oil from Nssuka, Enugu state, and some parts of kogi and Benue, Imo, Ebonyi, Abia and Anambra State.
What are the key success factors in Palm Oil Storage business?
Every business has critical success factors that you must adopt for you to be successful in that business. Likewise palm oil storage business. What are those success factors?
- Ensure You Buy Good Palm Oil: finding good palm oil is the key success of this business because your failure began when you end up buying bad oil because it will keep getting worse the longer it stays. A good palm oil can be stored for more than 8 months, it doesn’t sleep nor is it harsh, from the top to the bottom it remains the same. A good palm oil flow easily, has a pleasant aroma and dark red colour. The moisture content of the palm oil must be is very low so ensure the palm oil was cooked during processing.
- Get a Good Place for storage: Let the place you store the oil be well ventilated, accessible and have low humidity. Soldier ants are the main threat to the storage of palm oil, therefore be sure to clear the area around your storage area and set the palm oil keg or drum on pallets or a wooden platform. You can use used engine oil to fumigate the area around the storage facility, if necessary. Make sure your drum or keg is tightly sealed by tightening it.
Where can I market palm oil?
You can sell your palm oil in local markets to palm oil retailers, restaurants, groceries within your location. The demand for palm oil is usually high within September to December.
Conclusion
Due to the demand for palm oil, the palm oil storage business is among the lucrative ventures that anyone can think about investing in. It can also provide you with a passive source of income. Please feel free to add your own insight by leaving a comment in the comment box below.
Many thanks to you for the impressive writeup but I thought palm oil is usually scarce during rainy season.
Within the Period of March to May is just early raining season currently palm oil is very cheap and is sold for Sixteen thousand Naira at Nssuka.
This is a good investment at this time that things are very difficult in the country.
Yes, Nsukka is a very nice place to source out quality palm oil. We manufacture in large quantity