The production of oil palm is a massive industry that brings in a lot of money.
Making profit in Oil palm business in Nigeria: Because of the enormous potential for profit in oil farming, various government organizations are providing financial assistance to oil palm growers and businesses. The farmers who grow oil palm are given assistance in marketing their oil palm seed products by the organizations that promote them. This indicates that you can begin your little oil palm plantation right now with as little as one acre of land, with the intention of increasing it in the future (60 palms per acre, multiplied by N400 per palm equals N240,000).
In order to provide enough protection against animal attacks across the 10 acres, you will need 5 bundles of wire collar. The cost of one bundle was N20,000, and the total for five bundles was N100,000. The cost of professionally surveying the area, protecting it with the wire collar that is provided, accurately marking in and out the boundaries, and planting the entire 10 acres is N210,000. Expected Total: N3,370,000
This project can also be established by a variety of private or corporate entities, which, after it has reached maturity, can then lease it out to people or corporate bodies. It is a method for broadening the scope of the economy as well as providing individuals with options for employment and financial gain. It is also in accordance with the reform objective of the government and serves as one of the strategies for ensuring food safety in the country.
Income analysis
The fourth year following planting, a mature plantation will begin producing “4 Tonnes’ ‘per hectare of red palm oil yearly. This means that the crop has reached full maturity. Annually, a plantation that is four hectares (ten acres) in size can yield twenty tons of oil in metric units. A minimum price of N2,400,000 can be expected to be obtained when selling one tonne of red palm oil. The sale of red palm oil results in a gross revenue of 12 million dollars.
Moreover, we can obtain 2.31 metric tons of palm kernels from a single hectare of land. This yields 9.25 tons from a total area of 4 hectares (10 acres). This amounts to a yearly revenue of almost N5.550 million.
The annual operational expenses are estimated to be N5 million, while the total income that can be realized is around N17.550 million. Because of this, we estimate that you would receive a net income of N12.550 million per year for the rest of your life as an investor. There are still further opportunities for financial gain, such as palm fronds and palm kernel shells.
It is important for potential investors to be aware that the market is already eagerly waiting for you to bring in your finished goods, regardless of the quantity that is being delivered. The investors are more than welcome to receive assistance in the process of realizing the lucrative investment opportunity.
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