groundnut oil business plan pdf

Groundnut Oil Production Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector » Agro Processing

Are you about starting a cooking oil production business? If YES, here is a complete sample groundnut oil production business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a groundnut oil production business . We also took it further by analyzing and drafting a sample cooking oil production business marketing plan template backed up by actionable guerrilla marketing ideas for groundnut oil production businesses. So let’s proceed to the business planning section.

Groundnut oil is an edible vegetable oil that is produced from seeds that are edible bearing in nature. To get groundnut oil, the seed is usually prepared, pressed and then filtered. Whilst starting this business might be very lucrative, anyone intending to start this business will need to ensure that they have studied the business well.

The business is one that would require technical skills, so the entrepreneur must ensure that he gets the right people to handle all the production process of getting refined and high quality groundnut oil.

To start this kind of business, getting a business consultant is very important. The business consultant will offer advice and suggestions to setup the oil production chain, the machines to be bought, run the business and thrive against your competitors in the industry.

Getting a business plan is very important as it allows you understand the business you intend going into. But writing a business plan can be very intimidating so it would be best if you hire a business plan writer or go online to get free business plan samples to help you in writing one. Below is a sample cooking groundnut oil business plan;

A Sample Groundnut Oil Production Business Plan Template

1. industry overview.

Groundnut oil production is usually done when oil is removed from the groundnut seed. The manufacturing process can either be done on a small or medium scale depending on the cost of the project and desired output. Groundnut oil is not only used for cooking or as a shortening but also as a base for confectioneries or to make peanut butter.

Globally, india ranks amongst the top exporters of cooking groundnut oil, although it is regarded as a premium oil whose cost is very high. Groundnut oil is not only available in filtered forms but also in refined forms as well. In the market, filtered oils are regarded as superior in quality.

Raw materials that are required or producing groundnut oil is the groundnut seed. The seed produces about 50% of oil and 55% of the meal. Producing edible cooking groundnut oil is grouped into two groups, mechanical pressing and solvent extraction.

Groundnuts are oilseeds with high oil content that require mechanical pressing before being extracted. The production process for groundnut can be grouped into three stages such as preparation, pressing and crude oil refining.

2. Executive Summary

McQueen Groundnut Oil Inc is a leading and standard groundnut oil producing company here in Fort Lauderdale – Florida that intends to produce cooking groundnut oil to domestic and commercial customers not only here in the united states of America but also all over the world. We will also engage in offering other services in addition to our core service to our various customers.

Our intention of starting our own groundnut oil producing company is so as to be able to sell highly refined and quality groundnut oil that is cholesterol free to our various customers not only here in Florida or the United States but all over the world as well. Our intention is not only to establish our business for profit making but to also compete favorably with our competitors but nationally and internationally.

Because of the best practices standard we have set for ourselves, we have ensured that we procured the best pressing and refining machineries that will allow us to be able to produce quality and refined groundnut oil. Our packaging methods are also up to standard as we carry out all our activities with hygiene in mind so that we are able to set a standard for our customers.

Getting the best distribution networks are very important for this kind of business and so we have secured the best channels that will see our groundnut oils get to the end users. We will continue to seek for the best means at ensuring that our products get to our consumers at the right time.

We will ensure that we source for our raw materials from reliable vendors and suppliers, who use organic means to grow the crops, so as we will be able to give our customers the organic refined groundnut oil that is part of our corporate identity.

We intend to incorporate good work ethics as our corporate goal and also be renowned for our transparency standards. In order to ensure that we adhere to our corporate culture, we will recruit the best professionals possible that not only understand the industry we are in but also understand our company’s policies and are dedicated to ensuring that we are able to achieve our goals and objectives.

We will ensure that we get our employees to undergo continuous training that will not only enhance their skills but make them increase productivity for our organization. We will also ensure that our employees are well paid and undergo performance appraisals that will make them put in their best.

Finally, our Chief Executive Officer, Ms Laurie McQueen is a topmost entrepreneur who has more than 15 years experience in this industry and also in a managerial role. She knows how best to help us achieve our intended goals and objectives.

3. Our Products and Services

McQueen Groundnut Oil Inc intends to produce and supply highly refined groundnut oil to its various customers here in the United States of America as well as all over the world.

Our aim as a business is to ensure that we not only generate revenue but maximize profit as well and to this end, we intend to create multiple sources of income so as to be able to have a solid bottom line. The ways we will source for extra means of revenue will be according to our ambition and the laws of the United States of America.

Therefore the products and services we intend to offer at McQueen Groundnut Oil Inc are;

• Sale of processed groundnut oil for domestic and commercial purposes
• Sale of byproduct – groundnut cake
• Sale of groundnut sludge
• Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our vision is to ensure that we produce highly refined and quality groundnut oil that is cholesterol free for our various customers and also be amongst the top three groundnut oil producers globally.
• In order to ensure that we achieve our vision, we intend to ensure that we get the best equipment and also hire the best employees so that we will be able to achieve our goal of producing highly refined and quality groundnut oil.

Our Business Structure

Building a business structure that will be just right for our groundnut oil business is very important to us, which is why we are making sure that we put in all efforts to recruit the right hands that will help us achieve our goals and objectives.

It is important that our management team understand and identify with our core vision and objectives and as such is able to effectively communicate these policies and goals to the lower end staff and ensure that it is effectively implemented.

Due to the fact that we intend to offer additional services to our core service, we will hire more employees than the conventional groundnut oil producing company. This is so that the different tasks will be effectively handled without pushing too many responsibilities in the hands of a few employees.

Below is the business structure we intend to build for McQueen Groundnut Oil Inc;

Chief Executive Officer

Plant Manager

Purchasing Manager

Human Resources and Admin Manager

Accountants

Marketing Executives

Truck Drivers

Customer Care Executives

Maintenance Team

Security Guard

5. Job Roles and Responsibilities

• Creates strategies and policies for the overall direction of the organization
• Responsible for negotiating with high level clients on behalf of the organization
• Ensures that policies created are effectively implemented
• Monitors production processes and ensures that it aligns with both company and industry standard
• Develops and implements budgets for production
• Seeks ways to reduce costs without reducing quality
• Sources for reliable vendors and suppliers of raw materials
• Drafts purchasing contracts and ensures that it is to the benefit of the organization
• Drafts and implements purchasing strategies on behalf of the organization
• Responsible for recruiting, giving orientation as well as ensuring that customers get attuned to the company’s policies
• Responsible for employee welfare and incentive packages as well as carrying out performance appraisals on behalf of the company
• Ensures that the administrative functions of the organization are carried on smoothly
• Responsible for creating ensuring the implementation of financial statements, records and budget on behalf of the organization
• Prepares tax records and ensures that they are submitted to the right authorities
• Responsible for cash inflow and outflow and petty cash
• Drafts effective marketing strategies and modifies them continuously in order to generate revenue for the organization
• Engages in direct marketing with customers on behalf of the organization
• Manages existing customer relationship in order to help increase customer loyalty and retention on behalf of the organization
• Responsible for delivering products to customers at accurate destinations
• Carry out maintenance on the vehicle when necessary and report major faults to the management
• Keep traffic laws and regulations and also a logbook
• Responsible for taking orders, answering enquiries and providing accurate information to clients
• Ensures that customers’ complaints are readily resolved on behalf of the company
• Keeps an updated customer database on behalf of the company
• In charge of maintaining all the equipment and machineries used by the organization
• Arranges for new parts and replacements for the machineries
• Reports major machinery and equipment faults to the management
• Patrols the facility and its perimeter during work and after work hours to ensure that there is no trespasser
• Monitors incoming and outgoing people and visitor and responsible for surveillance equipment
• Remains updated on security tips and ensures that company staff is aware of security tips as well

6. SWOT Analysis

Due to the fact that we intend to run a standard cooking groundnut oil producing company, we are striving to ensure that we put up processes; plan and structures that will allow us attain this excellence. This is clearly why we have engaged the services of a reputable business consultant here in Fort Lauderdale – Florida, to look through our business concept and determine if the business we are going into is worthwhile and also if we are going to not only thrive in this business, but also compete favorably against our competitors.

In view of our request, the business consultant used four attributes (strengths, weaknesses, opportunities and threats) in order to determine how we are likely to survive and grow as a business. Therefore the SWOT analysis that was conducted on behalf of McQueen Groundnut Oil Inc is as follows;

Our strength lies in the fact that we offer our customers’ high quality processed groundnut oil which is cholesterol free. This means that customers who use other substitutes because they feel those are better for their diet will stick to our own brand of groundnut oil instead. We are in a location that is not only strategic but also convenient for our customers and employees to access.

Our facility is one that is conducive enough for our employees, while also being of high standard hygienically to produce our cooking groundnut oil. Those which we have chosen to work for our company is very competent and experienced especially as regards this industry.

They are also dedicated and committed to our corporate goals and philosophy.  Finally, our owner and Chief Executive Office, Ms. Laurie McQueen has more than 15 years experience both in groundnut oil processing and in management and will ensure that we are able to achieve our intended goals and objectives.

The groundnut oil processing industry is a saturated one and so would require us to adapt strategies that would allow us to stand out against our competitors. Also, because we are just starting up, we do not yet have the necessary finances and staff strengths as our already established competitors.

• Opportunities

There are several opportunities that abound for us in this industry as cooking groundnut oil is widely consumed by a whole lot of people. We are however seeking innovative ways to attract the health conscious customers who have shifted to alternative sources because they feel that groundnut oil isn’t hygienic enough in helping to achieve their fitness goals. Our advisory and consultancy services will serve to open up more opportunities for us in this industry.

Facing threats as a business faces are to be expected if the business is a serious one. The threats that we are likely to face as a business will arise from unfavorable government policies, stiff competition from competitors, as well as customers’ shift to close substitutes on personal preference grounds. We have laid down strategies in place that will enable us handle whatever threats we are likely to face.

7. MARKET ANALYSIS

• Market Trends

Cooking groundnut oil, which is referred to as vegetable oil by some, is one of the oil products in high demand; as a large number of people use it for consumption as well as for commercial purpose. While there are substitutes for groundnut oil, the fact that this oil is cheaper makes it why more people use this oil.

Groundnuts are nuts that can be found at all time and is regarded as highly nutritional, which is why it is amongst the top nuts recommended by doctors for women that are not only pregnant but for those that are also health conscious or going on a diet. Any entrepreneur going into this business will therefore make good money from it.

Starting this business would require ensuring that technical details are being put into place. However, there are few groundnut oils processing businesses here in the United States of America, which makes it very ideal for us to go into this kind of business and make a tidy profit from it. It is also necessary to ensure that professionals are being employed to handle all the technical details.

8. Our Target Market

Cooking groundnut oil is used by a whole lot of people and so this means that there is a lot of demand for this product, and therefore we cannot necessarily limit the target market without making a thorough market research. Our location here in Fort Lauderdale – Florida is one that is strategic and will allow us to map out effective plans in order to serve our numerous clients.

The market research we have conducted from reliable facts and statistics will allow us better understand the characteristics of our target market and the right strategies that we would draft to be able to cater to this market. Therefore from our research, the following groups of people are those that we will be selling our products and offering our services to;

• Soap Manufacturers
• Confectionaries
• Cosmetic industries
• Food industries
• Grocery Stores and Supermarkets

Our competitive advantage

Our intention of starting a cooking groundnut oil production company is so as to be able to give our various customers not only here in the United States of America but all over the world, quality cooking groundnut oil that is cholesterol free. To be able to achieve this, we have drafted strategies that will allow us have a competitive advantage over that of our competitors.

Our first competitive advantage is in the quality of groundnut oil we are giving our customers all over the world. Because this is oil that is to be consumed, we have taken great care in ensuring that from the raw materials down to the processing all go through a high standard of quality checks. We take great pride in ensuring that our customers can trust our cooking groundnut oil.

We have engaged the services of the best professionals who not only know this industry thoroughly but also understand how best to make a business become the world standard we have intended for it.  Our employees also understand our corporate philosophies and goals and are willing and dedicated to ensuring that we achieve it.

We have put in place processes and plans that will ensure that our employees receive trainings as at when due. These trainings will allow them to have enhanced skills that will also improve their productivity for the company. We will also ensure that our employees are well paid and have better welfare packages than that of their counterparts in similar startups such as ours.

Finally, we will ensure that we put our customers first by not only meeting but exceeding their expectations. We will ensure that we take good care of our loyal customers and offer them incentives. We will ensure that we keep an updated customer database so as to keep in touch with our customers and allow them be aware of our products and other services that we might be offering.

9. SALES AND MARKETING STRATEGY

• Sources of Income

McQueen Groundnut Oil Inc is a leading and standard groundnut oil producing business that has been established with the aim of generating revenue and maximizing profit not only here in Fort Lauderdale – Florida, all over the United States of America as well as globally as well.

We intend to make profits from sales of different products and offering of services to our various customers. McQueen Groundnut Oil Inc will generate revenue from the following products and services;

10. Sales Forecast

Groundnut oil is a cooking oil that is being consumed daily by most people and used for domestic and commercial purposes and therefore will always be in demand.

Our location here at Fort Lauderdale – Florida is one that is very strategic and has us very optimistic of being able to not only generate the needed revenue within one year but also one that will allow us maximize our profit, as the forecast has shown that this is highly achievable.

We carried out several researches whilst conducting our sales forecast and used several assumptions and information from similar start-ups such as ours not only here in Florida but also all over the United States of America so as to be able to get accurate data to arrive at the below stated projections.

The stated projections for McQueen Groundnut Oil Inc based on accurate assumptions and data are as follows;

• First Fiscal Year-: $600,000
• Second Fiscal Year-: $1,100,000
• Third Fiscal Year-: $2,000,000

N.B: The above sales projections were done based on certain assumptions and what was obtainable in the industry at the stated period. The assumptions were that there won’t be any stringent government policies, no arrival of a competitor offering same services as we were and also that the economy remains stable. Should there be any change in the above assumptions, our sales projections for the stated period will be affected.

• Marketing Strategy and Sales Strategy

When writing a business plan, one important element that is not usually overlooked is the marketing and sales aspect. Not only are strategies created to better market a product or service, a budget is also created so that strategies can be effectively implemented. Marketing also serves a dual purpose as it not only generates revenue for the company but also creates awareness for the business as well.

Due to how delicate marketing is, we intend to hire reputable marketing experts who understand the nature of our business and the industry we are operating in to help create effective marketing strategies that we will use to be able to compete favorably against our competitors all over the United States of America.

We will not be limiting our marketing efforts to merely just the conventional means. We will be making use of unconventional means via technology to also market and sell our cooking groundnut oil to our target market. Our marketing team will be well versed in handling all our online affairs so as to attract more potential customers to our business from other states and even countries.

We will also empower our marketing team to conduct more market researches in order to be able to determine new target markets for our business. Our marketing team will also monitor marketing strategies and remove or modify those that are thought to be ineffective. We will in fact provide them with all that is necessary to be able to achieve our corporate sales goals and objectives.

Therefore the marketing and sales strategies that we intend to adopt for McQueen Groundnut Oil Inc are;

• Ensure that we introduce our groundnut oil company officially to wholesalers and distributors as well as other industry stakeholders
• Throw a grand opening party so as to create awareness about our business to our target market
• Advertise our cooking groundnut oil business in newspapers (local and national) as well as on radio and television stations
• Ensure that we engage in direct marketing and sales to our various customers
• Use our social media platforms such as Facebook, Twitter, LinkedIn and Google Plus to market our cooking groundnut oil business
• Ensure that our groundnut oil business is listed in local directories (Yellow Pages) and on online directories as well

11. Publicity and Advertising Strategy

Publicity is very important for every business, as it is what allows the target market that consists of both existing and potential customers. This is why even though a business has been established for a long period of time, it still engages in publicity so as to be able to not only retain its customers but also attract new customers to patronize it. The publicity we tend to create for our business is one that will project the image of our business positively.

In a bid to ensure that we create effective publicity strategies, we intend to engage the services of a brand consultant who understands the business and the industry we are in. the brand consultant has been empowered to use conventional and unconventional means to ensure that we get the awareness we need for our business not only here in Fort Lauderdale – Florida but also all over the United State of America.

Below are the platforms we intend to use in creating awareness as well as advertising McQueen Groundnut Oil Inc;

• Create an official website and use this to create awareness about our groundnut oil producing company
• Place adverts in local and national newspapers and on radio and television stations here in Florida and nationally as well
• Participate in and sponsor relevant community programs here in Fort Lauderdale
• Use our social media platforms such as Facebook, Twitter, LinkedIn and Google Plus to promote our groundnut oil producing company
• Place attractive and distinctive bill boards in strategic locations all around Florida and outside its environs
• Write articles and post on different relevant blogs and websites

12. Our Pricing Strategy

Determining what price to set for your products and services is very important and requires making detailed strategies to ensure that one picks just the right price that will not be detrimental to the business or chase customers away. In setting the right price for our business, we will consider our overhead and running costs as well as what our customers are also offering the target market.

However, while we intend to set the right price that will just be right for our business and fair to our customers, we will offer a discount in the first two months of our operations in order to attract customers to our business. After taking a thorough look at this strategy, we are convinced that we will not be running at a loss even though our profit margins might be low for these periods.

• Payment Options

Any smart entrepreneur knows that it is very important for customers to have convenient means by which they pay for products and services. Therefore knowing this, we intend to offer various payment platforms so as to be able to cater to our various clients and their different preferences.

The different payment options that we therefore intend to make available are;

• Payment via cash
• Payment via checks
• Payment via bank draft
• Payment via online payment portal

It should be noted that the above payment options were carefully chosen by us to make payments not only easier for our clients but also to ensure that we are able to run our business without hitches.

13. Startup Expenditure (Budget)

Starting a cooking groundnut oil production business can be capital intensive especially as this business is one that needs equipment in order to be able to produce the groundnut oil for consumption. We therefore intend to use the bulk of capital to procure equipment, get a truck for delivery, get raw materials and also pay the salaries of our employees and utility bills for at least 6 months.

The major areas where we therefore intend to spend our start-up capital include;

• Total fee for registering our groundnut oil producing business in the United States of America – $750
• Obtaining of licenses and permits, accounting software and other legal expenses – $3,250
• Marketing budget and promotion expenses for the grand opening of Queens Groundnut Oil Inc. as well as for general promotional activities for the business – $10,000
• Cost of hiring business consultant – $3,000
• Operational cost for the first 6 months (which includes employees salaries and utilities bills) – $150,000
• Insurance (general liability, workers’ compensation, and equipment insurance) – $2,000
• Cost of groundnut oil machines (separating machines, pressing machines, processing and refining machines) – $70,000
• Cost of leasing a facility for 2 years and carrying out renovations – $100,000
• Purchase of truck for distribution and delivery of groundnut oil – $50,000
• Raw materials (groundnuts) and packaging materials – $20,000
• Other start-up expenses (stationery, computer, printer, phones, furniture) – $10,000
• Storage equipment (shelves, bins, racks) – $5,000
• Cost of launching an official website – $1,000
• Cost of throwing a party to launch our business – $5,000
• Miscellaneous – $10,000

From the above estimate, it is apparent that we would need the amount of $440,000 in order to successfully start and run our groundnut oil processing to a certain standard here in Fort Lauderdale – Florida. It should be noted that the bulk of the capital will go into procuring equipment, renting a facility for at least two years, procuring a vehicle and also paying the salaries of employees and utility bills for at least 6 months.

Generating Funding / Startup Capital for Queen’s Groundnut Oil Inc Business

Queen’s Groundnut Oil Inc is a cholesterol free cooking groundnut oil that is owned and managed by Ms. Laurie McQueen. Ms. McQueen who intends to grow this business into one that is of international standard intends to approach external investors with vision that aligns with hers, whilst seeking other means of sourcing for capital.

Therefore, Ms. McQueen will seek for her start-up capital from the following sources. Below, therefore are the sources where we intend to generate our start-up capital from;

• Generate part capital from sale of stocks of personal property
• Source for loan from commercial bank
• Generate capital from external private investors

N.B: From sale of stock and some private property, Ms. McQueen has been able to generate $140,000. She has gotten a loan of $150,000 from the bank that will be repaid in 7 years time at an interest rate of 2.4% annually; all the approving documents have been signed and the money will soon be credited into the company’s account before the end of the week.

She is also currently in the final stages of obtaining a loan of $150,000 from a private investor in exchange for an equity of 5%. All the terms have been discussed and signed on, and the lawyers are going through the documents to get it ready for signing.

14. Sustainability and Expansion Strategy

The way a business is structured determines how long the business will remain in existence. We are willing to go the extra mile to ensure that we hire competent professionals who understand the way our kind of business is run and how best to ensure that our kind of business becomes one that is a force to be reckoned with nationally and internationally.

The professionals we intend to hire will be one that also understand our ideology as a business and will remain committed to this ideology and ensure that it is well communicated to all stakeholders. We will also ensure that we have laid down processes that will allow for the environment to be conducive work-wise for our employees.

We will pay our employees well and provide them better welfare and incentive packages better than their counterparts in similar start-ups such as our across the country. We will also ensure that our employees undergo training so that they will have better skills that will not only see them enhanced in the industry but will also ensure better productivity for our business as well.

As much as we intend to generate as much revenue as we can, we will make sure that we retain at last 30% of our earnings back into our business. This is to ensure that we do not have to go externally to seek for funds all the time. Also, putting back our earnings into our business will allow us to be able to not only grow and sustain the business but also expand it as well.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

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Groundnut Oil Making Process (Peanut), Business Plan

Table of contents, a step by step guide for groundnut oil making process, business plan:.

Today, let us discuss the groundnut oil production process, extraction methods, and business plant including groundnut oil plant (machine) cost in India.

Groundnut oil is also known as peanut oil or Arachis oil, is a mild-tasting vegetable oil expressed from groundnut kernels. Groundnut oil is generally used in cooking, including frying, basting, and the manufacture of margarine and shortenings. Groundnut oil is light yellow transparent edible oil with clear color and lecture, pleasant fragrance and good taste is relatively easy to digest.

Groundnuts or peanuts are a popular source of food throughout the world. And the groundnut oil, however, can be used for cooking, they can be used as a shortening or as a base for confectioneries and they can be used to make peanut butter. Groundnut kernel contains 45 to 55% of oil. The Groundnut oil obtained from the kernel is yellow to greenish-yellow in color. The meal is a very important component of feeds for poultry and cattle. Groundnut oil is an organic material oil that derived from peanuts, noted to have the aroma and taste of its parent legume. Peanuts or Groundnut oils can be extracted in various ways. Always method used depends on the oil.

Groundnut oils are extracted by using a solvent like hexane, while aromatic oils are extracted with different methods including steam distillation and the cold pressing method. In all of these options, the goal of extraction is to produce pure oil free from contaminants and traces of the original plant material.

India is the second-largest producer of peanuts after China. Groundnut or Peanut is the largest oilseed in India in terms of production. It accounted for about 35.99 percent of the oilseeds production of the country during 2007-08. Generally, 2.5 kg of groundnut to produce 1 liter of the groundnut oil. The cost of procurement and processing of the groundnut or peanut is around Rs. 90/kg. Hence, simple math says that Rs. 225/liter is the raw material cost.

Major Groundnut oil-producing states in India

In India groundnut or peanut is grown over an area of 6.9 million hectares with a total production of 5.3 million tonnes. Groundnut cultivation is mainly confined to south Indian states, viz, Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra. The other important states grown Groundnut are Madhya Pradesh, Rajasthan, Uttar Pradesh, and Punjab.

The general process of Groundnut oil production

From harvested groundnuts to pure edible peanut oil or groundnut oil production is a complex process. The main procedure is groundnuts preprocessing, prepressing, solvent extraction, crude peanut oil refining.

You may also like Growing Onions from Seed, Planting, Care, Harvesting .

The Groundnuts must be pre-processed before sending to the expelling department, the kernels need to be cleaned, shelled, cracked and cooked by special seed processing machinery. Then the preprepared peanut kernels will be transported to the prepressing workshop in where these raw materials could be first expelled by screw oil press machines. However, the screwing process of pressing is a high residual oil rate. In this time, the chemical method solvent extraction will be a good method to fully extract peanut oils. The solvent extraction method can create the residual oil rate of the groundnut meal below 1%. Therefore, for edible use, the pressed crude groundnut oil needs to be refined by filter presses or oil refining plant.

Groundnuts solvent extraction process

Generally, the Groundnut or peanut solvent extraction is a procedure which involves extracting oil from oil-bearing materials by treating it with a low boiler solvent as opposed to extracting the oils by mechanical pressing methods that are expellers, hydraulic presses, etc. The solvent extraction process recovers almost all the oils and leaves behind 0.5% to 0.7% residual oil in the raw material, such as peanuts solvent extraction plant or ground nuts solvent extraction plant, etc. In the case of mechanical pressing, the residual oil left in the oil cake can be anywhere from 6% to 14%.

Groundnuts are first decorticated to remove the husk. The Groundnut kernels so obtained have oil content over 48%. The kernels are subjected to mechanical extraction process with the help of screw presses. The resultant cake has residual oil content changeable from 8 to 12% depending on the extent of pressing. The pre-pressed cake is subjected to solvent extraction for recovery of the residual oil.

The raw material for Groundnut oil production:

The principal raw material essential for the production of groundnut oil is groundnut seed. And you could procure this locally. The seed gives 44.5 to 50% oil, 50-55% meal. However, other required raw materials for Groundnut oil production are caustic soda, bleaching earth, and packaging consumables.

Equipment used for Groundnut oil extraction process:

List of the equipment used for Groundnut oil extraction process will be given below;

• Self-regulation vibrating sieve
• Magnetic separator
• Cleaning sieve
• Groundnut shelling machine
• Groundnut Kernel Grading Machine
• Peanuts Crushing Machine
• Five-layer Vertical Steam Cooker
• Electrical Cooker
• Peanut Rolling Machine
• Mechanical expeller
• Filter machine

Groundnut oil extraction process:

Groundnut oil processing process, based on mechanical pressing technology, is normally grouped into three stages they are groundnut seeds preparation, groundnut pressing, and rude groundnut oil refining.

The complete Groundnut oil extraction process can ensure the nutrition, flavor, safety, and fragrance of peanut oil. The different stages of Groundnut oil extraction process mainly composed of cleaning, shelling, grading, crushing, rolling, steaming or cooking, pressing, filtering and refining.

The first step in preparing oil seeds for Groundnut oil extraction is to clean them. Clean accurately so that the oil is not contaminated with foreign materials. Therefore, this helps to proceed with the extraction process as efficiently as possible. During the procedure, carefully inspect the seeds to remove stones, sand, dirt and spoilt seeds. Additionally, you can use dry screening method to remove all material that is over or undersized. Sometimes washing is resorted to but it must be avoided as the plant tissue will have to be dried at a later stage.

You may also check Organic Vegetable Farming in India .

The raw materials for Groundnut oil extraction should be fresh, full-grained, undamaged, mildew-free, and free of insects and have not undergone an aging period. The cleaning procedure can remove the immature, damaged and moldy grains. The equipment used for this process will be self-regulation vibrating sieve, magnetic separator, cleaning sieve, etc.

Groundnuts with shells should use Groundnut sheller to remove the shells to increase the oil yield, improve the quality of the oil and cake and smooth the following peanut oil production process. The equipment used for this process will be the Groundnut shelling machine.

Some of the Groundnut oil production plants may add this process to separate the small peanuts and large peanuts for different treatments. The equipment used for this process will be the Groundnut Kernel Grading Machine.

This procedure is to remove the red skin by crushing the Groundnut kernels. Then obtain rid of the red skin by wind separator. At the same time, large size Groundnut kernels are crushed into a smaller size. The moisture of crushed Groundnuts can be better controlled. The equipment used for this process will be the Peanuts Crushing Machine.

Rolling or grinding:

After crushing, Groundnuts are rolled through the instantaneous extrusion force between the two rollers to form the embryo slice, the shape of the peanut is changed, the oil path is shortened, and this is beneficial to the peanut oil extraction. The seed is not generally pressed whole since oil extraction is more efficient if the seed is in smaller particles. Herein lies the relevance of the grinding procedure. Grinding is the process for reducing the particle size. Also, you can use small motor powered hammer mills for the unit operation.

Another alternate process used for the reduction of particle size is rolling the oilseeds to generate flakes for oil extraction. Many large-scale commercial plants find this mainly effective approach. Additionally, with large oilseeds, it can be necessary to grind the seed first, and then put the pieces through the flaking rollers. The equipment used for this process will be Peanut Rolling Machine.

Steaming or Cooking:

This procedure is to adjust the moisture of peanut embryo slice by changing the temperature to develop the oil extraction rate and ensure the final peanut oil has a strong aroma. The equipment used for this process will be Five-layer Vertical Steam Cooker, Electrical Cooker.

It is not too late to check Basmati Rice Farming .

The steamed or cooked peanut embryo slices are then pressed by Groundnut oil press machine for oil extraction. The screw peanut oil or Groundnut oil machine can ensure the original cell structure of the peanut is destroyed under mechanical force to obtain a pressed crude oil.

During processing, press the conditioned oil seeds or oil-bearing material using a lever press, hydraulic press or a mechanical expeller to remove the oil.

Peanut oil pressing methods

Divided by pressing temperature, there are two types of peanut oil pressing methods they are hot pressing technology and cold pressing technology.

Hot pressing method is the traditional process of peanut oil. Peanut oil is steamed fried and pressed, generally at a temperature above 120 ℃ with a high rate of oil output. But because of the high production temperature, the peanut protein is generally severely denatured and the lose a great number of nutrients.

Cold pressing method refers to the oil production technology which is conducted temperature under 60℃. Before pressing method, normally uses the process of removing the red skin, which is beneficial to the reserve of nutrients and the comprehensive utilization of peanut protein in peanut oil.

Generally, crude peanut oil can include some organic impurities that can be easily removed by edible oil filter machine or other type’s oil filter machine.

The crude peanut oil or Groundnut oil that is filtered by the oil filter machine is pure and clean. But it still contains several oil-soluble and in oil-soluble impurities. Therefore, it is essential to equip the peanut oil production plant with professional edible oil refinery equipment to get them off and obtain the refined high-quality peanut oil.

Cost of Groundnut oil extraction machine:

Generally, the cost of Groundnut oil extraction machine will be approximately Rs 1.8 Lakh/Piece.

You may be interested in Growing Arugula Plants .

16 COMMENTS

Hello I am Ankit Patel a Young entrepreneur looking for peanut oil business, and I need help from your side about business from the first step how to start the business , what is process n all. Thank you

very good activity

Hi I a farmer from Maharashtra.I need to start a small groundnut oil factory in my farm.can any one pls suggest me from whr I can start..I saw lot of small machines which can give 4/6kg oil in an hr..as i am farmer i can grow groundnut in farm.. I need help from your side about business from the first step how to start the business , what is process n all. Thanks you.

hi, i am in groudnut oil extraction business (cold pressed, chemical free) on a small scale. I need guidance from you to procure moister free, good oil content seeds. i want to expand my business. i am from Mumbai and do not get good variety of seeds from mandi i.e. wholwsellers in Mumbai and also rate if very high. thanks

Hi, I am chetan patel from west Africa but I am indian from Junagadh Gujarat. If you want to start oil mill at Africa then I am with you because I want to start oil mill here. Actually I have lots of experience of Oil mill and cotton ginning. Here very good groundnut with per kg 30rs. and price will be not changed whole year because here is not satta bazar. My whatsapp is continue at Africa so you can contact me. With regards

What is the name of the variety of peanut.

I am a farmer and supplier of big lot ground nut. I can provide big lot of high quality ground nuts which contains good amount of oil content. Kindly clarify which grade of ground nut you use for oil making and Minimum quantity require.

I want know about groundnut.

Hi i have a oil manufacturing unit.. and i am in search of peanut farmer for direct supply of peanut in which both side will be benifitted…..

I was given an assignment, I really need it. The question goes as thus, what are the methods of grading in oil, it’s advantages and disadvantages?

Hi, My name is Mr. Subhash Wadkar, I am professional for processing of edible oils working in Africa for many years. Now I want to start my own crushing unit for groundnut, but I really have doubts about the loss and forain material % for calculating its recovery after the process. Can any one guide me on retrieval that what is the standard range of F M content for groundnut process.

pls give me idea where we get ground nuts oil making machine

Hello, I am Mr Collins from Benin city ,Edo state ,Nigeria. I have just pick interest in production of grand nut oil in Benin . I have already made the provision for the supply of a machine for this business. So please I want to be properly guided on the business. And again I want the step by step process of this production and the marketing. Thanks. Collins

Thanks for this forum, it’s of a great opportunity and pleasure to read different thoughts and questions from across the globe. I am from Northern Uganda and our region is the leading in groundnuts production. I hope to submit my questions as I encounter challenges in this industry.

Am Blessing from Nigeria am looking in starting up a batch production of refined groundnut oil in my country but I need guidance on how to go about it and the variety of groundnut to use, and also how to remove odor in cold pressed groundnut oil

Your post is a valuable resource for anyone looking to expand their knowledge on the topic. It’s thorough and well-explained.

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Groundnut Oil Business Plan in Nigeria

Groundnut Oil Business and Financial Plan

Our Groundnut Oil Business Plan in Nigeria is well documented and can also be used for, but not limited to:

• Grant Applications,
• Bank Loans,
• Proposal writing,
• Business Concept Note,
• Competitions e.t.c

Purpose of the Groundnut Oil Business Plan in Nigeria

The Groundnut Oil Business Plan in Nigeria will be of great use:

• To formulate a strategy for starting and growing the business or existing business by identifying where the business is going and how to get there.
• To test the viability of the business idea and maximize its opportunities.
• To Obtain funding and achieve business goals and success. e.t.c

Benefits of the Groundnut Oil Business Plan in Nigeria

The Groundnut Oil Business Plan in Nigeria in beneficial because

• It helps in outlining the steps needed to achieve the business goals and ideas.
• It helps to articulate strategy to stakeholders who support the business.

Importance of the Groundnut Oil Business Plan in Nigeria

The Groundnut Oil Business Plan in Nigeria is important because

• It will assist you in making sound decision in the administration of the commercial enterprise which will make a contribution to the success of the business.
• It will additionally gives distinctive statistics on all components of the business, outlining the business desires and the steps required to achieve them.

Content of the Groundnut Oil Business Plan in Nigeria

• Executive Summary
• Introduction
• Business Description
• Keys to Success
• Products and Services
• Market Analysis
• Our Target Market
• Pricing Strategy
• Competitor Analysis
• Sales and Marketing Plan
• SWOT Analysis
• PEST Analysis
• Operational Plan
• Management plan
• Financial Plan and Projections
• Financial Diagnostics

How to Get The Complete Groundnut Oil Business Plan in Nigeria

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How to Start Groundnut Oil Extraction Production Business

Groundnut oil production is a financially profitable venture with huge export potential. In addition, you can initiate the groundnut oil processing operation on a small and medium scale basis according to the desired output and project cost.

Initiating a groundnut oil production business requires feasibility study preparation, procurement, and installation of machines in the appropriate accommodation, recruitment of personnel, and project commercial take-off. One metric ton of groundnut seed produces an average of 420 Ltr of groundnut oil, 420 kg of groundnut cake, and 40 kg of groundnut sludge.

Table of Contents

Groundnut Oil Production Market Potential 

Groundnuts are a popular source of food throughout the world. Groundnut oil is used for cooking food and as a shortening or as a base for confectioneries and it can be used to make peanut butter. Groundnut oil ranks at the top among edible oils exported from India.

It is a premium oil and its cost is also high. Most other edible oils are priced lower than groundnut oil. Groundnut oil is available in the market in refined and filtered forms. Although filtered oils are nutritionally superior in quality.

The latest data shows that there are almost 75 countries that import groundnut oil from India in huge quantities. The total export value stands at 64 million US dollars.

1. Groundnut Oil Production License & Registration

In establishing a groundnut oil production unit, you will need to obtain several different licenses and registration from different Government authorities.

• Company Registration with ROC
• Trade License
• GST Registration
• Factory License
• Food Operator License
• BIS Certification
• ‘No Objection’ from Pollution Control Board
• AGMARK Certification
• Fire License

The Food Standards and Safety Rules, 2011, and rules made under IS 544: 1968 permit additions of antioxidants in groundnut oil for a higher shelf life of the oil. However, under the scheme of labeling environment-friendly products, the presence of antioxidants within a prescribed limit is a requirement as per notification of the Ministry of Environment and Forests.

These are the common license and certification requirements. Check with your local DIC authority about any other required formalities.

2. Arranging Finance For Groundnut Oil Production Unit

Alike any manufacturing industry groundnut oil production business also involves two types of co st factors . One is fixed capital and the other is working capital. A refinance scheme facility is available with NABARD . For fixed capital, you will need to apply term loan or mortgage loan. For working capital requirements, you can go for cash credit or the overdraft facility with your nearby bank or any financial institution.

3. Groundnut Oil Production Unit Setup & Machinery  

Selecting the right location for factory operation is an important aspect. The major required utilities are water and electricity. Easy availability of transport facilities and labor is important. Create a floor plan indicating specific space for raw material storage, finished products storage, production unit area, administrative workspace, storeroom for oil cakes, and space for miscellaneous usage.

Generally, you will need to have 0.50 acres of nonagricultural land for establishing an improved groundnut oil expelling unit. Here, you can install a plant with a processing capacity of 240 MT /annum. Additionally, the land must come with proper elevation.

The basic machine & equipment required are as follows:

• Pre-cleaner for cleaning the oil seeds
• Cans and trays for handling oil seeds
• Batch-type solar dryer
• Tapering screw types mechanical oil expeller
• Filter press
• Steel drums for storing edible oil and sedimentation of impurities
• Weighing balance
• Semiautomatic bottle-filling machine
• Molded polycarbonate bottle capping cum sealing machine

If you want to go for pouch packing, you will need to have an automatic pouch filling and sealing machine.

4. Raw Material For Groundnut Oil Production 

The principal raw material required for the production of groundnut oil is groundnut seed. And you can procure this locally. The seed gives 44.5-50% oil and 50-55% meal. However, other required raw materials are caustic soda, bleaching earth, and packaging consumables.

5. Groundnut Oil Production Process & Technology 

Basically, you can divide the edible oil technology into two groups. These are mechanical pressing and solvent extraction. For oilseeds with high oil content such as groundnut, you will need to apply first mechanical pressing.

Here, you can extract over 85% of the oil. However, you can extract the remaining oil in the expeller cake with a solvent. As per mechanical pressing technology, you can divide the groundnut oil production process into three stages. These are seed preparation, pressing, and crude oil refining.

a) Cleaning

The first step in preparing oil seeds for oil extraction is to clean them. Clean properly so that the oil is not contaminated with foreign materials. Therefore, it helps to proceed with the extraction process as efficiently as possible.

During the process, carefully inspect the seeds to remove stones, sand, dirt, and spoilt seeds. Additionally, you can use a dry screening technique to remove all material that is over or undersized. Sometimes washing is also resorted to but it must be avoided as the plant tissue will have to be dried at a later stage.

b. Dehulling

During the process, remove the outer seed coat of the oilseed. Generally, you can use a power-operated dehuller for the operation. Removal of the outer seed coat is necessary as it does not contain oil and inclusion of it in the unit operations makes the oil extraction process less efficient. Some seeds such as groundnut can be shelled by hand. Some others such as sunflower seeds are usually hulled in machines. Still others, like safflower and colza, cannot be shelled.

c. Grinding or rolling

Seed is not usually pressed whole since oil extraction is more efficient if the seed is in smaller particles. Herein lies the relevance of the grinding process. Grinding is the process of reducing particle size. Additionally, you can use small motor-powered hammer mills for unit operation.

Another alternate process used for the reduction of particle size is rolling the oilseeds to produce flakes for oil extraction. Many large-scale commercial plants find this the most effective approach. Additionally, with large oilseeds, it may be necessary to grind the seed first, and then put the pieces through the flaking rollers.

It is the final step for preparing the raw material for oil extraction. Heating leads to increased oil yield. Heating helps in killing those enzymes present in the plant tissue which have a deteriorating effect on oil quality.

Moreover, if you don’t use the oilseed cake for feed or feed, heating is useful as it increases protein availability. Sometimes, you can press the oil-bearing material without heating it. Oil extracted in this way is called cold press oil.

e. Pressing

During processing, press the conditioned oil seeds/oil-bearing material using a lever press, hydraulic press, or a mechanical expeller to remove the oil.

f. Refining

When you use the lower quality feedstock for oil extraction, you can use this process. Basically, it helps in removing undesirable cloudiness, color, and flavor from the extracted oil.  In groundnut oil production, mentioning the shelf life on packets or labels is mandatory.

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Business Plan of a Small Scale Groundnut Oil Processing Mill

Groundnut oil is high in good fat (monounsaturated fatty acid), and low in bad fat (saturated fatty acid), this oil is used to lower cholesterol and to prevent heart related disease. Groundnut oil is also used to make medicine, ointments, and medicinal oil for constipation treatment. It is also believed that consuming the groundnut oil lower the risk of cancer.

Throughout the world groundnut oil is very important edible oil because of its good nutritional values and it lowers the cholesterol problem. Hence, this is considered as popular cooking oil. Beside of cooking groundnut oil is very good substitute for other edible oil in bakery and confectionery industries too. It is an essential ingredient of making soap, mayonnaise etc. in domestic industries. It stands on the top among other edible oils. (Read more about Cost Setting up Edible Oil Plant >>)

Business Plan of Small Scale Groundnut Oil Processing Mill

Groundnut oil is in very high in demand in international market, so establishing a groundnut oil processing mill for business purpose is considering as a financially profitable idea for those who want to set up a business in the edible oil production line industry. So if you are interesting about starting a groundnut oil mil business plan, here is a complete business plan of a small scale groundnut oil processing mill . It will be very useful to take these guidances into consideration when starting. (You may also interested in the groundnut oil processing plant setup cost in Africa countries )

• Matket Summanrize

The demand of groundnut oil directly proportional on income and population. Actually it is more depends on income. First you need to check the established manufacturing companies in the market. This will help you in making your project report and business plan. ( Similar Project: Small Groundnut and Soybean Oil Production Plant Project in Togo >> )

• Raw Material

For groundnut oil business, the main required raw material is groundnuts, also called peanuts, for that you will need to ensure the continuous availability of the shelled groundnuts or unshelled groundnuts. Also, you will check wheather there has stable supply of groundnut oil processing materials, such as caustic soda or bleaching earth for cooking oil refining process . Also, groundnut oil comes in mainly two packaging that is plastic bottle and poly pouch for that you will need to procure cost intensive packaging consumables. Ensure that your raw material supplier should be reliable and professional vendor.

• Arrange Finance for Groundnut Oil Production Unit

After preparing the basic like raw material and project report, now it is time to arrange the finance. For small scale groundnut oil processing business, the investment cost is relatively lower. If you have enough funds to start the business with your own, its fine or you will have to arrange the money from other capital firms or from the banks. Depending on your requirement bank offers different kind of customized loans. Like if you need fund for purchasing machinery only, or if you want total project finance bank will fund you according to your specific need. ( Related Article: Groundnut Oil Processing Machine >> )

• Selection of a Location for Setting up Machinery

Now, you will need a moderate covered area for the groundnut oil manufacturing plant operation. The space area is depends the quantity of production and on the unit size. For example, for a small scale groundnut oil processing factory , you need to cover an area around 100 square metter for the oil processing, oil packaging, raw materials storage and more. Make sure that the location must have water supply and electricity. For setting up the groundnut oil production unit you, can also avail long term lease in any industrial area. 

• Selection of Groundnut Oil Processing Machine

After determining the space, now you will need to select a right machine because choosing the groundnut oil machine is extremely crucial in this business. You can find a lot of oil milling machines in the international market. Compare the rates and feedback from the industry than decide to go for placing order. The machinery should be best for groundnut oil pressing and oil refining that will be able to produce quality and refined groundnut oil. ( Related Article: Edible Oil Refinery Plant >> )

Typical Machines for Small Scale Groundnut Oil Processing Mill includes: Groundnut Shelling Machine, Cleaning Sieve, Cooking or Roasting Machine, Screw Oil Press , Oil Filter Machine , Oil Refining Machine , Pumps, Conveyor, Automatic Bottling Machine and more. 

• Installation and Commissioning of Groundnut Oil Processing Machines

After selecting the location and procuring the machine, now it is the time to setup the groundnut oil processing machine correctly and make it running normally. If you managed to get some covered space than fine otherwise you can set up the unit under color coated steel roofing sheets.

• Distribution Network

For the groundnut oil mill production business, even it is in small scale. It is very important to get best distribution network. So that you will secure the best channels that will see your groundnut oil reach to the end users.

Small Groundnut/Peanut Oil Processing Plant Working Video

Groundnut Oil Manufacturing Process

Groundnut oil manufacturing process is divided into two methods, the first is mechanical pressing and the second is solvent extraction. Mechanical pressing can extract 85% oil and the remaining oil is extracted by the solvent extraction method. According to mechanical pressing technology, you can divide the peanut oil production process into three phases. These are peanuts preparation, pressing and crude oil refining.

Here are the basic steps to extract the groundnut oil

Step 1: cleaning, step 2: dehulling, step 3: cooking, step 4: pressing, step 5: filtration.

After harvesting groundnut are received at processing facilities. Batches of harvested peanuts will contain whole peanuts in the shell, some shelled peanuts, and foreign objects (e.g., leaves, nodes, weed seed, etc.). The peanuts are then cleaned using cleaning machine so that oil is not contaminated with foreign materials. Therefore, it helps to preform the extraction process as efficiently as possible.

After cleaning, removal of the outer shell is necessary as it does not contain oil. The dehulling process can be done manually by labor, or by use of dehuller to reduce the manpower and shorten production time. The purpose of dehulling before oil pressing is to reduce the absorption of oil by the shell, increase the yield of oil, improve the processing efficiency of the peanut oil processing machine and reduce equipment wear and tear. This oil can also improve cake quality and added value.

Cooking assists in breaking the cell walls and opens the cells that contain the oil. It also decreases the thickness of the oil so that it flows out more easily. Sometimes, pressing is done without heating it. Oil extracted without heating is called cold press oil.

The peanuts are transfer by conveyor and fed through the hopper of screw press machine. Continuous transport of material by the screw shaft causes pressure to increase to a level needed, which increases friction inside the screw press and generates heat which lowers viscosity of the oil in the crushed seeds thereby increasing the oil flow rate. The oil and cake are usually collected at the oil outlet and press cake exit /choke gap.

After pressing, crude peanut oil still remain impurities in the extracted oil. To aid in the removal of the remaining impurities, oil filter press machines are usually employed. The filtration systems are able to remove large and small size particulates, and even water from the oil. Read more : Groundnut Oil Refinery Process

Equipment & Machinery for starting Groundnut Oil Manufacturing Business

Some of very important Groundnut Oil Mill Machinery and Equipment are:

• Groundnut Decorticator
• Cooker / Kettle
• Oil Expeller Machines
• Crude groundnut oil storage tanks
• Oil Filter Press Machines
• Oil Refinery Machines
• Bucket Elevator
• Screw conveyor
• Filtered oil storage tanks
• Volumetric filling machine
• Storage drums

Cost of Groundnut Oil Production Plant

The investment in oil mill machinery & equipment is closely related to production output and selection of extraction machines. Feel free to contact us and tell us your requirements, then we can offer the best customised business plan and help on process design, equipment selection, factory layout, cost details and profitability of peanut oil production.

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Groundnut Oil Production Business Plan in Nigeria

• Post author: Ane
• Post published: January 10, 2020
• Post category: BUSINESS-PLAN-AND-FEASIBILITY-STUDY / Business Tips
• Post comments: 0 Comments

Groundnut Oil Production Business Plan in Nigeria is a business plan for groundnut oil production. Therefore, it’s very relevant for small and medium scale groundnut oil processing mill. In fact, it’s very suitable for all sorts of vegetable oil. In fact, other related extraction business plan in Nigeria needs it too.

Furthermore, we develop groundnut oil production business plan for vegetable oil manufacturers. We do same too for distributors and marketers. So, if you fall in this category of business, this business plan is for you.

Introduction:

Table of Contents

Complete Groundnut Oil Company is a start-up groundnut oil production company. Therefore, it’s involved in production of quality and affordable groundnut oil. In addition, are other by-products as groundnut cake. And other groundnut oil derivatives. Our target market are consumers in the Middle Belt region of Nigeria. However, our expansion programme is targeting at other parts of Nigerian. They are going to be our gateway to international market.  Currently, we are located in Suleja, Niger State.

Groundnut Oil Production Business Plan in Nigeria – The Company

Complete Groundnut Oil Company is established as a limited liability company. It’s owned by Ndudiri Ane. He is the major shareholder. Other investors are Faith Mma and Gift Onyi. Their stake holding is 20% each.

The firm is managed and directed by Ndudiri Ane. Mr. Ane is a veteran agriculturist. He has spent his life time as industry processing manager. He worked for ABC Processing Industry Ltd, Kaduna. His experience is a great wealth for our business.

To be among the first 5 largest Groundnut oil producer in Nigeria by 2025.

• To give our customer the very best hygienic products
• Excellent customer service.
• To provide an excellent, healthy and safe environment for groundnut oil milling,
• In addition, is excellent packaging and distribution services.
• Contribute to our national GDP, even as foreign exchange earner.
• Increased revenue to N30,000,000 in years 2.
• Gross profit margins at 20-25%
• And 15% Net profit margin through efficient cost minimisation strategies.
• Furthermore, image enhancing strategies for our business through both local print and digital media.

KEYS TO SUCCESS

Leveraging on the industry experience of our Director/CEO, our keys to success shall be anchored on –

• Low operating cost based on efficient processing techniques.
• Efficient and highly motivated marketing team.
• Installation and maintenance of Hygienic and safe processing facility
• Maintenance of human friendly processing environment.
• In addition, are the acquisition of necessary regulatory licences for our processing mill.

Furthermore are –

• Offering quality processed products.
• Outstanding customer service
• Faster processing duration.
• And, finally, Financial stability.

Products and Services

Complete Groundnut Oil Company will sell processed groundnut products which include:

• Groundnut oil – with additive varieties
• Groundnut cake.
• Other groundnut derivatives,
• Consultancy Services
• Equipment time renting – contract processing services

We will therefore, procure, process and package our products to meet industry standards. In fact, we are especially designed to meet SON and international standards.

Furthermore, our products are designed to providing products that suit the many users of groundnut oil. These are for edible or industrial uses.

Competition

Competitors for Complete Groundnut Oil Company are Sharada Oil Mills. Others are Starlex oil and Agon Bello Global Services.

However, our competitive edge includes –

• The use of modern milling equipment ,
• Excellent customer service,
• The expertise of our founders,
• Unique branding and penetrative marketing etc.

Management Team:

Ndudiri Ane:

He is the Chief Executive Officer (CEO). A veteran agriculturists who specialises in processing technique. He has over 35 years industrial experience in this.

He obtained B. Agric from Obafemi Awolowo University Ile-Ife, 37 years ago. In addition, he has  also obtained a master’s degree in business administration (MBA). He is in charge of strategic planning and management.

Faith Mma and Gift Onyi:

These two are viable hands in this company. Both are graduates from reputable universities in Nigeria. While Faith majors in industrial chemistry, Gift is a Chartered Accountant.  They have a cumulative  industrial experience of over 25 years.

Therefore, Faith is the Factory Manager. Gift is the Accounts/Admim Manager.  

In summary, we are determined to manage the firm to profitability level. .  This we will do with enhanced production, marketing and sales approaches.

In addition, we will install quality assurance processes. This is to ensure upgrade  of our products and services. And to meet with the taste of time.

Furthermore, we will ensure excellence delivery of products and services. Therefore, we plan to achieve this  by employing only efficient hands.

In fact, our target is to build a team of exceptional goal getters

Financial Plan @ Groundnut Oil Production Business Plan in Nigeria

Complete Groundnut Oil Company seeks N18 million in long-term financing. That is to cover start-up costs. These are equipment and tools. Others include, factory and administration building expenses. And working capital.

As a matter of fact, the business reaches a positive cash flow in the first year. Our Reserved account shows availability of fund. That is to start repayment of the loan from the third year.  It also shows that we can afford to pay dividend from the fifth year. Our turnover will hit our N200m target in the third year. That also shows a gross margin of 31% in the 2nd year of operation.

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Call for Complete Package:

As you can see, this is an overview of Groundnut Oil Production Business Plan. Therefore, if you need the complete part of the business plan contact us. In fact, call +234 8034347851 or mail to [email protected] .

Finally, if you enjoyed this post, help share it to reach others. Follow us on any of our social media for your updates. Thanks for reading through. Ensure you always visit http://completefmc.com

Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.

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How To Write a Business Plan for Groundnut Oil Business in 9 Steps: Checklist

By alex ryzhkov, resources on groundnut oil.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Are you looking to start a groundnut oil business? According to recent statistics, the global demand for edible oils is expected to reach $130 billion by 2024 . With such potential for growth in the industry, now is the perfect time to start your own groundnut oil business.

However, before launching your business, it is crucial to have a well-written business plan in place to guide your operations. In this article, we will provide you with a checklist of 9 key steps to help you write a comprehensive business plan for your groundnut oil business.

From conducting market research to identifying potential suppliers, each step is essential for your success. By following this checklist, you can create a solid plan that outlines the necessary steps to turn your business idea into a profitable venture.

With the right research and planning, you can build a successful groundnut oil business that serves the needs of your target customers and brings in profits for years to come.

Conduct Market Research

Before starting your groundnut oil business, it is essential to conduct market research. This research will help you understand the demand for your product, your target audience, and your competition. Here are some important steps you should follow to conduct successful market research:

• Define your research objectives: Your research objectives help to guide your research and provide clarity on what you want to achieve from your research.
• Identify your target market: Identify who your potential customers are, what their wants and needs are, and what drives their purchasing decisions. This understanding will help you tailor your products and services to meet their needs.
• Analyze your competition: Conduct a thorough analysis of your competition, their offerings, and their pricing structure. This analysis will help you create a unique selling point for your business that sets you apart from the competition.
• Define your unique selling proposition (USP): Your USP should explain why your customers should buy from you and not your competitors. Understanding your USP can help you create a targeted marketing message.
• Gather data: Collect data through surveys, focus groups, and online research. This data will help you make informed decisions about product development and how to reach your target audience.
• Use social media platforms to gather information about your competition and target market
• Attend trade shows and industry events to network and gather information about the industry
• Engage with potential customers through online forums to get feedback on your product or service

Conducting thorough market research will help you make informed decisions about your groundnut oil business. Armed with this information, you can devise a solid business plan and marketing strategy that will set your business up for success.

Identify Your Target Customer

The success of any business largely depends on how well you know your target customer . This step is where you decide the kind of customers you want to sell your groundnut oil to and how to market effectively to them. To get started, consider the following:

• What is the age and gender of your target customer?
• What are the preferred uses of groundnut oil among your target customers?
• What income bracket are they in?
• Where do they typically shop for groceries?
• What is their preferred method of communication (social media, email, text, etc.)?
• Consider using surveys and focus groups to gather information on your target customer.
• Use data from your market research to create customer personas or profiles that help you understand your customers' needs and preferences.
• Keep your target customer in mind when developing your marketing and branding strategy.

For instance, if your target customers are health-conscious individuals or those who prefer organic products, then you need to brand your groundnut oil accordingly. You may also consider partnering with health food stores or food blogs that cater to this customer group.

On the other hand, if your target customers are retail stores or supermarkets located in urban areas, then you might need to focus on branding your product's convenience and affordability. You may consider offering bulk discounts, flexible payment plans, and free delivery services to attract this customer group.

The idea is to identify your target customer and tailor your business plan to attract and retain them.

Analyze The Competition

One of the critical steps in starting a groundnut oil business is analyzing the competition. This means gaining an understanding of the companies already operating in the same space as your business. This analysis can clue you in on what works, what doesn't, how to differentiate yourself, and what problems to avoid.

An essential factor in analyzing your competition is doing research on their products and services. This means analyzing their price points, distribution networks, production capacity, and customer target market. Their marketing strategies and advertising messages also play a vital role in determining what marketing efforts are successful in the market.

Tips on Analyzing Your Competition

• Visit their website regularly to track news and updates about their products and services.
• Engage with their social media accounts to see what their customers are saying and how it's impacting their business.
• Visit their physical locations or purchase their products to get an in-person experience.
• Attend industry trade shows or exhibitions where your competitors will be to learn more about their operations and strategies.
• Use online tools to monitor their search rankings and digital marketing campaigns.

It's also important to identify their strengths and weaknesses . This analysis helps you understand how your business can leverage your strengths and capitalize on their weaknesses. It's also important to identify unique selling points that can give your business an edge in the market.

The competitive analysis also gives you an idea of how you should price your products . You can't price your products higher than your competition if they have better quality or if they offer added value to the customers in terms of their product or services. However, if you can identify areas where you can provide more value to your customers, you may be able to increase your prices.

Finally, review and update your competitor analysis regularly . The market is ever-changing, and new competitors may emerge. Keeping track of your competitors and the industry trends can help keep you ahead of the game.

Decide On Your Business Structure

When starting a groundnut oil business, one of the most important decisions you will need to make is choosing a business structure . The structure you choose will have an impact on your business's taxes, legal liability, and operations.

Some common business structures to consider include:

• Sole Proprietorship: A business owned and operated by one person. This structure is simple to set up and provides complete control over the business, but the owner is personally liable for business debts and obligations.
• Partnership: A business owned by two or more people who share profits and liabilities. Partnerships can be formed as general partnerships or limited partnerships. Each partner is personally liable for the partnership's debts and obligations.
• Limited Liability Company (LLC): A business structure that combines the liability protection of a corporation with the tax benefits of a partnership. Owners are not personally liable for the LLC's debts and obligations and can choose how they are taxed.
• Corporation: A legal entity that is separate from its owners. Corporations offer the greatest liability protection, but are subject to more regulations and taxes than other business structures.
• Research and compare the advantages and disadvantages of each business structure before making a decision.
• Consider consulting with a lawyer or accountant to help you choose the structure that is best for your business.
• Remember that you can change your business structure as your business grows and evolves.

Once you have chosen a business structure, you will need to register your business with the appropriate state and local authorities. This may include obtaining a business license, registering for taxes, and filing other necessary paperwork.

Remember that choosing a business structure is an important decision that will have long-term implications for your groundnut oil business. Take the time to do your research, and consult with professionals if needed, to ensure that you make the best decision for your business.

Identify Your Funding Sources

Starting a groundnut oil business requires significant capital investment, which may be obtained from various sources. Identifying the right funding sources for your business is crucial, as it can impact the future growth and sustainability of your enterprise.

• Personal funds: You may choose to invest some of your personal savings to start or grow your business. This may include your retirement savings, inheritance, or personal assets such as property or valuable possessions.
• Bank loans: A bank loan is a common and traditional way to finance a business venture. You may apply for a small business loan or a line of credit from a mainstream or local bank. However, you may need to provide collateral or a business plan to support your loan application.
• Angel Investors: You may consider approaching angel investors who may be interested in investing in your business in exchange for equity. Angel investors are individuals who typically invest their funds in start-up businesses with high potential for growth and profitability.
• Venture Capital: Venture capitalists are companies that invest funds in start-ups or emerging businesses that have high growth potential. Unlike angel investors, venture capitalists seek to invest in businesses that have innovative ideas or products that have the potential to disrupt markets.
• Crowdfunding: Crowdfunding has become popular in recent years, whereby businesses may raise funds from a large number of individuals through online platforms. This may include rewards-based crowdfunding or crowdfunding for equity. However, it requires effective marketing and promotion to attract investors to your business idea.
• Research various funding sources to determine which ones are best suited to your business.
• Create a business plan that outlines your funding requirements and repayment terms.
• Prepare a solid pitch to persuade investors on the viability and profitability of your business.
• Be prepared to negotiate with investors on the terms of investment.
• Always seek professional advice before entering into any funding agreement.

Identifying the right funding sources for your groundnut oil business is crucial to achieving your business goals and objectives. You may need to combine different funding sources to meet your capital requirements, depending on the scale and scope of your business. Always seek professional advice before entering into any funding agreement to ensure the best outcome for your business.

Develop Your Marketing Strategy

Creating a comprehensive marketing strategy is an essential step for any business, including a groundnut oil business. It will help you define your target audience, communicate your value proposition, and generate sales. Here are some important steps to follow when developing your marketing strategy:

• Identify your target audience: Determine who your ideal customers are, including their demographics, location, and their needs and preferences.
• Determine your USP: Identify your unique selling proposition (USP) that sets you apart from your competitors. This can be a particular quality of your groundnut oil or a commitment to sustainability or fair trade practices.
• Create a branding strategy: Develop a visual identity that reflects your brand values and communicates your USP. This includes your logo, packaging, website, and social media profiles.
• Plan your digital marketing: Use social media, email marketing, and content marketing to promote your brand, build your audience, and generate leads.
• Explore traditional marketing channels: Consider advertising in local newspapers, participating in food and trade shows, or sponsoring community events to market your groundnut oil business.
• Develop a sales strategy: Determine how you will sell your products and interact with potential customers. This can include in-person sales, online sales, or partnering with retailers or distributors.
• Measure your results: Track your marketing efforts and analyze their effectiveness. This will help you refine your strategy and improve your outreach and sales.
• Use social media platforms to share recipes and cooking tips that use groundnut oil as an ingredient. This can help educate customers about your product and generate interest.
• Consider offering discounts or promotions for first-time customers to encourage them to try your groundnut oil.
• Partner with local restaurants or food businesses to showcase your groundnut oil as an ingredient in their dishes.

Identify Potential Suppliers

When starting a groundnut oil business, it's important to identify the right suppliers for the raw materials that you need. You can opt to go into the local markets and deal with farmers directly or work with suppliers who deal with farmers on wholesale basis. With the rise of e-commerce, it’s also possible to find suppliers online that can deliver nuts direct to your location.

One of the factors to consider when identifying potential suppliers is the quality of the raw materials they supply. While buying cheaper groundnuts may seem attractive in the short-term, in the long run, it may lead to low-quality oil, which will negatively affect the profitability of your business.

Another factor to consider is the quantity of nuts that you need for your business. Getting the right supplier ensures that you always have a regular supply of nuts for your business and that you do not run out when demand is high.

Important Tips

• Look for suppliers that have a track record of delivering quality raw materials, and they have an excellent reputation in the market.
• Develop a good working relationship with your suppliers. A good relationship paves the way for making negotiations about supplies and price easier.
• Establish clear communication between you and your suppliers. This will ensure that you are getting the best deals available and avoid any unexpected surprises in your supplies.

Once you identify potential suppliers, it's essential to conduct a feasibility study on them to identify the pros and cons of each supplier. Consider factors such as their pricing, payment terms, reliability, and their proximity to your location. This will ensure that the relationship you develop is beneficial to both parties and that your business runs smoothly.

The success of your groundnut oil business largely depends on the quality of the raw materials you use. Therefore, take your time to identify potential suppliers and choose the one that best suits your business needs.

Plan Your Logistics

Once you have identified your target customers and suppliers, it is time to plan your logistics. Your logistics plan should incorporate how you will manage your inventory and distribute your groundnut oil products to your customers. Logistics management is a crucial aspect of your groundnut oil business.

You should consider the following factors when creating a logistics plan for your groundnut oil business:

• Transportation: Determine the type of transportation you need to get the groundnut oil from your location to your customer. This could be through outsourcing to any reliable transport company.
• Schedule: Develop a delivery schedule that is convenient for both you and your customers.
• Inventory management: Establish a system for tracking your inventory, including raw materials, packaged products, and finished products.
• Technology: Consider adopting technology that makes your logistics operations more efficient and effective, such as a customer ordering interface.

Tips for Planning Your Logistics

• Consider outsourcing your logistics to a company that specializes in groundnut oil business. This could save you time and resources.
• Use inventory management software to monitor your stock levels to avoid stockouts or overstocking.
• Develop good relationships with reliable suppliers to ensure a consistent supply of groundnuts.

By taking these steps, you will develop a logistics plan that works for your groundnut oil business. By properly managing your inventory and logistics, you will be able to keep your customers happy and your business profitable.

Determine Your Staffing Needs

Once you have a clear idea of the structure, goals, and processes of your groundnut oil business, the next step is to determine your staffing needs. You may need labor for every aspect of the business from farming to packaging, distribution, and marketing.

Here are some important aspects of staffing to consider:

• You need to determine the roles and responsibilities needed in your business.
• Think about whether you need to hire full-time, part-time, or contract workers.
• Consider the experience, qualifications, and skills you require for each job role.
• Decide on the compensation rates, benefits, and perks you can provide for your employees.
• Consider hiring seasonal workers to cater to the demands for harvesting and packaging during the peak season.
• Outsourcing the marketing and sales may help you reduce costs and focus on core business functions.
• Building a competent core team can help you in scaling up your business in the future.

Hiring and training staff is an important investment in your business’s success. To ensure you have the right team in place, carefully consider your business’s needs and budget, and bring in individuals who are passionate about the vision of the business and willing to contribute to its growth.

Starting a groundnut oil business is a lucrative venture, but it requires thorough planning and preparation. By following the nine steps outlined in this checklist, you can create a solid business plan that will help you launch and grow your business effectively.

Conducting market research, identifying your target customer, analyzing the competition, deciding on your business structure, and identifying your funding sources are all essential steps to take before starting your business. Additionally, developing your marketing strategy, identifying potential suppliers, planning your logistics, and determining your staffing needs will help ensure your business runs smoothly and successfully.

With a well-planned business strategy, your groundnut oil business has the potential to succeed and potentially expand into other products made from the extracted oil.

• Conduct market research.
• Identify your target customer.
• Analyze the competition.
• Decide on your business structure.
• Identify your funding sources.
• Develop your marketing strategy.
• Identify potential suppliers.
• Plan your logistics.
• Determine your staffing needs.

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