In the palm oil business, there are three (3) classes; “extractors, producers or manufacturers, and suppliers”.
The extractors are those who pluck the kernel nuts from the trees to sell to companies interested in buying palm kernels.
The producers or manufacturers are those who buy the kernels from the extractors with the main purpose of converting them to red oil popularly know as palm oil.
While the suppliers are those who buy the red oil to sell to the final consumers or retails.
My focus in this article is how you can make millions from the palm oil business as a supplier yearly.
The red oil business is one of the underrated businesses in Nigeria and Africa as a whole.
This business has the capacity of turning you into a millionaire in less than a year. Even the country Malaysia is wealthy just because they focus on this industry.
And the surprising thing is that the Malaysian oil was taken from Nigeria.
So if you still think this business is not something worth looking into, then I really can’t tell what your problem is.
One of the best things about the palm oil business is that; it doesn’t get spoilt, and it is ever in demand in and out of its season.
It is also very easy to store and can last long(years) without any signs of spoilage if properly stored.
Another surprising thing about this business is, you can start with as low as N10,000 and make at least N30,000 as a return.
This business is also something you can do part-time alongside your current job, as it doesn’t require daily activities rather seasonal activities.
These are the things you must know before you start a red oil business as a wholesaler/suppliers
1. Locate the state where you can get the best oil.
Obviously, you should know by now that there are varieties of oil just like you see diverse species of other living organisms.
In Nigeria, palm oil is mainly found in the tropical region and within the tropical region only a few states are best known for producing the best palm oil such as;
- Akwa Ibom state
- Imo State
- Cross River State
All these above-listed states are where you can get palm oil at cheap prices and in good quality.
2. The Best oil to Buy
In locating the best oil there is one major thing to watch out for, which is; the color. if you are just starting it is advised you take an expert along with you.
There are many adulterated palm oil in the market and if you fall victim to any of them, you will not only lose customers you will lose trust.
So if you are a starter in this business, it is either you take someone along with you who knows the business or an expert in the field to help you avoid such mistakes.
Note, when you going to buy your oil, make sure you carry your own jerrycan, for the seller(manufacturer) to turn it into yours.
The reason for carrying your own jerrycan “even though they might indulge you to carry theirs for free” is because; some of these sellers do turn water into their jerrycan, then turn the palm oil on top.
Definitely, you know due to their chemical components, the red oil will never mix with the water instead it will float on top of the water.
So in other to avoid such a situation where you buy your palm oil in march and decide to sell in November, only to find out that it has more water than the oil itself, take your own jerrycans.
The next thing to do after buying the oil is where to store it and how to store your oil.
3. Storage of Oil
Storage of palm oil is one of the easiest to do as it doesn’t require any technological measure.
In storage of the palm oil, one major thing that palm oil doesn’t agree with is sunlight.
This means that at all costs the red oil must be store indoors.
In storing the palm oil indoor, the oil shouldn’t touch the floor, and it should rest on the wall.
In other to prevent that from happening, planks will solve the problem; put planks on the floor and the wall.
That is how easy it is to store your palm oil.
And palm oil can be stored for years without losing its initial taste nor color if properly stored as written above.
4. When to Buy and Sell
The palm oil business just like any other agricultural crop has its own in and out season period.
The best time to buy your palm oil is during its season which is normally between February to June.
From February to June palm oil is very cheap and it is always high from September to January.
This means that the best time to sell is from September to January
From September to January, you can make 100% and above as profit even if your selling skills are bad.
Using last year market price statistics; palm oil was sold for N6,000 per gallon as of march and in November it was N25,000 per gallon that is 400%
Imagin if you had invested N100,000: 100,000 X 400% = N400,000.
And right now in this Buhari regime things are more costly than before. So my advice for you is that you don’t miss the next market opening season of this business which is February to June.
5. Where and how to sell
1. You can sell online.
Selling online is very easy, all that is required is that you meet the basic requirement which is; well-packaged products with an authentic NAFDAC number on them.
The must criteria they will all ask is your NAFDAC number.
To get your NAFDAC approved number is by joining “Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA)” or any other registered small agric group that could be of help.
It is also important to note that NAFDAC won’t approve your product if it doesn’t look appealing to the public (ie the packaging speaks a lot if they are to approve your product).
2. You can sell to restaurants
Selling to restaurants might be tiring but profitable as you might be called upon to deliver within short intervals due to their high consumption of palm oil products.
Selling to restaurants directly doesn’t mean you shouldn’t have your packaging right or your NAFDAC number missing, both are very important.
Matter of fact the restaurants you intend to sell to will only value your product high if they are well packaged and have the NAFDAC numbers.
These restaurants don’t exclude international eateries such as KFC, Mr. BIggs, GT, Chines restaurants, etc.
Though they might have their current suppliers, it is also open for you to pitch your own product to them. That is why you must have your packaging right and NAFDAC number intact.
3. Selling Internationally (EXPORT)
Exporting your red oil might come with a little task, but it is a worthy journey.
You can either join an online platform that allows foreign countries to buy from their sites or you can create a website for your product.
In the case you opt for the creation of the website, it is important to also create Facebook and Twitter ads that have a landing page to your website.
The website might demand a bit more currency (money) just to put it on top of other websites in SEO ranking.
That is why you will have to start with the local market first, when you’ve been able to conquer your local market sufficiently, you can then start the international market.
By then there will be a lot of capital to spare for the building of your brand and website to compete internationally.
I hope you enjoyed this article; “Become a Millionaire from Palm oil business in Nigeria as a supplier”
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