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Palm oil business in Nigeria

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Are you really interested in starting a palm oil business in Nigeria and need advice on how to do it in 2021?

If that is why you came to this website, then continue reading.

There is currently a revolution underway in the agricultural industry around the world and Africa in particular.

To begin with, I suggest you have a business plan or feasibility study sample for the start-up.

As of 2011, Nigeria was the third-largest producer of palm oil, with over 2.3 million hectares (5.7×106 acres) under cultivation.

As the market price for palm oil increases in Nigeria, it creates lots of business opportunities for entrepreneurs.

The oil palm is an oil crop that has spread throughout the world thanks to its high production potential.

Compared with other oil crops, their yield in terms of oil per hectare, which averages around 3.7 tons, exceeds traditional oilseeds such as soybean, rapeseed, sunflower, and olive.

Seeds that currently seek to increase this yield of oil per hectare are cultivated by the application of biotechnology.

However, given its importance in terms of oil yield and area planted especially in countries like Malaysia, Indonesia, Nigeria, Thailand, Colombia, New Guinea, Cote d’Ivoire, Costa Rica, Honduras, Brazil, Ghana, Guatemala, and Nicaragua.

Consequently, the high production of palm oil in the world highlights the upward trend that has maintained the production of palm oil plants.

Despite occupying second place in the world production of oils and fats, after soybean oil, palm oil is the oil that is sold the most in the world, far surpassing the exports of its closest competitor.

Exports of palm and soybean oil represent just over 70% of the world’s total.

Malaysia and Indonesia, the leading producers of palm oil, are also the most important countries exporting oils and fats.

Together, both nations represent almost 50% of the total exported volume of oils and fats in the world.

t is followed by Argentina, the United States, Brazil, and the European Union.

What Is Palm Oil Profit Per Hectare In Nigeria?

The palm oil yield per hectare is estimated at 8 tons per year at most. On average, most farmers record a profit per hectare of around 3.4 tons per year.

The profit you get from your oil palm plantation per hectare depends on several factors.

The effects of pests, as well as other diseases, should be taken into consideration as this can hugely affect the overall yield.

Moreover, the age of the palm tree has an effect on the yield or output. The peak production of oil palm plantations is between seven (7) and eighteen (18)years after which it declines.

As a farmer, you will experience the lowest and peak palm oil yields per hectare as you journey through the business.

When you hit the sweet spot and start making an unprecedented profit along the line, you need to know that it will not always be the same.

It is, however, prudent to keep the yield per hectare above average.

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