Groundnut Oil Production Business Plan in Nigeria
Groundnut oil is essential to so many foods in Nigeria and other parts of the world. Considering the high demand for this product, it means that you can make a huge income from it. You can produce vegetable oil from several seeds such as soybeans, sesame seeds, cottonseed, and groundnut.
In this post, we will focus more on producing oil from groundnut as it is the most famous way in Nigeria. The beauty of this process is that you can also get other products from this process such as groundnut cake.
Read: Palm Kernel Oil Production Business Plan
Have you been searching for a way to invest in the groundnut oil business in Nigeria? You just picked the right article. We will show you how as well as provide you a sample business plan to help you out.
Sample Business Plan on Groundnut Oil Production in Nigeria
We put together this plan after a lot of research. It can be used to apply for grants and loans as well as to run your business. Since it is a sample business plan, this is only an abridged version. If you need to full version, you can reach out to us and get it for a small fee.
Now let’s get to the sample business plan for groundnut oil business in Nigeria.
Business Name: Gee Nut Oil Nigeria
Location: Kogi State
Industry: Agricultural and Food Processing
Gee Nut Oil Nigeria is a new company focusing on the production and processing of groundnut oil. The company has a farm where it cultivates its groundnut. From here it facilitates the processing, sales, and distribution of affordable but high-quality groundnut oil and other related products.
These products are basic groundnut oil derivatives as well as groundnut cake. All of these are targeted at meeting the groundnut oil needs in the Middle Belt Region of Nigeria. Gee Nut Oil Nigeria has its facility located in Lokoja, Kogi State, Nigeria.
Company Vision
Gee Nut Oil Nigeria desires to be ranked among the biggest producers of groundnut oil and its derivatives within the first five years of operation.
Company Mission
Our mission is to provide our target audience the best products on the market at affordable prices. We seek to provide very healthy products and top-notch customer services to satisfy every customer. This will lead to us gaining their trust and recycling patronage. We also seek to produce within a safe and healthy environment meeting up to required industry standards.
Business Objectives
To ensure that we achieve our business mission and vision, we have set specific objectives in place. We believe that achieving these objectives will be instrumental in becoming one of the biggest groundnut oil companies in Nigeria. Our business objectives include:
- Raise our company revenue to above N30,000,000 after the first 2 years of production.
- Ensure that profit margins stabilize around 20% to 25% within the first two years. To achieve this, we believe we need to pay a lot of attention to production expenses.
- Drive brand awareness as well as generate sales by taking advantage of the different social media channels.
Keys to success
Every company needs to establish a clear path to achieving their goals. This clear path is known as “keys to success.” After lots of research, we have come up with these keys to success to ensure that we achieve our objectives.
- Attain financial stability through the sales of our products.
- Ensure that we lower operating costs as much as possible while maintaining the quality of our products.
- Recruitment of an efficient team that is highly motivated and ready to attain new heights.
- Ensure that our production facility is hygienic and safe for the manufacture of healthy products.
- Acquire the necessary licenses to ensure unhindered production.
- Consistency in offering high-quality processed products.
- Faster processing duration and offering outstanding customer service to our customers.
Products and Services
Gee Nut Oil Nigeria will be focused on the processing, sale, and distribution of groundnut oil products and derivatives. Along with this, we will offer our equipment for hire to other businesses interested in groundnut oil production. Finally, we will offer consultancy services to other businesses and customers as well as training programs in groundnut oil production.
Competition Analysis
Several huge companies are invested in the Nigerian groundnut oil industry. This means that the competition is very huge for Gee Nut Oil Nigeria. As a startup company, we have carried out a lot of research and we understand exactly what it takes to seize the market.
We will be able to knock off the competition and gain more patronage if we can:
- Build a strong marketing team that can push the boundaries and helps the brand attain recognition.
- Leverage on our hygienic production processes and customer service.
- Provide top-quality products at very affordable prices.
Financial Considerations
To start up Gee Nut Oil Nigeria, we need a sum of about N10 million. We hope to get this via long-term financing. This sum will cover start-up costs, building expenses, purchase of equipment, and working/running capital. We intend to raise this amount from partners and a loan from the bank.
We forecast that around the tenth month of operation, this business will attain a positive cash flow. This achievement will make it possible to expedite the repayment of the loan.
Please note that this is only a sample business plan which is why it is abridged. If you need the full business plan, reach out to us and we will make it available at a subsidized price.
Get your Groundnut Oil Production Business Plan in Nigeria and feasibility study. pay N10,000 to:
Bank Name: Guaranty Trust Bank (GTB)
Account Name: Chibuzor Tochi Onyemenam
Account Number: 0044056891
After payment, send your name, email address and tittle of business plan (e.g. feasibility study on groundnut oil production in Nigeria) to 07033378184
How to Start a Groundnut Oil Production Business in Nigeria
The first thing you should remember is that currently, there is a ban on the importation of groundnut oil in Nigeria. This means that investing in this sector could become a money-spinner for you. Groundnut oil production is hugely lucrative if you can sap the juices.
There are specific steps to help you start and run a successful groundnut oil business in Nigeria. Let’s show you some of them below.
Learn the trade
Starting this business, or any business at all, without learning the trade could be disastrous. The groundnut oil business requires a level of expertise that comes from studying hard. Find out about the desired market quality, how groundnuts are planted, reaped, and processed.
Learn about the process of extracting oil from groundnuts and the use of the other derivatives. The best way to learn this is from an existing producer. During your time as an apprentice, you will be exposed to the production processes that will help you build your business.
Feasibility study and Business Plan
After learning the trade, take the time to study the industry and carry out a detailed feasibility study. This will help you discover the pitfalls and challenges in the industry. It will also show you what is more in demand and what your competitors are doing.
Use this information to write a business plan that will help you run the business. Many business owners neglect writing a business plan which is why most of them fail. Asides running your business, a business plan is also instrumental in helping you raise funds for your business.
Register your business
If you are going to be considered a serious business, then you must register. In Nigeria, this registration is done under the Corporate Affairs Commission (CAC). Follow through by registering with all the other necessary agencies like NAFDAC and SON.
This registration gives your product certain credibility and helps you gain the trust of potential customers. It also helps you avert unnecessary embarrassments in the future.
Choose a location
When choosing your business location, there are several things to put into consideration. One of these is the proximity of the location to the source of raw materials. Another is accessibility to the market and customers.
It is also important to find a production location that is equipped to avoid polluting the immediate environment. Polluting the environment might lead to sanctions and affect the reputation of your brand. Remember that even though it is a production facility, you also need space to meet with customers.
Acquire funding
Without funds, no business can work. The groundnut oil business needs quite an amount of capital to start. There are several ways to raise funds for your business including personal savings, loans, and gifts. Your business plan should give you a clear picture of how much you need to start your business.
Market your business
This is a very important step because if you get everything else right and miss this step, there’s still no profit. There are several ways of marketing your products. Find the most affordable yet productive methods. Examples include:
- Social media and digital marketing.
- Billboards and flyers.
- Print media.
The profitability of the business
How much profit you make depends on your production levels and how efficient your marketing processes are. It is possible to make up to N13 million or more in a month from this business. How?
Let’s say you produce 3.5 tons of oil daily. Your production costs for a month are likely to fall around N800,000.
One ton of groundnut oil costs N200,000, this means that 3.5 tons will cost N700,000.
This amounts to N14,000,000 if you sell for 22 days in a month. After taking out your cost of production, you should have up to N13.2 million. Although, these costs are based on several market indices.
Conclusion
In this post, we have shown you how to start your groundnut oil business in Nigeria. You have also seen our sample business plan. If you will like the full business plan, reach out to us and we will make it available at a subsidized cost.
Get your Groundnut Oil Production Business Plan in Nigeria and feasibility study. pay N10,000 to:
Bank Name: Guaranty Trust Bank (GTB)
Account Name: Chibuzor Tochi Onyemenam
Account Number: 0044056891
After payment, send your name, email address and tittle of business plan (e.g. feasibility study on groundnut oil production in Nigeria) to 07033378184
Groundnut Oil Production Business Plan in Nigeria © www.businessplan.com.ng
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