The Making Of Groundnut Oil: How To Start This Business In Nigeria

Groundnut is a plant that is herbaceous. It normally germinates up to a height that reaches 20-60cm. This depends on the species. The crops germinates side ways and upright with shoots having a breadth that is between 70 and 80cm. The major stem often remain upright.

There is penetration of the taproots to a depth that is between 90 and 120cm. This forms branches inside the higher level of soil. Rhizobia and mycorhiza populate the soil.

What Kind Of Soil Do Groundnuts Require?

The crop germinate in a PH value of (6.0-6.5). The PH value is acidic and a PH value of 5.5 to 7.7 can still function. This crop is also sensitive to soil with much content of soil.

Groundnut Cultivation Process

The planting of the peanuts should take a crop rotation of 3 years. There will be accumulation of soil borne diseases if crop rotation is not the tool here. Loss of humus can also happen due to too much loosening of soil as harvesting goes on. However the plants have a proper enrichment capacity and this is applicable to a non legume.

The Use Of Groundnut In Nigeria

The oil is a part of cooking in almost every home in Nigeria. From frying of tomatoes to frying of fish, akara etc, the oil have remained in high demand.

Most of the cooking in Nigeria make use of groundnut oil. Many dishes in Nigeria utilise this oil. There are many groundnut oil producing companies in Nigeria.

There is current ban in the importation of this oil in Nigeria. The production of this oil in Nigeria is not enough for the Nigerian population. Making this oil in Nigeria is profitable and there is an increasing demand for it in Nigeria.

The population of Nigeria now is above 140 million and these people are consumers of groundnut oil.

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The oil can undergo mixing with soya bean and this can become food for domestic animals.

Cost Of Groundnut Oil Business

The business cost depends on the scale of production. Medium and large scale production requires 10-15 million naira.
The cost covers:

• equipment
• operational and transportation cost
• land
• furniture

How Profitable Is Groundnut Oil Business?

The cost breakdown of 500 litres is below:

A ton of the seed of this crop makes 500 litres of oil and this is with 42kg of cake of groundnut and 40kg of this groundnut. The ton of oil costs N20000. 75cl of the oil costs N300.
Now proceeding with the calculation and with the limit for the mill to be 3.5 ton on a daily basis.

This is profitable. There is a profit potential of 3000000 each month.

Steps To Open A Groundnut Oil Business

1)

Do your research for your groundnut business

You have to first do your research. Collection of data is necessary. When doing your research you consider the following:

a) What species do I deal on?
b) What are the necessary qualities of the oil?
c) When should you plant and reap it?
d) What are the main components of this oil?

This exploration will inform you on the processing of groundnut oil.

2)

Get a good business plan for your groundnut oil business

The use of business plan is among the strides that are relevant. A business plan breaks down the details of the requirement for this option. Go for business plan services if you will not do it yourself.

3)

Get trained and get skills for making groundnut oil

You will have to do the training if you are not yet with procedures for this business. Running a groundnut firm involves certain measures. If you do not know these things, then get the training.

4)

Get a convenient location for your groundnut business

Get a location that is convenient for this business. The location can be an industrial zone. It should be accessible and possess adequate power supply. It should also be strategic in position where people can know you do this business.

5)

NAFDAC

Food making businesses like this oil business need to get registered. This is because there are regulations guiding the making of this crop.
When you register with NAFDAC, you can now go ahead with your business.

6)

Capital

This business is a capital intensive business. This means that much of the capital has to be there before you can start. Ensure that you have the capital. The business is profitable on the long run and you have to possess the necessary capital.

7)

Get the staff for your groundnut business

When you begin this business, you will notice that you need to employ people. Get the appropriate staff. You can begin with few staff and get more staff as times go on.

8)

Marketing your groundnut oil

You now market your oil after production. This involves advertising. You can transport to locations away from your place of production. Effective marketing strategies should be put in place.

Nevertheless there is already a market for groundnut oil in Nigeria.

Groundnut Oil Making Process

You follow the steps below to make your groundnut oil:

a)

Getting the groundnuts

Get the quantity that you need for production. You may decide to be dealing directly with the farmers. Groundnut farmers may supply them to you at cheaper prices. You may also decide to supply.

Go to the market to buy the groundnut for the oil.
Another option for you is to engage in the farming.

b)

The groundnut for your groundnut oil has to be in a hygienic state

Do not use dirty groundnuts for this business. Break the nuts and you can also use a machine for this. Fry it for some minutes. You may also wash them in a water that is cold.

c)

Groundnut soaking

The next process is to soak the nuts in a bowl that is clean. After this you put warm water inside. Let the crop soak inside water for about ten minutes. This make the peanuts to get softer.

d)

Groundnut blending

Draining of water is the next step. A blending machine is suitable for this. The blending should make the crop smooth like butter. You can add a little water to make it blend.

e)

Refrigeration

Put the paste of peanut inside a container that is airtight. Cover the lid in a tight manner. You can leave the container in the fridge for not more than 24 hours. Leave it for sometime after which the oil goes up to the top of the vessel.

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f)

Oil separation

Separate the oil away from the paste after the oil rises. A machine can also do this. The straining happens until you get a paste that is dry.

g)

Oil storage

You can use a straining machine for this. The oil press machine has a role to play.
The following machines are necessary for groundnut oil mill:

• the corticator
• the expeller of oil
• the child boiling machine
• the pot for cooking

Conclusion

The oil which is palatable is a popular product in Nigeria. Some products using soya beans, cotton seed, palm oil product and melon involve processing with groundnut oil and cake. This business involves capital. Also every home in Nigeria cook with groundnut oil.

The cost of production depends on the scale. There is also Nigerian government’s ban on the importation of groundnut oil. This ban is an enhancement for the local manufacturers in Nigeria. The quantity of this oil currently under production is not adequate and this results in the need for more manufacturers.

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