Are you interested in starting a palm oil
plantation and you need advice on how to go
about it? Do you need a sample palm oil
plantation business plan template or feasibility
study report ? Then i advice you read on.
LOOK!!! There is currently a revolution going
on in the agricultural industry, not only in
Nigeria but all over the world. Food is an
important necessity of life and the world
governments cannot allow food shortage as it
might lead to crisis. If there is any better time
to start a business in the agriculture sector,
that time is now.
Do you have an undeveloped land in a remote
area, or you inherited a land that you know
you will not be developing in the next ten
years? Then this is the best time to turn that
land into an income producing asset.
Why You Should Start a Palm Oil
Plantation Today
The oil palm tree is one of the most useful
trees ever known. Every part of the tree – from
its fruit to its leaves and trunk, and to its sap
– is used for one thing or the other. While the
fruits are processed into palm oil and palm
kernel oil, the fronds ( leaves) are used for
roofing houses in rural areas and camps, and
the sap ( palm wine ) is a refreshing drink
taken in many parts of Africa.
Palm oil is red in color and is used for
domestic cooking in many countries. It is also
used in the production of soaps and
cosmetics, just like palm kernel oil, which is
made from the same fruit.
If you live in a country like Nigeria, Ghana, etc;
where red palm oil is in huge demand
domestically and industrially, you can make
huge profits by starting an oil palm
plantation. Read on to find out what you need
to know and do to start an oil palm
plantation.
Starting a Palm Oil Plantation –
Sample Business Plan Template
Oil palm plantation simply involves cultivating
oil palm trees. When it is time to harvest, you
will sell your palm fruits to manufacturers,
who would process the fruits to produce red
palm oil. After harvesting and selling, you will
wait until the next harvesting season to sell
again. This can continue for decades, which
means an oil palm plantation can continue to
fetch you huge income for several years to
come.
What are the requirements for starting an oil
palm plantation?
Though it may not sound like a business, due
to the “plantation” tag. But the truth is that,
an oil palm plantation is a business, and you
should regard it as such. This means starting
it requires the same input factors that other
business require, which are land, labor, and
capital. We will now discuss each of these
factors.
1. Land
Since you are starting an oil palm plantation,
you will definitely need a large expanse of
land. This can range from few plots to
hectares of land, depending on what you are
able to obtain.
The first important factor to consider when
acquiring land for your oil palm plantation is
the soil. Is it fertile? Would it be suitable for
growing oil palm trees ? If you are in doubt
over the quality of the soil, then have it
examined by experts. This is very important,
for obvious reasons.
In addition, since your land will be your
production factory, so to say, it must be
located where buyers can easily assess it.
Although you can easily find lands with good
soils for oil palm cultivation, you should
choose one that is motor-able, since most of
your buyers will use large vehicles to convey
oil palm fruits from the farm to the sites of
processing.
After acquiring a piece of land, you will need
to prepare it well for the plantation. It is
highly recommended that you use tractors to
pulverize and loosen the soil and remove hard
roots in preparation for palm seeding.
2. Labor
Though you may not need to hire permanent
staff, you will need to hire individuals to assist
you with each stage involved in starting an oil
palm plantation. For example, you will need to
hire laborers or a tractor operator for the land
clearing process. You will also need to hire
laborers for the planting process. And each
time you need to harvest, you will need to hire
laborers to handle the task for you.
3. Capital
This refers to the money required to start the
business. This includes the cost of acquiring
land – either by buying or renting, the cost of
hiring workers, the cost of maintaining the
farm, and the cost of purchasing the seedlings
that you will be starting with.
The Steps Involved…
Having discussed the requirements for starting
an oil palm plantation, we will now look at the
steps involved in starting an oil palm
plantation.
Acquire land and prepare it for the
plantation
Buy the seedlings that you will plant.
Although you have the option of growing
the seeds yourself, this takes time and you
may end up with low yield seedlings. A
seedling sells for N150 in Nigeria (about
$1). You will need at least 1000 seedlings
for a plantation of moderate size.
Plant the seedling on the already prepared
land. Ensure that there is adequate
spacing between the plants. Without
adequate spacing, the roots will interfere
with each other, leading to limited growth
and low yield. The best spacing is 8-9
meters between any two plants.
Weed the farm and apply fertilizer to the
plants at intervals. This interval varies
with quality of the soil and the rate at
which weeds grow around the plants. You
will need to get an expert’s
recommendation for this.
How long does it take to start harvesting?
Your first harvest will be around two years
after planting your seedlings. So, if you have
the capital and other requirements, now is the
best time to invest into your future by starting
an oil palm plantation.