Post by Ismail AbdulAzeez on Jun 25, 2019 15:43:00 GMT 1
Palm oil is the natural oil extract from palm three fruit. It is generally accepted and widely used, not only in Nigeria but around the world.
Palm oil is known to be an excellent source of bio available calcium and least allergic of all edible oil available. The demand for palm oil, for commercial, home and even industrial purposes will continue to increase which make specially it a lucrative business, with rewarding income.
Palm oil is an economic product that is highly demanded for domestic and industrial use. Palm oil derivatives are widely used in the pharmaceuticals and cosmetics industry. It is also used in the production of printing ink, drilling fluids and water-treatment products. It offers so much of economic value to an investor.
As global population increases and economic growth accelerates, the demand for palm oil continues to rise. This growing demand provides rewarding opportunities for oil palm traders and investors.
We are confident that this investment will yield huge profits and opportunities in the international market. The global palm oil market is worth hundreds of millions of dollars every year.
Benefits of Palm oil Business
Great opportunities abound for entrepreneurs to make money in the growing and successful global palm oil business. The business is that which has enormous potentials for investors.
The total demand of edible oil is 16,570,000 tones and supply is 13,326,000tonnes including the imported edible oil). The demand-supply gap thereby opens up an opportunity for investors in this sector.
Although there are few substitutes to replace palm oil, they cannot meet the high increase for its use in many years to come. Some of the industries include, Cosmetics, Food, Animal Feed, Soap Manufacturing, Confectioneries, and Bio-diesel among others.
Make twice your capital investing in Palm oil business
During harvest, usually between March and May of every year, the prices of palm oil reach very low levels due to the abundance of the product on the market. However, during the off-peak (non-harvest) periods, when palm oil becomes scarce, the prices expectedly become very high.
This scarcity usually sets in between September and December and can see palm oil prices rise by as much as 100 percent. Palm oil scarcity and abundance cycle continues because of inadequate storage facilities to ensure an all-year round supply of red palm oil to the market.
You can buy processed palm oil in large quantities and stock them for export or sale in the local market. It is business wise to set up a stocking program that allows you to buy from the market at very cheap prices during times of abundance and sell back to the market when scarcity sets in.
If you invest N200,000 and wait for 4 months, you will be making profit of another N200,000 without any substantial effort. That is a good deal by all standard and the more money you invest, the more profit you make.
If you decides to trade all season, that will even be better. All you need to do is to find out where it’s being processed in much quantity and buy at cheap price from there, transport it to the city and sell at good price, repeat your journey as often as you can and make money all year round.
Sourcing for Palm oil
You can buy palm oil from local producers during the harvest periods and store them away in huge containers and barrels until the scarcity periods when you can sell them in towns and cities and export for huge profit.
Palm oil’s ability to retain its natural consistency, even at high temperatures, allows it to withstand long storage periods, usually up to one year. This advantage allows an investor enough time to gradually sell off the product and make good profits in the process.
Palm oil is one of the commodities constantly in high demand in Nigeria. There is never a time it wouldn’t be a hot cake in the market and it is consumed at the same rate as staples such as rice and garri.