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Palm kernel oil {PKO} is an important and cheap source of
oil for soap manufacturers ,bio-fuel, cooking oil, vegetable ghee, Shortenings,
Margarine, CBS,CBE, ice cream, dough, creaming, coating, and other specialty
fats.
Palm kernel oil {PKO} is derived from the milling of
cracked palm kernel nuts while palm kernel cake is a bye-product gotten from
the processing of palm kernel oil. They form a very important part of the feeds
of animal.
"Oils" is a collective term for more or less
viscous, generally organic-chemical liquids. Depending on their chemical
composition, a distinction may be drawn between fatty, essential, mineral and
silicone oils. Fatty oils include liquid, semisolid and solid products of
vegetable and animal origin. Palm kernel oil is a white to yellowish oil of
vegetable origin which is solid at normal temperatures and is obtained from the
kernels of the oil palm (Elaeis guineensis). It is one of the best oils. Palm
kernel oil is different from palm oil, which is obtained from the flesh of the
fruit.
Four {4} products namely palm kernel oil, palm kernel cake,
palm kernel sludge and palm kernel shell {crushed} which is used as a bio-fuel
can be gotten from palm kernel nuts.
The Market for the palm oil, palm kernel oil and palm
kernel cake in Nigeria is huge and expanding. The estimated size of the local
market is put at about N3 Billion for Palm Oil, N4.24 billion for Palm kernel
oil while Palm Kernel Cake is N3.3 billion.
In 2005, in order to stimulate local production and attain
self sufficiency in edible oil production, the government introduced the
presidential initiative on the development of edible oil over a period not
exceeding three {3} years. Under this initiative, attention was focused on the
promotion of eleven scheduled oil seed crops which are oil palm seed, groundnut
seed, Soya beans seed, cotton seed etc and production target was set for each
of the crops under the programme as follow
1. Oil Palm: 1 million hectares capacity of producing 15
million fresh fruit bunches
2. Groundnut: 15 million tones annually
3. Soya beans: 670,000 1 million tones per annum
4. Seed Cotton: 1 million tones over the plan period
After seven {7} years of the initiative, the domestic
edible oil demand far exceeds the national production. The short fall in supply
estimated at about 50,000 tons per year.
This deficit in supply creates a seller’s market for the
palm kernel oil in Nigeria and an opportunity for savvy investors to tap into.
There are companies in Nigeria willing and ready to palm
kernel oil from sellers and the return on investment of the business is
estimated between 10%- 15%.
To continue reading this article and other investment opportunities in Nigeria, please do click on the link below
SUPPLY PALM KERNEL OIL {PKO} TO LOCAL INDUSTRIES IN NIGERIA AND MAKE HUGE PROFIT.To continue reading this article and other investment opportunities in Nigeria, please do click on the link below
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Report Code: FORA/08/2012/106
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