How To Start Palm Kernel Oil Production Business

If you are looking for a business to do with a sure flow of customers; palm kernel oil production business is a good one to consider. Over the years, earnbase has helped quite a number of individuals to start this profitable business. Although, it is not a business you can do with anything less than 2 million naira. That being said, if you have anything above 2 million naira; I strongly advise you to consider PALM KERNEL OIL BUSINESS. On a quick note, I am going to tell you some things you need to know with a small necessary financial analysis.


Palm Kernel is an edible seed from the oil palm fruits. The fruit yields two distinct oils, which are Palm Oil and Palm Kernel Oil. Palm oil is derived from the outer parts, while palm kernel oil is from the kernel nuts.

The palm trees usually produce between 25-35 years, and can live for up to two hundred (200) years. The fruits take up to 5-6 month to mature from the onset of pollination to maturity, Palms and nuts meant for oil are never treated with pesticides and insecticides.

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  • Amount per 100gm
  • Calories -862
  • Total fats 100gm
  • Total Carbohydrate 0.0gm
  • Total Protein 0.0gm

Palm trees are found mainly in Nigeria (Ogun, Oyo, Ondo, Edo, Imo, Cross River etc.) Malaysia, Indonesia, Thailand, Colombia, Equador etc. While Palm oil is the first product derived from palm fruits found on Palm trees; then palm kernel nuts, which is a by-product, is further processed into palm kernel oil and palm kernel cake etc.

DRYING: The dryer is fixed with a heat below at one end of a rectangle equipment. The drying process takes at least three-four hours (3-4hrs). This process is done to release the oil content from the kernel for easy extraction. Drying time depends on the kernel quantity, quality and the size of the dryer.

EXTRACTION: This is the crushing or milling of palm kernel nuts, with the subsequent production of colored palm kernel oil and palm kernel cake. This extractor can mill one ton of kernel nuts in three (3) hours. The colored palm Kernel oil is discharged into an underground tank.

FILTRATION: This is the separation/filtering of the colored oil into clean brightly colored oil, with wet cake and sludge separated. The colored oil is pumped through the filter pressing machine, and it is then discharged into the 2nd underground tank for storage.

STORAGE TANK: The clean but unrefined oil is pump from the 2nd discharge tank into the larger storage tank. Here, the palm kernel oil is stored and ready for supply or usage.


This is the pulp left after oil is derived from the kernel nut, and it is formed into palm kernel cake. Palm kernel cake is used either as high protein feed for dairy cattle or burned into boilers to generate electricity for palm oil mills and surrounding villages. The palm kernel cake is commonly produced by economical screw press less frequently via more expensive solvent extraction.

Palm kernel cake is high fiber, medium grade protein feed, best suited to ruminants among other similar fodders, palm kernel cake is ranked a little higher than copra cakes and cocoa pod husk, but lower than fish meal and groundnut cake, especially in its protein value; palm kernel cake also has 16% fiber, high phosphorus to calcium ratio and contains such essential elements are magnesium, iron, and zinc. The typical ration formulated for the feeding of dairy cattle consist of palm kernel cake 50%, molasses 5%, grass/hay 42%, limestone 1.5%, mineral premix 1%, salt 0.5%, trace element/vitamins.

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  1. Free from cholesterol: This oil is absolutely free of bad cholesterol and also adds taste to the food. This makes it a healthier option as compared to other vegetable oils & butter.
  2. Healthy Heart: Free from trans-fat and cholesterol, this oil is very beneficial for protecting you from cardiovascular ailments like blocking of arteries, heart attack, congestion in the heart etc. it contains healthy unsaturated fats which keeps your heart healthy and aids in it better functioning.
  3. Diabetes: People who are suffering from diabetes or at the risk of getting diabetes must start to include it in their daily meals. This oil is good for the body and keeps cholesterol level in check. Consumption of this oil reduces the ratio of healthy cholesterol in the blood.
  4. Regulates blood pressure: Palm kernel oil balances the flow of the blood from the heart to all the body organs with proper flow of blood, all the organs of the body get sufficient amount nutrient and get nourished.
  5. Healthy and Youthful skin: Antioxidants in the oil arrest the growth of free radicals and oxidation of cells in the body, this property helps in giving you relief from aging symptoms like visible fine lines, dark spot, sagging skin and wrinkles on the face.
  6. Reduces weight: low in calories, low-density cholesterols, and fat food made using this oil does not add unwanted fat to your body and gets easily digested. This helps in maintaining the right amount of body weight with a fit and healthy body. This oil has antioxidants which help in reducing body weight too.
  7. Vitamin K: Palm kernel oil contains high quantity of Vitamin K. This is one of the most significant fat-soluble ingredients which are immensely needed by your body, this oil works remarkably as a remarkable blood coagulant.
  8. Zero Trans-fat: This oil does not contain trans-fat, that makes it ideal for the people who are hoping to shed extra weight on their body.
  9. Vitamin A: Palm kernel oil is a vital source of vitamin A and treats a variety of eye disorders such as night blindness, short and long sightedness etc.
  10. Long Storage Ability: This oil does not oxidize even at a high temperature, so can be stored for a longer time. This makes it a good substitute for vegetable oil and for commercial cooking too.
  11. Good for Dry Skin: Palm kernel oil is a rich source of vitamin E. Vitamin E has antioxidants which are good for the body and the skin. Palm kernel oil helps in relieving from dry itching skin and ragged cuticles. Application of this oil makes your skin soft and naturally radiant.
  12. Protective from Ultra-Violent Rays: Palm kernel oil has useful qualities to protect your skin from harmful and damaging effects of the sun ultra-violet rays. This is the reason why this oil is also added in the preparation of creams, sunscreen lotions etc.
  13. Detoxification: Palm kernel oil helps in easy and effective removal of toxins from the body. It naturally purifies each and everybody cells and rejuvenates it.
  14. Strong Immune System: With the presence of loads of antioxidants in the oil, it helps in boosting the immune system in the body. This oil strengthens the ability of the body’s defense system to protect it from outside harmful substances.
  15. Healthy Bones and Joints: Palm oil helps in maintaining the healthy density of bones and promotes better health of the joints. Vitamin K contained in this oil boost the health of the bone and makes them strong. Its inflammatory action helps in getting rid of swelling aches in the different part of the joints of the body.

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Palm kernel oil is an important and a cheap source of oil for sap manufacturers, cooking oil, bio-fuel, vegetable ghee, shortening margarine, ice cream, dough, creaming, and coating etc.


palm Kernel Nut 1 tons 140,000
Palm Kernel Oil 450liters

(2 drums)



Palm Kernel Cake 450kg 20,700
Total   166,700


4 thoughts on “How To Start Palm Kernel Oil Production Business”

  1. Can i start this business without any experience or I have to learn it before jumping into it. What is the minimum amount will be needed to start 5 ton factory capacity please.

  2. Can i have a ten ton capacity factory with the sum of five million niara when i already have a plot of land. I will be glad to hear from you soon. Thanks


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