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How To Start Highly Profitable Palm Tree Plantation Business In Nigeria

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Palm tree plantation

How To Start Highly Profitable Palm Tree Plantation Business In Nigeria

Palm tree plantation

Palm tree plantation is no doubt the most profitable and useful plantation in the world today. There is nothing in a palm tree that is not important and useful to human beings. The extraction of red oil from red oil palm fruit has been in practice for many centuries.

See: How to start profitable sugarcane business in Nigeria

For you to fully understand and follow what this article is saying about palm tree plantation, you need to study its positive impact on the economy of Malaysia. The economy of Malaysia is more than 50% dependent on palm oil production from their palm tree plantation. As of today, Malaysia currently produces above 22 million tonnes of red palm oil yearly. This currently places them behind Indonesia which is by far the largest producer of palm oil in the world.

It will surprise you to know that Malaysia got their palm fruit from Nigeria that was once a force to reckon with in palm oil production in the world. If the wealth and economy of countries like Indonesia, Malaysia, and Thailand could depend on palm tree plantation business; you can imagine the enormous wealth that you can build from it.

The question to ask is this, why has many agribusiness investors and farmers in Nigeria not ceased this opportunity in palm tree plantation business? To answer that question, I will say that it is mostly because of the believe that palm tree takes many years to mature and yield palm fruits from which palm oil and palm kernel oil is extracted.

Let me be the one to break to you if you are still among those which such beliefs. There are varieties of genetically engineered palm fruits which when planted takes just two years to yield fruit for your palm oil and palm kernel oil production in Nigeria. So, you see that within two years, you will start reaping the wealth that is stored in palm tree plantation. The only thing needed is for you to start.

The objective of this article is to help and guide you on how best to start your own palm tree plantation in Nigeria, so that you can start benefiting from this goldmine. Needless to wait anymore, because the earlier you start this farming business of palm tree plantation n Nigeria, the earlier you start amassing the wealth it holds.

There is no doubt that oil palm plantation in Nigeria is a goldmine that is yet to be tapped into.

How To Set Up Your Palm Tree Plantation Farm In Nigeria

For you to be successful in this palm tree plantation business in Nigeria, need all the information you can get on the establishment of palm tree plantation. This information is what we have tried to bring to you through this article. Just keep on reading, and be rest assured you will be glad you did. In order to start your palm tree plantation, you have to follow the following guidelines listed below:

  1. Have a well detailed business plan

To be successful in this oil palm plantation business in Nigeria, you need to have a very good palm plantation business plan. The palm tree plantation involves a lot of things that you need to decide which particular niche to focus on.

This is because from the palm tree plantation, you get red palm oil, palm kernel oil, the palm fronds for roofing of houses in the rural areas, the sap, also called palm wine, palm kernel and many others. It is in your business plan that you decide which one or more of the aforementioned areas that you want to venture into.

Read: How to start sorghum farming business in Nigeria

You will decide in your business plan whether to process the red palm oil from the palm fruit or would you rather be selling to oil palm processing companies. Will you be selling palm kernel oil or just the palm kernel?  Are you going to focus on the local Nigerian market, or will you go into exportation of your palm tree plantation produce.

So, you see the reason having a well detailed business plan is number one on the list of requirements to starting your own palm tree plantation business in Nigeria.

  1. Startup capital

You should know that starting a palm tree plantation farming business in Nigeria is a capital intensive agribusiness venture. This is because, you need to buy or rent a land, buy the palm seedlings, hire laborers, and also maintain the palm tree plantation for at least 2 years before you can start making money from your oil palm plantation in Nigeria.

It is very imperative that you note that once the money starts flowing in from your oil palm plantation in Nigeria, there is no stopping it at all. It is always challenging to start, but you need to set your sight on the goal and objective of your palm tree plantation farm. When you become the largest producer of oil palm in Nigeria, you won’t remember the pain during the starting stages.

  1. Acquire a suitable land

Once your startup capital for the oil palm plantation is ready, you can then proceed to getting a suitable land for the palm tree plantation in Nigeria. The good thing here is that lands in Southern Nigeria are very good for oil palm plantation. Get good quantity of the land in acres in a well situated location.

You take some samples of the land to Nigerian Institute for oil palm Research (NIFOR) in Edo state for them to verify if it can support oil palm growth and development.

Once NIFOR has given you the nod, the next thing to do is to prepare the land. You can make use of tractors to level and thrash the land before you plant your palm seedlings.

  1. How to acquire your seedlings

For the acquisition of your palm seedlings, there are two ways to go about it:

  • Buy already germinated seedlings, or
  • Germinate your own seeds

To buy your seedlings, you should go to the agricultural institutes like NIFOR to purchase your seedlings at about N200 per seedling. The advantage of buying already germinated seedlings is that is saves time. It is also a more costly approach.

Germinating your own seedlings is less costly but time consuming. All you need to do is buy high yield seeds from NIFOR that have already germinated. Once you purchased them, transfer the seeds into small nylon bags filled with black loamy soil. The small nylon bags can also be bought from NIFOR in Edo State.

You will leave these young seedlings in the nursery for 4-6 months before transferring them into the farm. It is recommended that you start germinating your own seedlings for your palm tree plantation around October or November. This is to ensure that by the time it is 6 months, the raining season has already started. The rain will help the young palm seedlings to adapt with ease to the new environment.

  1. Best way to plant your palm seedlings

There is a standard for planting palm seedlings in a palm tree plantation. If you do it the way you like, during harvest you will want to slap yourself because the production will be very low. Below are the best ways to plant your palm seedlings in order to achieve maximum output:

  • Spacing of the palm tree

The spacing is better left at 7 meters by 7 meters in a triangular shape. The first weeding and fertilizer application can be done within the first 2-3 months of transplanting the palm seedlings into the farm.

  • Right palm tree density

It will be of no benefit to you in the long run if you have too much palm trees on a particular piece of land. To ensure that the right density is used in your palm tree plantation business in Nigeria, you have to make sure that the pegging is done perfectly.

You must ensure that the distance between rows and columns are the same all through the palm tree plantation farm land.  When the palm trees are too close to each other, their roots don’t have enough space and the palm fronds don’t have enough sunlight. All these will accumulate to bring about low yield during harvest.

For the proper pegging, you need to leave about 7.8 meters between rows and about 9 meters between columns. By following this procedure, you can plant about 143 palm trees in one hectare.

Having done your possible best I starting your palm tree plantation farm in Nigeria, what is  left is for you to keep maintaining your oil palm plantation until it’s time for harvest. Once its harvest time, its cash inflow all year round for you.

I sure hope you enjoined your reading and have learnt a lot as well. You can always leave your comment in the space provided below.

ATTENTION…

At Entrepreneur Nigeria, we provide business plan writing services on any business niche of your choice.  Our business plans are MBA standard and be rest assured you will be glad you contacted us today. You can reach us on +2347037281050. Your business plan will be available within just 2 weeks of your order.

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Agriculture

How To Start Lucrative Chia Business in 2021

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Chia seeds which is the bedrock of Chia Business are edible seeds grown as food in many countries of the world. Slowly gaining momentum in Africa, chia seeds consumption is presently valued at about 400 million Naira and is projected to be valued at 600 million Naira before the year 2025. Chia seeds are becoming more popular as many people have begun to massively use it as a substitute for meat-based protein.

Meet Chia Seed: The Bedrock of Chia Business

Chia Business centres on the cultivation and marketing of Chia seeds. Chia seeds are of the mint family of lamiusee with dark green, thick and wrangled leaves. Each plant has flowers with two lips containing 13 seeds. Chia seed is mostly consumed by vegetarians who opt for plant-based proteins.

Chia seeds grow in tropical environments requiring a minimum temperature of 11 degrees Celsius and maximum of 36 degrees Celsius to be fully matured. Chia Seed Farming is a lucrative business. If you have the wherewithal to cultivate and market it, you can make tons of money for you within the stipulated business cycle.

Start Lucrative Chia Business

The Market value of Chia Business

Chia business is lucrative to do because it avails the investor the following business opportunities:

1) Can Be Eaten as Food:

Chia seeds can be sold to consumers for food. Chia seeds have a wide range of applications in meals: they can be added to smoothies, yoghurts, parfaits, salads, milkshakes and even cereals.

2) It Can Be Sold For Money:

Chia seeds are very expensive and could go as high as N6000 per bag. Chia seeds can be cultivated and sold for profit.

The Health Benefits of Chia Seeds

Chia seeds sell well because of its health and nutritional benefits. Hence, people buy Chia seeds irrespective of the cost because:

  • Chia seeds help relieve constipation.
  • Contain calcium and manganese which improve bone and oral health.
  • Fights osteoporosis.
  • Chia seeds are excellent sources of protein.
  • They are super healthy proteins as they do not contain cholesterol.
  • Fights insulin and stabilizes blood sugar.
  • They contain anti-oxidants which prevent the production of free radicals – cancer causing agents.
  • They’re gluten free and can be eaten raw.

Steps to start a Lucrative Chia Business in 2021

To proceed to cultivate and market Chia seeds on a commercial scale, please consider the following:

1) Get enough funds:

Chia seeds are expensive to buy. Setting aside an investment for it will pay hugely in the long run. It is important to have a business plan that will enable you access funds from financial institutions. If you don’t want corporate funding for the business, you may consider getting funds from family, friends, and acquaintances. However you source funds, endure that the capital you have is enough to start and run this business successfully.

2) Choose the right soil:

Chia seeds thrive on fertile soils. Hence the land you buy or rent for plating this crop should have sufficient clay and loamy. Avoid malnourished and sandy soils. Instead, choose a soil that can retain a good amount of moisture. Plant your chia seeds in well drained soils.

3) Cultivate the Crops:

Chia seeds require soil preparation by disruption and loosening. After properly tilling the soil, create trenches in a row of 2cm, broadcast the seeds and cover the soil. When you notice weeds, remove them immediately.

4) Harvest:

Chia seeds are harvested after the flowers have fallen off. You have to hand pick and spread them to dry.

Conclusion

Starting lucrative chia business specifically Chia seed business in 2021 has attendant challenges such as high cost of seeds, seemingly complicated nurturing process, crop management, and the challenge of the harvesting of chia seeds by hand.

However, with the right capital and viable farm management practices the business can be done with much success and less stress. Employing excellent marketing strategies can help the business grow into a highly lucrative and profitable enterprise or company.

Chia seed already has a wide market demand, employ the best strategies, sell off your seeds, and make your profits.

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Agriculture

How to Start a Lucrative Cabbage Business in Nigeria.

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Cabbage business is fast becoming one of the most lucrative vegetable businesses in Nigeria because of its popularity as a major ingredient for preparing salads. Salads are majorly served in ceremonies and festive seasons. If you start and effectively manage a lucrative Cabbage business in Nigeria, you could be reaping returns in millions of naira weekly.

In starting a lucrative cabbage business in Nigeria, you must have a farm to cultivate cabbages. Cabbages thrive in a cool and moist environment. The crop is not resistant to drought. This means that you should plant your Cabbage seeds during its favourable season which is the rainy season when the weather is till cool enough for it to sprout and grow to maturity.

In getting your Cabbage seeds to plant, please go for high quality seeds which are resistant to pests and diseases. The hybrid variant cabbage seed is of a high quality and can resist pests and diseases. This is the breed of Cabbage seed you should plant if you desire good returns on your investment.

Steps to Start Cabbage Business in Nigeria and Profit From It

Stage 1: The Pre Planting Stage

It is advisable to plant cabbage seeds in a nursery 4 to 6 weeks before transferring the crop to the main farm. While the seeds are being raised in the nursery, use this time to prepare the farm for planting the crops. This involves weeding, tillage, making of ridges or molds where the Cabbage seedlings will be planted. This is all about the pre-planting stage.

Stage 2: The Planting Stage

To ensure bountiful harvest, it is important to note the following while planting your Cabbage:

1) Dig a hole of about three centimeters deep, insert two seeds and cover the hole.

2) Give a space of 45 centimeters between each plant. The spacing should be done depending on the variety of seedling you are planting.

3) Ensure that the P.H of the soil is between 6.5 and 7.5.

4) Always ensure that your cabbage farm is well-irrigated. Avoid areas prone to drought as much as possible. If there will be drought, make arrangement for alterative water sources with which you will irrigate the farm like a borehole or well. Regularly irrigate (practice drip irrigation) and mulch your farm to provide enough water in the farm for the crop and prevent excessive loss of soil water due to evaporation of water from the soil.

Cabbage Business in Nigeria.

5) During the development stages of your cabbage plant, apply manure regularly to provide your crops with the nutrients needed for their healthy growth. When preparing the soil for planting, it is advisable to be heavy-handed with manure. That is to say you apply sufficient manure to the farmland while preparing it for planting the crop.

6) It’s important to control pests such as maggots, cabbage, and worms n your cabbage farm. For this reason, only use the hybrid variant of the seed which is resistant to plant pests.

Stage 3: The Harvesting Stage

Harvest your cabbage only when they have fully matured to ensure a longer storage (or shelf) life. Depending on when you plant, your cabbage should be fully matured in about 3 to 5 months.

After harvesting your cabbage, you are set to sell the product. Go to the market and sell to the vendors there. You can also sell off to the Hausa stores in your community. Get contacts of restaurants and caterers, healthy juice entrepreneurs and offer to be their vendor.

Conclusion

Cabbage farming is highly lucrative in Nigeria; not many people have ventured into the business when compared to the market demand of the product. Cabbage farming is encouraged because aside it being lucrative, it doesn’t require heavy capital. So, if you want to go into Cabbage business in Nigeria, I really encourage you to do so.

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Agriculture

How To Start Palm Oil Business In Nigeria

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Palm oil business in Nigeria is wide and almost all aspects of it is profitable. Palm oil is extracted from oil palm fruits. It is an edible liquid extract gotten from palm fruits of a palm tree using an extraction process. Palm oil is used for many things and generally, in the Nigeria food industry, Palm oil is commonly used to prepare traditional soups in Nigeria. Almost all tribes in Nigeria consume palm oil which makes it a “must have” agricultural product in every home.

Palm oil is used to prepare almost all the traditional soups that we have in Nigeria like Egusi, efo riro, ugwu soup, bitter leaf soup, edika nkong and so on. The product is highly recommended by nutritionist due to its nutritional benefits; it contains vitamins, minerals and low in cholesterol which is makes it good for the heart. Besides its usefulness in food, Palm oil is used for many other things like the ones listed below.

Other Benefits/Uses of Palm Oil:

  • It is commonly used to prepare soap for bathing and washing.
  • It serves as an antidote for poison.
  • It is used to produce animal diets.
  • It serves as food preservatives.
  • It is used to prepare some local cosmetics.
  • It is used in the treatment of skin allergy, boil, cough, etc.

Palm Oil Business In Nigeria – An Overview

Oil palm business in Nigeria started as far back as 1900 in the Niger delta region of the country. It is regarded as one of the major products besides cocoa for exportation in Nigeria and hence served as a source of foreign exchange until 1999 when there was sudden decrease in oil palm production business in Nigeria. This was due to abandonment of the agriculture industry in Nigeria.

In 2003, an increase in oil palm production business was observed across the country due to a restructuring of the agriculture industry in Nigeria by the then government. This brought back the popularity of oil palm business in the country. In Nigeria, oil palm business is considered lucrative because of its wide both either domestically in homes and in several industries across the country. Till date, a substantial quantity of the product is still being exported from the country to many parts of the world.

How To Start Palm Oil Business In Nigeria

How To Start Palm Oil Business In Nigeria

How To Start Palm Oil Business In Nigeria

Starting palm oil business in Nigeria is quite simple but also tasking. This is because it requires a proper and comprehensive market survey to be done before embarking on the business. This article shares extensively how to start a palm oil business in Nigeria.

Steps Involved In Starting Palm Oil Business In Nigeria

1) Get A Working Business Plan

A good business plan is required for a palm oil business which will include total budget for the business and market survey report. A good market survey is compulsory and important in this business. This involves many things but basically it involved consulting an experienced palm oil entrepreneur to know the ins and outs of the business.

For example, as a potential palm oil entrepreneur, you must know the different types and breeds of palm trees and the quality of palm oil that they produce. Also, it is required that you have an idea of palm oil nursery, nursery practices, and planting practices especially if you wish to go into the oil palm raising business and not just the sales/distribution of palm oil. You must also know the storage practices, palm oil processing, palm oil market trend, prices, competitors, available customers, regulatory bodies and taxes.

You will not be able to know these without adequate market research. So, ensure that you carry out subatsntive market research/survey on palm oil business and document the report in you palm oil business plan.

2) Get The Required Start Up Capital

A startup capital can be sourced from personal savings, cooperative loans, Bank of Industry in Nigeria (BIN), Bank of Agriculture in Nigeria (BoA), and other government empowerment programs.  Feel free to write the banks involved, if your proposal is well structured; it can yield a positive result.

Generally, your startup capital must cover the following cost:

i) A Land (Purchased or rented):

A land will be needed for the oil palm plantation. So, you must get the required capital to get the size of the land you need for this business. Of course, the size of land would depend on the number of palm trees you want to start with, that is if you want to go into oil palm plantation business and not palm oil marketing.

 ii) Palm Tree Seedlings:

Again, you need this if you are not interested in just buying and selling of palm oil but rather oil palm plantation. In this case, you will have to first consult an agriculturist, a crop scientist or an experienced oil palm farmer to give you the best seedlings to plant. This is very important because a technical know-how is required when choosing a seedling for oil palm plantation else you mess the whole business up! It is advisable to start with hybrid palm tree seedlings because they mature faster and produce fruits earlier than the local palm trees. In fact, some species of the hybrid palm trees start fruiting within 3 months of planting.

iii) Get The Machines For Processing:

This includes milling and extracting equipment. Aside from using it to mill and process oil for your business, it can help to generate income for the business. In addition, people can come to mill and extract palm oil using your machine and you will make extra money from this.

iv) Get A Good Water Source:

A good water source is important and this would be either a borehole or well. Yes, if sinking a borehole is costly, you can simply dig a well; it will serve the same purpose as a borehole. Water is used during milling and extraction of palm oil. Again, you need this process if you want to go into oil palm plantation business.

3) Labour:

You will definitely need to hire people to help out during each stage of the oil palm business, from land cultivation to sales of products. You can start with contract staff where they work for a certain period, when needed at different stages and they get paid for the work they do and leave.

4) Products Packaging:

This depends on how you want your product to be packaged either in sealed disposable nylon bags or kegs (different liters). However you choose to package your product, don’t forget to label them properly using your company/business logo and emblems which will include your business name, address and other necessary information. This serves the purpose of identification and marketing.

5) Business Registration:

Any business that wants to be trusted in Nigeria and stand the test of time must be registered, hence, you must register your business. The Cooperate Affairs Commission (CAS) in Nigeria is the body set aside by the government to register businesses, companies, and allied bodies in Nigeria. For you to become a certified business owner in Nigeria, you must register your palm oil business with the CAC. Recently, the processes only take few weeks.

6) Means Of Storage:

Palm oil is generally stored in drums or tight containers. Make sure the place for storage is cool and dry; don’t store where it is exposed to sunlight.

7) Means Of Transportation:

As a startup entrepreneur, you can register with small scale logistics companies and they will help with the delivery of the business. Using them makes delivery to customers safer, and faster and best of all is relatively cheap and reliable.

8) Advertise And Digitalize:

In this era of digital and hybrid advertisements, make yourself available online, post online about your business, speak to people, and display your products online. Also, to make purchases easier, take your digitalization game to another level by using an online payment processor like Paystack, Flutterwave, etc. to receive payments.

You might also consider registering with online listing platforms and e-shopping stores like, JiJi, Jumia, Shopify, Oberlo, and so on to sell your product. This will go a long way in broadcasting your business and bringing a lot of returns in the short and long term.

Peradventure you don’t have enough capital to start an oil palm plantation, which is not a good reason not to start with what you have. It’s simple! Just research and speak to oil palm suppliers closer to you. Buy from them, repackage into more attractive containers and sell.

Conclusively, doing oil palm business in Nigeria is one of the best decisions you will ever make, if well planned. This article will serve as a template for any aspiring/potential oil palm entrepreneur. Remember all businesses require hard work, perseverance, dedication and optimism. In all, I wish you the best of luck!

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