Going into the palm Kernel oil business









Crude Palm Kernel Oil (CPKO) which is the by-product of Palm Kernel NUT (PKN) is grown in the tropics. it produces high-quality oil primarily for cooking in developing economies. Aside from being used as an ingredient for cooking it is also used in food products, detergents, cosmetics and to a little extent, biofuel. Unlike the developing countries, the use of palm oil as an ingredient for cooking in the US is small when compared, but other US products like lipstick, soaps, detergent and even ice cream contain the agricultural product.

Palm Kernel Oil is a very productive crop as it offers a higher yield at a lower cost of production than other vegetable oil. The palm oil plantations are spreading across Africa, Asia, and Latin America.

According to a report by index Mundi last year, the production of palm oil was as follows,

Rank Country Production (1000MT)
1 Indonesia                        3,980.00
2 Malaysia                        2,370.00
3 Nigeria                            330.00
4 Thailand                            300.00
5 Colombia                            123.00
6 Papua New Guinea                              60.00
7 Ecuador                              55.00
8 Honduras                              51.00
9 Cameroon                              50.00
10 Guatemala                              45.00

As at April 2017, the price of global price of palm oil (palm kernel oil) was $1,029.00 per Metric Ton.

In Nigeria, the palm kernel oil is indigenous to the riverine/ coastal areas. During the 1960s, Nigeria’s palm oil production accounted for 43% of the world’s production, the reverse is the case today as it only accounts for 7% of total production worldwide. Indonesia and Malaysia have overtaken the world’s production.


Local Demand

There is a high demand for the palm oil all year round and the demand is always on the rise. Based on the high demand, the buyers sometimes book in advance while some will pay in advance to secure the order.

Export Market

The demand in the international market is very big with Indonesia and Malaysia being the major export countries. One can still export Palm oil and make huge profits. To be able to export palm oil, you should have made the right network of clients who are interested in palm kernel oil. Also, you will need a lot of capital to export.

Machines Needed For Palm Oil Extraction

  1. Fryer/ Dryer: This will fry and roast the crushed nuts.
  2. Nut Crusher:  Crushes the Palm Kernel nuts and reduces it to smaller sizes so as to ease the oil extraction process.
  3. Oil Press: Presses the heated nuts and expels the oil content of the nuts through the oil exit chamber.

If you need more information about how to get into the Palm Kernel Oil business or you need to get your palm kernel oil produce to the market (whether locally or internationally), contact us at tinker and bell and we will be happy to render our services to you.


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