PALM OIL PLANTATION AND PROCESSING

PALM OIL PLANTATION AND PROCESSING

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Last Update: April 23, 2012

Introduction
We are proposing to develop a medium scale oil palm plantation with maize and plantain production in Iwo Local Government in Osun State, Nigeria. 50 hectare (125 acres) of land is to be acquired for this purpose. 47 ha would be used for cultivation of oil palm and maize. These crops are crossbreed for 2 1/2 years. Plantain would be planted separately on 1 ha of land. The remaining 3 ha would oil palm processing and construction of farm storage.This project is expected to generate N10,000,000.00 per annum ($60,000). It is expected to have 2,700 litres of palm oil per hectare.

Objectives & Vision
This project would seek to support the vision of Federal government through increased production of these food and cash crops to ensure local food security and potential for future exports to boost the National Income. While the mission is poverty reduction and creation of employment for the populace as it would be revealed in this survey that agriculture is a profitable venture.

Keys to Success
The writer have identified three keys that will be instrumental in its success. The first is the implementation of strict financial controls. By having the proper controls, production efficiency will be maximized. The second key will be the never ending pursuit for the industry's training, research and development. The third key is the recognition and implementation of the philosophy that 100% customer satisfaction is required to ensure a profitable business. Profits are a by product of satisfying customers.

Strength Weakness Opportunities and Threats (SWOT) Analysis

Strength

Large land mass

Weakness

One of the noticeable weaknesses is the inability of the country to produce mechanized farming equipments. The latter are imported from abroad and this may add to the cost as the currency exchange rate is a bit unfavourable.

Opportunity
Enormous demand for all the proposed products, the availability of raw materials, availability of labor, availability of suitable climate, employment opportunity for the populace.

Threats
Foreign exchange instability which may affect the cost of farm equipments, Inappropriate agricultural policies that may restrain agricultural potential, Import tariffs that may put fertilizer out of producers’ reach thus leading to low yields.

Type: hybrid

The Problem

Nigeria is highly blessed with natural resources and its economy had been traditionally dependent on agriculture. Nigeria’s soils and climate allow cultivation of a wide variety of food crops. Estimates indicate that 82 million hectares out of Nigeria’s total land area of about 91 hectares are arable. However, only about 34 million are being cultivated presently. Most agricultural activities take place in the northern states of Nigeria such as Kano, Kaduna, Sokoto, Jigawa, Bauchi and western states such as Oyo,Osun etc. In the 1960s and early 70s, agricultural products had been the main source of income for Nigeria. Its economy heavily relied on agricultural products such as Cocoa, Palm Oil, Millet, Sorghum, Maize, Cotton, Groundnuts, Corn, and Cassava, besides Rice and Wheat. However, with the discovery of oil, the then Government of Nigeria shifted its focus to crude oil exports. Eventually, the agricultural sector suffered from neglects and food situation became insecure in Nigeria. The food production over the past two decades has not been keeping pace with the Nigeria’s burgeoning population and the Food and Agriculture Organization (FAO) listed Nigeria among the food-deficit countries. Eventually, the country moved from being a large net exporter of agricultural produce at the time of independence to a sizable importer. More so, the importation of agricultural products from abroad has directly contributed to the depleted state of our economy and brought about total deterioration in the agricultural sector. To rectify this ugly situation, the Federal Government introduced the Green Revolution Program and Operation Feed the Nation in which there is a frantic effort to boost the agricultural sector. Hence, in an attempt to corroborate the effort of government, this project is initiated. Our focus in this project shall be on three agricultural produce, two of which are food crops (production takes duration of 6 months to 1 year) and Cash Crop, Palm Oil (which is produced within 3 to 4 years using hybrid method).

The Solution

1.The replacement of long gestation palm oil tree of ten years with new and improves palm oil tree of maximum of two to four years gestation period. 2.Solvent extraction plant method will be introduced to recovered palm oil that would have been lost as waste product. 3.By instituting a mechanism of monitoring and evaluating the strengths and weaknesses of our competitors in an on-going basis; instituting a mechanism that will enable the company to get regular and instant feedback. 4.Processing of palm oil and kernel in an hygenical ways. 5.Cost reduction and improvement in productivity 6. Palm oil seed will be procured from National Iinstitute for Oil Research Nigeria (NIFOR),this is going to assure quality seed.The gestation period can be reduced up to two years as seed will be placed in nursery for the period of one to two years.It will not only reduce gestation period but also reduce cost as maximum of 10% cost can only be incured in the nursery compared to the cost to be incured in the palm for period of one to two years.          7. We relied on skill of our staff and management.The project will provide job oppurtunities for the teeming population.It will also increase the income of the poor especially people in the rural region.Reduction in the price of palm oil,kernel oil and palm kernel cake.Processing of palm oil and kernel in an hygenical ways. Installation of 5 machines,production of palm oil Free of: Fatty Acid,cholesterol and smoke.The living standards will improve and solve community implementation infeasibility.

Example

An operating model for a business is a strategic schematic which illustrates the relationships among the operating units and trading partners and provides a set of guidelines for both the business architecture and technology that enable a company to grow its business either organically or through acquisitions. Three key words in the definition above are: Strategic: An operating model is a strategic choice as to the extent of process standardization and data integrity desired to achieve business result. Relationships: Refers to the degree of co-operation across business units including customers, suppliers, and trading partners, required for efficiency or leverage. Guidelines: Clarify what is important for the organization today and the rationale for investments so that leaders are aligned. Putting all the key words together in the context of our operations, the following model is derived to show the structure of the type of our business. Kabee Luxury Intercontinental Ltd Owned by public and controlled by For profit Formal organization Kabee Luxury Intercontinental Ltd

Budget: $100,000 - $250,000

Marketplace

This project has three distinct customers: companies, general public and foreigners. The first two clients will be sought locally in Nigeria. Any of the firm produce can be sold to them either for consumption or as input. The third client will be sought from abroad. This will enhance Gross National Product and thus boost the National Income. . The market for different oil palm products is quite enormous. Also, there is large market for other crops nationwide. Surveys show that over 120 million consumers (over 75% of Nigeria population) or virtually all the populace consume or use these farm produce.

Team Members

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April 23rd, 2012

It is part of the objective of this project to improve the present conditions upon which individuals, companies and other stakeholders are operating. By making available our farm produce locally, companies that use them as their raw materials will find it easy to secure it at a cheap price and be able to produce to meet the demand of their customers.

In addition, some unemployed labor in the community in which we would operate will be gainfully employed and earn their living while they are to cater for their family members. The employment of this unemployed is guaranteed as the...

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Offer

I am happy to offer assistance on roadmap to success,business plan preparation etc

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Assistance on financial model like:balance sheet,income statement,cash flow etc

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Offer

Assistance on financial model like:balance sheet,income statement,cash flow etc

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Need

We are looking for grant/loan to establish palm oil plantation in Nigeria.Other services needed are:
Technical support
Mentorship
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Growth Tracker

Stage: Milestone 1 of 1
Start
04/23/12
End
Impact Report
SOCIAL IMPACT
Date 04/23/12
It is part of the objective of this project to improve the present conditions upon which individuals, companies and other stakeholders are operating. By making available our farm produce locally, companies that use them as their raw materials will find it easy to secure it at a cheap price and be able to produce to meet the demand of their customers.
Achievement
Connected! on
Date 12/27/12
Milestone
Project Milestone
Target Completion Date 04/23/15
In Progress
3 months: unemployed labor to be gainfully employed
In Progress
6 months: individuals and companies that would lease their equipments in exchange for their charges.
In Progress
1 year: individual consumers that will consume farm food crops (such as maize, banana & plantain).
In Progress
3 years: individual and companies that will use both food crops and cash crops for their immediate consumption and raw materia
Milestone 1
Project Milestone

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