Fegeostom Palm Oil Nigeria Limited is one of the major palm oil producers in Nigeria which started with its first seedling in the year 2009 on five hectares of land in Edo State, Nigeria. The business kick-started with the palm oil tree plantation and bulk sales of palm oil.
We are gradually moving to the palm oil mills. Although the palm oil business can be capital-intensive, the return on investment is very high (up to 150 percent), the business requires a lot of time especially the plantation aspect. For instance, it takes up to five years for a palm oil tree to start fruiting depending on the specie.
The business has three main aspects. They are palm tree plantation – the root of all other aspects of this business; Palm oil mill – this could be named as the backbone of this business because it turns the raw palm fruit to the finished product, and palm oil bulk trading – this involves buying and sales of palm oil.
Vision
- To be the leading palm oil producer in West Africa
Mission
- To produce palm oil of the highest quality
- To produce enough oil to supply the local demand for palm oil in Nigeria.
- To produce enough oil to gain a good market share in the international market through exportation.
Key success factors
- All year-round production
- Best management and staff
- Use of state-of-the-art machinery in the farming and processing of palm oil
- Customer centricity
Our products
Our main product is palm oil which can be used for cooking in households and restaurants. It can also be used by companies to manufacture cosmetics, soap, and animal foods. In addition to palm oil, we produce a number of palm oil by-products. These include PKC, palm fronds, palm fruits for delicacies, palm kernel oil, palm kernels, and its by-products.
Market Analysis for Palm Oil Farming and Processing Business Plan in Nigeria
There is always a ready market for our produce. The trend in the palm oil sales in Nigeria is that there is surplus supply from April to June and scarcity from November to January. Production of palm oil peaks around May, leading to the palm oil being sold at a cheap price. Because of festivities’ high demand, the price of palm oil increase around December as the supply plummets.
Our target markets are segmented into four. Our first market base is the local industries which include drug industries, health industries, food production industries, pet food industries, and cosmetology/beauty industries.
Our second market base is the local palm oil companies in Nigeria, e.g. Planet oil and chemical industries limited, Phemson Nigeria limited, OM oil industries and other palm oil companies. Out third market base is the local markets all over Nigeria. These include the traders, household and everyone in the Nigerian markets. The last but not the least is the international market.
Marketing strategy for Palm Oil Farming and Processing Business Plan in Nigeria
For marketing, we place advertisements in daily newspapers, television and radio programs. We also send advertisement emails to our foreign customers (current and potential) with sales deals and promo offers. We ensure our website is also up to date with our stock and prices. We also offer delivery options to our customers all over the country with a cheap delivery fee and sometimes free.
Pricing: Our pricing is competitive and we offer reasonable prices to our customers. The price fluctuates with the time of the year. The price of a standard twenty-five-liter keg is between six thousand naira and thirteen thousand naira. As at the time of writing this, a keg cost eight thousand five hundred naira.
Financial Expansion: As we grow our plantation every year, we see the need to grow our mills also. These mills are set to be state-of-the-art and expected to roll out tons of palm oil every year. An estimate of 10 million naira is needed to set up the new mill. It will not only serve the Fegeostom palm oil plantation will also serve other plantations.
Since the return on investment is very high, we estimate a full return on investment with profit in the third year. Another aspect of the business we are set to grow is the trading aspect. The higher the investment, the higher the return.
Management
Femi Akinyemi is the director at Fegeostom Oil Nigeria Limited. He has an MBA from the University of Lagos after his master’s and bachelor’s degree program in crop production from the University of Ibadan, Nigeria. He has a wealth of knowledge in palm oil production through formal learning and informal learning. Another thing worthy of note is His business administration skills.
Iwuoha Francis is our farm manager. He is a product of the University of Nigerian, Nsukka, where he studied agricultural science. He oversees the running of the palm tree plantation. He is also in charge of all the resources on the farm, i.e. human and material resources
Michael Onamajuru is our production manager. He has a master’s degree in Project Management Technology from The Federal University of Minna. He oversees the mills and the overall production of palm oil.
Michael Adeola is our logistics manager. He is in charge of the seamless movement of material and human. He ensures resources are where they need to be at the time they are needed there. For instance, he ensures that the palm oil gets to the warehouse in due time.
Aderonke Oluwarotimi is our financial manager. She is a chartered accountant with a lot of experience on her side. She manages the cash flow of the business. She is also responsible for preparing financial records, market analysis, and other financial documents.
Success story.
I bought a few kegs for 6,500 naira per keg. In just a little over seven months, I sold the same for nineteen thousand naira each which is about 250% increase. This is the beginning of the business
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