We all know the oil palm tree, popularly known as “palm tree” in Nigeria. It goes wildly in much of the country, especially the southern belt. It is native to West and Southwest Africa. This wonderful tree has so many useful derivatives used for cooking and many industrial purposes. As part of our coverage of the agricultural sector, we would like to highlight a couple of ways to profit from oil palm tree.
Oil palm is a very efficient crop that produces more oil per acre than any other equivalent oil bearing crop. Therefore, to really make big money from this crop, you would need to to:
- Plan to have a big cultivable land for planting the palm tree so as to maximize the yield per land size
- Use the latest varieties of palm tree that grows and matures very fast with high yields of oil per seed. Make sure you are using the Tenera variety or a cross bred variety that can guarantee you a high yield. Best varieties can be sourced from the International Institute of Tropical Agriculture (IITA) https://www.iita.org/
- Employ modern cultivation methods that ensures healthy plant development with less potential for diseased plants.
- Selling the raw palm fruits would never give you the best profit per yield. You have to plan to process the palm fruit into palm oil, palm kernel oil and even animal feeds from the byproducts. You can quickly have multiple streams of income from processing the palm fruit. However, industrial users of palm oil require high standards in the processing technology used. That usually requires more expensive processing plants but certainly higher and guaranteed profits.
- If you can process the palm fruit to industrial standards, you can start looking at the export market to earn foreign currency. Side by side, palm oil is actually more expensive than crude oil!
- Hire dedicated and honest workers to tend to your oil palm plants. Stealing of the ripe palm fruit is rampant and you need to take steps to minimize theft. That way you can be assured you are going to get a very nice return on your investment