The profit margin in edible oil production industry depends on many factors, such as your finances, how much agriculture you have available, the equipment costs, payroll, rent or mortgage of production space, cost of oilseeds, weather conditions... But if you find the right oilseeds and a niche market, you could succeed.
The factors influence the profit margin in edible oil production industry
Generally, edible oil is primarily a commodity that depends on economies of scale to be profitable, especially in big country with economic strength, which is mostly a “go big or go home” proposition. So to set up a big scale edible oil production line, find a way to offer a product that is new to market and appealing to shoppers in some way and increase efforts to promote the brand can help you obtain more profit.
Absolutely, in some countries, you can start a small scale edible oil production. For example in Nigeria, palm oil, palm kernel oil, groundnut oil production business are all promising. There are plenty of raw materials, great market demand and government support in Nigeria. Even to buy a set of small palm oil expeller machine to extract CPO, and then sell CPO to other people can help you make money.
Small scale palm oil expeller machine of Henan Doing Company
Our Henan Doing Company has met many customers from Africa every year, who want to start edible oil production business to obtain big profit. Because we have finished many project in Africa, very familiar with the conditions of each countries in Africa, our project manager and engineer team will help customers to design suitable proposal based on their requirements.
Edible oil consumption has increased a lot in developing countries due to increasing demand from growing population and rise in overall household income. So now is the best time to start the edible oil production business. Good luck with your venture! If need, welcome you to contact us -- Henan Doing Mechanical Equipment Co., Ltd.