Requirements To Start A Palm Oil Business In Ghana

Palm Oil Business In Ghana

One of the most profitable businesses one can think of starting in a country like Ghana is the palm oil business.

According to ABC Machinery, over 300,000 hectares of land are under palm oil cultivation in the country.

This, coupled with palm oil cultivation and processing being one of the Presidential Special Initiatives (PSI) supported by the Ghanian government makes the palm oil industry one everyone should venture into if they are looking to start a business.

Other than that, the palm oil business industry in Ghana has a growing demand, low competition, strong government policy support, and an abundance of raw materials to make business owners in it succeed.

This is why in this article, we’ll be providing you with everything you need to know about starting a palm oil business in Ghana, and the amount of capital needed to start it.

Does Ghana Have A Palm Oil?

Yes, Ghana has palm oil and it has been confirmed that Ghana ranked among the third major palm oil-producing country in Africa, and it has played a vital role both in rural and urban areas in improving economic development.

How Many Palm Oil Mills Are There In Ghana?

Though not accurate this year, as of 2011, Ghana recorded more than 1,200 small-scale palm oil mills which produced approximately 60% of the national palm oil output.

How Many Oil Palm Trees Is In 1 Acre In Ghana?

Research shows that a total of 60 palms works perfectly, which is approximately 150 palms per hectare.

Also, you have to make sure that you count the number of pegs that you have pegged in the field so that it will be in accordance with the number of palm seedlings you have.

What Is The Palm Oil Season In Ghana?

There are two main seasons for palm oil in Ghana.

First, is the buying season also known as the storage season. This is the season of buying palm oils from palm oil mills or local markets. This season is between February to May. Palm oil is usually cheap and surplus during this season.

On the other hand, is the selling season. During this season, you sell your stored palm oil. Usually, during this period, there is always scarcity of palm oil which leads to higher demand than supply. This season is between September to December.

What Is The Current Price Of Palm Oil In Ghana?

There may not be a stable price for palm oil in Ghana due to the inflation in market prices. This means that the prices can increase today and also fall tomorrow.

However, the price range of palm oil is between GHC300 to GHC400 for a 25 L. While it costs GHC90 to GHC120 for a 5 L.

Who Are Palm Oil Buyers In Ghana?

The palm oil buyers range from the local market to retailers who want to buy in bulk.

The location of your storage facility determines your buyers. Meanwhile, your buyers can also be your neighbors, close stores, and street people.

How Profitable Is Palm Oil Business In Ghana?

The palm oil business is very profitable in Ghana because palm oils are used by many people both domestically and industrially.

And no matter how the economy is, there is always a high demand for it. Also coupled with the fact that any amount you invested in the business can be doubled within 6 months makes it a lucrative business to invest in Ghana.

This means that the more money you invest the more profit you make.

What Are The Opportunities In Palm Oil Business In Ghana?

There are many business opportunities in the palm oil business in Ghana which are:

1. Buying And Selling Of Palm Oil: This business involves buying palm oils during the season that are very cheap and then reselling them when the price has increased.

2. Palm Oil Packaging And Selling: This is another business opportunity in palm oil that involves buying palm oils from palm oil mills or palm oil markets, then reprocessing them and packaging them in different ways for commercial purposes.

3. Palm Oil Tree Plantation Business: Palm tree plantation business involves planting palm trees to harvest palm fruits and produce palm oils from them.

4. Palm Oil Export Business: The palm oil export business in Ghana is another opportunity for exporting palm oils to America and Europe to make a profit.

5. Palm Oil Processing Busines: This is a palm oil business that deals with the extraction of palm oil from palm fruits for commercial purposes.

How Much Does It Cost To Start A Palm Oil Business In Ghana?

The cost of starting a palm oil business in Ghana depends on the type of palm oil business you want to venture into.

For instance, the buying and selling of palm oil will cost you between 300 to 1,700 Ghana cedis on a small scale.

While the business of planting palm oil trees for harvesting, and also the business of palm oil extraction will cost capital of 10,000 to 35,000 Ghana cedis on a small scale.

So the startup capital depends on the type of palm oil business and size.

How Can I Start A Palm Oil Business In Ghana?

To start your own palm oil business in Ghana you have to follow the following steps:

1. Choose The Type Of Palm Oil Business You Want To Do: We mentioned some of the palm oil business opportunities like buying and selling palm oils, palm oil export business, palm tree plantation, and so on.

So the first thing you have to do is to choose the type of palm oil business to invest in.

2. Create A Business Plan: The type of palm oil business you choose will determine how to draft your business plan. Most importantly, a strong business plan will serve as a guide to all your business transactions & activities. Of course, it is one of the first steps to actualizing your business goals.

And that is why before writing your business plan you have to carry out market research and a feasibility study.

With everything in place, it will help you understand the nature of the business.

Meanwhile, when writing your business plan you should include the following: executive summary, team, market analysis, SWOT analysis, financial analysis, marketing analysis, competitive analysis, and appendix.

3. Establish A Storage Space: The next step in starting a palm oil business after choosing a niche and creating a business plan is to set up a storage space for your palm oil business.

As a matter of necessity, palm oils need space that is cool, safe, and dry. So ensure you meet up with the requirements.

At the same time, you have to buy drums or kegs which aid in the storage of your palm oils.

4. Find Suppliers: As far as you aren’t the person producing the palm oil, you need to find suppliers and make arrangements with them to supply you with the needed palm oils.

5. Choose A Means Of Transport: This is optional if you have your vehicle to convey the palm oils to your storage location. However, if you don’t have a means of transportation, you have to ensure that you provide one or ask your supplier to recommend a reliable and credible transportation you can use.

6. Selling Your Palm Oils: When the appropriate time reaches to sell your palm oil, it will be important to carry your products to the palm oil markets to sell your product.

You can also implement online advertising strategies to get more customers.

Conclusion

The palm oil business in Ghana is a profitable business anyone can invest in. As the demand for palm oils is increasing, it is the best time for you to do more research, understand the basics of the business, and then start up in the way you can.

Don’t forget to conduct thorough market research before getting started. And if possible, get more knowledge from other palm oil dealers.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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