The fish farming business is extremely lucrative. Entrepreneurs are creating cash and are still making money within the business. However, it should be noted that not everyone in business is successful. we will see why most fish farming businesses fail. Most people think that the only reason for failure in fish farming is capital, but this is not the case, there are other reasons why beginners fail in this business. So, here are 5 reasons why the fish farming business is failing.
Unhealthy hygiene practices: Finally, improper fish handling can lead to high mortality, so strict rules governing fish safety and health are needed.
The world and everything in it is really moving forward, trying to meet the needs of a growing population, the agricultural sector is no exception to these achievements, as there are already records in technology, politics and the implementation of modern programs. all with the aim of increasing agricultural productivity.
One of such modern technology is soilless farming, also known as urban farming or vertical farming, which, as the name suggests, involves growing plants without soil to work with the environment to grow. This modern technology is widely advertised in many countries such as Japan, China, the United States, etc. It is a system consisting of hydroponics, aquaponics and aeroponics. This means that instead of land, you can now successfully grow plants in water, fish ponds and even air.
Aeroponics Aeroponics is considered the most efficient of the other two systems because it uses less water than both. In this system, the nutrient solution is sprayed as a mist into the plant chamber where the plants are stacked vertically. Vertical farming can be done in buildings, shipping containers, deep farms and even backyards. However, its construction is expensive, but its advantages outweigh the disadvantages as it does not compete with other companies for land and does not compete with other natural plants and animals for nutrients. The impact of the climate is small because they are grown indoors and can provide higher yields in less time.
Landless agriculture is truly what we need now, given that increasing competition for land and other resources is accompanied by higher demand and reduced supply, especially in developing countries.
With the ongoing economic crisis in Nigeria, the palm oil business has not been fully exploited, creating a serious demand gap that can be met by palm oil traders, distributors and marketers willing and able to get into the industry,
Nigeria is the fourth largest palm oil producer in the world accounting for 3% of world production and also the main exporter of peanuts in the world but lost due to production and marketing problems.
The Nigerian Institute for Palm Oil Research (NIFOR) estimates that upstream palm oil production is 0.98 million tons and annual consumption is estimated at 2.4 million tons of the shelled peanuts that are crushed annually, the estimated production and consumption of peanut oil per year is 0.4 million tons. Other oils such as soy, cotton and sesame oil contribute to the total production of a maximum of 0.1 million tons. It cannot be overstated with a population of over 186 million peanut oil (peanut oil) or Arachis oil is a mild-tasting vegetable oil made from peanuts. and Southeast Asian cuisine for general cooking and toasted oil for added flavor.
Also noteworthy is the fact that oilseed production has increased by 240% area and yield by 82% and 48% respectively over the past 30 years. In the world, soy is mainly produced with a share of 50%, and sunflower, rapeseed, soy, cotton, peanut, linseed, sesame and moringa oils are suitable for human consumption.
Today we have a food and energy crisis in the world that is having a significant impact on the correct use of legume unconventional alternative fuels. (third) most important oilseed in the world and grown in tropical and subtropical regions, overall a good source of edible oil and protein as well as a good source of vitamin B and vitamin E (tocopherol). Fuel or filler in fertilizers and in the feed industry.In total, 60% of the peanut produced is used to make oil that is rich in monounsaturated oleic acid, diunsaturated linoleic acid, and saturated palmitic acid.
Apart from Nigeria, other peanut-producing countries that use the oil and shell are China, India, USA, Nigeria, Indonesia, Myanmar, Senegal, Sudan, Argentina and Vietnam. In Nigeria, peanut oil made the largest 67.54% of the average gross income in the states of Bauchi and other states such as Kano, Kaduna, Taraba, Bornu and Adamawa make peanut oil from oil in Nigeria, solvent extraction is generally seen as the best alternative, from the one Increased production leads to demand derived from production. Palm is mainly produced in 3 ways: by harvesting palm fruits (bunches of fruit) from wild groves, private plantations managed by individual farmers, and plantations of large corporations or governments.
The demand is mainly driven by domestic consumers who use technical palm oil (TPO) for cooking and prefer it to special palm oil (SPO) due to its sour taste due to its higher concentration of fatty acids. It is important to know that for a national crude oil consumer, the taste is the most important quality factor; However, over the years the demand for SPO has increased to meet the needs of industrial processors who sell the oil to the processing industry after refining for use in products such as soaps, candles, pharmaceuticals, lubricants, agrochemicals, paints and biodiesel.
GOING INTO THE OIL PALM BUSINESS.
To Start One’s oil business in Nigeria,
Learn more about the business
Craft your business plant
Select your source of raw materials
Find a good location
Get the funds
Choose suitable manufacturers and machines
Hire competent employees
Plan the Package, Advertise and Distribute.
UNIT OPERATION PROCESSES INVOLVED IN OIL PALM BUSINESS
The below are also the processes actively involved in the business;
EQUIPMENT REQUIRED FOR SETTING UP THE OIL PAM BUSINESS
The equipment listed below is necessary for a successful oil palm business in Nigeria.
Land & Building
In terms of cost, procurement of these requirements could run into millions of Naira.
A potential producer needs a minimum qualification for entrepreneurial activity, which largely depends on the investment and the resources available for operational management. For example, a typical investment of # 2,500,000 i.e. H. (# To start large-scale 2.5 million plantations, remember that the total profit and market efficiency of peanut oil processing depends on reducing capital and operating costs as much as possible while maximizing sales, oil and other by-products.
MAJOR SERVICE PALM OIL PRODUCERS IN NIGERIA.
There are majorly 3 integrated service oil palm producers in Nigeria namely;
Okomu Oil Palm Co.Ltd.
Other Oil Producing and Marketing Companies in Nigeria includes;
Devon King’s cooking oil(Affiliate of kings pure vegetable oil)
Grand cereals limited
Rivers vegetable oil coy. Ltd.(RIVOC)
Kemas Innovative Global limited
Kitchen Vegetable Oil Limited
Rosel Vegetable oil
Shamad Concepts Nigeria Limited
Tuns International Holdings Limited
Vino Pure Vegetable Oil
Sharada oil mills limited
Sunseed Nigeria Plc.
Afric Oil & Marketing Co. Limited
Best Oil Limited
Kewalram Nigeria limited(Sunola Pure Vegetable oil)
Lever Brothers Nigeria plc.(Oroyo Vegetabe oil)
MAJOR EXPORTERS OF OIL IN NIGERIA;
Bettymor Enterprises Limited
Dijesr Fennimol Limited
Zoboe West Africa Ltd.
NIGERIAN OIL PALM COMPANIES;
Zionbim Farminex Nigeria Limited
O.J & Co. Success Ventures Nig. Limited
Enterprise Asset Leasing Limited
Nosak Distillers Limited
Jonnykelle farms Limited
Chrisreal Industries Limited.
The Master source
LIST OF FABRICATORS OF OIL PALM MILLING MACHINE IN NIGERIA
Milling Machinery in Nigeria Includes;
Nigerian Machine Tools
Techo Equip Limited
Adrosh Engineering Services
B & T Ventures Nigeria limited
Ese Engineering Services
Starron Nigeria Limited
A.E.H Technical Metal Works
O. Akins Gem.Co.
Nobex Tech. Limited
Akintech Eng. Com. Ltd.
Octec Technologies Limited.
OIL PALM VALUE CHAIN ANALYSIS
Oil Palm Value Chain Analysis can be divided into four major Sub-groups;
Palm Plantation – Production of Fresh Fruit Bunches (FFB).
Production of Fresh Fruit Bunches(FFB) – Crude Palm Oil
Crude Palm Oil – Palm Olein and Stearing.
Palm Kernel – Palm Kernel Oil & Cake.
Each of these Sub chain Groups would be expatiated on as below.
VALUE CHAIN ANALYSIS OF PALM OIL FOR PALM PLANTATION TO PRODUCTION OF FFBs
The land for the oil palm must be prepared in such a way that all forms of shade are eliminated. In the absence of sufficient funds for excavations, the land can be cleared by cutting down and burning all the trees. Deeply permeable, humus-rich, medium loamy soil is best suited for oil palm cultivation.
Oil palm requires a well-distributed amount of rainfall of 2500 mm to 4000 mm per year and a temperature range of 1933 ° c. It is a water-loving plant that requires adequate watering. The plant responds well to drip irrigation and yields should increase by at least 20%. NIFOR (The Nigerian Institute for Palm Oil Research) is the only supplier of sprouted seeds/saplings Palm oil is an edible vegetable oil obtained from the mesocarp (reddish flesh) of the fruit. from oil palms, mainly the African palm Elaeis guineensis, and differs to a lesser extent from the American oil palm Elaeis Oleifera and the Maripa Attalea Maripa palm.
It can be harvested after 12 (twelve) months of the year. Each tree can produce 10 tons of fresh fruit (FRG) per hectare. On average, 3.9 tons of raw palm oil and 0.5 tons of palm kernel oil are extracted per hectare. a new processor in this branch, care must be taken not to buy adulterated seeds/saplings that can be put on the market, which would lead to unfair competition due to the ridiculously low prices of some smugglers as this is a challenge to the quality of good ones Seeds/saplings for the plantation of oil palms to the FFB. Note that there is also a continuous supply of excess sprouts from NIFOR that is regulated by the federal government of the country.
A major challenge in this value chain is that seeds are very expensive and time-consuming, regardless of the regulated prices offered by NIFOR, the supply of which has declined due to poor government funding, which means that seeds are no longer available for the future to obtain and use processors Afford. Lack of coordination between the actors in the value chain. The main actors for this substring analysis are palm oil producers and processors, small palm oil producers and manufacturers mainly based in Imo state, Niger Delta regions, Ondo states, and Benin.
VALUE CHAIN ANALYSIS FROM RFF PRODUCTION TO PALM OIL RAW
This branch level requires a lot of time and care as it involves harvesting, processing, threshing etc. You have to walk through the plantation many times to collect the ripe grapes. A group of ripe fruits is ready for harvest when the fruits turn red and 5, 6 or more fruits fall to the ground. If you wait too long to harvest, it will take too long as you will have to collect all the fruit that has fallen to the ground.
The fruits also produce less oil and the oil will be of poorer quality; And if you don’t wait long enough to pick the grapes, the fruit won’t ripen enough and it will be more difficult to separate the fruit from the grapes, which will result in less oil being produced. After the fresh fruit balls have been produced, the processing of the crude oil itself comes into play.
Palm oil processors of all sizes go through these uniform operating phases, which differ in the degree of mechanization of the individual operating units and the mechanisms of transfer of interconnected materials that make the batch system continuous. The scope of work differs depending on the level of quality control of the process and product that can be achieved with the mechanization method used; in fresh, ripe fruit without bruises, the free fatty acid (FFA) content of the oil is less than 0.3% . In the case of ripe fruits, however, the exocarp becomes softer and is more easily attacked by enzymes, the enzymatic attack leads to an increase in the FFA of the oil through hydrolysis. There are also big differences in composition and quality within the bundle. depending on how hard the heap was squeezed.
VALUE CHAIN ANALYSIS FROM CRUDE PALM OIL TO PALM OLEIN AND STEERING
At this substring level, individuals or processors involved in the oil palm business no longer have access to palm kernels and torta palm kernels. Here, most of the small processors do not have the opportunity to generate steam for sterilization, so the fruits are boiled in water. Whole grapes, which contain the spikelet, absorb a lot of water when they are boiled. High-pressure steam is more effective at heating bundles without losing much water; As a result, most small businesses thresh the grapes before the fruit is cooked.
The remains of grapes (i.e. empty grapes) from the palm are used as fuel for cooking. In larger mills, the waste from grapes is burned and there is a rich source of potassium that is returned to the plantation as fertilizer. Use of grape sterilizer, fruit sterilizer, manual vertical press, motorized horizontal screw press, combined fermenter and motorized hydraulic press or discharge extractor is used in this substring for the processing needed. Water is used in boiling, while pressurized steam is used in sterilization.
The cooking action has several purposes, such as: • Heat treatment destroys the enzymes that break down the oil and stops hydrolysis and auto-oxidation. • The heat helps solidify proteins in which oily cells are microscopically scattered. • Cooking fruit weakens the structure of the pulp, makes it softer and facilitates the separation of fiber material and its contents during the digestive process. • Moisture introduced by steam acts chemically to break down gums and resins, causing the oil to foam during frying. • When sterilizing with high-pressure steam, the heat expands the moisture in the nuts. • During the sterilization, however, make sure that the air is evacuated from the sterilizer.
Excessive sterilization can also lead to poor bleaching ability of the resulting oil as it is the main factor responsible for discoloration of palm kernels, resulting in poor bleaching ability of the extracted oil and a reduction in the protein value of the press cake. To release palm oil through the breakdown or breakdown of oil cells in fruit, it is commonly used through a steam-heated cylindrical container equipped with a central rotating shaft that supports a series of whisk arms when the fruit is hit. Because of the high cost and maintenance involved, most small fermenters do not have thermal insulation or steam injections to keep their contents at elevated temperatures during this process. Iron contamination increases the risk of oil oxidation and oil exposure.
Pressing (i.e. the extraction of palm oil) uses mechanical pressing (i.e. dry process) and the wet process (need for hot water to leach out the oil). In the designs of batch presses for oil production, the main differences are: the method by which the piston is moved and pressure is applied, the amount of pressure in the press, and the size of the cage. In large-scale grain production, the nuts contained in the press cake are separated from the fibers in a pericarp. Herbs and spices are sometimes added for flavoring during the oil drying phase to mask flavors and/or smells. includes a traditional method (low tech production) and mechanized units (intermediate tech production), the main players in this stage are most of the small processors, medium and large processors based in Benin, Lagos, Jos, Kano, Osun, Onitsha and rivers.
SIZE OF THE PALM OIL INDUSTRY IN NIGERIA, THE CHALLENGES AND THE COMPETITIVE PRICES THAT COME FROM IT.
Vegetable oil manufacturers are now positioning their products on the basis of consumer health awareness, paying attention to outer packaging and product visibility. Race for the best contenders for market share control.
The diversity of product sizes between brands, a measure that has closed the affordability gap between rich and poor consumers, has also increased competition while minimizing the effects of price differentials. These elements pitted producers against each other, forcing them to fight for a place in the vegetable oil market. Manufacturers have also launched a promotion based on health messages, outer packaging and availability to improve consumer care and adoption. however, increased competition between big brands such as Mamador and Devon King manufactured by PZ Wilmar Limited, a subsidiary of PZ Cusson Nigeria Plc; Sunola manufactured by Sunseed Nigeria Limited, Grand, a product of Grand Cereals and Oil Limited, and Power Oil, a product of Raffles Oil LFTZ Enterprises.
Market Competitors Other market competitors are Nosak Group, Famili pure vegetable oil producer, Sidex Nigeria Limited, Lesieur pure vegetable oil producer and other foreign products that have found their way into the Nigerian market such as Wesson rapeseed oil The results of Vanguard Companies and Market (C&M ) showed that from these numbers three vegetable oils, Devon King, Mamador and Power Oil, emerged as market leaders and pave the way for secession from the market. They have guided manufacturers along the line of product health benefits, attractive packaging, and market availability, which has led manufacturers to implement these marketing mechanisms to engage current and potential consumers. C&M’s results also show that buying vegetable oil in the market is a top-notch thing, with some consumers preferring the top three as premium brands. Consumer Responses
A C&M survey of vegetable oil preferences in some parts of Lagos showed that consumers were aware of the type of vegetable oil they were consuming, which inevitably led some brand owners to investigate the claims. Nnadozie’s views were at odds with those of other consumers, saying he uses all three brands interchangeably, depending on which one is available for too long at any given time or when put in the refrigerator.
Most of the respondents preferred Devon King, Mamador, Power Oil, Sunola, and Grand. Together, they control about 65 percent of the market when the trade’s answers to preference questions are taken into account. The rest of the brands are also expected to gain significant market share over the leading brands. It was found that the majority of respondents relied on Devon King on the fact that it developed a household name According to one consumer, Devon Kings Oil is the best oil. An entrepreneur, Ms. Elizabeth Iwu, who makes hot pepper sauce, YesChilli, said Devon King was the oil of choice for making the product. “I used Devon King after trying a few others that did not give me the result I expected in making my product.” According to Ambrose Ezeji, a restaurant operator in Isashi, in the Ibaregion of Lagos, some vegetable oil producers have understood what the importance of packaging and quality can mean to a business. He said that Power Oil pioneered the pillow packaging(pouch) market. While he noted that over time packaging was a major challenge in the vegetable oil industry, “they all handled it”. He added,”Until now, they have never wanted to deviate from the traditional way of packaging their products.
The move from gallons of tin to plastics has revolutionized the industry.” Ms. Ayoola Idowu, a housewife who has tried two of the products, Devon King and Sunola, said that sunola blistered when roasted, a situation that led her to stop using it but found it to be too Belongs to the best brands in Ms. Adejumoke Adekunle, for her part, pointed out that Power Oil turns black after three uses, depending on what fried it with. She said, “If you fry ‘Panla’ fish three times in poweroil it will get darker,” a situation she said she branded off. Manufacturers Speak-up, an employee of a major vegetable oil company who declared himself anonymous, said, “What consumers say may be true, but the choice of a vegetable oil depends in part on how you plan to use it in the kitchen. Oil brands are better suited to various culinary uses, and some cooking methods can ruin the goodness of some brands, so it is worth doing your research before buying: “There are many factors that affect the stability of an oil (how quickly it oxidizes), including its degree of refinement and its ratio of saturated and unsaturated fats. Chemicals called AGEs, “he said.
Edible oil manufacturers compete to support and fortify products. Of edible oil (vegetable oil) have launched a promotion based on support from the Nigerian Heart Foundation, NHF and the Nutritional Society of Nigeria, NSN and product price differentiation to improve patronage and adoption
Other tactics used to attract customers include repackaging, segmentation, enrichment, and product availability. Leading Nigerian edible oil brands such as Sunola Oil, manufactured by Sunseed Nigeria Limited, are competing for market share; Grand Oil manufactured by Grand Cereal and Oil Limited; Power Oil from Raffles Oil LFTS Enterprises’ barn; Mamador and Devon King Oil manufactured by PZ Wilmar Limited, a subsidiary of PZ Cussons Nigeria Plc. Other competitors in the market include Famili Pure Vegetable Oil, Lesieur Pure Vegetable Oil, as well as other imported edible oil brands such as Wesson Canola. However, the market is dominated by five brands, namely Sunola Oil, Grand Oil, Power Oil, Mamador and Devon King. These leading brands also use some marketing elements like segmenting the products into smaller, more affordable sizes, repackaging and availability to improve consumer care in the marketplace.
Since consumers are aware of the friendliness of the products, manufacturers have also taken health messages based on these recommendations and developed a new marketing approach to reach their diverse customers by adding attractive packaging, pricing and vitamin A to their products. The award has become very important as the battle for market share intensifies and prices vary at different market locations.
For example, the prices for a 25 liter drum vary from # 12,000, # 13,000, # 11,800 and # 14,900 depending on the brand of the product and the prices for a 5 liter drum also vary from # 3,900, # 3,100, # 4,000, # 3400 and # 4500. A 3 liter plastic bottle of Grand Oil costs N2,997; Power Oil sells for N2,480; Devon King for N3,000 A 1 liter bottle of Devon Kings Oil costs between N900 and N1,000; Mamador Oil is sold for N870 while Sunola Oil is sold for N950. Devon King and 5 liter Sunola oil sell for N3.750 and N4.300, respectively.In addition, 0.75 cl Grand Oil, Power Oil and Mamador Oil are sold for N590, N625 and N850, respectively. The prices for different box sizes of vegetable oil brands differ depending on the market location. However, this factor has pitted manufacturers against each other, forcing them. The results from Vanguard Companies and Markets, C&M, showed that endorsements are a major phenomenon in the market today and have become a tool for branding. At one point it was endorsed or certified by celebrity regulators. Consumer Reactions CandM’s results show that purchasing decisions are increasingly influenced by regulatory approval and the “class” or “status symbol” factor that leads consumers to patronize premium brands.
The states of Enugu, Imo, and Anambra mostly showed preferences for the top five brands in the market. Ms. Ebere Nnakwe says she prefers Sunola but alternates with Devon King or Mamador when Sunola is not available or when she makes a quick pick from any of the brands she sees first in the market. Abiola Akanji says she prefers Devon King because it has become a household name that has stayed with her, but noted that other cooking oil brands are good in the market, especially given their endorsement. by regulators. Distributor speaks of a distributor whose business is in the Tejuosho market, Yaba, who explained himself anonymously, says that he sells several brands of edible oil.
“According to my records, all five brands are doing well, although I have other imported brands in my store that are also doing well. I think this endorsement from NHF and NSN has increased consumer confidence in Made in Nigeria brands, unlike before when we relied on imported vegetable oil, he said. Experts discuss the impact of recommendations for edible oil brands, a nutritionist who works at one of the major Lagos hotels but don’t want her name to be printed said, “When it comes to a professional or regulatory agency like NHF or NSN, the effect is greater, it happened recently when NHF awarded the certificates of Mamador, Power Oil, Grand Oil, Devon King and Sunola Oil as the standard and recommended it to Nigerians. Consumer segment of the market.
EFFECTS OF SMUGGLING IN THE COUNTRY
The importation of refined palm/vegetable oil is prohibited and the importation of raw palm/vegetable oil is subject to a 35% duty. Employed in the manufacturing/refining industry and also supports oil palm plantations by protecting them with an additional margin of more than $ 300 per tonne over the Malaysian and Indonesian oil palm plantation selling price. The two largest organized oil palm plantations in Nigeria have consistently reported gross profit margins in excess of 50% and operating profit of 3,040%. In 2016 when the economy was in recession, inflation exploded, these companies exploded. the best performance in its history was with a gross profit margin of over 70%. On an absolute basis, this corresponds to a gross profit margin of 280,000 Naira per ton above the CPO sales price of 400,000 Naira. Branded Products and Packaged Products.
With a huge potential consumer market to conquer, manufacturers have stepped up their marketing efforts to attract locals and this is expected to continue during the forecast period. In 2018, the average unit price of edible oils fell (after a sharp increase in 2016) as manufacturers tried to stimulate demand, but also because the devaluation of the local currency forced them to use local ingredients, which led to imports being more expensive.
CONCLUSIONS AND RECOMMENDATIONS.
The palm oil processing, sale and distribution business in Nigeria is very profitable indeed and, if well managed, can also be a source of employment regardless of the average cost of obtaining the necessary equipment and installing it, which is relatively high business. It is necessary for the individual to identify the long-term financial impact of the palm oil business and to determine whether the business plan has the necessary resources to make it feasible and not to invest more to fix bugs, remove restrictions and then profit, the producer will be able to access the opportunities and opportunities that abound in the oil palm processing field and good economy, operational/technological and financial feasibility should also be considered. The production, training and level of mechanization could be the main factors affecting the profitability of the price or cost of fixed assets such as land, other processing equipment and labor. The processing and supply of oil palms depend on the yield and the rate of expansion of the palm oil plantations. When properly used by a future oil trader, the industry is a very lucrative business.