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Step By Step Guide On How To Start A Lucrative Coconut Oil Business In Nigeria

Step By Step Guide On How To Start A Lucrative Coconut Business In Nigeria
Coconut oil a special oil that is produced from the coconut fruit with a lot of amazing health benefits that makes it very marketable.
Coconut is an exotic food with a lot of nutritional and health benefits. There are many useful products that can be gotten from the coconut with the most popular being the coconut oil.

Benefits Of The Coconut Oil

The coconut oil contains lauric acid and monolaurin which help in killing harmful pathogens like viruses, fungi and bacteria.
The fatty acids present in coconut oil can also help in reducing your hunger thereby helping you to eat less. Another benefit of the fatty acids is the role they play in the treatment of drug-resistant epilepsy in children.
Coconut oil also contains natural saturated fats that help in raising the good HDL cholesterol in your body while turning the bad LDL cholesterol into less harmful forms
Another useful benefit of coconut oil is its role in the protection of your skin, hair and dental health. Coconut oil also help you lose weight since it helps in controlling your appetite and burning fat.
Coconut oil can also be used for producing many different care products like baby lotions, soaps, food flavours and various skin and health care products.

How Lucrative Is Coconut Oil Business In Nigeria

There are different ways of going into coconut business such as coconut farming,selling of coconut and production of coconut oil. We'll be sharing tips on how you can venture into a successful coconut oil production business in Nigeria.
The coconut oil business is very popular in many Asian countries but yet to be discovered by many Nigerians. Ghana is also doing well in the business and it's contributing immensely to their economy.
In Nigeria, a litre of coconut oil can be sold for ₦6,000 to ₦8,000 and if you can sell 2 litres everyday, you'll be making more than ₦150,000 per month.

How To Start Coconut Oil Production In Nigeria As Wholesaler/Retailer

You can venture into a coconut oil production business in Nigeria as a wholesaler, retailer or producer. It's quite cheaper starting as a wholesaler or retailer because you won't have to buy the coconut production equipment yourself.
Wholesale coconut oil business involves buying the oils directly from the producers or coconut oil dealers and then re-selling to the retailers who in turn sell to the direct consumers. You can even buy them from Ghana dealers and import at affordable prices.
Rebranding of the products will also help you but you should acknowledge the manufacturers as well. Also endeavour to include the ingredients and other necessary information in the label while selling the coconut oil.

How To Start Coconut Oil Production In Nigeria As Producer

What if you want to start producing the coconut oil yourself? Starting a lucrative coconut oil production business in Nigeria involves a capital of at least ₦10 million. The business involves some various machinery of which some of them like the fully automated processor which costs more that ₦3 million.
You'll also need to get NAFDAC approval before you can start delivering to supermarket, cosmetic industries, health institutions and shopping malls. You'll also need to hire shops and advertise your businesses to your potential customers.

Steps Involved In Coconut Production Business

Some tips you should follow while starting a coconut production business in Nigeria include:

• Develop a business plan

A business plan is very necessary for the success of every business. It should cover things like what your brand will look like, how you plan to promote the business, your budget and other things.
You can contact us for a business plan template or to write your coconut business plan at an affordable rate.

• Business registration

This involves formally registering your business with the corporate affairs commission (CAC). It helps in boosting your customers' confidence in your products while enabling you to run your business legally in Nigeria.

• Get the required training

To achieve success in the coconut oil production business in Nigeria you need to understand how the business is ran. There are many tutorials in form of videos and eBooks that you can easily get online that would guide you through the process of coconut oil production.

• Source for coconut supply

The coconut fruits are the raw materials and they can be gotten directly from thee farmers. Ensure that the only high quality coconuts being supplied by the farmers and they should be as affordable as possible.

• Packaging and marketing

Your packaging really matters in this business and will play a major role in attracting customers to you. Your packaging is the first thing a customer will see. Your products should be packaged in such a way that someone will want to taste the product.

Steps Involved In Producing One Litre Of Coconut Oil

We'll run through the steps involved in producing a litre of coconut oil. Around 15 to 20 coconuts will be required and when done manually, grating can take around 2 to 3 hours depending on your experience.
The steps involved in producing one litre of coconut oil are stated below:

• De-shell the coconut

This involves removing the coconut husks and shells from the coconuts. It can be done manually or mechanically. If done manually, it can take hours but using the coconut machine is far better.
The coconut machine detaches the hard coconut shell from dehusked coconut fruit via a rotating disc cutter. You can contact us to buy the coconut machine at affordable rates.

• Grating

After de-shelling,the next step in line is to grate the coconuts. It is advisable to wash the coconuts before grating to remove any dirt that might be in the copra.

• Drying

The grated meat can either be sun-dried or dried in the oven at a low heat. Drying of the copra will take hours and it should be dried to the lowest possible moisture content to enable the expeller machine extract the oil from it.

• Extract the oil

After drying the copra, you can proceed to the expeller machine for the extraction of the coconut oil. The machine will press out some cloudy fluid from the copra within few minute of feeding in.

• Filter the oil

This is the final stage in the production of coconut oil. Put the cloudy fluid is a clean bowl and stir for 30 minutes. Then allow it for some days so the cloudy fluid will settle in the bottom. After that, filter the oil and start packaging for sales or personal use.

Marketing Strategy Of Coconut Oil

Coconut oil can be used for many different purposes and ingredients for a good number of products like soaps, hair care products, skin care products, food flavours and more. You can start selling your products by advertising to your friends around who might be needing it.
Nursing mothers are also among the highest patronisers and you can approach them during postnatal and antenatal. This might not be easy since selling of wares are not allowed in the hospitals but if you can work with the mid-wives and doctors, you'd be achieving something great.
You should also take your business online by advertising on the popular social media platforms and blogs. They'd help you reach more people across that country that would never have heard of your product.
Also, you should consider renting a shop or kiosk in a busy location so people will always have a place to visit whenever the want to patronise you.

Challenges Of Coconut Business

Some challenges that you might face while running the coconut business include:

• Electricity

The epileptic state of electricity is one major issue that you might face in the course of producing the coconut oil. You can however manage it by having an alternative power source like generator.

• Price of coconut

This is another factor that affects the cost of production and cost of the final products. Prior to the rise in dollars against the Naira, you could get a bag of coconut for ₦100 but right now the price has almost doubled.

• Availability of coconut

To succeed in this business you need to have a regular supply of coconut that would be enough to serve your customers throughout the year. The closer you are to the supplier, the cheaper the coconut oils and vice versa.

Thanks for reading along, don't forget to drop us a comment and share with your friends You can also check out these amazing tips on how to advertise your products for free in Nigeria, they are proven methods and can save you thousands of advertising budgets.
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