Groundnut also called peanut, a legume crop which is grown mainly for their edible seeds.
It is a rainforest and savannah crop with Nigeria as one of the major producers in West-Africa.Nigeria produces over 1.55 million metric tonnes of groundnut annually and is presently the largest producers of groundnut in Africa and the fourth largest in the world.
It is a proteinous crop, very healthy for consumption and has several health benefits.
The high rate of its consumption these days is an opportunity for proactive and smart agropreneurs and investors to take advantage and embrace groundnut farming.
Groundnut tops the chart of the highest consumed nuts in Nigeria and is highly consumed all over the world. It falls among the top business-driven products in Nigeria.
It is a commodity which is not so much affected by the exigencies of market dynamics. Products that can be gotten from groundnut farming includes:
- Edible groundnut seeds that can either be boiled or roasted
- Groundnut oil
- Groundnut cake
Edible vegetable oil is oil produced from any of the edible oil bearing seeds that exist in nature. Many of these seeds are produced in large quantities in Nigeria.
Amongst them are: groundnut, oil palm fruit, soybeans, cotton seed, sesame seed, melon seed, etc.
For a small/medium scale mechanized groundnut oil mill, the start-up capital is between five to six million naira.
This will cover the cost of land, construction, furniture, procurement and installation of machinery, vehicle and operational expenses.
MARKETABILITY/PROFITABILITY IN GROUNDNUT FARMING BUSINESS
One tone of groundnut seed produces an average of 500ltr of groundnut oil, 420Kg of groundnut cake, and 40Kg of groundnut sludge. The recent average price of the following is true (in Kaduna state):
1 tone of groundnut seed = N180,000
1 ltr of groundnut oil = N260
1 Kg of groundnut cake = N160
1 Kg of groundnut sludge = N100
So if you process 1 tone of groundnut seeds, you are likely to get an average profit of N20, 000.
The oil milling machinery referenced in this write-up has the capacity to process 3.5 tone of groundnut per day.
This means an average of N70, 000 profit is realizable per day, which translates to N2, 100,000 per month.
Monthly cost of labor, staff welfare, fuel, and transport will not exceed N700, 000. It should be noted that there is a ban placed on the importation of vegetable oil into Nigeria so as to encourage local investors to go into its production.
This gave birth to a very high demand in the country, as the present production level doesn’t meet demand.
Dealers pay in advance for your products the moment you start production, and study has shown that over 80% of the populace of Nigeria consumes or use vegetable oil and its products almost every day.
PROFIT MARGIN IN GROUNDNUT FARMING BUSINESS
The profit is from 50% upward, more profit is made when you unshell them for sale and greater profit if you mill to oil.
Groundnut farming can give many people jobs especially in the oil mill sector. Market men and women are ready to buy from the available ones around them.
As it has been observed that most of the groundnut sold in the southern market comes from the north which gives interested in groundnut farmers in the south and west a very good opportunity, the market is sure and completion by producers are limited why not increase the production so that we can have what to export to other countries.
Groundnut farming is a very lucrative business and as much as 5 metric tonnes per hectare of land..
Whatever way you look at it, groundnut farming is a very lucrative and it is a venture that guarantees optimal yield.
This is because a large portion of the groundnut harvested is readily consumed in the country, hence there’s a readily available market for your product.
By Adekunle Adedolapo