Oil Palm Business: Agribusiness Series 1

In order to kick start this Oil Palm business, there are several questions which must be asked and factors which must be taken into consideration.

These questions includes but not limited to (i) where am i going to plant my seeds (ii) how much capital do i need to start this business (iii) how many people would i employ (iv) how am i going to process this produces (v) how long would it take before i begin to make profit? etc. This questions leads us into the factors of production which includes CAPITAL, LAND, LABOR.

The Management process of an oil palm business includes planting, , pruning, clearing and harvesting.

Venturing into this business as a commercial enterprise would require a large hectare of land since the crop is a monocrop. So therefore how much am i willing to spend on land acquisition?

The oil palm fruits (improved variety seedlings) that would be planted needs to be readily available as it is the foundation of the production process.

An understanding of COST is to be taken into consideration as labour would definitely be employed for a business of this magnitude.

In a plantation like this, there are two options which is either the use of machines to clear/plough the land to be used for planting or contracting manual laborers/workers.

The seeds should be prepared in a nursery for it to germinate for the period of 8 to 12 months. After sprouting, the sprouted seeds are transferred to a pollen pot filled with sand which enables the sprouted seeds mature into seedlings for a period of 12 to 18 months.

After this period, a land survey needs to be conducted on the particular piece of land which these seedlings would be transplanted to.

The standard planting distance for oil palm is 9 metre by 9 metre.

Oil Palm Business: Management Practices

This includes clearing of the farm, application of fertilizer/manure(organic and inorganic) for the seeds to grow well.

After a period of 2 to 3 years, the planted seedlings would begin to bear fruit.

Harvesting is mostly done with prune. Pruning should be done yearly so as to enable aeration for the successful growth of the oil palm tree.

Oil Palm Business: Profitability

There is profitability in oil palm business as no part of the harvest goes to waste.

The red oil is marketed which returns profit depend on the breed of palm planted. after proceesing of the red oil, the kernel is processed to extract kernel oil, also the fibre is used as a source fire. Palms fronds could also be processed to give us locally made broomsticks.

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