Sunflower oil production as a business

Business ideas by directions

Before the revolution, the dream of many wealthy peasants in Russia was to open their own oil mill. This guaranteed a steady income and increased prosperity.

Oddly enough, over the past hundred years, the attractiveness of this type of business has not decreased. Sunflower oil is still in demand, and the profitability of its production business is still high. Moreover, the production of sunflower oil in some rural areas rich in sunflower is the easiest and most affordable way to earn solid money.

Of course, creating your own oil mill requires initial investment and a serious approach to business. However, having a solid and detailed business plan will help you get your business into the profit zone quickly.
Experience shows that the profitability of a properly organized production of sunflower oil reaches 20-25%, which makes it possible to recoup the initial costs during the first year.
However, you need to start your own production only after conducting a marketing research, which should show the availability of conditions for starting work and the absence of intense competition. The fact is that the production of products is always very dependent on the availability and cost of raw materials. In addition, you need to be able to sell finished products in the nearest region, otherwise the cost of transportation can significantly reduce the share of profits.
The presence of a strong competitor that buys up the entire crop of sunflower seeds and provides all the needs of consumers can reduce the profitability of profitable production to zero.
If the conditions allow you to start production, then you need to start with the registration of the enterprise and the search for a suitable premises. At the same time, it must be borne in mind that food production is under the close attention of supervisory authorities, so it is better to immediately prepare a room that meets sanitary and fire standards. In particular, it is necessary to provide separate premises for the storage of raw materials, finished products, and production waste. It is advisable to tile the room for pressing and filtering the oil, or at least paint the walls to a height of at least 2 meters.
Particular attention should be paid to fire safety measures, since oil is a combustible material, and cake can ignite spontaneously during long storage.
Technologies for the production of sunflower oil can be different, ranging from the technology for the production of unrefined oil by cold pressing, ending with the technology for the production of refined deodorized oil by hydration or freezing.

Depending on the technology, the set of equipment for the production of butter also changes.

The initial costs for preparing the premises and purchasing equipment (presses, filters, dryers, roasters, seed calibrators, oil storage tanks, etc.) can be estimated at between one and a half to fifteen thousand dollars, depending on the technology and production volumes. When planning costs, it is also necessary to provide for the need to purchase initial stocks of raw materials and containers for spilling finished oil.

Operating costs will include rent and utilities, staff salaries, transportation costs, raw material purchases and finished product marketing.

The efficiency of sunflower oil production will largely depend on the proper management of costs and the sequence of actions when creating an enterprise.

On our website you can order a detailed business plan for the production of sunflower oil with all the necessary calculations, depending on the chosen production technology.