Are you about starting a vegetable oil production plant? If YES, here is a complete sample vegetable oil production business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a vegetable oil production business. We also took it further by analyzing and drafting a sample vegetable oil production business marketing plan template backed up by actionable guerrilla marketing ideas for vegetable oil production businesses. So let’s proceed to the business planning section.

Why Start a Vegetable Oil Production Business?

Vegetable oil is the clear oil extract derived from components such as coconut, groundnut and palm kernel through a pressing and production process. Billions of gallons of vegetable oil are produced by farmers every year all over the globe.

Just in the United States alone, farmers produce as much as 16 billion pounds of vegetable oil every year. We humans use vegetable oil for a vast range of purposes, which include cooking, production of plastics and soaps. Also the waste products of vegetable oil production are now used to fuel diesel engines.

Vegetable oil production presents huge opportunities for career focused individuals, as this industry can boast of a large consumer base and various sectors to serve. It also offers the option of working in collaboration with large vegetable oil extraction companies. This business might seem easy, but do not be deceived as starting a vegetable oil production business might be very hard but still remains the best option for you.

A Sample Vegetable Oil Production Business Plan Template

  • Business Overview

The World vegetable oil market is expected to grow pass 200 million metric tons by 2020, driven by the surging popularity of healthy, organic and unprocessed/unrefined vegetable oils. Low-fat, low-cholesterol and low-calorie vegetable oils are especially poised to benefit against the backdrop of growing consumer focus on health and fitness.

We are meant to understand that rising markets offer opportunities in the form of greater potential for higher market penetration and growth in per capita consumption, while in the developed markets, innovation in new flavours and healthy ingredients will spruce up consumption.

It is important to note that the Asia-Pacific represents the largest and the fastest growing market worldwide with a CAGR of 5.2% over the analysis period of 2010-2015. It has been analysed that the main factors moving growth in the region include growing population and the corresponding growth in demand for food commodities; improved retailing network; changing dietary habits; rapid urbanization; improving living standards; increasing crop yields and oil production; changes in composition of vegetable oil consumption; and expanding non-edible applications.

Vegetable Oil Production Business Plan – Executive Summary

Hygienic Oil’s main goal is to provide a synthetic palm oil for our consumers in a way that is more sustainable and more cost effective than what our competitors are offering in the wide industry.

We at Hygienic Oil will be able to supply our consumers with synthetic Palm oil which is much cheaper than those of our competitors through our use of a vat-based fermentation process instead of making use of the traditional production process of purchasing expensive forested land. Our focus at Hygienic Oil will predominantly be on business to business selling whereby we will work as a manufacturer.

Hygienic Oil will do business from one major site in Kansas which will be made up of multiple large vats and outlying buildings for admin and research purposes. We believe that this facility will serve as a centre for distributing our synthetic Palm oil to shipping ports where it can be shipped around the world to companies such as Unilever.

Our management believe that our unique selling point of producing a more environmentally friendly alternative to naturally grown synthetic Palm oil will be the driving force behind generating interest and sales from consumers in the industry, and also gaining government and world approval. We believe that our policies to use more environmentally friendly synthetic Palm oil will make sure that we retain customers, which our business will rely upon.

We at Hygienic Oil will also expect that, as arable land continues to dwindle in synthetic Palm oil producing countries and the price of synthetic Palm oil continues to soar, we will be able to capture more and more of our prospective customers’ sense of convenience and value generally. Cost in our business will be reduced by maintaining only a short supply chain.

Hygienic Oil will be owned by the six group members and the Emporia State University, each holding equal shares in the company. Also with the world currently becoming dependent on cultivation and production of agricultural products, including synthetic Palm oil, our unique business is very dedicated to reduce the impact this business would have on the world.

For this reason, the licenses to use this mode of production would be offered to the United States government at a negotiated price that would show the current value of synthetic Palm oil in the world. The US government would then be allowed or permitted to use the processes we devised at Hygienic Oil to continue to profit from trade in synthetic Palm oil components. We strongly believe that replacing traditional methods of synthetic Palm oil production with Hygienic Oil would support the economy of the United States.

  • Our Products and Services

We at Hygienic Oil plan to offer the supply of lab-produced synthetic Palm oil to companies around the world. We have planned that Production will be based on-site in Kansas in a major complex located near to Kansas city shipping port to reduce the transport costs that comes with getting the synthetic Palm oil from the production factory to a position where it can be transported to our customers.

We believe that our one in a kind selling point of providing an environmentally less destructive alternative to current methods of synthetic Palm oil production will be very much enough to secure a leading role in the industry.

  • Our Vision Statement

Our vision at Hygienic Oil is to create an oil production process that will reduce the effect and threat we pose to our environment due to all our industrial activities.

  • Our Mission Statement

Our mission at Hygienic Oil is to build a standard and world class synthetic Palm oil production business that in our own capacity will favourably compete with leaders in the industry. We want to build a synthetic Palm oil production business that will be seen as a vital alternative to the traditional synthetic Palm oil production process.

  • Our Business Structure

Our vision and picture of the kind of synthetic Palm oil production business we intend building and the business goals we want to achieve is what informed the amount we are ready to spend to make sure that we build a business with dedicated workforce and robust distribution network.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Hygienic Oil;

  • Chief Executive Officer (Owner)
  • Synthetic Palm oil Production Company Manager
  • Human Resources and Admin Manager
  • Sales and Marketing Officer
  • Accountants/Cashiers
  • Synthetic Palm oil Production Company Casual Workers
  • Truck Drivers /Synthetic Palm oil Wholesale Distributors
  • Customer Service Executives

Roles and Responsibilities

Chief Executive Officer

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Tasked with fixing prices and signing business deals.
  • Tasked with providing direction for the business.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Tasked with signing checks and documents on behalf of the company.
  • Evaluates the success of the organization.

Synthetic Palm oil Production Company Manager

  • Tasked with overseeing the smooth running of the synthetic Palm oil production company.
  • Makes sure that quality is maintained at all times.
  • Maps out strategy that will lead to efficiency amongst workers in the synthetic Palm oil production company.
  • Tasked with training, evaluation and assessment of the workforce.
  • Make sure operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Make sure that the synthetic Palm oil production company meets the expected safety and health standard at all times.

Human Resources and Admin Manager

  • Tasked with overseeing the smooth running of HR and administrative tasks for the organization.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Defines job positions for recruitment and managing interviewing process.
  • Carries out staff induction for new team members.
  • Tasked with training, evaluation and assessment of employees.
  • Oversees the smooth running of the daily business activities.

Merchandize Manager

  • Manages vendor relations, market/farm visits, and the ongoing education and development of the organization’s buying teams.
  • Helps to maintain consistent quality and quantity of the synthetic Palm oil.
  • Tasked with the purchase of palm kernels and measuring materials (drums, bottles, and plastics et al).
  • Tasked with planning sales, monitoring inventory, selecting the merchandise, and writing pricing orders to vendors.
  • Make sure that the organization operates within stipulated budget.

Sales and Marketing Manager

  • Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones.
  • Models demographic information and analyses the volumes of transactional data generated by customer purchases.
  • Identifies, prioritize, and reach out to new partners, and business opportunities et al.
  • Tasked with supervising implementation, advocate for the customer’s needs, and communicate with customers.
  • Develops, executes and evaluates new plans for expanding sales.
  • Documents all customer contact and information.
  • Represents the company in strategic meetings.
  • Helps to increase sales and growth for the company.

Synthetic Palm oil Production Company Casual Workers

  • Tasked with operating synthetic Palm oil production equipment.
  • Tasked with measuring and filling synthetic Palm oil into various containers as demanded by clients.
  • Tasked with carrying out all casual or unskilled jobs in the synthetic Palm oil production company.
  • Assists in loading and unloading of palm kernels and processed synthetic Palm oil.
  • Handles any other duty as assigned by the synthetic Palm oil production company manager.

Accountant/Cashier

  • Tasked with preparing financial reports, budgets and financial statements for the organization.
  • Provides managements with financial analyses, development budgets and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Tasked with financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting.
  • Tasked with developing and managing financial systems and policies.
  • Tasked with administering payrolls.
  • Makes sure of compliance with taxation legislation.
  • Handles all financial transactions for the organization.
  • Serves as internal auditor for the organization.

Distribution Truck Drivers

  • Assist in loading and offloading palm kernels and processed synthetic Palm oil.
  • Maintain a logbook of their driving activities to make sure of compliance with federal regulations governing the rest and work periods for operators.
  • Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment.
  • Assist the transport and logistics manager in planning their route according to a delivery schedule.
  • Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
  • Transport finished goods and raw materials over land to and from manufacturing company’s or retail and distribution centres.
  • Inspect vehicles for mechanical and safety issues and perform preventative maintenance.
  • Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures.
  • Collect and verify delivery instructions.
  • Report defects, accidents or violations.

Client Service Executive

  • Makes sure that all contacts with customer (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level.
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services.
  • Manages administrative duties assigned by the store manager in an effective and timely manner.
  • Consistently stays abreast of any new information on Hygienic Oil products promotional campaigns to make sure accurate and helpful information is supplied to customers when they make inquiries.

Vegetable Oil Production Business Plan – SWOT Analysis

We at Hygienic Oil because of our zeal for excellence when it comes to running a standard synthetic Palm oil production business, have been able to contact some of the finest business consultants in Kansas to look through our business concept and together we were able to go through the prospect of the business and to be sure we have what it takes to run a standard synthetic Palm oil production business that can compete favourably in the synthetic Palm oil production sector.

With this, we were able to understand our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in the United States  and also in other parts of the world that we intend selling our synthetic Palm oil. Outlined below is a preview of what we got from the critically conducted SWOT Analysis for Hygienic Oil.

  • Strength

According to our SWOT Analysis, our strength at Hygienic Oil rests on the fact that we own our own palm tree plantation. That we also  have a state of the art synthetic Palm oil production  facility and equipment that has positioned us to meet the demand of synthetic Palm oil in the United States  and the world at large even if the demand tripled over night or if we have a massive order to meet.

  • Weakness

The SWOT Analysis conducted also noted our weakness is centered on the fact that we are setting up a synthetic Palm oil production business in a city with other smaller and larger synthetic Palm oil production businesses, and this might likely pose a challenge for us in breaking into the already saturated market in the United States. We have noted this and have made plans to ensure that we overcome this weakness and take over the industry with our innovative methods.

  • Opportunities

Our SWOT Analysis noted that loads of people are making use of synthetic Palm oil on a daily basis and all what we are going to do to push our synthetic Palm oil to them is already perfected.

  • Threat

According to our SWOT Analysis, the threat that is likely going to confront us is the fact that we are competing with already established synthetic Palm oil production businesses in the United States and also there are other entrepreneurs who are likely going to launch similar business within the location of our business. Of course, they will compete with us in winning over the available market.

Vegetable Oil Production Business Plan – MARKET ANALYSIS

  • Market Trends

We all know that in the line of synthetic Palm oil production, businesses tend to locate their production companies in locations and communities where they can easily have access to fresh and cheap palm kernels. Also in this industry, if you make the mistake of positioning your production business in a location where you would have to travel a distance before you can get access to palm kernels in commercial quantities, then you would have to struggle to make profit and maintain your overhead and logistics.

Also in the industry, the registered and well organized synthetic Palm oil production companies go beyond the market within their locations or even the United States and export synthetic Palm oil to communities abroad.

Also in an attempt to stay afloat and continue to make profits from this line of business, most standard businesses that are into synthetic Palm oil production strive to work hard to make sure that they own their own palm tree plantation. With that, it is easier for them to maximize profits and grow the business.

  • Our Target Market

We at Hygienic oil believe that when it comes to retailing processed synthetic Palm oil, that we have a vast range of available customers. This means that our target market can’t be restricted to just a group of people, but to all those who make use of synthetic Palm oil for cooking and also all those who make use of synthetic Palm oil as raw material in their cottage industry.

Our target market is not restricted to a particular demographic and psychographics composition of the world, but encompasses all those who need synthetic Palm oil. We at Hygienic Oil have conducted our market research and we have ideas of what our target market would be expecting from us. Outlined below are those who we will be serving;

  • Households who make use of synthetic Palm oil for cooking
  • Restaurants and canteens that make use of synthetic Palm oil for cooking
  • The United States and African communities in the United States of America, Canada, and Europe
  • Small scale businesses that make use of synthetic Palm oil as part of their raw material.

Our Competitive Advantage

Our competitive advantage at Hygienic Oil rests on our revolutionary approach to the production of synthetic Palm oil. We and the whole world know that this method is more sustainable and more cost effective which makes it considerably more enticing to customers’ specific needs compared to traditional methods of production.\

Also we at Hygienic oil are able to gain from a smaller supply chain by removing the need for growers of oil palm fruit and subsequently the need to extract the oil from the fruit in mills. This means that the start of the supply chain for our product is the refining stage for natural synthetic Palm oil. This goes to buttress that our supply chain will be made up of only 4 steps instead of the usual 6.

We believe that this serves as a benefit as a shorter supply chain means there are less people who want to make profits along the line; from synthetic Palm oil grower to the eventual retailing body, and therefore there is an opportunity to supply the product at a reduced rate. We are also at advantage because our production method is so innovative and plain.

Vegetable Oil Production Business Plan – SALES AND MARKETING STRATEGY

  • Marketing and Sales strategy

We at HYGIENIC OIL will market and supply our unique products to our retail clients aggressively, focusing at first on local markets, and then on export options. We plan to emphasize the reliable year-round output of our production company and hardworking workforce as well as our ability to produce independent Synthetic Palm oil products.

We at HYGIENIC OIL know how important marketing is in our industry, and we understand the need to reach our prospective customers and leverage all available sources, which is why we will also eventually develop a website and advertise on the Internet, although these future marketing avenues are not included in this plan.

Vegetable Oil Production Business Plan – Publicity and Advertising strategies

Indeed we at HYGIENIC OIL hope that our marketing strategy will be based on giving the people the products they need for the right price. We plan to maintain an extensive marketing campaign that will ensure maximum visibility for the business in our targeted market. Below is an overview of the publicity and advertising strategies for HYGIENIC OIL:

  • Establish relationships with landscape contractors within the target market.
  • We hope to place adverts on both print (community based newspapers and magazines) and electronic media platforms; we will also advertise HYGIENIC OIL Consultants  on financial magazines, real estate and other relevant financial programs on radio and TV.
  • HYGIENIC OIL will also sponsor relevant community based events/programs.
  • We also plan to make use of various online platforms to promote the business, which will make it easier for people to enter our website with just a click of the mouse. We will take advantage of the internet and social media platforms such as; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand.
  • We also plan to mount our Bill Boards on strategic locations all around Kansas.
  • We at HYGIENIC OIL also plan to engage in road show from time to time.
  • We also plan to distribute our fliers and handbills in target areas all around Kansas.
  • We plan to make sure that all our workers wear our branded shirts and all our official vehicles are well branded with our company’s logo et al.

Sources of Income

We at Hygienic Oil plan to generate funds by supplying people and organizations with unique lab-produced synthetic Palm oil. We have planned that production will be based on-site in Kansas in a major complex located near to Kansas city shipping port to reduce the transport costs that comes with getting the synthetic Palm oil from the production factory to a position where it can be transported to our customers.

We believe that our one in a kind selling point of providing an environmentally less destructive alternative to current methods of synthetic Palm oil production will be very much enough to secure a leading role in the industry.

  • Sales Forecast

We at HYGIENIC OIL believe we will be having exceptional sales in our first year of operation. We believe that our direct unit costs include the costs for the agricultural supply force that will produce the palm fruits we will be synthesizing. These costs we believe are roughly 35% of all direct costs each month.

Our sales projections at HYGIENIC OIL were analyzed from two main revenue streams: the general public, and the retail outlets. We believe that our sales projections for the second year of operation will be based on a modest growth rate for sales.

We at HYGIENIC OIL being a new Synthetic Palm oil production company are projecting a growth rate of 20%, believing our advertising will bring in new customers daily. Outlined below is the sales projection of HYGIENIC OIL:

  • First Year-: $550,000
  • Second Year-: $1,400,000
  • Third Year-: $3,000,000

Note: it is worthwhile to note just like we stated above that this forecast was done based on what is obtainable in the industry and with the believe that none of the threats we mentioned above will be a hindrance or may likely appear.

  • Our Pricing Strategy

We at HYGIENIC OIL believe that our pricing will be based on serving our customers with expert service and product knowledge, to build our marketing plan to reach diverse individuals and retailers, while also maximizing profits.

We believe that to get the right pricing for our products, we need to make sure that we choose a good location for our business, choose our suppliers wisely, reduce the cost of running our company to the smallest minimum and make sure we attract buyers to our business, as against taking our products to the market to source for buyers; with this, we would have successfully removed the cost of transporting the goods to the market and other logistics from the equation.

  • Payment Options

We at HYGIENIC OIL  after our extensive research and thorough discussion understand efficiently that different customers prefer different payment options as it suits them but at different times and ways. We plan to make sure that we provide them with payment options that will make their transactions less stressful and very open.

Listed below are the payment options we at HYGIENIC OIL plan to make available to our customers;

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via POS

We have also chosen to partner with a known bank in the United States in order to give our customers the best they can ever get in the agricultural sector of the United States.

Vegetable Oil Production Business Plan – Financial Projections and Costing

We at HYGIENIC OIL plan to maintain an average gross margin at or above 60%, generate an average of $1,000 of sales each business day of each month, and realize an annual growth rate of 10% in Year 2. Our unique management believes that these objectives and goals are very much reachable, that is why we are being very detailed about all information penned down in our business plan. We have also decided on the possible factors to spend our startup capital and they include:

  • The price for incorporating our farm in United States of America – $750.
  • Our budget for key insurance policies, permits and business license – $4,000
  • The cost of acquiring / leasing our facility and land – $55,000
  • The budget for preparing our company– $25,000
  • The price for acquiring the required working tools and equipment/machines/tractors et al– $1,000,000
  • The price of Launching an official Website – $600
  • The budget for paying our workers for 1 year – $500,000
  • Other business requirements (Business cards, Signage, Adverts and Promotions et al) – $2,000
  • Miscellaneous – $5,000

From our detailed cost analysis above, we will need $1,592,350 to start HYGIENIC OIL and make our production company ready to serve the needs of our customers.

Generating Funding / Start-up Capital for HYGIENIC OIL 

We at HYGIENIC OIL believe that having the required finance for our business, will go a long way to make sure we achieve our desired goal and vision. We also understand that funds are basically very important factor when it comes to building any business, and building a successful business is not a one day job but a continuous job that requires consistency and hard work.

HYGIENIC OIL is a business owned by four partners and they hope to keep it that way with the funding and decision making; which is why they have decided to leave the means of generating funds for the business in these following ways till further notice. Hygienic Oil will be owned by the six group members and the Emporia State University, each holding equal shares in the company.

  • Raising part of the start – up capital from personal savings
  • Raising part of the start – up capital from family members and friends (soft loans and gifts et al)
  • Raising a larger chunk of the start-up capital from the sale of shares and equity.

Vegetable Oil Production Business Plan – Sustainability and Expansion Strategy

It’s important to note that our company technology employs “hydrodynamic cavitation”, an industrial phenomenon, produced by pressure variations and obtained using the geometry of the system creating velocity variation. Cavitation itself is seen as “a technology of the future”.

Our conventional techniques of biodiesel production at Hygienic Oil typically utilize temperatures in the range of 70 to 200°C, pressures in the range of 6 to 10 atm and reaction times of up to 70 hours for achieving conversions in the range of 90 to 95% based on the type of raw material used (usually mixtures of fatty acids obtained as waste). We believe that the use of hydrodynamic cavitation decreases reaction time and temperature to 70 min. and 30C respectively. So, use of cavitation reactor for production of biodiesel allows us to save up to 10 times on electricity.

We at Hygienic Oil hope to make sure we always use the best quality inputs and make sure of good agricultural practice throughout our cultivation and production process. Our synthetic Palm oil is certified to meet international standard and are rich in vitamin A and other mineral nutrient. Outlined below are the benefits of our products;

  • High quality healthy and unadulterated hygienically prepared synthetic Palm oil produce of international quality.
  • Good packaging and all year round cultivation and production thus ensuring continuous availability of our products.
  • Excellent Customer Care Services.
  • Online ordering for both our products and training services.
  • Home delivery services.

Checklist/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of all forms of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing, renovating and equipping our facility: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress