A peanut flour and oil production business involves processing raw peanuts into two primary products:

Peanut flour, produced by defatting peanuts mechanically or chemically, and peanut oil, extracted via pressing or solvent-based refining.

Peanut flour is highly protein‑dense (up to 52 g per 100 g) with very low fat (0.5 g) and is widely used in protein‑rich foods, baked goods, sauces, powdered peanut butter, and even pet treats.

Peanut oil, valued for its mild flavor, high smoke point (232 °C), and nutritional profile, is used extensively in cooking, frying, cosmetics, and pharmaceuticals.

Globally, peanut oil was valued at around US$10 – 10.5 billion in 2023–24 and is expected to grow to US$13–15 billion by the early 2030s, at a CAGR of roughly 4–5%.

Refined oil makes up 78% of the market share in 2024 for safety and allergen control, while unrefined/cold‑pressed variants grow fastest.

The peanut flour global market was about US$240 million in 2021, with North America contributing 40% and Asia Pacific growing fastest (7% CAGR).

A business in this sector typically includes peanut sourcing, cleaning, de‑hulling, milling for flour, and oil extraction.

By‑products (peanut meal or pomace) can be sold as animal feed or ingredients for protein powders.

Capital investment in machinery is high, but co‑generation of flour, oil, and meal minimizes waste and maximizes margins, targeting both food‑ingredients customers and industrial users.

Steps on How to Write a Peanut Flour and Oil Production Business Plan [Sample Template]

1. Executive Summary

Hannah Mack™ Peanut Flour & Oil Production, Inc., based in Baton Rouge, Louisiana, is a specialty food processing company focused on the production of high-quality peanut flour and premium-grade peanut oil.

Leveraging Louisiana’s agricultural strengths and efficient supply chain access, the company processes locally sourced peanuts into nutrient-rich, gluten-free flour for food manufacturers, bakeries, and health-focused brands.

The oil division produces refined and cold-pressed peanut oil for culinary, cosmetic, and industrial applications.

The business aims to capture growing market demand for plant-based protein ingredients and healthy oils.

By using advanced, low-waste production techniques, Hannah Mack maximizes output while creating value-added byproducts like peanut meal for animal feed.

Positioned for regional and national distribution, the company’s vision is to become a trusted supplier in the functional foods and specialty oils market, with an emphasis on quality, sustainability, and traceability.

Hannah Mack is the founder and CEO of Hannah Mack™ Peanut Flour & Oil Production, Inc.

2. Company Profile

a. Our Products and Services

At Hannah Mack™ Peanut Flour & Oil Production, Inc., we specialize in processing high-quality peanuts into premium food-grade products for diverse markets. Our flagship offerings include:

• Peanut Flour – Available in full-fat and defatted varieties.
• Peanut Oil – We produce both refined and cold-pressed peanut oil
• Peanut Meal and Byproducts – A sustainable part of our process, we supply protein-rich peanut meal and fiber-rich skins to animal feed manufacturers and eco-friendly product developers.
• Custom Processing and Packaging – We offer private-label and bulk packaging options, as well as custom milling and oil extraction services for food manufacturers and retailers.

Our commitment to quality, traceability, and sustainability defines every service we deliver.

b. Nature of the Business

Our peanut flour & oil production business will operate with a business-to-consumer business model and business to business model for retailers and distributors.

c. The Industry

Hannah Mack™ Peanut Flour & Oil Production, Inc. will operate in the food industry.

d. Mission Statement

At Hannah Mack™ Peanut Flour & Oil Production, Inc., our mission is to deliver premium, sustainable peanut-based products that promote health, support local agriculture, and drive innovation in food and oil processing.

We are committed to producing high-quality peanut flour and oil with integrity, safety, and environmental responsibility.

e. Vision Statement

Our vision at Hannah Mack Peanut Flour & Oil Production, Inc. is to become a nationally recognized leader in peanut flour and oil innovation, known for quality, sustainability, and customer satisfaction.

We strive to set industry standards by delivering nutritious, reliable products while empowering local farmers and promoting eco-friendly practices across all areas of our operations.

f. Our Tagline (Slogan)

Hannah Mack™ Peanut Flour & Oil Production, Inc. – “Pure Goodness, From Peanut to Purpose!”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Hannah Mack™ Peanut Flour & Oil Production, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Executive Officer (Owner)
• Production Manager
• Quality Control Officer
• Accountant and Administrative Officer
• Machine Operators
• Distributors (Sales Team)

i. Ownership / Shareholder Structure and Board Members

• Hannah Mack (Owner and Chairman / Chief Executive Officer) 52 Percent Shares
• Raymond Edwards (Board Member) 18 Percent Shares
• Julius Jefferson (Board Member) 10 Percent Shares
• Anthony Jason (Board Member) 10 Percent Shares
• Monica Lowe (Board Member and Secretary) 10 Percent Shares.

3. SWOT Analysis

a. Strength

• High-Quality Products: Offers premium peanut flour and oil with strict quality control and food safety standards.
• Strategic Location: Based in Baton Rouge, Louisiana, with proximity to peanut-growing regions and access to major transportation hubs for efficient distribution.
• Sustainability Focus: Utilizes a zero-waste approach, repurposing peanut byproducts into animal feed and other value-added goods.
• Diverse Product Line: Offers full-fat and defatted peanut flour, refined and cold-pressed oil, as well as custom packaging and private-label services.
• Skilled Team and Advanced Equipment: Uses modern processing technology and a trained workforce to ensure consistent output and innovation.

b. Weakness

• High Capital Investment: Initial equipment and facility setup costs are significant, potentially impacting early-stage cash flow.
• Allergen Risk: As a peanut-based facility, there are inherent allergen risks that limit market access to some consumer groups.
• Market Penetration Challenges: New entrant in a competitive market; building brand recognition and customer trust takes time and investment.
• Dependence on Peanut Supply: Seasonal availability and fluctuations in peanut prices can affect raw material costs and profit margins.

c. Opportunities

• Rising Demand for Plant-Based Protein: Peanut flour is increasingly used in health foods, protein powders, and gluten-free baking, opening up new market segments.
• Export Potential: International demand for peanut products, especially in Europe and Asia, is growing, presenting global expansion opportunities.
• Co-Branding & Partnerships: Collaboration with health food brands, bakeries, and meal-prep companies can expand reach and drive sales.
• Product Innovation: Development of flavored flours, functional food ingredients, or organic-certified product lines can increase differentiation.

i. How Big is the Industry?

The global peanut flour & oil production market size was valued at approximately $10.7 billion in 2023, with peanut oil accounting for the majority share.

Peanut flour contributed around $240 million, driven by growing demand for plant-based protein and gluten-free ingredients.

The market is projected to grow at a 4.5% CAGR, reaching over $14 billion by 2030.

ii. Is the Industry Growing or Declining?

The peanut flour & oil production industry is indeed a growing industry, driven by the rising demand for plant-based, high-protein, and gluten-free ingredients.

With global peanut oil valued at over $10.7 billion in 2023 and peanut flour expected to grow at a 7% CAGR, health-conscious consumer trends continue to fuel sustained market expansion worldwide.

iii. Future Trends in the Industry

The future of the peanut flour and oil production industry is marked by innovation and rising global demand.

As consumers continue to seek healthier, plant-based alternatives, peanut flour is gaining traction as a high-protein, gluten-free ingredient for functional foods, snacks, and nutritional supplements.

Food manufacturers are expected to increase their use of peanut flour in protein bars, baking mixes, and vegan recipes.

In the peanut oil segment, there is a growing preference for cold-pressed and organic varieties due to their nutritional benefits and cleaner labels.

This shift is encouraging producers to invest in sustainable, non-GMO, and chemical-free extraction methods to meet evolving consumer expectations and regulatory standards.

Sustainability and zero-waste production are also key trends. Companies are optimizing the use of peanut byproducts such as meal and skins for animal feed, fertilizer, and bio-based packaging, aligning with circular economy goals.

Lastly, global expansion into emerging markets, particularly in Asia and Africa, is expected to drive growth, supported by rising incomes, urbanization, and increased awareness of peanut-based nutrition.

iv. Are There Existing Niches in the Industry? 

No, there are no existing niches when it comes to peanut flour and oil production business because it is a niche idea in the food industry.

v. Can You Sell a Franchise of your Business in the Future?

No, Hannah Mack™ Peanut Flour & Oil Production, Inc. will not sell a franchise.

d. Threats

• Price Volatility: Global peanut price fluctuations due to weather, trade policies, or crop diseases can impact profitability.
• Regulatory Compliance: Must navigate strict food processing, labeling, and allergen regulations that may evolve and increase operational complexity.
• Competition: Faces competition from well-established brands in the flour and oil market, including large-scale agribusinesses with more resources.
• Economic Downturns: Shifts in consumer spending during economic challenges may impact sales of premium or specialty food products.

i. Who are the Major Competitors?

• Planters (Kraft Heinz Company)
• ConAgra Foods
• The Peanut Company of America
• Olam Americas
• Adams Extract & Spice, LLC
• Peanut Corporation of America (historical)
• Bunge Limited
• Archer Daniels Midland Company (ADM)
• Wilco Peanut Company
• Golden Peanut Company
• Shellman Peanut Company
• Vogelmann Peanut Company
• Red River Commodities
• Sunland, Inc.
• Diamond Foods
• Valley Peanut Company
• Seaway Food Town
• Superior Peanut Company
• Bluffton Peanut Company
• Teddie Peanut Butter (H.W. Lay & Company).

ii. Is There a Franchise for Peanut Flour and Oil Production Business? 

No, there are no franchise opportunities for the peanut flour and oil production business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Peanut Flour and Oil Production Business in the United States of America?

Peanut flour and oil production businesses in the United States must navigate a range of policies, regulations, and zoning laws designed to ensure food safety, environmental protection, and community welfare.

The Food and Drug Administration (FDA) regulates peanut products under the Federal Food, Drug, and Cosmetic Act, enforcing strict guidelines on processing, labeling, allergen control, and contamination prevention.

Compliance with the Food Safety Modernization Act (FSMA) requires facilities to implement preventive controls and maintain detailed records.

Environmental regulations from the Environmental Protection Agency (EPA) govern waste disposal, emissions, and water use to minimize pollution during production.

Local and state zoning laws affect where peanut processing plants can be located, often requiring permits that consider noise, traffic, and neighborhood compatibility to reduce community impact.

Additional regulations include Occupational Safety and Health Administration (OSHA) standards, ensuring safe working conditions for employees handling machinery and allergens.

Furthermore, interstate commerce and export requirements impose further labeling and quality standards.

4. Marketing Plan

a. Who is your Target Audience?

i. Age Range: 25–55 years old

ii. Level of Education: College-educated, including professionals in food science, nutrition, culinary arts, and health industries

iii. Income Level: Middle to upper-middle income ($40,000 to $120,000 annually)

iv. Ethnicity: Diverse, including African American, Caucasian, Hispanic, and Asian populations, with a focus on health-conscious communities

v. Language: Primarily English-speaking, with growing outreach to bilingual (English-Spanish) consumers

vi. Geographical Location: Primarily U.S. Southeast and Midwest regions, expanding nationally and into health-conscious urban centers across the country

vii. Lifestyle: Health-focused, eco-conscious, interested in plant-based diets, fitness, sustainable living, and specialty food products; includes food manufacturers, chefs, nutritionists, and conscious consumers seeking nutritious, allergen-friendly ingredients.

b. Advertising and Promotion Strategies

• Deliberately Brand All Our Vans and Trucks.
• Tap Into Text Marketing.
• Make Use of Billboards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the export and retail industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage on direct sales, direct mail (postcards, brochures, letters, fliers), trade shows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Hannah Mack™ Peanut Flour & Oil Production, Inc. will make sure it covers profits, insurance, premium, license, and economy or value, and full package.

In all our pricing strategy will reflect:

• Penetration Pricing
• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

5. Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties, such as referral partners, affiliate partners, strategic alliances in the retail industry, and freelancers to help refer customers to us.

We will utilize both online and offline channels to promote Hannah Mack™ Peanut Flour & Oil Production, Inc., including social media, local advertising, and collaborations with influencers or complementary businesses.

We will offer promotions, loyalty programs, or special discounts to encourage customer engagement and repeat visits.

b. Inventory Strategy

The fact that we will need peanuts and related supplies means that Hannah Mack™ Peanut Flour & Oil Production, Inc. will operate an inventory strategy that is based on a day-to-day methodology to follow for ordering, maintaining, and processing items in our warehouse.

The inventory of both raw materials and finished products is managed to ensure sufficient stock levels.

This includes tracking incoming peanuts, monitoring usage, and maintaining appropriate storage conditions.

Hannah Mack™ Peanut Flour & Oil Production, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

• Bank Transfers
• Credit or Debit Card
• Cash
• Checks
• Electronic Payment Systems such as PayPal or Venmo.

d. Return Policy, Incentives, and Guarantees

Hannah Mack™ Peanut Flour & Oil Production, Inc., will be offering a return policy, incentives, and guarantees to build trust and loyalty with our customers.

We will make sure the policy is communicated on our website and in-store signage.

Return Policy:

• If a customer is not satisfied with their order, we will offer a refund or a replacement.
• We will also offer a store credit for future purchases.

Incentives:

• We will implement loyalty programs where customers earn points or rewards for repeat purchases.
• We will offer special discounts or promotions for customers who refer friends or family members to our peanut flour and oil.
• We will organize social media contests and giveaways to increase engagement and attract new customers.

Guarantees:

• We will guarantee the quality of our peanut flour and oil, and if a customer is not satisfied, they can receive a refund or a replacement.
• We will offer delivery guarantees such as a guaranteed delivery time or a discount on the next order if the delivery is late.
• We will implement satisfaction guarantees where customers are guaranteed to be satisfied with their experience, or we will take steps to make it right.

e. Customer Support Strategy

At Hannah Mack™ Peanut Flour & Oil Production, Inc., our customer support strategy centers on providing timely, knowledgeable, and personalized assistance to build strong, lasting relationships.

We invest in training our support team to address product inquiries, order tracking, and technical guidance promptly, ensuring customer satisfaction and trust.

We also leverage multiple communication channels, including phone, email, and live chat, to offer accessible support.

Proactive follow-ups and feedback collection help us continuously improve our products and services.

6. Operational Plan

Our operational plan will outline how the business will run on a day-to-day basis.

It will cover areas such as staffing, inventory management, customer service, and marketing.

We will develop standardized operating procedures for peanut flour and oil preparation, inventory management, cleanliness, and store maintenance.

We will implement efficient processes for order taking, payment handling, and product delivery to minimize wait times and streamline operations.

a. What Happens During a Typical Day at a Peanut Flour and Oil Business?

A typical day at a peanut flour and oil production business begins early with the receipt and inspection of raw peanuts to ensure quality and safety.

The peanuts undergo cleaning, de-hulling, and roasting processes before being milled into flour or pressed for oil extraction.

Operators closely monitor machinery to maintain efficiency and product consistency.

Packaging teams prepare finished products for shipment, and quality control conducts regular testing for taste, texture, and safety.

Administrative staff manage orders, supplier communication, and compliance documentation, ensuring smooth operations from production to delivery.

b. Production Process

At Hannah Mack™ Peanut Flour & Oil Production, Inc., our production process begins with sourcing high-quality, locally grown peanuts.

Upon arrival, raw peanuts undergo thorough cleaning and sorting to remove impurities, stones, and damaged nuts, ensuring only premium peanuts proceed to processing.

This step guarantees product safety and consistent quality for our customers.

Next, the peanuts are de-hulled and roasted to enhance flavor and facilitate oil extraction.

For peanut flour, roasted peanuts are mechanically pressed to remove most of the oil, then finely milled into various grades of flour tailored for different food applications.

For peanut oil, we use both cold-pressing and solvent extraction methods to produce refined and specialty oils with optimal taste and nutritional benefits.

Throughout production, stringent quality control measures are in place, including lab testing for moisture content, protein levels, and potential contaminants.

Our facility operates under FDA and USDA food safety guidelines to ensure compliance and consumer safety.

Finally, the finished peanut flour and oil are carefully packaged in bulk or retail sizes, with customized labeling available for private-label clients.

c. Service Procedure

At Hannah Mack™ Peanut Flour & Oil Production, Inc., our service procedure begins with a customer-first approach.

Clients can place orders through our website, customer service line, or direct sales representatives.

Each request is promptly reviewed, confirmed, and processed with attention to customization, delivery timelines, and special requirements.

Once orders are received, our team coordinates production scheduling, packaging, and shipping logistics.

We maintain transparent communication throughout the process, offering order tracking and updates.

After delivery, we follow up for feedback and offer support for reorders or technical inquiries, ensuring a seamless and satisfying customer experience from start to finish.

d. The Supply Chain

At Hannah Mack™ Peanut Flour & Oil Production, Inc., our supply chain begins with the careful sourcing of high-quality peanuts from trusted local farms in Louisiana and surrounding regions.

We prioritize partnerships with growers who follow sustainable and safe agricultural practices.

Raw materials are transported directly to our facility, ensuring freshness and consistency in every batch.

From processing to packaging and distribution, we maintain strict quality control and efficient inventory management. Our logistics partners help us deliver products promptly to wholesalers, retailers, and manufacturers nationwide.

This well-coordinated supply chain allows us to meet demand while upholding our commitment to quality and sustainability.

e. Sources of Income

Hannah Mack™ Peanut Flour & Oil Production, Inc. will generate revenue primarily through the sale of peanut flour and oil.

7. Financial Plan

a. Amount Needed to Start your Peanut Flour and Oil Business?

Hannah Mack™ Peanut Flour & Oil Production, Inc. would need an estimate of $450,000 to successfully set up our peanut flour and oil business in the United States of America.

Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $3,300.
• Marketing, Branding, and Promotions – $3,000.
• Business Consultant Fee – $2,500.
• Insurance – $3,400.
• Rent/Lease – $70,000.
• Other start-up expenses including commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
• Operational Cost (salaries of employees, payments of bills et al) – $70,000
• Start-up Inventory – $75,000
• Store Equipment (cash register, security, ventilation, signage) – $1,750
• Equipment and Machines – $200,000
• Website: $600
• Opening party: $5,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility?

Hannah Mack™ Peanut Flour & Oil Production, Inc. will not build a new facility for our peanut flour and oil business; we intend to start with a long-term lease, and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Peanut flour and oil Business?

• Raw Materials (peanuts from suppliers, transportation costs, and maintaining an adequate inventory of raw materials).
• Labor costs
• Utilities such as electricity, water, and gas for operating machinery, roasting equipment, packaging systems, and maintaining suitable storage conditions.
• Packaging materials, such as bags, containers, labels, and seals, for packaging peanut flour and oil.
• Equipment Maintenance and Repairs
• Marketing and Advertising
• Rent or Property Expenses
• Expenses associated with packaging peanut flour and oil for shipment, such as shipping materials, shipping fees, transportation costs, and delivery services
• Licenses, Permits, and Compliance
• Administrative costs such as office supplies, software subscriptions, accounting and bookkeeping services, insurance premiums, professional fees, and other overhead expenses.

e. Average Salary of Staff

• Chief Operating Officer (Owner) – $85,000 Per Year
• Production Manager – $65,000 Per Year
• Quality Control Officer: $55,000 Per Year
• Accountant and Administrative Officer – $48,000 Per Year
• Machine Operators – $50,000 Per Year
• Distributors (Sales Team) – $45,100 Per Year

f. How Do You Get Funding to Start a Peanut Flour and Oil Business?

• Raising money from personal savings and the sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and your friends.

8. Financial Projection

a. How Much Should You Charge for Your Product/Service?

Peanut Flour   Wholesale price: $0.26 to $1.24 per lb

Retail price: $4.94 to $8.19 per lb

Peanut Oil: Wholesale price: $30 to $35 per gallon (bulk)

Retail price: $17 to $49 per gallon.

These figures reflect both bulk/wholesale variety pricing (typically under $1/lb flour or $30–35/gal oil) and retail consumer pricing (higher due to packaging and branding).

b. Sales Forecast?

• First Fiscal Year (FY1): $300,000
• Second Fiscal Year (FY2): $420,000
• Third Fiscal Year (FY3): $650,000

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): $15%
• Second Fiscal Year (FY2) (Profit After Tax): $20%
• Third Fiscal Year (FY3) (Profit After Tax): $30%

d. Profit Margin of a Peanut Flour and Oil Business Product/Service

Hannah Mack™ Peanut Flour & Oil Production, Inc. will aim for a profit margin of 20 to 30 percent on sales.

9. Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?

Hannah Mack™ Peanut Flour & Oil Production, Inc. will grow our peanut flour and oil business by expanding our distribution network across the United States and into key international markets.

We aim to build strong partnerships with wholesalers, retailers, food manufacturers, and health food distributors who share our commitment to quality and sustainability.

Through strategic logistics planning and targeted marketing, we will increase brand visibility and product accessibility.

By entering emerging markets with high demand for plant-based and gluten-free products, we position ourselves for long-term growth and global recognition in the peanut flour and oil industry.

b. Where do you intend to expand to and why? (Geographical locations)

Hannah Mack™ Peanut Flour & Oil Production, Inc. plans to expand to;

• Salinas, California
• Des Moines, Iowa
• Yakima, Washington
• Greeley, Colorado
• Fargo, North Dakota
• Modesto, California
• Ames, Iowa
• Lancaster, Pennsylvania
• Moultrie, Georgia
• Great Falls, Montana.

10. Exit Plan

The founder of Hannah Mack™ Peanut Flour & Oil Production, Inc. plans to exit the business via family succession.

The company has put structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.

This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.

The founder has a plan for post-exit activities, such as managing financial proceeds, addressing tax implications, and considering personal or professional endeavors after the exit.