How to Start a Sunflower Oil Production Company

Sunflower Oil is edible oil extracted through de-gumming, neutralization solvent extraction and bleaching. The color and consistency of the oil under high pressure cooking depends on the method of production.

Other things that affect sunflower oil are the nutritional value, color and flavor. The oil is either refined or unrefined.

The clear extract is used in every household to fry or make dishes. The oil has high economic value and attracts premium price in the market. The oil is also used in manufacture and industrial applications.

The huge market makes sunflower oil a good business opportunity for aspiring entrepreneurs. The business is operated both small scale and large scale depending on the finance and goal.

Things to consider when starting a sunflower oil business are funding, location, processing equipment and sourcing the raw materials. Here are a few business ideas on how to start a low cost sunflower oil business.

Uses of Sunflower Oil

Apart from using the oil to cook or fry meals it has other applications. The oil is used in dietary supplements, and as diesel fuel mix in certain vehicle engines.

How to Start a Low Cost Sunflower Oil Company

Understand Sunflower Oil Production Business

 The first step is to learn what it entails to produce, package and sell the product. Conduct a feasibility study to find available sources of raw material and equipment.

Understand what your competitors are doing and current prices of the product. Gain insight into the production process through physical excursion to processing plants.

Other ways to gain knowledge of the industry is through books, tutorials and seminars. You can hire a consultant to provide valuable insight on the business.

Financing the Oil Producing Company

The funds needed to run an oil producing company is moderately challenging. Funds are needed as working capital and fixed assets.

Equipment used in making sunflower oil is expensive including farming or purchasing raw materials. Secure loans from finance institutions or sell startup equity in the business.

Different Types of Cooking Oil

Before you start producing the oil it is ideal to know some of the cooking oil available in the market.  The market is huge and your product has to compete with existing oil in the market.

 Most readily available oil has saturated fat, monounsaturated fat, and polyunsaturated fat. Common oil is soybean oil, corn oil, peanut oil, lard and coconut oil. Others are suet, rice bran oil, vegetable oil and olive oil.

Sunflower oil Raw Materials

Sunflower seeds are the main ingredient used in producing the oil. You can either grow your own sunflower plants or buy from farmers.

You need an effective supply chain to source your raw materials. Locating your enterprise close to the source of raw materials reduces transportation costs.

Another good location is in a commodity market to sell directly to wholesale and retailers. If you decide to cultivate sunflower build your factory onsite.

Oil Extraction Process

 Sunflower oil goes through the pre-pressing, solvent extraction, oil refining and other processes. There are different sizes and specifications of machinery available to cooking oil producers.

The prices differ according to your budget and available funds. You have the small press that effectively processes soybeans, rapeseed, sunflower seeds and peanuts.

Other press types are the automatic hydraulic press, and pre-press machines. The pre-press machines squeeze out high oil materials from sunflower seed.

 Other equipment is the solvent extraction method and oil refining process. The general method used in refining sunflower oil goes through four steps. The oil goes through the degumming process, de-acidification, de-coloring and deodorizing methods.

Sunflower is susceptible to air, heat degradation so keep at low temperature during manufacture. The oil should be stored in plastic bottles, containers or colored glass.

Hire only qualified machine operators to carry out the oil production processes.

Write a Business Plan

The business plan highlights the steps, goals and future projections. It also establishes the business structure, company management and funding requirements.

The plan focuses on the cost of equipment, staff wages, packaging, location and mode of transportation. It provides a competitive edge and startup guide that is highly valuable.

Register the Oil Production Business

From the onset align your business to effectively compete with other brands. Select a recognizable, easily remembered business name and product name.

Patent the name and submit your product for quality appraisal and standardization. Acquire a trade license, tax identification number and insurance. Make sure your company’s liability is limited and find out other local government permits

Marketing

Develop a unique selling strategy to attract patronage. Use print and electronic media such as television advertisement, posters, billboards, and handbill.

 You can network with industrial players for current prices and practices. Target your core customers such as hotels, restaurants, industries and private homes.
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