RICE BRAN OIL EXTRACTION BUSINESS PLAN

TABLE OF CONTENTS

1.1 Executive Summary

1.2 Business Name & Legal Identity

1.3 Business Location & Justification

1.4 Products & By-Products

1.5 Vision Statement

1.6 Mission Statement

1.7 Business Objectives

1.8 Industry Overview

1.9 Market Opportunity

1.10 Competitive Advantage

1.11 Processing Capacity (Initial)

1.12 Technology Overview

1.13 Regulatory Compliance

1.14 Employment Impact

1.15 Social & Economic Impact

2.1 Overview of the Edible Oil Industry in Nigeria

2.2 Rice Bran Oil: Product Profile & Demand Drivers

2.3 Global & Regional Market Perspective

3.1 Rice Production in Kebbi State

3.2 Rice Bran Availability & Pricing

3.3 Procurement Strategy

4.1 Target Market Segments

4.1.1 Food Processing Companies

4.1.2 Hospitality & Food Service

4.1.3 Cosmetic & Pharmaceutical Firms

4.2 Market Focus (Initial Phase)

5.1 Demand Estimation

5.2 Sales Assumptions

6.1 Rice Bran Oil Pricing (Nigeria)

6.2 Competitive Pricing Strategy

7.1 Existing Competitors

7.2 SWOT Analysis

8.1 Entry Approach

8.2 Marketing Strategy

9.1 Year 1–3 Market Share

10.1 Proposed Site Location

10.2 Site Selection Justification

10.3 Land & Building Layout

11.1 Processing Technology Overview

11.2 Mechanical Extraction Process Flow

11.3 Process Flow (Text Format – Word-Friendly)

12.1 Core Processing Equipment (Phase I)

12.2 Utilities & Auxiliary Equipment

13.1 Input–Output Analysis

13.2 Capacity Utilization

14.1 Quality Parameters

14.2 Quality Control Measures

14.3 Certifications (Planned)

15.1 Power Requirement

15.2 Water Requirement

15.3 Waste Management

16.1 Staffing Structure

16.2 Training Plan

17.1 Safety Measures

17.2 Environmental Measures

18.1 Key Financial Assumptions

19.1 Capital Expenditure (CAPEX)

19.2 Pre-Operational Expenses

19.3 Working Capital (6 Months)

19.4 Total Project Cost

20.1 Monthly Operating Costs

20.2 Annual Operating Cost

21.1 Monthly Revenue (Year 1)

21.2 Annual Revenue (Year 1)

22.1 Summary Profit & Loss (₦)

23.1 Cash Flow Highlights

24.1 Break-Even Point

25.1 Financial Indicators

26.1 Financing Mix

27.1 Raw Material Supply Risk

27.2 Market & Price Risk

27.3 Operational Risk

27.4 Financial Risk

27.5 Regulatory & Policy Risk

28.1 Environmental Sustainability

28.2 Social Impact

28.3 Governance Framework

29.1 Project Implementation Phases

29.2 Key Milestones

30.1 Phase II Expansion (Year 3–4)

30.2 Export Potential

31.1 Performance Indicators

1.1 Executive Summary

The Rice Bran Oil Extraction Business aims to establish a medium-scale processing facility in Kebbi State, Nigeria, dedicated to the extraction of crude and refined rice bran oil and the production of defatted rice bran cake as a valuable by-product for animal feed.

Rice bran oil is increasingly demanded in Nigeria due to its:

• High smoke point
• Health benefits (rich in oryzanol, Vitamin E)
• Growing use in food processing, cosmetics, and pharmaceuticals

Kebbi State’s dominance in rice milling provides a steady, low-cost supply of rice bran, which is currently underutilized or wasted. This business will convert agricultural waste into high-value industrial and consumer products, aligning with Nigeria’s agricultural value-addition agenda.

1.2 Business Name & Legal Identity

Proposed Business Name:
Kebbi Gold Rice Bran Oil Processing Limited

Legal Structure:
Private Limited Liability Company (Ltd)

RC Registration:
To be registered with the Corporate Affairs Commission (CAC), Nigeria

1.3 Business Location & Justification

Proposed Location:
Argungu Industrial Layout, Kebbi State, Nigeria

Location Advantages

• Proximity to major rice mills
• Low land and labor cost
• Access to Kebbi–Sokoto highway
• Availability of raw materials year-round
• Supportive state agricultural policies

1.4 Products & By-Products

Primary Products

• Crude Rice Bran Oil
• Refined Rice Bran Oil (Phase II)

By-Products

• Defatted rice bran cake (animal feed)
• Rice bran wax (industrial use)

1.5 Vision Statement

To become Northern Nigeria’s leading rice bran oil producer, delivering high-quality, affordable, and healthy edible oil while promoting sustainable agro-processing.

1.6 Mission Statement

To efficiently convert locally sourced rice bran into premium-quality rice bran oil using modern processing technology, creating value for farmers, industries, and consumers.

1.7 Business Objectives

Short-Term (Year 1–2)

• Establish operational processing facility
• Secure raw material supply contracts
• Supply crude oil to local refiners

Medium-Term (Year 3–4)

• Install refining unit
• Expand distribution within Northern Nigeria

Long-Term (Year 5+)

• Export refined rice bran oil
• Develop branded consumer oil

1.8 Industry Overview

Nigeria consumes over 2.2 million metric tons of edible oil annually, with heavy reliance on imports. Rice bran oil remains largely untapped despite:

• Nigeria producing over 8 million metric tons of rice annually
• Rice bran constituting about 8–10% of milled rice

This creates a massive raw material advantage.

1.9 Market Opportunity

1.10 Competitive Advantage

• Guaranteed rice bran supply
• Low input cost
• Proximity to rice mills
• Multiple revenue streams
• Scalable technology

1.11 Processing Capacity (Initial)

1.12 Technology Overview

Phase I

• Mechanical screw press extraction

Phase II

• Solvent extraction & refining

1.13 Regulatory Compliance

• CAC Registration
• NAFDAC (oil processing & packaging)
• SON certification
• Kebbi State Environmental Approval

1.14 Employment Impact

1.15 Social & Economic Impact

• Waste reduction
• Job creation
• Farmer income support
• Import substitution

2.1 Overview of the Edible Oil Industry in Nigeria

Nigeria is one of Africa’s largest consumers of edible oils, driven by:

·       Population growth (220+ million people)

·       Urbanization

·       Expansion of food processing industries

·       Rising health awareness

However, local production remains insufficient, leading to:

·       Heavy importation of palm oil, soybean oil, sunflower oil

·       Rising foreign exchange pressure

·       Government encouragement of local edible oil processing

Rice bran oil (RBO) remains largely underdeveloped in Nigeria, despite abundant rice milling activity.

2.2 Rice Bran Oil: Product Profile & Demand Drivers

Rice bran oil is extracted from the outer layer of rice grain during milling. It is increasingly preferred due to:

·       High smoke point (≈232°C)

·       Neutral taste

·       High antioxidant content (γ-oryzanol)

·       Cholesterol-lowering properties

Key Demand Drivers

·       Health-conscious consumers

·       Growth of quick-service restaurants

·       Cosmetic and pharmaceutical uses

·       Industrial frying operations

2.3 Global & Regional Market Perspective

Globally, rice bran oil is widely consumed in:

·       India

·       Japan

·       China

·       Thailand

In West Africa, demand is emerging due to:

·       Urban dietary shifts

·       Import substitution policies

·       Regional food manufacturing growth

Nigeria currently imports refined rice bran oil or substitutes, creating an opportunity for local production.

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