The document provides a comprehensive overview of the processes involved in setting up a groundnut oil processing business, including the necessary equipment for shelling, crushing, heating, pressing, filtering, and storage of oil, as well as sales strategies. It emphasizes the importance of grade quality control, proper storage to prevent rancidity, and effective marketing of both oil and oilcake. Additionally, it discusses various selling methods, price calculations, and market research needed for successful operation.

1. An Overview of Groundnut Oil
Processing Plant
Original Source:https://www.abcmach.com/oil-pressing/groundnut-oil-processing-machine-
set.html
For the oneswhoplanto start groundnutoil processingbusiness,hereare whatyoushould
knowaboutPurchasingRaw Materials,Shelling,Crushing,Heating,Pressing,Filtration,
Storage of Oil,Sale of Oil,Maintenance of the Oil Press.
Take this 25ton/day VegetableSeed Oil Mill Project >>
Dehulling / Shelling
Whengroundnutsare storedfor a longtime,theyare purchasedintheirshells.The shells
needremovingpriortooil extraction.Variousdehullingmachinesare available orthe seeds
can be shelledbyhand.Groundnutshellersare usuallyevaluatedintermsof the percentage
of brokenkernelsproduced(the higherthe percentage,the worse the design).If the shellers
are onlybeingusedforoil processing,thisdoesnotmattersince there isno needtoobtain

2. whole kernels.Whenoilseedsare shelledonsite,the extraequipmentandlabourcosts
requiredmustbe calculated.
Grading
The groundnutsmustbe sortedand gradedto check fordamaged,shrivelledandmouldy
seedswhichmaycarry aflatoxin. These mustbe removedanddestroyed.
Before startingtograde,weighthe groundnutsusingaspringbalance scale.Write downthe
weight(A).Spreadsmall quantitiesof seedsonawell illuminatedlight-colouredsurface or
cloth.Remove damagedseedsbyhandanddiscardthem. Alsoremove stonesandother
plantmaterial. Lossesupto5% are acceptable.However,lossesover5% are not acceptable.
The suppliers shouldbe informedandeffortsmade toimprove quality.
Crushing
Onlygradednutsand seedsshouldbe crushed. The nutsare crushedto reduce the particle
size andincrease the surface areato produce more oil.The reducedsize alsomakespressing
easier. Whole nutsorseedsare muchmore difficulttopressandwill onlyproduce asmall
amountof oil. There are twoways tocrush the nuts - traditional handpoundinginamortar
and pestle orusinga crushingmachine.
Heating
Heatingassistsinbreakingthe cell wallsand opensthe cellsthatcontainthe oil.Italso
decreasesthe thicknessof the oil sothatit flowsoutmore easily.
Oil Pressing
Screwoil press isa compact-structuredoil extractionmachine usedformakingedible oil
frommore thantwentykindsof oilseedssuchaspeanut,soybean,flaxseed,sunflowerseed,
rapeseed,etc. Itissuitable fornotonlysmall scale oil production,butalso large-scale
cookingoil plants whichproduce variousgradescookingoil.Itfeatureshighedible oil
output,qualifiedcookingoil,andcontinuousoperation. (Readmore about small scale edible
oil productionprocess >>)
The yieldof oil perbatch will varywiththe quality andoil contentof the seeds.Itis
importantto measure the amountof oil thathas beenexpressed.Thisallowsyoutokeep
records,whichare importantfor the runningof the business.Italsoenablesyoutoassess
the efficiencyof the press.
Filtering the Oil
The pressed crude oil will be slightlycloudybecauseof the effectof airand small particlesof
solidmaterial. Filterpressiscommonusedfor edibleoil filtering.

3. Readmore about cookingoil refinerymachine >>
Storageof the Oil
Properstorage of the oil isessential if the qualityof the oil istobe maintaineduntil sale.If
oil isstoredincorrectly,itcan go rancidand developanoff odourandtaste. Rancidityis
causedby chemical reactionsbetweenoil andanywateror air present.Therefore,toreduce
rancidity,contactwithwaterand air shouldbe avoidedduringstorage.
Storageof the oilcake
The weightof oilcake mustbe measured.Thisisimportantasithelpstoassessthe efficiency
of the process.Itis alsoessential forkeepingsalesandstocksrecordsandfor monitoring
losses.
Sale of Oil
There are several optionsforsellingthe oil.The choice willdependonthe local situationand
resources.
BulkSales:Lowersellingprice. Reducedcostof packagingmaterial,Lowerlabourcostsfor
packagingand selling,Simple distributionprocess.

4. Wholesale BottledSales:Highersellingprice,Simple distributionprocess,A brandname can
be established.Additional expenditure onbottling equipment,Higherlabourcosts.
Retailingdirectlyfromthe processingsite:Control overthe retail price of oil,Optionof
sellingata lowerprice if customersprovide theirowncontainer
Regardlesof the methodof sellingoil,before settingupproductionitisessential thata
marketsurveyiscarriedout to identifythe following:
 whowill buythe oil
 the sellingprice
 the size of the marketor the likelydemandforoil
 howthe oil will be transported
The selling priceof oil
Whencalculatingthe sellingprice youhave toremembertoinclude all the costsandto
make a profit.The followingmustall be included:Productioncost, Packagingof the oil -
material,labour,labelsetc,Transportationtothe retailerorwholesaler, Promotioncost,
Profit.
Whenthe sellingprice hasbeencalculated,addonwhatyou estimate the retailersmarkup
will be andcompare thisprice withthe productsalreadyavailable locally.If the final price is
the same or higherthanthat of existingproducts,youmustbe offeringaproductof better
qualityandpresentationbackedupbyareliable supplyservice.If the sellingprice ismuch
higherthanthose alreadyavailable,itisunlikelythatyouwill be successful asoil isabasic
commodityandprice isone of the mainfactors consideredbythe consumer.
Marketing oilcake
Successful marketingof the oilcake isessential forthe enterprisetobe successful.The
processmustbe startedbefore productionbegins.The mostlikelymarketforoilcake is
animal feedmills. (Readmore about groundnutoil productioninIndia >>)
Whenoil isproducedat large centralisedfactories,the oilcakeisrarelyseenonthe market
as it issoldon directlytolarge animal feedmills.Inrural areasitmay be necessaryto find
out whobuysanimal feedandtargetthat market. Anotherentrepreneurmaywantto setup
an animal foodmill,oritmay be worthincorporatingananimal feedmill intothe oil
businessif there isnootheroutletlocally.
In some places,groundnutflourisatraditional iteminthe humandietandgroundnut
oilcake canbe marketedasa substitute.Where flourisusedina recipe itispossible to
substitute upto25-50% flourwiththe oilcake.Thiscanlowerthe cost of bakedgoodswhile

5. increasingtheirnutritional value.If the oil cake iscrushedbefore sale,the price shouldbe
increasedtocoverthe labourcosts.
Groundnut Oil Market 2019
Feel free tocontact uswheneveryouare interestedtoknow more aboutpeanutoil making
machines >>
Groundnutoil,alsoknownasgroundnutoil or arachisoil,isa mild-tastingvegetable oil
derivedfromgroundnuts.The oil isavailable withastronggroundnutflavorandaroma,
analogoustosesame oil.
Groundnutoil isan edible vegetable oil thatisderivedfromgroundnuts.groundnutsare
legumesandare native toLatin Americaandseveral otherstropical regions.groundnutor
groundnutoil isa well-establishedproductwithahistoricallyhighuse inseveral Asianfoods
and cuisines.Itisusedeitherasa base forcooking(cookingoil) ortoenhance the flavorof
the underlyingfood.