soybean oil business plan

Soybean Oil Production Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector » Agro Processing

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

Okay, so we have considered all the requirements for starting a soybean oil production business. We also took it further by analyzing and drafting a sample soybean oil production company marketing plan template backed up by actionable guerrilla marketing ideas for soybean oil production businesses.

So let’s proceed to the business planning section. The soybean oil business is one very lucrative business in the United State of America as the oil is widely consumed by Americans. Soybean oil is contained in products such as salad dressings, mayonnaise, most margarines, shortenings, imitation diary as well as baked foods. The oil is also used domestically in cooking and frying.

Soybean oil production might be a lucrative business; however, the processing procedures are quite complicated. The soybean is usually dehulled, cleaned, and then dried before extraction process can be started.

The extraction process involves cutting the soybeans into flakes, putting them in a percolating extractor before immersing in a solvent. The oil is then refined to remove the impurities and so as to make it edible. This usually requires a lot of machines and equipment.

Due to this fact, in addition to needing experience to run and succeed in this business; hiring a business consultant who has knowledge of this industry is also important, as the consultant will not only help you draw out strategies and help kick start your business, but will also offer suggestions and tips that will improve your business in the long run.

It is for this purpose that a business plan is usually written, as it acts as a guide that will help influence the actions and decisions to be taken during the course of running the business. Below is a sample soybean oil production business plan;

A Sample Soybean Oil Production Business Plan Template

1. industry overview.

According to a 2014 report, Soybean oil is the most consumed edible oil in the united states, with a 55% market share of the whole market.

Soybean oil is also contained in household food products such as margarine and shortenings. It is also used by food manufacturers in mayonnaise, meat products, commercially baked goods as well as salad dressings. The little flavor that soybean oil has whereby it doesn’t change the taste of the food is the reason why it is such a huge hit with customers.

Soybean oil does not only enhance the flavors of already prepared foods, it also adapts to other ingredients that contains fats and oils, which is why it is a favorite for salad dressings, sauces and mayonnaise. Soybean oil when compared to other vegetable oils has a good emulsifying ability.

Due to the fact that soybean oil is high in mono and poly saturated fats, low in saturated fat and has no trans fat; it makes it a favorite amongst health nuts. Also, its possession of omega-3 fatty acids and Vitamins E makes it a healthy choice for consumers all over.

Soybean oil is available all year round and this is due to the fact that there is an abundant and steady supply of soybeans because the crop is not only easy to grow for farmers but it is economical as well, making the oil available and cheap.

Soybean oil is the second largest consumed oil globally, and asides the United States of America, China are the second largest consumer of this oil. According to health nutritionists, soybean oil helps improve the heart, lowers cholesterol, increase immunity, as well as reduce cognitive disorders.

As at 2011, soybean recorded high prices which had a heavy impact on the products that relied heavily on soybean oil; the food industry was affected and it caused an increase in the end products for consumers. Also, according to analysts, as at 2011, some farmers had begun to plant other crops that were deemed profitable, which caused the South Americans to become the largest soybean producers globally.

Most of the global demand for the soybean oil (83%) comes from the food industry, with a large percentage of these demands used mostly for domestic purposes. The industrial demand for the soybean oil is used in lubricants, paints, adhesives, solvents, bio-diesel, and cleaners.

It is also suitable for printing inks as well as formulations for oil paints. The demand for the soybean oil is expected to grow annually at 4% for the next five years.

Soybean is the largest source of animal feed globally and the second largest source of vegetable oil as most vegetable oils in the market are actually soybean oil. The leading producer and exporter of soybean is the United States and while there are other seed oils being produced, soybeans accounts for 90% of the country’s oilseed production.

2. Executive Summary

Strum Soybean Oil Production Company is a renowned establishment that will be based in Raleigh, North Carolina in the United States with the intention of selling refined soybean oil to domestic and industrial clients. Our location is conspicuous and it offers our customers easy access to and from our facility.

Asides selling refined soybean oil, we also intend to sell high-protein fiber for livestock feed producers and also offer consultancy and training services while selling our franchise.

Our soybean oil company is established not only with the aim of making profit but to also compete with other established soybean oil producers in the industry. Our aim is to be renowned not only in North Carolina but also in the whole of the United States as well.

We have plans, structures and strategies in place to ensure our business grows to an enviable standard. We know that this can be achieved if we invest in human resources and so we have hired the best professionals and with vast experience in the field to help in running our soybean oil production company.

Even though this is a lucrative business, it is also a very difficult business to go into. First off, the machines for extracting the oil from the soybeans are very important and we hope to get the best. Also, the environment also has to be conducive and hygienic enough for the oils to be extracted in. Asides the machines, we intend to source only for reliable vendors for our raw materials and also packaging materials.

One of our strongest suits in giving excellent customer service as we believe this is one of the strategies that would be needed in retaining our numerous clients. Clients are more loyal when they not only get products at affordable prices but when they have their complaints, inquiries and orders attended to as quickly as possible.

We intend to ensure that our company and what it stands for is deeply etched into the community and state where we would be operating from by participating in community events and fairs and sponsoring programmes and events to show our corporate social responsibility. This of course will increase patronage for our products and services.

Knowing how soybean oil is being consumed by most Americans, we intend to ensure that our oils are of the best quality. This we would ensure by employing a quality assurance manager that will help in ensuring we produce oils of the highest quality all the time.

Strum Soybean Oil Production Company is owned and run by two Veterans, Michael Burton and Shawn Phelps. Michael is a food technologist, while Shawn is an entrepreneur with vast knowledge in the industry.

3. Our Products and Services

We intend to offer various products and services at Strum Soybean Oil Production Company; however our main products will be refined soybean oil for domestic use and crude soybean oil for industrial use.

We, however, are aware of the fact that having multiple sources of income will improve the bottom line of our company and ensure that we remain in business for a long time while also growing and expanding at our pace. Therefore, we intend to make as much profit as is legally permissible under the laws of the United States of America.

Listed below are some of our products and services;

• Refined Soybean oil for domestic consumption
• Soybean oil for industrial consumption
• High-protein fiber for animal feed
• Consultancy services
• Training services

4. Our Mission and Vision Statement

• Our vision is to produce soybean oil that have gone under the best extraction method while becoming one of the leading soybean oil industries in the United States of America in five years.
• Our mission in achieving our vision is to ensure that we offer our customers quality soybean oil by using up-to-date refining machine and employing the best hands in ensuring that all the needs of our clients are made.

Our Business Structure

Having the right business structure is very important in building a soybean oil production company that will be of standard; this would mean ensuring that all the important factors are in place to achieve the vision of the company.

In every business, asides the financial resources, the human resources are regarded as very important and so it is vital that we employ not only the best hands to help run the business but also those who would thoroughly understand the vision of the company and ensure that they strive to achieve this vision all the time. We also intend to ensure that our employees have an enviable welfare package that would motivate them into increasing their efficiency as well as their effectiveness.

Asides, the sales of our refined soybean oil for edible and industrial consumption, we also intend to engage in the sales of high-protein fibre, a by-product of soybean oil extraction for livestock farmers and feed producers. We also intend to offer quality franchises and consultancy as well as training services as well. To achieve this, various employees with varied knowledge in these fields will be needed.

Below is the business structure we intend to build for our Strum Soybean Oil Production Company:

Managing Directors

Plant Manager

Quality Assurance Manager

Purchasing Manager

• Human resources and Admin Manager

Marketing Executives

Customer Service Executives

Maintenance Team

Truck Driver

Security Guard

5. Job Roles and Responsibilities

• Responsible for overall strategy of the company
• Hires and build an effective management team
• Develops the overall budget
• In charge of hiring, training and firing manufacturing personnel
•  Carries out a review of production schedules
• Oversees the day-to-day operation of the facility and ensures it is successful
• Develops and implements the manufacturing budget
• Ensures that the environment is conducive enough for manufacturing workers
• Checks raw materials to be used for production and ensures its quality
• Responsible for the final product before it can be packaged and sold
• Corrects faults found in manufacturing process
• Carries out the preparation and analysis of accounting records and ensures it conforms to accounting practices
• Reviews business operations, budgets and expenses and uses this for future projections
• Responsible for computing tax reports and ensuring it complies tax requirements
• Develops and execute budget for purchase of inventory
• Ensures that records of goods that have been bought, received and returned
• Sources for reliable vendors and interview them
• Reviews  purchase order claims in conforming with the company’s policies

Human Resources and Admin Manager

• Responsible for hiring and giving orientation to employees
• Responsible for employee welfare and incentive packages
• Works with management to determine the budget for this department
• Carries out regular appraisals on employees to effect promotion
• Develops and implements marketing strategies
• Carries out research on the target market
• Helps to employer develop company brand
• Sets up and manage the accounts of customers
• Deals with customers by handling requests, resolving complaints and responding to inquiries on behalf of the company
• Ensures that appropriate feedback is given to customers
• Maintains accurate databases of customers
• Responsible for maintaining the machineries and equipment and its components
• Understands the proper operation of an equipment or machine and ensure that they are operating at optimum efficiency
• Carries out repairs on machines
• Carries out inspections on truck, and is responsible for the condition of the vehicle
• Ensures that essential supplies such as tires, lights, oil, gas, and water are available and in place
• Maintains log records according to regulations
• Responsible for greasing their trucks every week
• Ensures that supplies gets to the right destination
• Patrols the interior and exterior of the facility
• Prepares activity logs and submits to the admin Manager
• Passes security tips and information to staff
• Ensures the safety of the facility after working hours

6. SWOT Analysis

As a serious business, we know that while having a business concept is fantastic, there are various challenges we will likely face when it comes to running the business proper, from retaining and attracting clients, to having the best hands to help run the business.

It is for this reason that we have hired a reputable business consultant in North Carolina to help us carry out an extensive analysis on if we have what it takes to go into the soybean oil production industry. The analysis will allow us know how we can compete favorably against our competitors in the soybean oil production industry.

The analysis allowed us determine our strengths, weaknesses that we would need to work on  as well as  what opportunities were available to us and what threats we were likely  to face in North Carolina as well as in The whole of the United States. The results from the thoroughly conducted SWOT analysis for Strum Soybean Oil Production Company are;

Our strength lies in the fact that we are not only refining soybean oil for domestic and industrial use but also selling other products such as high-protein fiber for livestock feed producers as well as offering other services that will shore up our revenue base as well. This means that we would be catering to a wide range of customers due to our diverse products and offerings.

However, our strength also lies in the fact that we have experienced professionals who understand the business as well as our vision thoroughly working for us. Our employees have the best welfare and incentive packages that is the envy of others in the industry.

Also, our owners have the required experience in production and in business, which is necessary to not only make strategic decisions that will move the company forward but also ensure that we grow at a steady pace as well.

Our weakness lies in the fact that we are not the only soybean oil production company in North Carolina, and therefore breaking into this market might be a bit difficult as we would be competing against already established businesses that already have a share of the target market. However, we are not daunted by this as we have strategies in place that will help us compete with our competitors whilst creating a favorable impression with our clients.

• Opportunities

The opportunities that abound in this industry from the sale of soybean oil and its by-products to various clients and also the various services are limitless. We therefore plan to ensure that we seize the opportunities whenever they present themselves and shore up our revenue base while also enjoying more patronage from our clients.

The threats we are likely to face in this business are likely to come from a change in government policies, slowing demand, or entry of new competitors into the industry and in particularly, our location. However, as a business with a vision in sight, we will be able to handle any threats that might crop up during the course of starting or running the soybean oil production business.

7. MARKET ANALYSIS

• Market Trends

Soybean oil is one of the most consumed edible oils in the United States of America as it is used by a variety of people for different uses and is also contained in most products that are used in the home. Asides domestic use, soybean oil is also used in industrial factories to produce edible foods, as well as biodiesel for engines. There are also various purposes for which the oil can be used.

Most soybean oil extraction companies are no longer limiting themselves to selling just soybean oil for domestic and industrial consumers but are also selling to livestock farmers and animal feed sellers. Most have also gone into the business of retailing their products by participating in trade fairs and other events that allow for clients to directly buy from them, which not only increase patronage but also ensure that a huge share of the market is gained whilst also increasing awareness for the company.

The internet has now been used in greatly promoting businesses and the soybean oil production companies are no different as massive efforts are made online to not only source for reliable vendors but to also ensure that customers are aware of the benefits of getting quality soybean oil that has been extracted under the right amount of factors. Therefore, to remain relevant and become well known in the industry, we intend to explore these three trends and use them to our advantage.

8. Our Target Market

Due to the wide use of soybean oil for various purposes and intents, there are a wide range of available customers. This means that while some products are usually restricted to certain age groups or market segments, the target market for our soybean oil is everyone. This is why we intend to partner with certain strategically placed food and grocery stores in Raleigh, North Carolina and also around the United States of America.

Regardless of the fact that soybean oil is consumed by almost everyone, we have carried out a market research so that we could not only specifically identify our target market but also know what our clients expect from us.

Our aim is to ensure that we extract and refine quality soybean oil as well as its by-products that will be sold in wholesale and in retail to our various clients according to their requirements;

• Grocery stores
• Food chains
• Restaurants and hotels
• Livestock farmers
• Furniture makers

Our Competitive Advantage

Every business that is established to make profit knows that it needs strategies that will allow it has competitive advantage over others in the same industry. At Strum Soybean Oil Production Company, we intend to become a renowned company not only in North Carolina but in the entire United States as well, and we have drafted competitive advantage strategies that will ensure that we achieve our vision.

We are going to be one of the few soybean production oil companies that will retail its products to end user consumers as well as distributors. This we intend to do so as to encourage increased patronage and increase awareness for our company as well.

We have hired the best hands to help us run this business and they not only have the vast experience that is needed to kick start our company and carry it forward but they also have keyed into our vision and are determined to project the company’s corporate culture internally and also externally to clients.

We also intend to deploy effective publicity strategies that will increase our awareness in North Carolina by participating in community programmes and sponsoring events and people to achieve their dreams. This way, we are the first company clients come to instead of our competitors.

Lastly, we intend to offer excellent customer service that will attend to the various needs of our clients, from order processing, inquiries, complaints as well as suggestions. We also intend to keep in touch with our existing and potential customers through our various social media platforms and our website that will be handled by the best customer service executives in the industry.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Strum Soybean Oils Production Company’s aim as an established business is to maximize profit in the food industry. Soybean oil is the most edible oil that is consumed in the United States of America, and so we are going to ensure that our soybean oils are produced and refined at a very high quality so as to meet the health demands of our numerous customers.

Strum Soybean Oils Production intends to generate income by engaging in the sales of the below listed products and services:

10. Sales Forecast

Due to the increasing demand for soybean oil by domestic and industrial customers in the United States, our sales forecast is that there will always be sales of the product no matter what.

Our strategic location in Raleigh, North Carolina has primed us into ensuring that we meet our various targets of generating enough revenue within one year that will not only grow the business but expand it at our own pace as well.

Our hired business consultant has gathered information and data from various market and sales researches that has allowed us come up with accurate predictions that has favored our soybean oil production company. The projections were done based on similar start-ups in North Carolina as well as certain other assumptions peculiar to soybean oil production companies.

Below are the sales projections for Strum Soybean Oil Production Company which is entirely based on our strategic location and other factors;

• First Fiscal Year-: $350,000
• Second Fiscal Year-: $700,000
• Third Fiscal Year-: $1,500,000

N.B : The projections and figures aren’t fictitious but are done based on facts. However, these projections might increase or decrease as the current projections were done based on the certain factors such as the economy and our location. A change in any of these factors will likely trigger an increase or decrease.

• Marketing Strategy and Sales Strategy

Our current location was chosen after several feasibility studies were conducted as to what location would be favorable to our marketing strategies. We know how important marketing is and also how important having the right strategies at the right place is likely to propel our business faster.

Our marketing strategies are intended to not only allow us become a big brand in North Carolina but also in the entire United States as well. Our marketing strategies will also penetrate the market to reach our various customers while also competing favorably with other leading brands as well.

Seeing that marketing serves as a double edged sword – publicity and revenue generation – we have hired a marketing expert that will help our marketing executives draft and deploy effective strategies aimed at achieving our vision and goals as a company. Our marketing expert has a huge understanding of the Soybean Oil industry and knows what it will take to propel us to the forefront in North Carolina and throughout the United States of America.

We do not intend to be limited to physical marketing as we know how effective the internet and technology is in achieving our visions and goals. Our social media platforms will always be manned by professionals who know the right words that will attract potential clients, and who will make the platforms as interactive as possible.

Other strategies are in participating in local community events as well as sponsoring local events that will increase awareness about our company. We also intend to participate in trade fairs so as to bring us closer to our customers. We know how important it is for our marketing executives to be empowered in delivering our corporate sales and marketing goals, and so we will provide them with the necessary tools that will help achieve our goals and objectives.

We at Strum Soybean Oil Production Company intend to leverage on the following strategies in order to generate revenue for our company;

• Introduce all our products and services to our clients via our official website
• Throw an official launch party so as to generate the required awareness for our soybean oil company
• See out reliable soybean farmers and introduce our soybean oil production company, in hopes to get a discount when purchasing soybeans as well as ensure they spread the word about us.
• Participate in community events and in trade shows
• Use our social media platforms such as Facebook, Twitter and LinkedIn to vigorously market our business
• Ensure that we are listed in local directories and yellow pages
• Place adverts in local and national newspapers, radio stations as well as television stations
• Engage in direct one-on-one marketing
• Encourage our loyal customers to help refer other potential customers to us
• Ensure that we come up with promotional offers so as to boost our revenue

11. Publicity and Advertising Strategy

Every company requires publicity no matter how long they have been established. Publicity achieves certain things for a company which includes increased awareness and patronage which then results in increased revenue. Also, engaging in publicity will allow Strum Soybean Oil Production Company to compete favorably with other leading brands in the industry.

Publicizing our soybean oil production business in Raleigh – North Carolina will ensure that our brand is firmly rooted in this state and in preparation for our expansion plans across the United States of America. We hired a publicist who has developed strategies that will not only ensure that our business is thoroughly publicized and advertised but also that people understand what we stand for.

There are certain platforms we intend to use in intensifying our publicity and advertising strategies for Strum Soybean Oil Production Company and they are:

• Partnering with communities in various projects
• Create an attractive but unique logo that will be easily recognizable by clients
• Placing unique adverts in food magazines, local and national newspapers as well as on radio and television
• Massively advertising on the internet by placing ads on popular forums and blogs
• Ensuring that our website is optimized to be able to rank tops amongst searches online
• Using social media platforms such as Facebook, Instagram and Twitter to engage existing and potential customers on the benefits of soybean oil
• Ensuring that we install our billboards in strategic and conspicuous locations all around North Carolina
• Ensure that our business fliers are distributed in target locations
• Introduce our businesses to industries in North Carolina as well as around the state
• Ensure that our trucks are emblazoned conspicuously with our logos

12. Our Pricing Strategy

Setting a price for soybean oil is dependent on so many factors such as what quality of soybeans were gotten, at what price, how much was used in transporting the soybeans to the factory for extraction, the number of competent hands available to handle the extraction, and general overhead costs. All these factors are used to determine what rate the soybean oil would be sold for.

Another factor that determines pricing is the close competitors. Pricing should be set to either be a little bit lower or at same price with the competitors. If your factors result in setting a high price than what should be obtainable, then there will be a need to cut down on certain costs.

Due to the huge demand in this industry from customers, we intend to sell our soybean oil a bit lower than our competitors for at least the first three months of operations to enable us attract the customers and increase awareness about our business.

• Payment Options

At Strum Soybean Oil Production Company, we are aware of the fact that our different customers would prefer to have different payment options that they can conveniently choose from and so we have a payment policy that intends to take care of this aspect.

The payment options that will be available to our numerous clients include;

• Payment via bank transfer
• Payment via check
• Payment via Point of Sale (POS) Machines
• Payment via cash
• Payment via bank draft

Our payment options are done in conjunction with a reputable bank that provides the best platforms that are not only free of hitches but offer security as well.

13. Startup Expenditure (Budget)

Every entrepreneur knows how important it is to generate capital for the business. It is usually not a task that can be ignored because without the required funds, the business cannot start up or become operational for long. For our soybean oil production business, the start-up capital we intend to generate will mostly be used for very important aspects of the business such as employee salaries, inventory and equipment.

The important aspects where the generated start-up capital will be used on include;

• Fees for incorporation as well as other legal expenses – $3,000
• Licenses and permits expenses from relevant regulatory authorities – $3,000
• Cost for start-up inventory  (soybeans and packaging materials) – $15,000
• Cost of soybean oil extraction and refining machines – $50,000
• Cost for official distribution truck – $50,000
• Running costs for the first six months (employees’ salaries and other operational expenses) –  $120,000
• Insurance coverage – $5,000
• Cost of hiring two business consultants – $5,000
• Other start-up expenses (computer, printer, phones, furniture and stationeries) – $8,000
• The cost of launching and official website – $500
• Marketing and promotion expenses which includes grand opening publicity for Strum Soybean Oil Production Company – $5,500
• Cost for grand opening party – $5,000
• Miscellaneous – $10,000

From the above stated report, we would need an estimate of $280,000 to ensure that our soybean oil production company is successfully set up in Raleigh – North Carolina. The amount covers running operations which includes employee salaries for the first six months of operations.

Generating Funding/Startup Capital for Strum Soybean Oil Production Business

Strum Soybean Oil Production Company is a partnership business that is owned and managed by Michael Burton and Shawn Phelps. Michael is a food technologist, while Shawn is an entrepreneur with vast knowledge in the industry. The partners do not intend to bring in external investors just yet and so have stuck to very few ways of sourcing for capital for their business:

Listed below are the areas we intend to source for funds for our soybean oil production business:

• Sourcing for loans from banks
• Applying for loan from the Small Business Administration (SBA) Agency
• Capital generation from personal savings

N.B: We were able to generate the sum of $40,000 from personal savings. We got $40,000 from the SBA government agency and we just got approval from the bank for a sum of $200,000, and we are waiting for our account to be credited which will happen within five working days.

14. Sustainability and Expansion Strategy

Any business whose vision is to become among top leading brands have to ensure that they have sustainability strategies that would ensure that they remain in the game. One of such sustainability strategies is the availability of the required finance necessary to run the business, so that the business doesn’t close shop. We have the required finance necessary to not only start the business but to also keep it in operation till the business starts paying for itself.

Secondly, having competent employees performing the right assigned tasks is very vital if any business intends to compete favorably with others in the same industry. At Strum Soybean Oil Producing Company, we have not only gotten the finest professionals to help run the company, but we have the best welfare packages to ensure that these employees’ productivity rate is high at any point in time. Our employees have keyed into our vision, making our company the envy of other employees in other companies in the industry.

Our business structure was carefully thought out as we know the importance of assigning the right roles to the right position. Our management staff not only understands our vision but also effectively communicate this to the lower end staff, to ensure that we are all on the same page. These are the strategies we know will not only sustain us but also help us expand as well.

We have various investment strategies that will ensure that the business continues to make more money. Asides our external investments, we also intend to offer additional products and services that will ensure that our bottom line remains healthy.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of distribution trucks: Completed

Related Posts:

• Coconut Oil Production Business Plan [Sample Template]
• Palm Kernel Oil Business Plan [Sample Template]
• Garri Processing Business Plan [Sample Template]
• Wheat Flour Mill Business Plan [Sample Template]
• Sunflower Oil Business Plan [Sample Template]

Start Your Soybean Oil Production Business in 9 Simple Steps

By henry sheykin, resources on soybean oil production.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Introduction: Starting Your Soybean Oil Production Business

Welcome to the world of soybean oil production, an industry that is experiencing tremendous growth and demand in today's market. As plant-based diets gain popularity and consumers become more health-conscious, the demand for sustainable and environmentally friendly cooking oils is on the rise. According to industry reports , the global soybean oil market is projected to reach a value of $67.5 billion by 2025, with a compound annual growth rate (CAGR) of 4.1% from 2020 to 2025.

If you are considering entering this lucrative market and starting your own soybean oil production business, this comprehensive guide will provide you with the essential steps and checklist to get started. Whether you plan to serve large food manufacturers or supply retailers with your high-quality soybean oil, this guide will help you navigate the process.

Before diving into the step-by-step checklist, let's explore the business model commonly adopted by soybean oil producers in the US, which is often a B2B model. Selling your soybean oil to other businesses, such as food manufacturers and retailers, can provide a reliable and consistent customer base. Additionally, diversifying your revenue stream by utilizing byproducts like soybean meal or biodiesel can contribute to the long-term success and sustainability of your business.

Now, let's delve into the nine crucial steps you need to take to launch your soybean oil production business successfully.

9-Steps To Start a Soybean Oil Production Business: Checklist

If you are considering starting a soybean oil production business, there are several important steps you should take prior to launching your venture. By following this nine-step checklist, you can ensure a smooth and successful start to your business:

Starting a soybean oil production business requires careful planning and investment. The average time to complete all the steps is expected to be between 13 to 31 months, depending on various factors. The estimated total cost associated with these steps ranges from USD 166,500 to USD 1,098,500.

While this may seem daunting, proper preparation and execution can lead to a profitable and sustainable business in the long run. Remember to thoroughly research each step, seek professional advice when necessary, and stay committed to providing high-quality products to your customers.

Develop A Comprehensive Business Plan

A comprehensive business plan is essential for starting a successful soybean oil production business. It serves as a roadmap that outlines your goals, strategies, and financial projections. Here are the key steps to developing a comprehensive business plan:

• Define your business objectives: Clearly identify your short-term and long-term goals, including the target market, production capacity, and desired profitability.
• Conduct market research: Thoroughly analyze the soybean oil industry, including market trends, competitors, and customer preferences. This will help you identify opportunities and challenges.
• Outline your production process: Detail the step-by-step process of producing soybean oil, including the necessary equipment, materials, and labor requirements. Consider seeking advice from industry experts or consulting firms.
• Develop a marketing strategy: Determine how you will reach and attract customers, including tactics for product promotion, pricing, and distribution channels. Consider the growing demand for sustainable and plant-based oils.
• Financial projections and budgeting: Estimate your startup costs, production expenses, and projected revenue. This will help you determine the financial feasibility of your business and secure funding or investment.
• Risk assessment and contingency plan: Identify potential risks and challenges that may affect your business operations. Develop strategies and contingency plans to mitigate these risks.
• Organizational structure and management: Outline your company's structure, including key roles and responsibilities. Consider the expertise and skills required to efficiently operate your soybean oil production business.
• Include a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats.
• Consult with industry experts, advisors, or score mentors who can provide valuable insights during the planning process.
• Update your business plan periodically to adapt to changing market conditions and opportunities.

Developing a comprehensive business plan will not only guide the establishment of your soybean oil production business but also help you attract potential investors, secure loans, and make informed decisions along the way.

Conduct Market Research And Analysis

Before diving into the soybean oil production business, it is crucial to conduct thorough market research and analysis . This step will provide valuable insights into the industry's current trends, competition, and potential customer base.

Market research involves gathering information about the soybean oil market, including its size, growth rate, and future projections. This data will help you understand the demand and supply dynamics, as well as identify any gaps or untapped opportunities in the market.

Competitor analysis is also essential to understand your competitors' strengths, weaknesses, and strategies. Identify key players in the soybean oil production industry and analyze their products, pricing, distribution networks, and branding. This will help you differentiate yourself and identify areas where you can excel.

Moreover, customer analysis is crucial to understand your target market. Identify your potential customers, such as food manufacturers and retailers, and gather information about their preferences, requirements, and buying patterns. This will enable you to tailor your products and marketing strategies to meet their needs effectively.

Tips for conducting market research and analysis:

• Utilize online research tools and databases to gather industry data and trends.
• Participate in trade shows, conferences, and industry events to network with professionals and acquire market insights.
• Engage with potential customers through surveys, focus groups, or interviews to understand their preferences and pain points.
• Stay updated on the latest regulatory and environmental factors that may impact the soybean oil industry.
• Consider hiring a market research firm or consultant with expertise in the agricultural or food industry to ensure a comprehensive analysis.

By conducting thorough market research and analysis, you will gather the necessary data and insights to make informed decisions about your soybean oil production business. This step will ultimately guide your strategy formulation and set you on the path to success in the industry.

Create A Financial Model To Determine Costs, Pricing, And Profitability

One of the crucial steps in opening a soybean oil production business is creating a comprehensive financial model. This model will help you determine the costs involved in setting up and running your business, as well as the pricing strategies you should adopt to ensure profitability.

To create a financial model, consider the following:

• Calculate startup costs: Identify all the expenses associated with starting your soybean oil production business, including equipment, permits, licenses, and initial inventory.
• Analyze operating costs: Determine the ongoing expenses of running your business, such as raw material costs, utility bills, labor costs, and marketing expenses.
• Determine pricing strategies: Research the market to understand the price range at which soybean oil products are sold. Consider your production costs, competitor pricing, and target profit margins to set a competitive yet profitable price for your products.
• Evaluate profitability: Take into account both fixed and variable costs to calculate your expected profit margin. Account for potential fluctuations in costs and sales volume to ensure your business remains financially viable.
• Consult with industry experts or hire a financial analyst to assist you in creating a comprehensive and accurate financial model.
• Regularly review and update your financial model as your business grows and market conditions change.
• Consider conducting sensitivity analysis to assess the impact of different variables, such as changes in raw material prices or fluctuating demand, on your financial projections.
• Explore various financing options to secure the necessary funds for your business, such as loans, grants, or partnerships.

By creating a robust financial model, you will gain a clear understanding of the costs involved, determine appropriate pricing strategies, and ensure the profitability of your soybean oil production business.

Secure Funding Or Investment For Initial Capital Requirements.

One of the crucial steps in starting a soybean oil production business is securing funding or investment for the initial capital requirements. This is essential to cover expenses such as purchasing equipment, acquiring licenses, and establishing the necessary infrastructure.

To successfully secure funding, consider the following steps:

• 1. Create a detailed financial plan: Develop a comprehensive financial model that outlines all the costs involved in setting up and running the business. This should include equipment costs, operational expenses, projected sales, and potential profits. A well-researched financial plan will help potential investors understand the feasibility and profitability of your business.
• 2. Identify funding sources: Research and identify funding sources such as banks, financial institutions, venture capitalists, or angel investors. Each source may have different requirements and expectations, so ensure you understand their criteria before approaching them.
• 3. Prepare an impressive pitch: Craft a compelling pitch that highlights the uniqueness of your soybean oil production business and demonstrates the potential for growth and profitability. Clearly communicate your business plan, target market, competitive advantage, and the expected return on investment to potential investors.
• 4. Seek guidance from industry experts: Consult with industry experts or professionals who have experience in securing funding for similar ventures. They can provide valuable insights and advice tailored to the soybean oil production business, increasing your chances of securing the necessary capital.
• 5. Consider alternative financing options: In addition to traditional funding sources, explore alternative financing options such as government grants, crowdfunding platforms, or partnerships with established industry players. These avenues may provide additional opportunities to secure the required capital.

Remember, securing funding or investment requires a thorough and well-prepared approach. Present your business plan, financial projections, and growth strategies in a compelling manner to attract potential investors and secure the initial capital needed to kickstart your soybean oil production business.

Identify And Acquire Necessary Permits And Licenses

Before starting a soybean oil production business, it is crucial to ensure compliance with all legal requirements. This includes identifying and acquiring the necessary permits and licenses from relevant authorities. Here are the key steps to accomplish this:

• Research Regulatory Requirements: Begin by researching the specific permits and licenses needed to operate a soybean oil production business in your jurisdiction. Contact local government agencies or consult with industry experts to gain a comprehensive understanding of the regulatory landscape.
• Identify Applicable Permits and Licenses: Based on the research conducted, determine the specific permits and licenses required for your business. This may include permits related to food processing, environmental regulations, health and safety, zoning, and more.
• Submit Applications: Complete all necessary application forms for the identified permits and licenses. Ensure that all requested information is provided accurately and in a timely manner. Pay close attention to any supporting documentation that may be required.
• Engage with Regulatory Authorities: Communicate with the appropriate regulatory authorities to inquire about the application process, requirements, and any potential inspections or audits that may be conducted. Be responsive to their inquiries or requests for additional information.
• Comply with Standards: Demonstrate compliance with relevant standards and regulations by implementing necessary measures for food safety, cleanliness, waste management, and other applicable guidelines.
• Review and Approval: After submitting the applications, patiently await the review process. It is advisable to maintain regular communication with the authorities to track the progress of your application.
• Secure Permits and Licenses: Once your applications are approved, obtain the necessary permits and licenses. Ensure that these documents are prominently displayed in your facility and readily available for inspections.

Tips for Identifying and Acquiring Permits and Licenses:

• Consult with a knowledgeable attorney or industry consultant to navigate the complexities of the regulatory process.
• Prepare comprehensive documentation and ensure that it is accurate and up to date.
• Plan sufficient time for the application process, as it may take longer than anticipated.
• Set aside a dedicated budget for permitting and licensing fees.
• Stay informed about any updates or changes in regulations that may impact your business operations.

By diligently identifying and acquiring the necessary permits and licenses, you can ensure that your soybean oil production business operates within the boundaries of the law, building a solid foundation for long-term success.

Source And Procure Automated Oil Pressing Equipment

One of the key steps in starting a soybean oil production business is sourcing and procuring automated oil pressing equipment. This equipment plays a crucial role in the production process, as it allows for efficient and consistent extraction of oil from soybeans.

To ensure that you source the right equipment for your business, consider the following:

Tips for sourcing and procuring automated oil pressing equipment:

• Research reputable suppliers: Start by researching and identifying trusted suppliers of automated oil pressing equipment. Look for suppliers with a good reputation, positive customer reviews, and experience in the industry.
• Compare prices and features: Obtain quotes from multiple suppliers and compare prices. Take into consideration the specific features and capabilities of the equipment, ensuring it meets your production requirements and quality standards.
• Inspect equipment quality: If possible, visit suppliers or request samples to inspect the quality of the equipment in person. Pay attention to the materials used, construction, and overall durability.
• Consider after-sales support: Inquire about the after-sales support provided by the supplier, such as warranty, maintenance, and availability of spare parts. This will ensure that you have reliable support in case of any equipment issues.
• Seek recommendations: Reach out to other soybean oil producers or industry associations for recommendations on reliable suppliers and equipment models. These insights can provide valuable guidance in making the right choice.

Once you have identified the right supplier and equipment, the next step is to proceed with the procurement process. Negotiate the terms, finalize the contract, and ensure the equipment is delivered and installed according to the agreed-upon timeline. Adequate training should also be provided for your team to operate and maintain the equipment effectively.

Sourcing and procuring automated oil pressing equipment requires thorough research and careful consideration. By selecting the right equipment, you can ensure efficient production and maintain the consistent quality of your soybean oil, laying a strong foundation for your business success.

Establish A Distribution Network And Logistics Plan

Establishing a distribution network is crucial for the success of your soybean oil production business. A well-planned logistics plan ensures that your products reach customers efficiently and on time. Here are some important steps to consider:

• Identify target market: Determine the geographic areas where you want to distribute your soybean oil. Consider the demand, competition, and logistical feasibility in each market.
• Research potential distributors: Look for reliable distributors or wholesalers who can help you reach your target market. Evaluate their reputation, experience, and ability to handle your product.
• Establish partnerships: Build relationships with distributors and negotiate mutually beneficial agreements. Consider factors such as pricing, exclusivity, and marketing support.
• Develop efficient transportation: Choose a transportation method that suits your business needs. Whether it's using third-party logistics providers or establishing your own fleet, ensure that your transportation system is reliable and cost-effective.
• Optimize warehousing and storage: Select strategic locations for warehouses to minimize transportation costs and ensure quick delivery. Implement efficient inventory management systems to improve order fulfillment.
• Implement tracking and monitoring systems: Utilize technology such as GPS tracking and inventory management software to monitor the movement of your products and maintain visibility throughout the distribution process.
• Regularly evaluate the performance of your distribution network and make necessary adjustments to optimize efficiency and profitability.
• Consider having backup distributors to mitigate risks associated with disruptions in the supply chain.
• Stay informed about industry trends and changes in customer preferences to adapt your distribution strategy accordingly.

By establishing a well-structured distribution network and implementing an effective logistics plan, you can ensure a smooth flow of your soybean oil products from production to customers, contributing to the overall success of your business.

Develop Customized Packaging Options For Clients

When running a soybean oil production business, it is important to offer customized packaging options for clients. This will not only attract more customers but also allow you to meet the specific requirements of different clients. Here are some key steps to develop customized packaging options:

• 1. Understand Client Needs: Take the time to understand the packaging preferences and requirements of your target market. This could include factors such as size, shape, material, and branding.
• 2. Research Packaging Suppliers: Look for reliable packaging suppliers who can provide high-quality materials that meet your specifications. Consider factors such as cost, availability, and sustainability.
• 3. Design Attractive Packaging: Work with a graphic designer or a packaging specialist to create visually appealing and functional packaging designs. Ensure that your packaging aligns with your brand's identity and values.
• 4. Customize Packaging Options: Offer a range of packaging options that cater to different client preferences. This could include various sizes, shapes, and materials.
• 5. Provide Branding Solutions: Offer branding solutions to clients, such as custom labels or printing their logo on the packaging. This will help them create a unique and recognizable presence in the market.
• 6. Test and Evaluate: Before launching your customized packaging options, conduct thorough testing to ensure that they meet quality standards and are suitable for the transportation and storage of soybean oil.
• Keep an eye on industry trends and consumer preferences to stay ahead of the competition.
• Consider eco-friendly packaging solutions to appeal to environmentally conscious customers.
• Regularly review and assess the effectiveness of your packaging options to make necessary improvements.

By developing customized packaging options for your clients, you can create a favorable impression, meet their individual needs, and differentiate your soybean oil production business from competitors.

Build A Brand That Emphasizes Quality And Sustainability.

In today's competitive market, building a brand that emphasizes quality and sustainability is vital for the success of a soybean oil production business. Here are some key steps to consider:

• Define Your Brand Identity: Clearly outline your brand's values, mission, and vision. This will help you align your marketing strategies and communication efforts.
• Highlight Product Quality: Showcase the high quality of your soybean oil through certifications, testing results, or testimonials from satisfied customers.
• Focus on Sustainability: Highlight your commitment to sustainable practices, such as using environmentally friendly production methods or supporting local farmers.
• Create Engaging Marketing Materials: Develop visually appealing packaging, labels, and promotional materials that reflect your brand's emphasis on quality and sustainability. Consider using eco-friendly materials whenever possible.
• Educate Consumers: Use your marketing efforts to educate consumers about the benefits of soybean oil and its positive impact on the environment and personal health.
• Utilize Social Media: Leverage social media platforms to engage with your target audience, share educational content, and showcase your brand's commitment to quality and sustainability.
• Collaborate with Influencers: Partner with influencers in the health and sustainability niche to help spread the word about your brand. Their endorsement can significantly boost your brand's credibility and reach.

Quick Tips:

• Connect with local farmers or suppliers who align with your brand values to strengthen your commitment to sustainability.
• Consider participating in trade shows or industry events to network with potential clients and establish your brand presence.
• Engage in philanthropic activities or support a cause that aligns with your brand's values to further enhance your brand image.
• Regularly review and assess your branding strategies to ensure they align with shifting consumer preferences and market trends.

By building a brand that emphasizes quality and sustainability, you can differentiate yourself in the market and attract health-conscious and environmentally aware consumers. A strong brand image will also help you build trust and loyalty among your customers, ultimately contributing to the long-term success of your soybean oil production business.

$169.00 $99.00 Get Template

Related Blogs

• KPI Metrics
• Running Expenses
• Startup Costs
• Pitch Deck Example
• Increasing Profitability
• Sales Strategy
• Rising Capital
• Valuing a Business
• Writing Business Plan
• Buy a Business
• How Much Makes
• Sell a Business
• Business Idea
• How To Avoid Mistakes

Leave a comment

Your email address will not be published. Required fields are marked *

Please note, comments must be approved before they are published

Sample Soybean Oil Production Business Plan

Soybean oil production business plan sample.

Are you about to start a soybean oil production business? Are you about to write a business plan for this venture and do not know how to go about it?

Here is a sample business plan for starting a Soyabean oil company.

BUSINESS NAME: Strum Soyabean Oil Production Company

Executive Summary

Business Overview

Products and Services

Vision Statement

Mission Statement

Business Structure

Target Market

• Source of Income

Pricing Strategy

Strum soybean oil production company is a company that will be located in Raleigh, North Carolina in the United States. The main purpose of the establishment is to sell refined soybean oil domestically and industrially.

The location offers easy access to customers to and from the facility. We are also looking at selling high protein fiber for producers of livestock feed  aside producing soybean oil.

Strum soybean oil production company is not only after making profit but also competing with other soybean oil production companies in the industry. Also, our aim is to be known in the whole of America and not only North Carolina.

In ensuring that the business grows to an enviable height, we have put in place plans, strategies and structures. The best professionals with adequate knowledge in the field will be hired since we know that efficient and effective human resources help in making a business successful.

Soybean oil production is a lucrative as well as a difficult business to go into. We hope to get the best of the machines needed in extracting oil from the soybeans. Also, the environment us very important. It must be hygienic and conducive for extracting oil.

We are also aiming to give the best customer service as we know that it is paramount to the success of the company and also helps in retaining customers. We also intend to make the company etch deep into the city and state where it is operating by participating in events organized in the community and by also sponsoring events to show that we are socially and corporately responsible, that is, corporate social responsibility. This will also help increase the level of patronage of our products.

Strum soybean oil production company is owned by two veterans, Michael Burton and Shawn Phelps who jointly runs the company. Shawn is an entrepreneur with vast knowledge of the soybean oil industry while Michael is a food technologist.

According to report, soybean oil is the most consumed oil in the United States having 55% of the whole market share.

The oil is also contained in household food products e.g. margarine. The reason why most people use soybean oil is because it doesn’t change the taste of food.

Soybean oil is available all year round due to the fact there is always adequate and abundant supply of soybean because it is easy to grow and also economical. It is the second largest oil consumed globally. It helps increase immunity, improve the heart and also reduces cholesterol.

Globally, most of the request for soybean oil comes from the food industry which is mostly used for domestic purposes. Industrially, soybean oil is used in lubricants, paints, bio-diesel, cleaners, adhesives and so on. It is the largest source of animal feed in the global world and the second largest source of vegetable oil.

The intention of Strum soybean oil production company is to offer various products and services while our main product is crude soybean oil for industrial purpose and refined soybean oil for domestic purpose.

This is because having more than one source of income will help the business grow and expand for a very long time.

Some of the products of our company are:

• Refined Soybean oil for domestic consumption • Soybean oil for industrial consumption • High-protein fiber for animal feed • Consultancy services • Franchise • Training services

Our vision is to become one of the best and leading soybean oil industries in the United States within five years by making sure that our soybean oil undergoes the best extraction method.

The mission of Strum soybean oil production company is to offer quality soybean oil to our customers by using the best refining machines and employing good hands.

Business structure is very important in establishing a soybean oil production company and therefore it is necessary to have a good business structure. Though, financial resources are vital so also the human resources. Having the best hands to understand the vision of the company, work towards achieving it and running the business well is paramount.

We intend to have a well package welfare for our employees which will motivate them to work harder towards achieving the company’s success.

The business structure of Strum soybean oil production company is as follows:

• Managing Directors • Plant Manager • Quality Assurance Manager • Accountant • Purchasing Manager • Human resources and Admin Manager • Marketing Executives • Customer Service Executives • Maintenance Team • Truck Driver and • Security Guard

Since soybean oil is used by for several purposes, there is a wide range of customers. Therefore the target market for the soybean oil is everyone, it does not have a particular age range or gender.

This is the reason why we will partner with certain food and grocery stores in North Carolina and also in the United States of America. A market research has been conducted to know what our customers expect from us.

The refined oil and its by-products will be sold to the following set of clients:

• Grocery stores • Food chains • Restaurants and hotels • Industries • Livestock farmers • Furniture makers

Sources of Income

The aim of Strum soybean oil production company is to maximize profit in the industry. Since soybean oil is the most edible oil consumed in the United States, we will try our best to produce soybean oil of the highest quality in order to meet the health demands of our various customers.

The company will generate income by selling the following products and offering certain services: refined Soybean oil for domestic consumption, soybean oil for industrial consumption, high-protein fiber for animal feed, consultancy services, franchise, training services.

The price set for soybean oil will be determined by the quality of soybean gotten, the price at which it was gotten, the amount used in transporting the soybean to the factory and the general overhead cost.

Another factor that determines the price of soybean oil is competitors because the price of our oil should be a little lower or the same price with one’s competitors. We intend to sell our soybean oil at a price lower than our competitors for the first few months so we can attract more customers.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

How to write a business plan for a soybean farm?

Putting together a business plan for a soybean farm can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing soybean farm, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a soybean farm?

• What information is needed to create a business plan for a soybean farm?
• How do I build a financial forecast for a soybean farm?

The written part of a soybean farm business plan

• What tool should I use to write my soybean farm business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a soybean farm business plan in the first place.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your soybean farm is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your soybean farm, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your soybean farm's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Crafting a comprehensive business plan for your soybean farm, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your soybean farm has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your soybean farm, let's delve into the necessary information needed to craft an effective plan.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Information needed to create a business plan for a soybean farm

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your soybean farm business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a soybean farm

Carrying out market research before writing a business plan for a soybean farm is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research might reveal that soybean prices may be increasing due to increased demand for vegan and vegetarian proteins. Additionally, your market research might indicate that there could be an increase in demand for organic soybeans as consumers become more conscious of the products they purchase.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your soybean farm.

Developing the sales and marketing plan for a soybean farm

Budgeting sales and marketing expenses is essential before creating a soybean farm business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and equipment needs of a soybean farm

Whether you are at the beginning stages of your soybean farm or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A soybean farm could incur staffing costs such as wages and salaries for farmhands, a farm manager, and other employees. The farm could also incur costs for farm equipment such as tractors, combines, seeders, and other machinery. Additionally, the farm could incur costs for fuel, maintenance, parts, and other supplies necessary for the operation of the farm.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your soybean farm.

What goes into your soybean farm's financial forecast?

The financial forecast of your soybean farm will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a soybean farm are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a soybean farm shows how much revenue and profits your business is expected to generate in the future.

Ideally, your soybean farm's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established soybean farm. And similarly, an established company should showcase a higher level of profitability than a new venture.

The forecasted balance sheet of your soybean farm

The projected balance sheet of your soybean farm will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your soybean farm projected balance sheet provides an understanding of your soybean farm's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your soybean farm's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The projected cash flow statement

A cash flow forecast for a soybean farm shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your soybean farm business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your soybean farm as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your soybean farm, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your soybean farm business plan, let's shift our focus to the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a soybean farm business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a soybean farm business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your soybean farm's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your soybean farm, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your soybean farm business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your soybean farm, you may want to emphasize its access to markets, potential for growth, and proximity to resources. It could be situated in a region with a strong agricultural infrastructure, providing a reliable source of inputs and services. Additionally, it might be located close to transportation networks which could facilitate the efficient transport of goods. Lastly, you may want to note how the area could benefit from other industries, such as technology or manufacturing, that may provide future economic opportunities.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your soybean farm could offer organic, non-GMO soybeans as a product, as well as a variety of different types of soybean-based items such as soy milk, tofu, and miso. In addition, your soybean farm could provide services such as soybean processing, packaging, and delivery to customers. By offering these products and services, your farm can provide customers with a convenient and reliable source of organic, non-GMO soybeans and related products.

4. The market analysis

When outlining your market analysis in the soybean farm business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your soybean farm, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your soybean farm targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include families that prioritize organic and sustainable eating. They are likely to be more health conscious and may be willing to pay a premium for soybean products that are healthy and sustainably sourced. Furthermore, these families may value convenience and want to buy soybean products that are pre-packaged and easy to prepare.

In the competition subsection, introduce your main competitors and explain what sets your soybean farm apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your soybean farm.

5. The strategy section

When crafting the strategy section of your business plan for your soybean farm, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

As a soybean farm, you may face two potential risks. Firstly, you could experience financial risks due to crop failure or low yields. If the weather is unfavourable or if the soil is not of a suitable quality, your crops may not produce the expected yields, leading to a financial loss. Secondly, you might also face pest and disease risks. If pests or disease affect your crops, this could lead to significant losses in terms of both quality and quantity of the crops. It is important to be aware of these risks and have strategies in place to minimise their potential impact.

6. The operations section

The operations of your soybean farm must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your soybean farm - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as land and machinery, as well as intellectual property such as patented seed varieties and crop management techniques. Additionally, you might have proprietary software used to manage farm operations, as well as copyrights for any educational materials or marketing content created.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a soybean farm business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my soybean farm's business plan?

In this section, we will be reviewing the two main solutions for creating a soybean farm business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your soybean farm's business plan

Using online business planning software is the most efficient and modern way to create a soybean farm business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your soybean farm's business plan

Outsourcing your soybean farm business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your soybean farm business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your soybean farm's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a soybean farm business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my soybean farm business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a soybean farm business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your soybean farm and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your soybean farm business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a soybean farm? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Create a convincing business plan

Assess the profitability of your business idea and create a persuasive business plan to pitch to investors

500,000+ entrepreneurs have already tried our solution - why not join them?

Not ready to try our on-line tool ? Learn more about our solution here

Need some inspiration for your business plan?

Subscribe to The Business Plan Shop and gain access to our business plan template library.

Need a professional business plan? Discover our solution

Write your business plan with ease!

It's easy to create a professional business plan with The Business Plan Shop

Want to find out more before you try? Learn more about our solution here

Know Business Ideas

How To Start Soybean Oil Manufacturing Business

What is soybean oil .

Soybean oil is an important edible cooking oil worldwide. It is a vegetable oil. In general, it is produced from the seeds. Here in this article, here I will give you idea about how to start the soybean oil manufacturing business.

When you are starting a soybean oil production business, you should keep in mind the location plays a very important role. You must establish the unit near the soybean growing areas. Because you must guarantee the supply of soybeans in your factory without spending much transportation cost. Otherwise, you will not be able to obtain maximum profitability from the business.

Some of the main soy producing states in India are Maharashtra, Madhya Pradesh, Rajasthan, Andhra Pradesh, Karnataka and Gujarat. Our country represents 3.95% of world production according to Statistic. India is the second largest soybean producer in Asia.

Whereas some of the main soy producing countries are Uruguay, Bolivia, Ukraine, Canada, India and China.

Soybean oil production business plan

Method to produce soybean oil.

Commercially, there are two methods to produce soybean oil. You can produce the oil either by pressing or by a solvent extraction method. The process is complicated and the oil yield is much lower. Basically this method is a mechanical process.

On the other hand, solvent extraction is a chemical process. Ensures higher oil yield. Therefore, we strongly recommend following the solvent extraction process.

In addition, you can start the soybean oil production unit in two ways. One is just oil production. And it will send the oil to other oil refinery companies. Basically, you can start this type of unit with a moderate capital investment.

The other way you can start the unit along with a refinery configuration. However, this type of unit operates on a large scale and requires a substantial capital investment.

Potential of the soybean oil market

Basically, the oil has omega-3 fatty acids, polyunsaturated fats and low saturated fats. Therefore, it is popular as one of the healthiest cooking oils. It currently represents the second largest edible oil (after palm oil) consumed in the world, and the United States and China represent the largest markets.

Most of its global demand currently comes from the food industry. Within the food industry, most of the demand is for cooking and as a condiment in salads. In addition, the oil finds applications in industrial paints, lubricants, solvents, cleaners, adhesives, oleochemicals, biodiesel, bio-composites, etc.

Due to its high content of unsaturated fat, it undergoes early oxidation when exposed to air, light or moisture, which makes it suitable for printing inks and oil paint formulations. According to industry experts, the demand for soybean oil to grow at an annual compound rate of about 4% over the next five years.

Licenses and permits for the soybean oil production unit

Basically, the specific licensing requirement depends mainly on the finished product. First, determine if you want to sell solvent-extracted oil or refined soybean oil. Also, check your state law for more confirmation. Here, we have compiled some of the basic requirements.

First, register your business and prepare the MOA.

Request MSME Udyog Aadhaar online registration

Obtain the NOC from the Pollution Control Board

Request commercial electricity connection and water supply.

Request the factory license.

In addition, apply for the FSSAI license. You must maintain the standard in accordance with the PFA Act.

Finally, verify the next fiscal obligations of the company.

Installation and machinery of the soybean oil production plant

To establish the plant, the main requirement is land. If you already have a space for the manufacturing operation, then that’s fine. Otherwise, you can secure a space in any industrial area for rent. Generally, a constructed area of ​​2000 square feet is sufficient for small-scale production. Some of the most important machines are

Solvent Extraction Plant Boiler Basically, a solvent extraction plant contains

Elevators Seed cleaner Suction system Cookie Oven Flaker Roller Grinding Accessory Hydraulic system Conveyors Rotary Air Lock Feed bin Micro level indicators Extractor Ascending hoppers Trash can Bulk flow conveyor Rotary Air Lock Toaster, Dust collector Horizontal tubular condenser Sealed Devic Steam cooler, Water solvent separator Worn Water Deolventizer Evaporator Separator Preheater Condensers Oil extraction column Heater Dryer Oil retention tank Vacuum equipment Final steam absorber Heat exchangers Final Vertical Stripper

Soybean oil mill project cost India

Total machinery cost will be approx 5 to 7 lacs, and other basic requirements as current, water, space labour, Weichel etc. will cost extra as 3 to 5 lacs approx. Therefore total cost for small unit will be Rs.1o lac to 12 lacs approx.

Soybean oil extraction process by solvent extraction

The first step is to clean the soybeans. Then, dry the seeds and husk them before extracting the oil. You have to remove the soy shells because they absorb the oil and give a lower yield. However, you can peel it by splitting the soybeans. Finally, separate the hulls and mechanically ground soybeans. In addition, you can use magnets to separate any iron particles from soy.

Soybeans are also heated to approximately 75 ° C to coagulate soy proteins to facilitate oil extraction. To extract the oil, cut the soybeans into flakes. Put them in percolation extractors and immerse them with a solvent, usually hexane.

Counter flow is used as an extraction system because it provides the best performance. After removing hexane, the flakes extracted only contain about 1% of soybean oil and are used as cattle meal or to produce food products such as soy protein. Finally, separate the hexane from the soybean oil in the evaporators. And recover the evaporated hexane and return to the extraction process. Now, raw soybean oil without hexane is ready to go to the refineries.

Raw materials for the manufacture of soybean oil

The most important raw material is soybean. In addition, you must purchase hexane and other various chemicals. In addition to that, you must organize the packing materials for bulk packing.

please share and comments if you like

Leave a Comment Cancel reply

Business Ideas

Investment Ideas

Make Money at Home

• Bitcoin and Xcoins
• Earn On Social Networking
• Freelancing
• Make a Website
• Money Making Apps
• Affiliate Marketing
• Online Surveys
• Start a Blog
• Web Hosting

Startup Ideas

• Your Passion Your Money

Make Money Online

Soybean Oil Manufacturing Project Report

Table of contents, market potential of soybean oil manufacturing business, basis and presumptions of soybean oil manufacturing business, implementation schedule of soybean oil manufacturing business, legal aspects required for starting soybean oil manufacturing business, raw materials required for starting soybean oil manufacturing business, machinery required for setting up soybean oil production plant, manufacturing process of soybean oil, soybean oil manufacturing project report / economics of soybean oil manufacturing business in india, soybean oil manufacturing project report – profit in soybean oil making business in india.

Soybean Oil Manufacturing Project Report, Business Plan

Introduction

Hello friends, today we are here with a new topic called ” Soybean Oil Manufacturing Project Report and Business Plan”. Soybean oil is manufactured using seeds. Here the seeds can be used to obtain oil by following the pressing or solvent extraction procedure. This vegetable oil is produced in high volume. The oil quantity in the seed is approximately 20 % on a dry basis. The crude Soybean oil of high grade is a slightly amber color, which upon refining with alkali changes to the light yellow color seen for almost every vegetable seed oil. Soybean oil manufactured using green or immature beans may have sufficient chlorophyll which could give a greenish color but it does not happen as the yellow-red pigments of the oil will get bleached in hydrogenation.

The crude oil specifically manufactured obtained by solvent extraction method comprises

relatively high quantities around 1.5 – 2.5% of non-glyceride compounds rich in phosphatides. The FFA content of high-grade crude Soybean oil is found to be slightly greater than 0.5%.

Plant capacity per annum: The expected plant yield could be around 15000 M.T. yearly.

A Guide to Soybean Oil Manufacturing Project Report , and Business Plan

The solvent extracted Soybean oil is majorly sent to Oil refineries, which transform it into Refined Soybean Oil. This is how the oil is edible after the refining step. In India, the Vidarbha region of Maharashtra is rich in soybeans. Hence, there are several refineries, who purchase solvent extracted Soybean oil for refining it. A proper analysis about the trends of oil employed for edible purposes, Soybean oil has great demand. This is mainly due to the high cost of other edible oils such as Sunflower oil, Soybean Oil, Mustard oil, etc. when compared to Soybean oil. Refined and partially hydrogenated Soybean oil is considered for the manufacturing of margarine and shortenings. Thus, in this area because of abundant raw materials, customers are high in number and due to the cost aspect, this project has gained a high market potential. 

a. The plant is operated in three shifts. About 8 hours daily day and 300 working days for a year.

b. The interest rate will be 12% per annum on the borrowed investment. 

c. The expenses regarding raw materials, packing materials, machinery and considered at the time of planning the project profile could differ from place to place and time to time.

d. The rental expenses of the production shed are considered as per the prevailing rates and may differ from place to place.

e. The unit capacity utilization could be around 75% since the unit is operated continuously.

f. Recovery of oil from the seed is around 18.5% for the calculation works.

The project execution will need around nine to ten months. The estimated break-up of

activities and the duration for each activity are stated below:

• Project preparation and permissions 0 – 2 months
• Registration under MSME Act 2006 and loan sanction 2 – 5 months
• Machines Purchase and acquiring them 4 – 5 months
• PFA License 5 – 7 months
• Requesting power connection 5 – 7 months
• Machinery Installation 7 – 8 months
• Recruiting Staff & test run 8 – 9 months
• Commercial Production can be presumed to begin from the last and tenth month

The general requisites for obtaining license, permissions and registrations required are mentioned below:

a. Land and Plant Layout.

b. Ownership Proof for the land acquired or the Land of Consent letter from the owner, if the land availed is on rent.

c. The Memorandum of articles of association or partnership dead copy, and the list of

Directors etc. according to the organization pattern.

d. Photocopy of the packing material specimen.

e. NOC from State Pollution Control Board.

In case if you miss this: Soap Manufacturing Project Report .

The essential raw material for soybean oil is soy seeds. Apart from that, you have to purchase Hexane and other necessary chemicals. Along with that, you have to obtain the packaging materials for bulk packing.

For setting up the plant, the primary need is the land. If you already have your land to start manufacturing works then it is best.

Otherwise, you can acquire land at an industrial location. Usually, around 2000 sq. ft built-up area is enough for a small-scale unit. We have included a few necessary machines below: 

Solvent extraction plant – Boiler

A solvent extraction plant comprises

• Seed Cleaner
• Aspiration system
• Roll Grinding attachment
• Hydraulic system
• Rotary Air Lock
• Micro-Level Indicators
• Rising Hoppers
• Discharge Bin
• Bulk Flow Conveyor
• Dust Catcher
• Oil Stripping Column
• Horizontal Tubular Condensor
• Water Solvent Separator
• Spent Water Desolventiser
• Final Vapour Absorber
• Final Vertical Stripper
• Sealing Devic
• Vapour Cooler,
• Oil Holding Tank
• Vacuum Equipment
• Heat Exchangers

The Soybean oil is manufactured by using the Solvent Extraction Method. In this method, the solvent gets diffused into the oil-bearing cells of the seeds that will give a solution that contains the solvent for instance “Hexane” and oil. The complete process is segmented into three main steps as mentioned below:

a. Preparatory Section:

A proper extraction is performed when the oil-bearing cell of the material is in contact with a solvent. If the material size is small, the penetration of the solvent into cells is better. Hence, an optimum size is highly significant for efficient extraction. To achieve this Soybean seeds are sent through expanders after doing the steps like cracking, cooking, and flaking.

b. Main Extraction:

In this step, the extraction unit consists includes several solvent sprayers, which spray the solvent on a complete bed of raw material. The length & breadth is optimized to provide sufficient duration for intimate contact penetration and percolation of solvent into seeds. Finally, the material that exits the spraying chamber is deoiled content with a solvent that can be recovered in the desolventizing step. The obtained mixture of Oil and solvent are known as Miscella is transferred to the miscella tank, which will pass it to the desolventiser.

c. De-solventisation:

The extracted material has the affinity to sustain the solvent within it, and this solvent has to be removed. The retention differs from 20 % -35 % weight of the material extracted. The basic theory involved in de-solventisation is heating with steam to a temperature that is higher than the boiling point of solvent this ensures no solvent is left over with material. Vapors of solvent are passed to the scrubber, where the solvent to trace vapors gets washed. Next, the Deoiled and desolventised meal will be transported to the bagging section using a conveyor. A cooling arrangement is set up to ensure proper cooling of the material to make bagging easy and have 10-12% moisture.

d. Distillation:

The Miscella (Oil and solvent mixture obtained in the extractor) usually contains 12% to 18 % of the oil in the solvent. Distillation is done in three stages under a vacuum to avoid oxygen as the oil is heated to a high temperature. First evaporation is carried out in Economizer and reduced the solvent in the first and second cycles, leaving only oil. This oil is again treated using steam to ensure that there is no solvent left in the oil.

The solvent vapors produced here are passed through oil – vapor separator which separates any oil particles that could have been trapped with the solvent vapors and are then passed to carry out condensation for solvent recovery in the condenser.

Land and Building: Rs. 5,50,000

Plant and Machinery: Rs. 2,70,000

Miscellaneous Assets: Rs. 55,000

P&P Expenses: Rs. 40,000

Contingencies @ 10% on Land and Building and Plant and Machinery: Rs. 80,000

Soybean Oil Manufacturing Project Report – Working Capital Margin : Rs. 1,35,000

Total: Rs. 11,30,000.

Soybean Oil Manufacturing Project Report – Means of finance

Promoters’ Contribution @ 25 %: Rs. 2,80,000

Loan from Bank/FI: Rs. 8,50,000

Total: Rs. 11,30,000

Debt Equity Ratio: 1.96 : 1

Promoters’ Contribution: 25%.

Soybean Oil Manufacturing Project Report – Working capital calculation

Raw materials/ Packing materials: Rs. 1,70,000

Working expenses: Rs. 1,00,000

Finished goods: Rs. 1,00,000

Receivable: Rs. 80,000

Total: Rs. 4,50,000.

Soybean Oil Manufacturing Project Report – Cost of Machinery

Table Ghani 1: Rs. 70,000

Oil Expellers 2: Rs. 80,000

Filter Press 1: Rs. 60,000

Other Support Equipments, electric motor and testing facilities: Rs. 60,000

Total: Rs. 2,70,000.

Sales price of Soybean Oil: Rs. 32,16,000

Sales price of De-oiled Cake: Rs. 4,44,000

Total: Rs. 36,60,000.

Profits in Soybean Oil making business = Sales – Project cost = Rs. 32,60,000 – Rs. 28,80,000 = Rs. 7,80,000.

• Value-Added Business Ideas for Greenhouse: The Best Ways to Make Profits with Greenhouse Farming

How to Make Profits with Organic Country Chicken: Best Strategies for Beginners

10 value-added business ideas for millets: low-investment and highly profitable, why cleaning service business becoming more profitable in metro cities in india, 10 best businesses to start in ayodhya for profits, top drone business ideas in india: unlocking aerial innovation & opportunities, top 10 service businesses you can start with no money, ultimate guide to starting a home-based advertising agency business.

• Starting a Nail Salon Near Your Location: Check List, Business Plan, Licensing, and Opening Instructions

Construction Company Name Ideas: Guide to Create New Construction Company Names

8 best small businesses to start in hyderabad: low-cost and profitable, 10 best small businesses to start in massachusetts: low-cost and profitable, 10 best small businesses to start in maryland: low-investment and profitable, 10 best small businesses to start in delaware: low-investment and profitable, 10 best small businesses to start in connecticut: low-investment and profitable, top 10 best online pet business ideas: exploring cats to dogs, 10 best small businesses to start in colorado: low-investment and profitable, top 10 profitable small business ideas in california: low-investment tips.

• From Little Rock to Fayetteville: Top 10 Profitable Small Business Ideas in Arkansas
• Top 10 Profitable Small Business Ideas in Alabama: Discover Opportunities in Alabama’s Growing Cities
• Top 10 Profitable Small Business Ideas in Arizona: Discover Opportunities in Arizona’s Growing Cities
• Golf Business Ideas: Exploring Golf Course Money Making Ideas
• Low Capital Profitable Small Farm Ideas: Farming Ideas to Make Money
• How to Write a Business Plan for Daycare: Exploring from Financial Projections to Risk Management

I need complete project Report of soybean oil Manufacturing plant as well as guidance to proceed further

LEAVE A REPLY Cancel reply

Save my name and email in this browser for the next time I comment.

Value-Added Business Ideas for Greenhouse: The Best Ways to Make Profits with...

Starting a nail salon near your location: check list, business plan, licensing,..., from little rock to fayetteville: top 10 profitable small business ideas in..., top 10 profitable small business ideas in alabama: discover opportunities in alabama’s..., ideas to make money in india – a full guide, mudra yojana loan scheme, eligibility, how to apply, profit in dry fruit business (cost to start), how to make money from rice mill business in india, profitable agriculture business ideas in india, government loans for women entrepreneurs in india.

• Food & Beverages

Soybean Oil Processing Plant Project Report

Soybean oil processing plant project report 2024: industry trends, plant setup, machinery, raw materials, investment opportunities, cost and revenue.

• Report Description
• Table of Contents
• Methodology
• Request Sample

Report Overview:

IMARC Group’s report titled “Soybean Oil Processing Plant Project Report 2024: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue” provides a complete roadmap for setting up a soybean oil processing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The report also provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

Soybean oil is a vegetable oil extracted naturally from soybean seeds. Its neutral taste, high smoke point, and negligible saturated fat content have made it a preferred choice for cooking in households and restaurants. It is an economical and versatile oil, suitable for use in various cooking techniques, such as frying, baking, and sautéing. It is a robust source of nutrients, including proteins, vitamins, fatty acids, and plant sterols. Regular consumption of soybean oil can help prevent osteoporosis, improve immunity, manage heart health, lower cholesterol levels, boost eye and skin health, and reduce the risk of cognitive disorders. Additionally, it can withstand high temperatures without breaking down or emitting harmful smoke, due to which it is extensively used as an ingredient in salad dressings, mayonnaise, and other condiments. Apart from its culinary uses, soybean oil is also used in the production of biofuels, industrial lubricants, and feedstock. 

The global market for soybean oil is experiencing significant growth, driven by the rapidly expanding food and beverage (F&B) sector across the globe. Soybean oil is a crucial ingredient in preparing various food items such as dressings, sauces, margarine, and non-dairy creamers, among others. Furthermore, the increasing prevalence of cardiovascular diseases, obesity, and high cholesterol has led to a surge in demand for soybean oil, primarily due to its various health benefits, which is creating a positive outlook for the market. Moreover, soybean oil possesses a high content of vitamin E, which, in turn, has prompted its incorporation in various personal care products. Other factors, such as the increasing trend of western cuisines, the affordable pricing of soybean oil, and the easy availability of the product through online retail stores, are providing an impetus to the market growth.

The report provides a techno-commercial roadmap for setting up a soybean oil processing plant. The study covers all the requisite aspects that one needs to know while entering the soybean oil industry. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake in the soybean oil industr

The following aspects have been covered in the report on setting up a soybean oil processing plant:

• Market Performance
• Market Breakup by Segment
• Market Breakup by Region
• Price Analysis
• Impact of COVID-19
• Market Outlook  

The report provides insights into the landscape of the soybean oil industry at the global level. The report also provides a segment-wise and region-wise breakup of the global soybean oil industry. Additionally, it also provides the price analysis of feedstocks used in the manufacturing of diaper, along with the industry profit margins.

• Product Overview
• Unit Operations Involved
• Mass Balance and Raw Material Requirements
• Quality Assurance Criteria
• Technical Tests  

The report also provides detailed information related to the process flow and various unit operations involved in a soybean oil processing plant. Furthermore, information related to mass balance and raw material requirements has also been provided in the report with a list of necessary quality assurance criteria and technical tests.

• Land, Location and Site Development
• Plant Layout
• Machinery Requirements and Costs
• Raw Material Requirements and Costs
• Packaging Requirements and Costs
• Transportation Requirements and Costs
• Utility Requirements and Costs
• Human Resource Requirements and Costs  

The report provides a detailed location analysis covering insights into the land location, selection criteria, location significance, environmental impact, and expenditure for setting up a soybean oil processing plant. Additionally, the report also provides information related to plant layout and factors influencing the same. Furthermore, other requirements and expenditures related to machinery, raw materials, packaging, transportation, utilities, and human resources have also been covered in the report.

• Capital Investments
• Operating Costs
• Expenditure Projections
• Revenue Projections
•  Taxation and Depreciation
• Profit Projections
• Financial Analysis  

The report also covers a detailed analysis of the project economics for setting up a soybean oil processing plant. This includes the analysis and detailed understanding of capital expenditure (CapEx), operating expenditure (OpEx), income projections, taxation, depreciation, liquidity analysis, profitability analysis, payback period, NPV, uncertainty analysis, and sensitivity analysis. Furthermore, the report also provides a detailed analysis of the regulatory procedures and approvals, information related to financial assistance, along with a comprehensive list of certifications required for setting up a soybean oil processing plant.  

Report Coverage:

Key questions answered in this report.

• How has the soybean oil market performed so far and how will it perform in the coming years?
• What is the market segmentation of the global soybean oil market?
• What is the regional breakup of the global soybean oil market?
• What are the price trends of various feedstocks in the soybean oil industry?
• What is the structure of the soybean oil industry and who are the key players?
• What are the various unit operations involved in a soybean oil processing plant?
• What is the total size of land required for setting up a soybean oil processing plant?
• What is the layout of a soybean oil processing plant?
• What are the machinery requirements for setting up a soybean oil processing plant?
• What are the raw material requirements for setting up a soybean oil processing plant?
• What are the packaging requirements for setting up a soybean oil processing plant?
• What are the transportation requirements for setting up a soybean oil processing plant?
• What are the utility requirements for setting up a soybean oil processing plant?
• What are the human resource requirements for setting up a soybean oil processing plant?
• What are the infrastructure costs for setting up a soybean oil processing plant?
• What are the capital costs for setting up a soybean oil processing plant?
• What are the operating costs for setting up a soybean oil processing plant?
• What should be the pricing mechanism of the final product?
• What will be the income and expenditures for a soybean oil processing plant?
• What is the time required to break even?
• What are the profit projections for setting up a soybean oil processing plant?
• What are the key success and risk factors in the soybean oil industry?
• What are the key regulatory procedures and requirements for setting up a soybean oil processing plant?
• What are the key certifications required for setting up a soybean oil processing plant?

Report Customization

While we have aimed to create an all-encompassing report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

• The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
• Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
• Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
• We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
• Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
• Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. have played a crucial role in constructing, expanding, and optimizing sustainable manufacturing plants worldwide.

India Dairy Market Report Snapshots Source:

Statistics for the 2022 India Dairy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 

• India Dairy Market Size Source
• --> India Dairy Market Share Source
• India Dairy Market Trends Source
• India Dairy Companies Source

Need more help?

• Speak to our experienced analysts for insights on the current market scenarios.
• Include additional segments and countries to customize the report as per your requirement.
• Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
• For further assistance, please connect with our analysts.

Purchase options

Benefits of Customization

Personalize this research

Triangulate with your data

Get data as per your format and definition

Gain a deeper dive into a specific application, geography, customer, or competitor

Any level of personalization

Get in Touch With Us

UNITED STATES

Phone: +1-631-791-1145

Phone: +91-120-433-0800

UNITED KINGDOM

Phone: +44-753-713-2163

Email: [email protected]

Client Testimonials

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

The IMARC team was very reactive and flexible with regard to our requests. A very good overall experience. We are happy with the work that IMARC has provided, very complete and detailed. It has contributed to our business needs and provided the market visibility that we required

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

• Competitive Intelligence and Benchmarking
• Consumer Surveys and Feedback Reports
• Market Entry and Opportunity Assessment
• Pricing and Cost Research
• Procurement Research
• Report Store
• Aerospace and Defense
• Agriculture
• Chemicals and Materials
• Construction and Manufacturing
• Electronics and Semiconductors
• Energy and Mining
• Food and Beverages
• Technology and Media
• Transportation and Logistics

Quick Links

• Press Releases
• Case Studies
• Our Customers
• Become a Publisher

United States

134 N 4th St. Brooklyn, NY 11249, USA

+1-631-791-1145

Level II & III, B-70, Sector 2, Noida, Uttar Pradesh 201301, India

+91-120-433-0800

United Kingdom

30 Churchill Place London E14 5EU, UK

+44-753-713-2163

Level II & III, B-70 , Sector 2, Noida, Uttar Pradesh 201301, India

We use cookies, including third-party, for better services. See our   Privacy Policy   for more. I ACCEPT X

• Agriculture Farming
• Livestock Farming

Project Reports

• Hydroponics
• Best Fertilizers
• Vertical Farming
• Sheep Farming
• Goat Farming
• Poultry Farming
• Fish Farming
• Pig Farming
• Dairy Farming
• Rabbit Farming
• Success Stories of Farmers
• Boost Fruit Yield
• District Wise Crop Production
• Schemes & Subsidies
• Agriculture Colleges
• Farm Insurance
• Disease Control And Management

Agriculture

Aquaculture

Horticulture

Agri Business

A Step-By-Step Guide to Soybean Farming Business Plan

Table of contents, benefits of soybean farming, soil management and seed rate for soybean farming, seed rate and proper spacing for successful soybean business, fertilizers and water requirement to start soybean farming business, tips to create soybean farming business, selecting the seed for soybean framing business, licenses & permits to start your soybean farming business, soybean business cultivation practices, steps to maximize the soybean crop yield, crop rotation and inter cropping to start soybean farming, soybean farming care, steps to create a soybean farming business plan, success tips for a soybean business, soybean harvesting and yield.

Soybean farming is a popular and profitable business venture. Soybean farming is a profitable agricultural business providing income over several years. Soybeans are versatile crops used for various purposes, including human consumption, animal feed, and biodiesel production. Soybeans are high in protein and contain all the essential amino acids for human nutrition.

Soybean Farming Business Plan

• The demand for Soybeans is high and growing. Another reason to start a Soybean business is that it can be a profitable venture.
• Soybeans are relatively easy to grow and yield a good return on investment. In addition, the cost of starting a Soybean farm is relatively low compared to other types of businesses.
• Starting a Soybean business provides an opportunity to impact the environment positively.
• Soybeans are a renewable resource whose production has a minimal negative environmental impact. As consumer awareness of environmental issues grows, so does the demand for environmentally friendly products.
• By starting a Soybean business, you can be at the forefront of this growing trend and make a difference in the world.
• Soybeans are a relatively easy crop to grow; thus, farmers can count on a certain level of income stability.
• Soybeans are known for their health benefits for humans and animals. This means that farmers can feel good about growing a crop that benefits people and animals alike.
• Soybeans are also a very sustainable crop, requiring little input (fertilizers, pesticides, etc.) and having a small environmental footprint. This is good news for both the farmer and the planet.

The ideal pH range for Soybean plants is between 6 and 7.5. Within this range, the plant can access the nutrients it needs from the soil and is less likely to experience stress from extreme pH conditions. Farmers can test their soil regularly and adjust its pH with limestone or other amendments to maintain a favorable pH for Soybeans.

• The optimum seed rate for sowing on one-acre land is 25-30 kg. This will ensure that the chances of getting a good crop are high. More seeds should not be sown as this will lead to competition amongst the plants for resources and, ultimately, lower yields.
• Soybean farming is a popular and profitable agricultural business in many parts of the world. The crop is mostly cultivated in countries with tropical and subtropical climates. India is the leading producer of Soybeans, followed by Brazil, Argentina, and the United States.
• The plant grows well in fertile soils with good drainage. A spacing of 45-60 cm X 2.5 cm is considered suitable for Kharif crops, while 30-45 X 2.5 cm is ideal for spring season cultivation.
• Proper spacing is essential for optimum yield as it allows proper aeration and sunlight penetration to the lower leaves. It also helps in controlling weeds and pests.

In case you missed it: Best Regenerative Agriculture Practices Every Grower Should Follow and Why It Is Important

Fertilizers play an important role in Soybean production as they help to supply the nutrients required for plant growth. The type and amount of fertilizer used will vary depending on the soil type, crop rotation, and previous crop history. It is important to have your soil tested before applying fertilizer to ensure you use the correct products and rates.

Water is also a critical factor in Soybean production. The water needed will vary depending on the climate and weather conditions. Irrigation systems should be designed and operated to minimize evaporation and runoff.

• The first step in starting a Soybean farm is to create a business plan. This plan should include an analysis of the market, your competition, your start-up costs, and your operating expenses.  Once you have created a business plan, you can look for land to grow your Soybeans.
• Once you have secured land for your farm, you must obtain permits and licenses from your local government. You must also purchase seeds from a reputable supplier and the necessary fertilizers and pesticides.
• After planting your seeds, you must water them regularly and closely monitor their growth. Once your Soybeans are ready for harvest, you can sell them directly to customers or through a wholesaler.
• The demand for Soybeans is constantly growing, creating opportunities for farmers to profit. Producing a high-quality product that meets customer demands is important to maximize profits. Additionally, farmers must have a good marketing strategy to ensure their products are sold fairly.

The type of climate in which you will be growing your Soybeans, the soil type, and the amount of rainfall are just a few of the things that will affect what type of seed you choose. You will need to decide whether you want to grow your Soybeans organically. If you choose to grow them organically, there are a few additional steps that you will need to take to ensure that your plants are healthy and free of pesticides and herbicides.

In case you missed it: Best Fertilizer for Soybean Crop: Organic, Compost, NPK, When and How To Apply

When selecting the seed for your Soybean farming business plan, it is important to consult with a local expert who can help you determine which type of seed will best suit your needs. Once you have selected the right type of seed for your farm, you must purchase it from a reputable source. Ask about return policies if the seed does not germinate or the plants do not thrive.

• The first step is to obtain a business license from your local government.
• Next, you must get a Soybean farming permit from the Department of Agriculture.
• Finally, you must obtain a Food and Drug Administration (FDA) license.
• Cultivating a Soybean crop is no different than any other bean crop. The main difference is the variety of Soybean that you choose to grow. There are many varieties of Soybeans, each with its benefits and drawbacks. You must select the best variety for your particular climate and soil type.
• Once you have selected the right Soybean variety, you must prepare your soil. Soybeans require well-drained, fertile soil to thrive. The best method to achieve this is by conducting a soil test and following the recommendations for amendments.
• After your soil is prepared, you will need to plant your seeds. Soybeans are typically planted in late spring or early summer.  Throughout the growing season, Soybeans will need to be watered regularly. They are especially susceptible to drought stress during flowering and pod filling. Keep an eye on your crop’s weather forecast and irrigation needs.
• As harvest time approaches, scout your field for diseases and pests. These can cause serious damage to your crop if left unchecked. Treat any problems immediately according to the label directions. When the beans are mature, they can be harvested by hand or with a combine harvester.
• Selecting the suitable variety : Many Soybeans are available. Select the one that is best suited for your field conditions.
• Sowing at the right time : Timing is crucial for getting a good yield. Sow the seeds when the conditions are favorable for germination and growth.
• Proper spacing : Maintaining proper distance between plants ensures good air circulation and exposure to sunlight. This will prevent diseases and encourage growth.
• Adequate fertilizer : Use quality fertilizer to provide nutrients for optimal growth. Apply it at recommended rates and at the right time.
• Proper irrigation : Irrigate the crop regularly to keep the soil moisture consistent. Avoid waterlogging as it can lead to root rot.
• Pest and disease control : Regularly check for pests and diseases and take corrective measures immediately. This will help prevent crop damage and maintain a good yield.

In case you missed it: Top 19 Steps to Boost Soybean Yield: How to Increase Production, Quality, Size, and Tips

Crop rotation and inter-cropping are both important aspects of Soybean farming. Crop rotation helps replenish the soil’s nutrients, while inter-cropping allows different crops to be grown in the same field. Inter-cropping with Tur, Cotton, Sorghum, Cotton, and Sugarcane. It is rotated with Wheat, Potato, Gram, and Tobacco. This type of rotation provides a variety of nutrients for the plants and helps to prevent pests and diseases.

• Once you have your business plan, it’s time to find the perfect location for your farm. The ideal location will have good soil conditions and be close to markets where you can sell your Soybeans. Once you’ve found the perfect spot, it’s time to start preparing the land for planting.
• This involves clearing any debris, tilling the soil, and applying fertilizer. Once the land is ready, you can plant your Soybeans and grow your crop. Throughout the growing season, monitoring your plants and ensuring they get enough water and nutrients is important.
• Once harvest time arrives, you must carefully remove the Soybeans from their pods and then dry them before storing or selling them. With proper care and attention, your Soybean farming business can succeed.
• Research the market for Soybeans in your area. Determine if there is a demand for Soybeans and if businesses are already selling them in your area. Consider the price of Soybeans as well as the costs of production when making your decision.
• Before starting any business, it is important to research the market. This will help you understand the demand for Soybeans and the prices that farmers are getting for their crops.
• Create a business plan that should include information on your target market, marketing strategy, financial projections, and plans for production and distribution.
• Once you have found the perfect location for your farm, you must prepare the land for planting. This includes clearing debris, tilling the soil, and leveling off areas that might be too hilly or sloped.

In case you missed it: Pest and Disease Management in Soya: Causes, Symptoms, Chemical, and Biological Control

• Find a source of funding for your business. This could come from personal savings, loans, or investors.
• Purchase the necessary supplies and equipment for growing and processing Soybeans. This could include land, seed, fertilizer, irrigation equipment, etc.
• Plant the Soybeans and care for them throughout the growing season. This includes watering, weeding, and protecting them from pests and diseases.
• Pests and diseases can also decimate crops, making it difficult to profit. Soybean farmers must constantly be on the lookout for pests and diseases that could potentially damage their crops.
• Harvest the Soybeans when ready and process them into their final form (soy milk, tofu, etc.).
• Market and sell your products to customers in your area. This could be through online sales, farmer’s markets, retail stores, etc
• Location : The farm should be located in an area with a demand for Soybeans. This could be a local market or a regional or national market.
• Land : The farm should have enough land to grow the desired Soybeans. The land should also have good soil quality and adequate drainage.
• Equipment : The farm will need equipment for planting, harvesting, and transporting Soybeans. The equipment should be well-maintained and in good working condition.
• Farm workers : The farm will need workers for planting, harvesting, and transporting Soybeans. These workers should be reliable and honest. They should also be able to work long hours during peak times.
• Financing: The farm will need financial resources to cover start-up costs and ongoing operating expenses. This could come from personal savings, loans, or investments from others.

The main ways to harvest Soybeans are hand picking or machine harvesting. Hand-picking is a more labor-intensive method but can be done with minimal equipment. Machine harvesting is more expensive and requires specialized equipment, but it is much faster and easier. If you are hand-picking your Soybeans, wait until the pods are brown and dry before picking them. You can either shell the beans by hand or thresh them using a simple threshing machine. The average seed yield for Soybeans is about 6.1 to 7 quintals per acre.

In case you missed it: How to Start Soybean Farming in Kenya: A Step-By-Step Production Guide for Beginners

Soybean farming can be a rewarding business venture. With the right knowledge, you can create a successful Soybean farming plan that will ensure your success in the long run. Soybeans are one of the most versatile and nutritious crops in the world. Soybeans are a good protein source, making them an important part of many diets.

• Natural Solutions for Tulip Problems: 100% Effective Remedies for Leaf and Bulb-Related Issues

Revolutionizing Citrus Preservation: Towards a Healthier, Greener Future

• Natural Solutions for Peony Leaf and Flower Problems: 100% Effective Remedies
• Maximizing Profits with Avocado Contract Farming in India: A Comprehensive Guide
• Natural Solutions for Hydrangea Problems: 100% Effective Remedies for Leaf and Flowers
• The Ultimate Guide to Choosing the Perfect Foliage Friend: Bringing Life Indoors
• From Sunlight to Sustainability: 15 Ways to Use Solar Technology in Agriculture
• The Ultimate Guide to Dong Tao Chicken: Exploring from History to Raising
• The Eco-Friendly Makeover: How to Convert Your Unused Swimming Pool into a Fish Pond
• Mastering the Art of Delaware Chicken Farming: Essentials for Healthy Backyard Flocks
• 20 Best Homemade Fertilizers for Money Plant: DIY Recipes and Application Methods

How to Craft a Comprehensive Free-Range Chicken Farming Business Plan

• Brighten Your Flock: Raising Easter Egger Chickens for Beauty and Bounty
• How to Optimize Your Poultry Egg Farm Business Plan with These Strategies
• Subsidy for Spirulina Cultivation: How Indian Government Schemes Encouraging Spirulina Farmers
• Ultimate Guide to Raising Dominique Chickens: Breeding, Feeding, Egg-Production, and Care
• Mastering the Art of Raising Jersey Giant Chickens: Care, Feeding, and More
• Ultimate Guide to Raising Legbar Chickens: Breeding, Farming Practices, Diet, Egg-Production

How to Raise Welsummer Chickens: A Comprehensive Guide for Beginners

How to protect indoor plants in winter: a comprehensive guide.

• Ultimate Guide to Grow Bag Gardening: Tips, Tricks, and Planting Ideas for Urban Gardeners
• Guide to Lotus Cultivation: How to Propagate, Plant, Grow, Care, Cost, and Profit
• Agriculture Drone Subsidy Scheme: Government Kisan Subsidy, License, and How to Apply Online
• Ultimate Guide to Raising Araucana Chickens: Breed Profile, Farming Economics, Diet, and Care
• Bringing Hydroponics to Classroom: Importance, Benefits of Learning for School Students
• Ultimate Guide to Raising Polish Chickens: Breed Profile, Farming Economics, Diet, and Care
• Ultimate Guide to Raising Australorp Chickens: Profile, Farming Economics, Egg Production, Diet, and Care
• Silkie Chicken Farming: Raising Practices, Varieties, Egg Production, Diet, and Care
• Sussex Chicken Farming: Raising Practices, Varieties, Egg Production, Diet and Care
• Homemade Feed Formulations for Livestock: Discover Cost-effective Starter to Finisher Feed Recipes
• 20 Best Pig Weight Gain Supplements: Top Swine Weight Gain Formulas
• Ultimate Guide to Elderberry Farming: Propagation, Planting, Yield, Cost, and Profit
• 100% Effective Strategies for Combating Pests and Diseases in Hibiscus: Prevent and Treat Successfully
• Management of Pests and Diseases in Mums: Ultimate Guide to Protecting Mums
• Management of Pests and Diseases in Home Garden: 100% Effective Control and Treatment Strategies
• Essential Guide to Disease Management for Backyard Poultry Owners

I enjoyed every bit of my reading on soybean farming. Please assist me in writing a soybean farming business plan proposal. It’s was very informative and recommend for those interested in farming to read through. Thanks

LEAVE A REPLY Cancel reply

Save my name and email in this browser for the next time I comment.

Natural Solutions for Tulip Problems: 100% Effective Remedies for Leaf...

Natural solutions for peony leaf and flower problems: 100% effective..., maximizing profits with avocado contract farming in india: a comprehensive..., natural solutions for hydrangea problems: 100% effective remedies for leaf..., the ultimate guide to choosing the perfect foliage friend: bringing..., from sunlight to sustainability: 15 ways to use solar technology..., the ultimate guide to dong tao chicken: exploring from history..., the eco-friendly makeover: how to convert your unused swimming pool..., mastering the art of delaware chicken farming: essentials for healthy..., 20 best homemade fertilizers for money plant: diy recipes and..., brighten your flock: raising easter egger chickens for beauty and..., how to optimize your poultry egg farm business plan with..., subsidy for spirulina cultivation: how indian government schemes encouraging spirulina..., ultimate guide to raising dominique chickens: breeding, feeding, egg-production, and..., mastering the art of raising jersey giant chickens: care, feeding,..., ultimate guide to raising legbar chickens: breeding, farming practices, diet,..., borewell drilling cost, pump price, and pipe cost, polyhouse subsidy, cost, profit, project report, tractor subsidy, bank loan, eligibility, schemes, process, malabar neem project report details guide, cold storage project report, cost and subsidy, mushroom farming project report, cost and profit analysis.

An official website of the United States government

The .gov means it’s official. Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

The site is secure. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

• Publications
• Account settings

Preview improvements coming to the PMC website in October 2024. Learn More or Try it out now .

• Advanced Search
• Journal List
• Bioengineering (Basel)

Profitability Analysis of Soybean Oil Processes

Soybean oil production is the basic process for soybean applications. Cash flow analysis is used to estimate the profitability of a manufacturing venture. Besides capital investments, operating costs, and revenues, the interest rate is the factor to estimate the net present value (NPV), break-even points, and payback time; which are benchmarks for profitability evaluation. The positive NPV and reasonable payback time represent a profitable process, and provide an acceptable projection for real operating. Additionally, the capacity of the process is another critical factor. The extruding-expelling process and hexane extraction are the two typical approaches used in industry. When the capacities of annual oil production are larger than 12 and 173 million kg respectively, these two processes are profitable. The solvent free approach, known as enzyme assisted aqueous extraction process (EAEP), is profitable when the capacity is larger than 17 million kg of annual oil production.

1. Introduction

In the soybean refining process, extracting oil and concentrating protein contents are the two main purposes. The oil extraction is seen as the first step of soybean applications. The mechanical pressing technique, using pressure and heat to disrupt oleosome structure, was first used in the industry in the early 1940s [ 1 ]. However, low oil yield, oil darkening, and oil deterioration resulted from over-heating are the major disadvantages of mechanical pressing process. The extruding-expelling approach was introduced to mitigate the disadvantages and increase the oil recovery rate to over 70% from the typical mechanical pressing process [ 2 ]. According to the extruding-expelling process, an extrusion process replaces the heating process before soybean expelling which reduces the flaws resulting from over-heating.

Solvent extraction is another typical technique used in the industry, especially hexane extraction. For hexane extraction, the solubility of oil and hexane is the basic principal, and it can have over 99% of oil recovery rate [ 3 ]. The large amount of hexane used, 5~10:1 typical ratio of solvent to beans, leads to environmental and safety issues. The percolation extractor was invented to reduce the hexane usage and decrease the ratio of solvent to soybeans to about 1:1 [ 4 ]. However, the application of organic solvents still has been attracting concerns about safety and environmental impact problems.

An aqueous, solvent free extraction method, was introduced as an alternative in the 1950s [ 5 ]. The oil in water emulsion is formed after the extraction process due to the insolubility of water and oil, and the demulsification is applied to recover the oil from the emulsion. Based on the structure of oleosome stored in the cotyledons, proteases are commonly used in aqueous extraction to improve oil yield [ 6 ], and it is defined as enzymatic assisted aqueous extraction process (EAEP). In EAEP, a sufficient pretreatment, such as extrusion [ 7 ], ultrasonication [ 8 ], microwave heating [ 9 ], or ohmic heating [ 10 ], is required to break soybean tissue and produce porous soybean flakes which can improve oil recovery to over 80% [ 5 ].

For a manufacturing venture, the capital investment, operating costs, and revenues are the general indicators for evaluating the profit. Besides, the money sink throughout the service time of the project is another critical factor when estimating the profitability, and it can be performed by cash flow analysis.

The concept of cash flow is illustrated in Figure 1 . The venture can be divided into four periods: construction, validation, manufacturing, and shut-down. The capital investment is the basis for the construction period. In the validation period, working capital and startup cost are the cash inflow. As the process starts to operate, the operating costs are the cash inflow; while revenues and depreciation are defined as the profit. In the shut-down period, besides operating costs and revenues, the salvage of the capital investment and the working capital are compensated in the last year of the service time [ 11 ].

The schematic flow of cash flow analysis.

Time-value of money (TVM) is another factor for profit estimation. TVM means the value of money fluctuates with time and economic conditions. Therefore, it should be thought of as a commodity with time-depending value based on the interest rate [ 11 , 12 ]. The calculation is shown in Equation (1). C t and C 0 are the capital in the investment year (t) and the current year, respectively; i represents the interest rate.

Based on the revenues and profits earned from the process, the TVM also converts to a recent value for the profitability prediction. It is calculated by reversing Equation (1) to solve the C 0 , and it also can be expressed by a discount factor (f d ) (Equation (2)). Also, the TVM is used to estimate the “Net Present Value” (NPV), which also estimates the profitability. NPV can be expressed in Equation (3) [ 13 ]. The positive NPV means the process is profitable and vice versa.

A similar concept is used for the internal rate of return (IRR) estimation. IRR is the indicator used to describe the interest rate at which the NPV is equal to 0. In other words, when the IRR of the process is larger than the interest rate (i) used for the profitability estimation, the process is profitable. Equation (3) is also used for the IRR calculation. In the calculation of IRR, NPV is replaced by 0, and the interest (i) can be solved as the IRR.

In soybean oil processes, the driving force of the extruding-expelling process, hexane extraction, and EAEP is the coproducts, soybean meal and insoluble fiber, and material cost basically which was performed by the sensitivity analyses from Cheng’s studies [ 14 , 15 , 16 ]. However, the profitability is less discussed in academic study. In this study, the cash flow analysis was used to evaluate the profitability of extruding-expelling, hexane extraction, and EAEP for soybean oil processes.

2. Analysis Methods

2.1. general assumptions.

The assumptions are based on the TEA (techno-economic analysis) models built for extruding-expelling, hexane extraction, and EAEP [ 14 , 15 , 16 ]. The construction period is 30 months, with annual investments of 30%, 40%, and 30% of direct fixed cost (DFC) in the first three investment years individually. The startup period is 4 months; depreciation (DE) is 10 years with a straight-line method; and salvage (SV) is 5% of DFC. The basic interest (i) is 7% [ 12 ]. Also, the inputs and outputs data are based on 2015 prices. The plant is assumed to be built in Iowa, USA.

2.2. Data Inputs

In the profitability analysis of the soybean oil extraction process, the total capital investments of extruding-expelling process, hexane extraction, and EAEP are 26.6, 41.0, and 7.6 million dollars (2015 price) based on 30.8, 22.4, and 0.1 million kg of annual soybean oil production respectively. The different scales of production are also investigated, and the capital investments are estimated following 0.42, 0.34, and 0.35 power relationship of scaling up ratio for these three soybean oil extraction processes, respectively [ 14 , 15 , 16 ].

Operating costs generally include material costs, utility costs, and labor costs. The revenues are from soybean oil and other coproducts such as soybean hulls, soybean meal, insoluble fiber, etc. These inputs are listed in Table 1 . For the extruding-expelling process and hexane extraction, the data are the average value from 2010–2015 based on 2015 price value. For EAEP estimation, the data is set as 2015 price because there is no plant using EAEP in the industry. The EAEP is proposed for combination with a corn-based ethanol production plant as an integrated soy-corn biorefinery system. The skim and insoluble fiber from EAEP are individually sold as a water supply and carbohydrate resource for corn-ethanol production.

Operating costs and products selling price inputs (2015 price value).

* Collected from 2015 price.

2.3. Cash Flow Calculation

Based on the total capital investments, operating costs, and revenues estimations of these processes [ 4 , 5 , 6 ], cash flow analysis is performed following Table 2 .

The calculation of cash flow for soybean oil extraction investment.

Gross profit (GP) and net profit (NP) are calculated first; with the net cash flow (NCF) obtained by adding capital investment (CI), GP, and NP. The cumulative cash flow (CCF) is the sum of the NCF from each year. CCF in the last year of plant service also represents the NPV without considering the interest (i). Additionally, the NPV with interest over 10% is also tested when the NPV is positive with the interest of 7%.

When the interest is considered, the discounted cash flow (DCF) is calculated by multiplying NCF with f d . The cumulative discounted cash flow (CDC) is obtained using the same methods as CCF calculations. The last year of CDC is the NPV of operating. Also, the IRR is obtained from SuperPro Designer v.9 model simulation.

3. Results and Discussions

3.1. extruding-expelling process.

The cash flow of the extruding-expelling process is shown in Figure 2 . Results show the extruding-expelling process is profitable when the capacity is scaled up to 12.81 million kg of annual soybean oil production. The profitability is observed when interest rate is considered as well.

Cash flow of extruding-expelling process. ( a ) Interest rate is not considered; ( b ) 7% interest rate included. (S.O. indicates the annual soybean oil production).

From Figure 2 , the payback time and break-even point of the investment are also observed. The scale of 12.81 million kg of annual soybean oil production is used for further discussion ( Figure 3 ). The cash outflow before the first three years demonstrates the total capital investment, mainly from DFC. After the third year, the cash inflow indicates that the process starts to earn revenues from products. And, the peak point is the startup time of the plant. The break-even point is found when the net cash flow meets 0. Therefore, the distance between startup time and the break-even point is the payback time of the process. The NPV is the net cash flow of the last year of plant service time.

The profile of cash flow.

From Figure 2 and Figure 3 , longer payback time and lower NPV are observed when the interest rate is considered. The longer payback time and lower NPV are expected when larger interest is applied. Additionally, the larger capacity result in shorter payback time and higher NPV.

Based on the 7% interest rate, the NPVs of these six scales are $−18,319,000, $6,307,000, $38,263,000, $260,420,000, $544,552,000, and $1,597,494,000. Also, the IRR of the capacities larger than 4.1 million kg of annual oil production are larger than 7%, specifically 8.83%, 22.27%, 36.80%, 48.05%, and 93.83% respectively. When interest larger than 10% is considered, the positive NPVs are observed at the capacity of 25.26, 89.67, 167.56, and 398.6 million kg of annual soybean oil product, and the NPVs are $22,740, $192,960, $412,697, and $1,246,947 with interest of 10%, respectively. Conclusively, the capacities larger than 12 million kg of annual oil production are profitable when higher interest is considered.

3.2. Hexane Extraction

According to Figure 4 , the trends of interest rate and capacity effects are similar to the extruding-expelling process. The larger capacity plants, without considering interest rate, result in higher NPV and shorter payback time. For the capacities of 173.22 and 415.73 million kg of annual oil production, positive NPVs are observed when the interest rate was included, and are $83,229,000 and $353,252,000, respectively. Their IRRs are 17.27% and 30.55% with payback times of about 2.5 and 3.5 years, respectively. Therefore, these two scales are profitable.

Cash flow of hexane extraction. (S.O. indicates the annual soybean oil production).

The production scale of 86.61 million kg of annual oil production is estimated as a profitable process, with a positive net profit [ 5 ]. However, when the interest rate is considered, the NPV is $−283,000. It is risky to take this scale into operation. Based on the results of the simulation, the NPV of this scale is close to 0, indicating its IRR is close to 7% at 6.48%.

When the higher interest, 10%, is considered, the positive NPVs are observed at the scales of 173.22 and 415.73 million kg of annual soybean oil productions which are $49,324 and $255,900 respectively. Therefore, capacities larger than 86 million kg of annual soybean oil production are profitable.

According to Figure 5 , although the scale of 8.48 million kg of annual oil production has a positive net profit, negative NPVs are observed from both cases, with and without considering interest rate. This scale is not profitable in real operation.

Cash flow of EAEP. (S.O. indicates the annual soybean oil production).

For the scales of 17 and 51 million kg of annual oil production, positive NPVs are obtained. They are $20,808,000 and $169,114,000 without considering interest rate; and $307,000 and $74,957,000 when the interest rate is considered, respectively. Additionally, these two scales have reasonable payback times of about 3.5 and 12 years.

For IRR, about 11% is achieved for the scale of 51 million kg of oil production. In the scale of 17 million kg of annual oil production, the IRR is about 7% because the NPV is close to 0. Figure 6 illustrates the approaching method for predicting the IRR. When a 7.5% interest rate was applied to the analysis, it resulted in a negative NPV. Therefore, the IRR allocates between 7–7.5%.

IRR prediction for EAEP.

When interest of 10% is considered, the positive NPV can only obtained at the scale of 51 million kg of annual soybean oil production with $52,402. Therefore, the acceptable capacity of EAEP used in the industry needs to be larger than 17 million kg of annual soybean oil production. Additionally, the strategy of coproduct handling is also a critical factor for EAEP in industrial applications.

4. Conclusions

Based on cash flow analysis, the extruding-expelling process is profitable when the scale is over 4.1 million kg of annual oil production. For hexane extraction, the scales of 173.22 and 415.73 million kg of annual soybean oil production are profitable due to positive NPV at 7% and 10% interest rates. Though the positive NP and NPV without considering interest rate are obtained in the scale of 86.61 million kg of annual soybean oil production, the NPV becomes negative when the interest rate is included. This process is not profitable for real operating. As for EAEP, similar trends to those of hexane extraction are observed. The scale of 51 million kg of annual soybean oil production is accepted for industrial operation.

Author Contributions

Both authors wrote and edited the paper. Ming-Hsun Cheng was responsible for conducting the analyses and developed the graphs and tables.

Conflicts of Interest

The authors declare no conflict of interest.

DOWNLOAD SOYBEAN OIL PRODUCTION BUSINESS PLAN

Looking for a comprehensive soybean oil production business plan in Nigeria for your personal use or to seek grants, and loans from investors, CBN, NIRSAL, and other institutions?

Soybean oil production is an important part of the Nigerian economy. The country produces about 30,000 tons of soybeans annually, and it is a major exporter of soybeans to other African countries. Soybeans are grown on over 1 million hectares of land in Nigeria, and they have been increasing in popularity since being introduced by American missionaries in the early 1900s.

The main crops grown in Nigeria are maize and soybeans. Soybean plants are grown primarily for their seeds, which can be used as sources of vegetable oil. Other uses include animal feed and fertilizer.

In recent years, demand for soybeans has increased due to rising populations in cities and rural areas alike. However, this increase has resulted in increased competition among farmers who want to sell their products at reasonable prices so that they can earn profits from their work.

READ – HOW TO START A SOYBEAN OIL PRODUCTION VENTURE

BUSINESS PLAN SAMPLE FOR SOYBEAN OIL PROCESSING PLANT

1.0. Executive Summary

Refined soybean oil will be sold to domestic and industrial customers by the renowned Bronsey Soybean Oil Production Company, which will have its headquarters in Ibadan. Our facility is easily accessible from and to our location, which is prominent. Along with selling refined soybean oil, we also want to provide consulting and training services, provide high-protein fiber to manufacturers of animal feed, and sell refined soybean oil.

Our soybean oil business was founded with the intention of competing with other well-established soybean oil manufacturers in the market in addition to generating a profit. Our goal is to become well-known throughout Oyo state, not only in Ibadan.

To guarantee that our business expands to an enviable quality, we have put plans, structures, and strategies in place. We have engaged the greatest experts in the industry with a wealth of expertise to assist in managing our soybean oil manufacturing firm since we are aware that this can be accomplished if we invest in human resources.

2.0. Our Products and Services

At Bronsey Soybean Oil Production Company, we plan to provide a range of goods and services, but our major offerings will be refined soybean oil for household use and crude soybean oil for industrial usage.

Nonetheless, we are conscious that having numerous revenue streams would enhance our company’s bottom line and guarantee that we stay in operation for a very long time while also developing and expanding at our own pace. Consequently, our goal is to maximize our financial gain in accordance with Nigerian law.

Several of our offerings are listed below;

• advisory services
• fiber high in protein for livestock feed
• services for franchise training
• soybean oil for use in industry
• Soybean oil that has been refined for home use

3.0. Our Mission and Vision Statement

• In three years, our vision is that we want to be one of the top soybean oil industries in Nigeria, producing soybean oil that has undergone the finest extraction technique.
• Our mission in attaining our vision is to provide our customers with high-quality soybean oil by utilizing modern refining equipment and hiring the best personnel to meet all of their demands.

4.0. Our Business Structure

Building a soybean oil production firm that will be of a high grade requires having the appropriate corporate structure, which entails making sure that all necessary elements are in place to carry out the company’s mission.

Aside from the financial resources, human resources are regarded as being very important in every business, so it is crucial that we hire not only the best individuals to assist in running the company but also those who will fully comprehend the vision of the organization and ensure that they constantly work toward achieving this vision. We also want to make sure that our staff members receive an alluring benefit package that will encourage them to work harder and more effectively.

Below is the business structure we intend to build for our Bronsey Soybean Oil Production Company:

• Customer Service Executives
• Human resources and Admin Manager
• Maintenance Team
• Managing Directors
• Marketing Executives
• Plant Manager
• Purchasing Manager
• Quality Assurance Manager
• Security Guard
• Truck Driver

5.0. SWOT Analysis

As a serious company, we are aware that although having a great business idea is great, there are a number of obstacles we will probably have when it comes to actually running the business, from keeping and recruiting customers to having the greatest employees to assist operate the organization.

We have thus employed a renowned business consultant in North Carolina to assist us in conducting a thorough evaluation of our suitability to enter the soybean oil-producing sector. The analysis will help us understand how to compete advantageously in the soybean oil producing business with our rivals.

Our strength is that we not only refine soybean oil for home and industrial use, but that we also sell other goods, such high-protein fiber for manufacturers of animal feed, and that we provide additional services that will support our income base. As a result of our varied products and offers, we would be able to serve a broad spectrum of clients.

Our drawback is that there are other companies that produce soybean oil in North Carolina, therefore it may be challenging for us to enter this market because we would be up against established companies who already control a portion of the target market. Nevertheless, we are not discouraged by this since we have measures in place that will enable us to compete with our rivals while making a good impact on our customers.

How To Download The Soybean Feasibility Study Template PDF and Doc

Above is a part of the soybean oil production business plan in Nigeria. In case you need the complete study, follow the procedures to download it.

Pay the sum of N8000 (Eight thousand naira only)  to the account detail below: Bank: GTBank Name: Oyewole Abidemi (I am putting my name and not our company account so you know we are real people and you can trust us) Ac/No: 0238933625 Type: Saving

Thereafter, send us your email address through text message to  +234 701 754 2853 .  The text must contain the title of the soybean oil production business plan   you want and also your email address. Immediately after the confirmation of your payment, we will send the document to your email address where you can easily download it.

Dr. Abi Demi is a skilled technical writer and author with specialties in the martech and fintech space. Featured on Tekedia, Coin Review, Business Insider, Fintechna, Cryptocoin.news, Date 360 and several other sterling online publications, Demi is an astute technical writer that specializes in finance, marketing and technology - with over 500 published pieces across the internet ecosystem. Contact Abi Demi - [email protected]

HOW TO START A SOYBEAN OIL PRODUCTION BUSINESS

Front-end development skills to learn in 2022, you may also like, feasibility study sample for private school, private school business plan sample, feasibility study template for zobo production, business plan sample for zobo production, ict feasibility study sample, download ict business plan sample, download snailery feasibility study sample, download snailery business plan sample business, 8 farming & agriculture business ideas in nigeria, 5 investment apps for saving, growing your money..., leave a comment cancel reply.

Save my name, email, and website in this browser for the next time I comment.

How to Start an Oil Mill Business in India: A Step-by-Step Guide

Offer Turnkey Vegetable Oil Production Business Plan (customized factory layout, process design, equipment manufacturing, onsite project installation and commissioning)

Start Successful Edible Oil Mill Business in India

Here is a brief project report of 5ton/day edible oil mill setup in Manipur, India. This project is a small scale complete oil production including oil pressing and oil refining process, designed and built for processing mustard seeds. If you are about to open cooking oil factory or invest in oilseeds milling project, take this project for reference.

Photo Display: 5TPD Vegetable Seed Oil Mill Plant in Manipur, India

Almost each oil production project plan is customized based on each clients' raw material and other requirements such as production output, investment budget, and factory situation, etc. Feel free to contact us! We will do our best to help you on the success of your edible oil business. (Other Project: 10ton/day Soybean and Groundnut Oil Producing Factory in Africa )

Small Scale Oil Production Unit [HOT Sale]

Mini oil mill or small size oil mill are the BEST choice to  start the oil mill business in India . It requires relatively simple business plan and will also be a successful business plan. Here are advantages of mini or small scale oil mill business.

• Requires relative low investment cost since it only needs small factory areas, relatively simple oil processing equipment, less labors and less consumption of energy.
• Suitable for various oil crops to produce high quality edible vegetable oils, including mustard oil, cottonseed oil, soybean oil, palm kernel oil, peanut oil and more.
• Relatively simple oil processing technology is easy to operate and maintenances.
• Ensure high quality oil for its full complete oil manufacturing process.

If you are really interested in start oil mill business in India, please contact us for complete professional information to fulfill your business plan so as to make it success.

Great Potential of Edible Oil Making Business in India

Based on India's demographic dividend and good economic development, demand for commodities, including cooking oil, looks promising as people's living standards continue to rise. Due to low productivity and low planting profits, India's domestic  vegetable oil production  stagnated. In order to meet the continuous growth of demand, the import volume of vegetable oil in India increased by 45% in the past five years, and the import dependence reached 70%. 

Supply and Demand of Vegetable Oil Production in India

Palm oil is India's main import oil, averaging 9 million tons a year, followed by soybean and sunflower oil. If the consumption of vegetable oil in India increases by 4% in the future, it will increase the consumption of oil by 900,000 to 1 million tons per year. Although the Indian government has raised import tariffs on vegetable oils, oil consumption in India is still to be expected due to the limited growth of oil seed production in the country.

Rapeseed oil / mustard oil , soybean oil , cottonseed oil and peanut oil / groundnut oil account for nearly 85% of the total vegetable oil production in India. Actually, India has unique natural conditions for the growth of various oil crops, including cotton, soybean, soybean, peanut, mustard and more. Therefore, starting an oil mill business is one of the best profitable business ideas for vegetable oil production would be profitable. (Related post:  Small Scale Soybean Oil Plant Project Report >>)

Source: NMOOP

Make Your Own Vegetable Oil Production Business Plan - TOP10 Steps

How to make your tailor-made business plan for establishing oil mill plant in India? Before you start an oil extraction or refinery business you need to work out a good customized business plan. Below you will see a plan for oil milling plant that could become your draft to use with some minor necessary changes. (Read more about Mustard Oil Business >> )

• Analyze the Market 

Study the demand for edible oils in various parts of India, as it greatly depends on population and income in this or that region. (Latest Article: Edible Oil Processing Plant )

• Create Business Project Report 

Preparing the project report will be of great help if you want to get finance from banks and other financial institutions ( One Belt One Road Policy Loan ). Such a project report should include technical analysis and financial aspects. Creating the technical part, think about the plant capacity, manufacturing technologies and raw materials you will use and the entire organization of the production process. Present your business objective clearly. Working on the financial aspects, including the fixed cost, your working capital, the expected sales revenue and ROI. 

• Arrange the Finance 

It’s great if you can start the business with your own funds. But if it’s not the case, you’ll need to get funds from the banks or the local venture capital firms. 

• Choose the Location 

Location for your oil mill plant is also important for your success of the oil mill business. Turn to experts for consultation as it is not wise to invest in a business in the wrong place. Oil mills don’t need much space. An average unit will need about 1000 sq meters, half of which could be used as a production area, and the other half can be used for packaging, storing and office work. If you have a factory land that is enough for establish your oil mil plant, which would be great. But, if not, it is also a good idea to start your business in a rented place in some industrial zone.

• Decide Oil Production Process 

There are many oil production technology available today to maximize the oil out for various oil seeds. If the oilseeds with high oil content, mechanical pressing will allow you to extract about 85% of the oil. To extract the most of it, use solvent extraction method for oil cake residual. Consult your machinery manufacturing or supplying company to understand how to build the extraction process correctly, they often will offer you complete oil production process that fits your demands mostly.

• Get Oil Mill Processing Machinery

Machinery is the main requirement in this business. There are lots of companies in the world that supply oil extraction machinery . Make your own research, read the reviews and choose the most reliable one. Contact their specialists to learn what types of machines you will need and how to use them.

• Install the Machinery and Establish Your Oil Mill Plant

When all the required oil processing machinery is purchased, it is time to install them and complete the oil mill plant. Usually, the oil mill machinery supplier will be in charge of the installation and commissioning of the equipment, but the electricity, water and other utilities should be prepared by you.

• Find Raw Materials

Make sure you find the regular source of the raw materials you are going to choose for your business, as well as the packaging (glass or plastic bottles, poly pouch). 

• Register Your Business 

Business registration is obligatory for this type of business. After you finish your registration, you are allowed to get the trade license, as well as Business PAN Card. At this point, you should open a bank account for the necessary transactions.  

• Hire Workers

Oil production requires workers for working with the machinery as well and distributing the product itself. You will need to hire at least such positions as a production head, an accountant, machine operators, store workers. 

If you dream to build a business in India that can earn long-term revenue, then starting oil mill plant is the best choice for you. It has a reduced entry, requires low investment cost, easy to operate and has large profits.

• Oilseeds Pretreatment
• Oil Extraction Plant
• Oil Refinery Plant
• Low Temperature Extraction
• Oil Filling Machines

• 100 TPD Fully Automatic Sunflower Oil Factory Setup in Kazakhstan
• Soybean Oil Extraction Plant Project Report and Business Plan
• 20TPD Coconut Oil Refining Factory in the Philippines
• 5TPD Small Scale Plant of Soyabean Oil Refinery in Ghana
• Small Scale Soybean Oil Mill Plant Exported to Ghana