A small-scale palm oil mill is typically designed to process a modest amount of fresh fruit bunches (FFB) daily. These mills serve local markets and are ideal for entrepreneurs who want to start a business with manageable overhead costs. The capacity of a small-scale mill can vary, but most small-scale mills process between 1 to 5 tons of FFB per day.
Fresh Palm Fruit Harvesting: Oil palm plants are used to gather bunches of palm fruit.
Sterilization: The fruit bunches are steamed to soften them and facilitate oil extraction.
Threshing: The fruit is separated from the bunches using a threshing machine.
Pressing: The oil is extracted by mechanical or hydraulic pressing methods.
Clarification and Filtration: To get rid of contaminants, the crude oil is clarified and filtered.
Storage: The final product is stored in tanks until it is packaged and sold.
The size and scale of the palm oil mill will have a considerable impact on the entire cost. Small-scale mills typically process between 2 and 10 tons of fresh fruit bunches per day. The larger the mill, the more equipment, labor, and infrastructure are required. Smaller mills will have lower initial setup costs, but they may not be as efficient or profitable as larger mills that process higher quantities of palm fruit.
Setting up a palm oil mill requires land for the mill itself and possibly a place to store raw materials and finished products. The location of the mill is crucial because it affects transportation costs, access to raw materials, and proximity to markets. Generally speaking, rural locations have cheaper land prices than metropolitan ones.
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