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8 Steps To Start a Small Edible Oil Manufacturing Business

Vegetable edible oil refers to oil obtained from oilseeds and nuts through a extraction process. Since the improvement of people’s living standards, therefore consumption of edible oils is also increasing. Therefore, the extraction of vegetable oil is a profitable venture that in most cases rewards manufactures with profitable returns.

Vegetable oil is extracted from various oil seeds such as such as mustard, coconut, soybean, peanut, rapeseed, cottonseed, sesame, etc through a pressing process. People use cooking oils for various purposes, including cooking, and the production of plastic and soap. In fact, the waste products of cooking oil production are now used to fuel the diesel engine.

edible oil manufacturing plant

So if you want to start a small business, cooking oil production business may be the best option to consider.

The following are the steps you need to set up a edible oil manufacturing business:

Step 1. Learn more about the business

Learn more about the business is the first step starting a oil mill company. Study the requirements of cooking oil manufacturing business in terms of technology, capital, market and competition. Visit websites such as to gain knowledge on the economic scope and statistics of the industry in your area. Study the operation of established industries to be aware of their functioning.

Create a strategy, including proposed location, target market, capital start up, operating costs and other finances. Get the necessary funding for your business. Before choosing a place for your edible oil processing plant, you have to consider the market, the availability of raw materials and the mode of transport. A good location will be very close to the targeted market and raw material sources, which will reduce the supply and transportation costs.

Step 2. Craft your business plant

Before starting on a new business, having a business plan likes to have a compass before going on a trip. This gives you insights on everything you will need to establish and run a business successfully.

Step 3. Select your source of raw materials

You have two options to obtain the raw materials needed for the vegetable oil extraction. You can buy oil seeds from the supplier or have your own farm for the cultivation of oil seeds such as soyabean seeds, peanuts, walnuts, rapeseed, sesame, cast, etc.

Step 4. Find a good location

The location of your business is another very important factor that can make your business more successful. It’s the best to find the location which is close to your source of raw materials. For example, if you will be going into mustard oil production, you should locate your extraction plant nearby mustard oil plantation. This will reduce transportation costs, which could be crippled many times.

Step 5. Get the funds

If you need money for buying material, products and other sources, then start approaching. If your business plant presents your business as a very promising and lucrative one, you will easily attract investors or get loans from banks or other lending institutions.

Step 6. Choose suitable manufacturer and machines

Goyum cooking oil processing line is composed of all necessary machines for oil extraction with solid and durable structures, fine properties and good compatibility. The plant is depicted as safe, reasonable cost, excellent quality, high level automation, continuous operation and advanced technology.

Step 7. Hire employees

By using different media, you have to advertise vacancies for employees in the oil extraction process, and you have to choose the best staff to work with.

Step 8. Plan the package, advertise and distribution

The oil is collected in storage tank and then it is tested, if it’s found clean and has passed all the specifications, then the oil is taken to the packing stage for packing and distribution. When the oil seeds are processed the waste is collected which is known as pressed cakes. Oil Cakes normally have little oil in them and they are used to make animal feeds through a process called distillation.

Goyum Screw Press is engaged in designing and manufacturing of oil mill machinery such as oil expeller / screw oil press machines, seed cleaner, filter press, boilers, flaker, hammer mill, copra dryer, nut crackers, and many more. Many foreign friends have established long-term cooperative relationship with us.

Need guidance to start an vegetable oil manufacturing business? Please contact us, our engineers will give you professional guidance and suggestion.