How To Start Sunflower Oil Manufacturing Business

Sunflower oil is an important edible cooking oil worldwide. Find here a detailed sunflower oil manufacturing business plan checklist for your ready reference.

Basically, sunflower seeds contain 32 to 40% oil. Therefore, it is one of the best oilseeds for edible oil processing globally.

Sunflower oil is light in taste and appearance and supplies more Vitamin E than any other vegetable oil. Basically, it is a combination of monounsaturated and polyunsaturated fats with low saturated fat levels. The versatility of this healthy oil is recognized by cooks internationally.

Currently, Ukraine, Russia, Argentina and China are the major sunflower producing countries globally. If you live in a sunflower growing area, then you can consider starting this business.

Sunflower oil manufacturing is a medium to large scale industry. And definitely, it demands substantial capital investment. Initiating a manufacturing unit is a lucrative opportunity for the entrepreneurs.

Sunflower Oil Market Potential

Domestic demand for sunflower oil has increased in recent years as processors have built refineries and large buyers have committed to future purchases. Food processors use the oil for frying foods (including potato chips) and in salad and cooking oil, margarine, and dairy substitutes.

Sunflower oil is preferred in many high-quality dining establishments for its neutral taste. A small supply of oil is used in industrial frying applications where high temperatures require good oxidation stability. A small amount of oil is also used in cosmetics, resins, and lubricants.

Sunflower oil is valued for its light taste, frying performance and health benefits. Additionally, it meets the needs of consumer and food manufacturers alike for a healthy and high-performance non-transgenic vegetable oil. Apart from cooking oil, it has adequate demand in the cosmetics industry as well.

Sunflower Oil Manufacturing Business Plan Checklist

In starting the business, you must have a business plan in your hand. Basically, it helps to launch the business properly. Additionally, it helps to secure funding from the bank or other financial institution. You can craft the business plan of your own or you can craft the plan with the help of business plan software.

Generally, a business plan includes executive summary, business objective, mission, vision, financial plan and marketing plan. Additionally, it includes expansion plan also.

Registration & Licensing

Business registration is must in this business. It is advisable not to start the business as the proprietorship. Because the business demands capital investment and thoughtful contribution from the founders. Choose the form of business carefully and register the business according to your local federal law.

After registration, you have to concentrate on securing several licenses and permission. Sunflower oil is a food item and the manufacturing demands to license. However, it depends on your state law. Additionally, check the upcoming tax and compliance liabilities of this business.

Unit Setup

The manufacturing activity demands a space. For a medium scale operation, you will need to secure a 5000 Sq Ft space for operation. Additionally, you have to arrange utilities like electricity and water. talk to the machinery supplier to identify the electrical load requirement. Generally, it is better to have space in an industrial zone. So that, you can get the available facilities for setting up an industry.

Sunflower Oil Manufacturing Plant Cost

Broadly, this type of business demands two basic type of investment. One is fixed capital investment. It includes plant, machinery and other initial costs related to the business. The another is working capital etc. Basically, it includes raw material cost, utility bills, staffing, marketing expenses etc.

If you are looking for the funding only for machinery purchase, then you can go for hire purchase leasing. And for a working capital loan, you can avail cash credit facility from banks.

Machinery

Actually, sunflower oil manufacturing plant is an integrated oil processing, refining and packaging solution. Basically, the cost of the machinery depends on the desired production output.

Raw Material

The major raw material is sunflower seeds. Apart from this, you have to arrange the packaging consumables for your unit.

Also Read: Top 12 Home Based Agricultural Manufacturing Business Ideas

Sunflower Oil Manufacturing Process

The sunflower oil manufacturing process is a complicated oil making process. The detailed manufacturing process includes several steps. The sunflower seed is the fruit of the sunflower which usually contains approximately 40 – 50% oil by weight. Producers should press oil not only from the seeds but the entire head of the sunflower in order to extract the highest oil yield. After the extraction section of

First of all, you have to press oil not only from the seeds but the entire head of the sunflower in order to extract the highest oil yield. After the extraction section of the sunflower oil manufacturing process, you have to send the extracted oil for further refining and filtering. Modern oil extraction techniques create a byproduct called pressed sunflower seed cake or meal. Basically, it is high in protein and you can utilise it for livestock feed.

Sunflower oil comes under the FMCG product segment. Like any other edible oil, sunflower oil manufacturing business demands an adequate emphasis on marketing and distribution. Additionally, you must consider brand building.

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