Cost-Benefit Analysis: Small Soybean Oil Processing Plant Setup in Africa

Soybean Producers & Soybean Oil Processing in Africa

Egypt, Uganda and Zimbabwe are among the top 40 producers of soybeans worldwide. Other African countries that feature in this list of the top 40 are Zambia, Nigeria, and South Africa. It is worth noting that South Africa produces more than a million tons of soybeans annually. People use soybeans for multiple purposes, such as animal feed, soya flour, soy milk, tofu and more. Among all the uses, soybean oil takes a very important role for the high demand of soybean oil worldwide. (Read more about Soybean Oil Business Plan >>)

Soybean Oil Processing Cost in Africa

The top producers of soybean oil in Africa are South Africa, Tunisia, Nigeria, Zambia and Morocco. They produce 247000, 124000, 51000, 33000, and 22000 metric tons of soybean oil respectively. Other notable African countries of soybean oil production offer less than 11000 metric tons, such as, Zimbabwe, Ethiopia and more. Interestingly, Tunisia and Morocco do not feature among the top 40 soybean producers worldwide. However, they feature among the top 40 soybean oil producers. Egypt and Uganda do not feature among the top 50 soybean oil producers globally yet they are top soybean producers in Africa. (Latest Post: Sunflower Oil Making Machine Cost in Tanzania >>)

Cost of Setting up Small Soybean Oil Processing Mill in Africa

Soybean oil processing industry in Africa is relatively backward for many factors that enable smaller producers of soybeans to outdo bigger ones. One of them is the cost of purchasing soybean oil processing machinery. The equipment of soybean oil processing includes components for pre-treatment, oil extraction, and oil refinery. Another factor is finding experts to oversee soybean oil manufacturing process. For example, how many Africans have experience in using de-hulling technology adopted in the soybean oil pre-treatment process?

30TPD Small Soybean Oil Production Line

30TPD Screw Soybean Oil Mill Plant

Compared large scale soybean oil mill plant, the small scale soybean oil processing mill requires less investment cost and is more easy to operate. It is the BEST choice for the small scale soybean producers in countries in Africa. The main cost of setting up a small scale oil mill plant to process soybean oil covers many different aspects.

• Cost of Sourcing Soybeans

Soybean is the raw materials to produce soybean oil. Since most of the countries produce soybeans, it is relatively to get soybeans for soybean oil making.

• Cost of Oil Processing Equipment

The cost of the soybean oil extraction machine is determined by the type of the machines and the quality among many other factors. Certainly, the machines and equipment of high quality and high efficiency would cost high. But it is worth every penny since the maintenance cost is less and the oil yield is high. (Related Product: Soybean Oil Press Machine>>)

• Cost of Factory Land and Labor

The cost of factory land and labor force depends on various factors, especially the local market. But, since the most countries in Africa is in developing, there are a large amount of labor force ready for work, the cost for labor will not cost much. As for the factory land, the small size of all the equipment will not take up much of space. Therefore, the land cost is also low compared to other aspects.

3~5tpd Small Soybean Oil Prcoessing Flow Chart

Soybeans→ Cleaning→ Roasting→Pressing→ Filtering →Clean Oil

For a small scale soybean oil processing mill, with the capacity from 3tpd to 30tpd, usually include soybean pretreatment equipment, soybean oil making machine, soybean oil filter machine and soybean oil refining machine. The soybean oil processing equipment may cost between $7,000 ~ $ 50,000. However, this price is just for references. For the exact soybean oil processing setup cost, it is decided by many aspects. Any questions, please contact us for professional answers! 

Potential for Soybean Oil Production in Africa

Soybean oil production is an underdeveloped industry in Africa. Currently, soybean is the most widely used vegetable oil in the world (Read more about: Vegetable Oil Pressing Line>> ) But, Africans have not realized its benefits. For example, people use it for baking and frying. Others use it as a table for salads. Soybean oil has other applications as well aside from its use in the preparation of food. For example, it can act as a fixative in insect repellents. Using it in oil-paint formulations is also possible as it using it to create printing ink. Most notably, African countries can use it as biodiesel.

Soybean Oil Processing Potential in Africa

In conclusion, the potential for a robust soybean oil processing industry in Africa exists. However, the financial capital, technical expertise, and market to sustain this industry are wanting.

• The first step in improving the fortunes of soybean oil production in Africa is educating people about the benefits of this oil. Stimulating demand for edible soybean oil would encourage investors to invest its production.
• At the same time, it still need continue to import advanced technology and machines to support soybean oil processing and lower cost of setting up soybean oil mill plant for commercial purpose!