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How to start a peanut oil processing plant?

QIE
2025-07-29
Tutorial Guide
The global peanut oil market is projected to reach $530 million by 2024 (Statista). Investments in overseas processing plants start at $120,000, with a focus on West Africa (raw materials) and Europe and the United States (consumer). FDA/EFSA standards must be met (aflatoxin ≤ 4 ppb), and BRCGS/ISO22000 certification is recommended. B2B channels account for over 60% of sales (ITC data).

With growing awareness of healthy eating, peanut oil is gaining popularity among consumers due to its rich nutritional value and unique flavor. For entrepreneurs planning to enter the edible oil processing industry, starting a peanut oil processing plant is a good option. Here's a detailed guide to help you understand how to start a peanut oil processing plant.

Market research and planning

Market demand analysis:

1. Research the market demand for peanut oil and understand consumer preferences and consumption trends.

2. Analyze competitors, including their products, prices, sales channels, etc., to determine your own market positioning.

Factory site selection and layout

1. Geographical location: close to the main peanut producing area, reducing the cost of raw material transportation.

2. Workshop planning: Divide the areas according to the process flow, such as raw material pretreatment area, pressing area, refining area, and filling area to ensure reasonable movement lines and avoid cross contamination.

Funding budget:

1. List expenses such as equipment purchase, factory rental or purchase, raw material procurement, employee salaries, and operating costs.

2. Reserve a portion of funds for emergency or later upgrade use.

Equipment selection

Core device configuration

The choice of peanut oil processing equipment directly affects production efficiency and oil quality. The following are recommended configurations for processing plants of different sizes:

Production scale

Daily processing capacity

Core equipment

Small workshop

1-10 tons

Screw peanut oil press + steam cooker + filter

medium-sized factories

10-50 tons

Fully automatic peanut oil production line (including refining equipment)

Large factories

50 tons or more

Pre-pressing and solvent extraction production line + continuous refining line

Key points for equipment selection

1. Pressing method: suitable for small and medium-sized enterprises, retains the natural flavor of peanuts, but the oil yield is low (about 50%-60%).

2. Solvent extraction method: suitable for large factories, with an oil yield of over 95%, but requires a supporting solvent recovery system.

3. Refining equipment: Select batch or continuous refining lines according to oil product standards to ensure compliance with national standards.

Equipment Purchase

1. Choose manufacturers with quality assurance and technical support, such as QIE Group.

2. Consider factors such as the equipment's degree of automation, energy consumption, and maintenance costs.

3. Customize equipment configuration according to production needs to ensure the best cost-effectiveness.

Production process

Cleaning : Remove impurities in peanuts, such as soil, stems and leaves, to improve oil yield and oil quality.

Shelling: Use a peanut shelling machine to remove the peanut shells to reduce the absorption of oil by the shells.

Roasting seeds: Roasting peanuts can reduce the moisture content, stimulate the natural flavor and provide the best raw materials for oil extraction.

Pressing/Extraction: Depending on the type of equipment selected, peanut oil is extracted by pressing or extraction.

Filtration and refining: Filter and refine the extracted crude oil to remove impurities and improve the quality of the oil.

Bottling: The refined peanut oil is bottled, labeled, and prepared for sale.

IV. Personnel Recruitment and Training

Recruitment:

Recruit a sufficient number of workers and technicians according to the production scale.

Select experienced and responsible personnel to ensure production quality and safety.

Staff training:

Provide pre-job training for new employees, including knowledge on equipment operation, safe production, quality control, etc.

Regularly organize skills training and assessment to improve employees' professional skills and quality.

Quality Control and Safety Management

Quality Control:

1. Establish a complete quality management system and conduct strict inspections on raw materials, production processes and finished products.

2. Use advanced testing equipment and instruments to ensure that oil quality meets national standards and customer needs.

Safety Management:

1. Formulate production safety rules and regulations and operating procedures to ensure safety during the production process.

2. Regularly maintain and service the equipment to eliminate potential safety hazards in a timely manner.

3. Organize safety education and training for employees to improve their safety awareness and emergency response capabilities.

Marketing and sales strategies

Brand building:

1. Register your own trademark and brand to establish brand image and visibility.

2. Promote the brand by participating in exhibitions, advertising, etc. to attract potential customers.

Sales channels:

1. Develop online and offline sales channels, such as supermarkets, grain and oil stores, e-commerce platforms, etc.

2. Cooperate with dealers and agents to expand sales network and market coverage.

Customer Service:

1. Provide high-quality after-sales service and promptly resolve problems encountered by customers during use.

2. Regularly visit customers to understand their needs and feedback, and continuously improve products and services.

Opening a peanut oil processing plant requires both technical and financial investment, balancing product quality, cost control, and market positioning. We hope this guide provides you with practical guidance and assistance. For customized equipment solutions or industry reports, please contact QIE Group.

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