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Veg oil

  1. Product Description: Pressing the seeds and then extracting the oil with steam or water obtain vegetable oil. The high protein residue that remains after oil extraction /oil cake or oil seed cake/ is a valuable feed stuff for livestock. Then the refined oil is used for cooking food. Vegetable oil is preferred to animal fat and used in most cooking.


  1. Rationale: The diversified agro-climate conditions of the country favor the cultivation of highly diversified varieties of oil seeds, Oil seeds grown in large quantities in different parts of the country include sesame, Niger seed, groundnut, rapeseed, sunflower, and castor beans. Vegetable oil is used in most food cooking. Even those kinds of food eaten without cooking, such as salad, need vegetable oil particularly made for this purpose. Vegetable oils are rich in monounsaturated or polyunsaturated fatty acids, and are more desirable than saturated animal fats such as butter. For this and other reasons, vegetable oils are preferred to animal fats, and demanded in all food cooking, by households, hotels and restaurants. Although there are many oil producing (oil milling) plants in the country, there are only a few factories, such as the Mojo Oil Milling Factory and Bahir Dar Oil milling Factory, which are known for quality vegetable oil.


Many of the oil seeds mentioned above are grown in most pats of the Amhara Region. In spite of the increasing demand for oil by various users or consumers, there is only a limited supply of oil in the Region. Hence, given the availability of raw material, and given the potential demand for oil, there is an inviting condition for investors to establish a Vegetable Oil Milling Plant in the Region.


  1. Market Potential: Vegetable oil is preferred to fat oils by many people, hotels and restaurants and individuals. People with blood pressure, diabetes, and other problems need vegetable oil produced free from cholesterol. Therefore, there will be sufficient market for the product in the Region and in other parts of the country.


  1. Sources of Raw Materials: Primary raw materials for the production of vegetable oils are ground nuts, sesame seed, cotton seed, oil plant, peanuts, sunflower, rape seed, safflower, corn, coconut etc. many of these oil seed plants are gown in various pats of the Amhara Region.


  1. Production Process and technology: Pressing the oil seeds and then extracting the oil with steam or water obtain vegetable oil. The high protein residue remains after oil extraction. During the first pressing of the oil seed, that party of the lower grades of the oil come from subsequent pressing of the oil seed and usually is refined to remove the bitter flavor in the oil that is extracted after the first pressing.


  1.  Estimated Investment Cost: The setting of the plant will require a minimum area of 1,000 m2, the cost of which will be about Birr 400,000. The cost of machinery and plant will be about Birr 1,000,000. Hence, the estimated total investment cost will be about Birr 1,400,000.


  1. Benefits: It will create employment opportunity for the people in the Region. There will be earnings for the investors in the form of profit. It will generate revenue for the Regional State in the form of income tax and VAT. The residue that remains after oil extraction is used for animal feed.


  1. Location: Gondar, Dessie, Debre Markos