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How to start a Palm wine Production
Business in Nigeria
Palm wine is the tasty beverage drink derived from the sap of
palm trees. It is white and could give off a sweet and sour
taste after fermentation. Palm wine can be consumed both at home
and outside, or even on special events. It is often combined
with barbecue, or stewed meat, locally called ‘asun’ in Western
Nigeria. Whereas most people prefer to have their palm wine
unmixed, some others mix it with beer.
What Is Palm Wine Production?
Palm wine production describes the process of tapping,
processing and packaging palm wine for sale. In most parts of
Nigeria, the local palm wine tappers deliver their products to
the retailers, typically palm wine joints and local bars.
Palm wine is one of the very few alcoholic beverage drinks with
very high nutritional benefits. The fact that it is tapped from
nature, and can be consumed without industrial processing
endears it to many people in several parts of the world.
The natural drink is derived from the sap of different species
of palm trees including the Raffia palm, date palm and Palmyra.
It is known by different names in different parts of the world.
In India, it is known as toddy; among the Igbos and Yorubas in
Nigeria, it is called ‘nkwu’ and ’emu’ respectively or more
commonly as ‘pami’. In Cameroon, it is called tumbu liquor or
matango, and so on. Palm wine holds lots of significance in many
African cultures. Although new technologies are made to extend
the shelf life of palm wine to make it exportable, palm wine is
still rather consumed locally in nations where they are
produced.
No particular place can be credited as the origin of palm wine,
but it is produced in countries rich in oil palm trees including
Sri Lanka, India, Southern America, the Philippines, Malaysia,
and more pronounced in African countries such as Nigeria,
Angola, DR Congo, Ghana, Sierra Leone and Cameroon.
Nigeria remains one of the largest producers and consumers of
palm wine globally. Over 2 million metric tons of palm wine are
locally produced and consumed each year. Despite the fact that
it doesn’t get the government’s attention, palm wine remains on
high demand in Nigeria. It is the preferred drink in local
traditional events, including weddings and funerals. In addition
to special occasions, every passing night, palm wine lovers gulp
down the beverage drink in local bars and palm wine joints both
in towns and villages. The drink, which contains only 4%
alcohol, is consumed both by men and women, but in various
quantities, and continues to grow in demand.
Palm wine production business could be a highly lucrative
endeavour if given the required attention and it is a fertile
business venture for an interested businessperson. If you’re
looking to start a palm wine production business in Nigeria or
Africa at large, here is a detailed step-by-step guide to help
you through.
Business Opportunities In Palm Wine Production Business In
Nigeria And Around The World
1). Beverage Drinks Production:
Palm wine contains 4% of alcohol, which is more than the 1.2%
content needed to approve a beverage as having health benefits.
Notwithstanding, it has been argued that palm wine has lots of
health benefits to it. Also, palm wine is processed into vintage
drinks sold globally. This leaves an opportunity window for
beverage-producing companies to exploit. Although palm wine in
itself has quick perishability, it can be further fermented and
processed into bottled wine and drinks that last longer.
2). Sales And Distribution:
Selling and distributing palm wine in its original form is
another business opportunity to capitalize on. Local palm wine
tappers often have limited access to consumers. This is where
distributors and retailers come in. Most palm wine business
owners simply retail it to their customers at their bars and
joints in towns just by being the intermediaries between the
tappers and the consumers. After buying large volumes (in
gallons) from the tappers, they store, preserve and retail the
palm wine in smaller units.
1). Get A Business Site:
To start a lucrative palm wine business, you need to set up a
site where you can sell. The choice of location depends on
whether you just want to package and distribute or you want to
sell directly to consumers in bits. If you plan to own a place
of your own, perhaps a wine parlour or a joint, ensure it is at
the centre of activities where people can quickly locate you.
Otherwise, you may reach an agreement with a hotel or general
relaxation centre to sell on their premises.
2). Network With Palm Wine Tappers:
This is a way of saying you don’t necessarily have to be the
tapper. Even if you can, you would need more hands to boost your
production. Otherwise, you should network with expert tappers
who can ferment and retain the excellent taste of the palm wine.
3). Add Extra Supplements:
If you own a joint or wine parlour of your own, it is necessary
to add something extra to the palm wine. Bear in mind that
people come to drink palm wine to relax. They also like to
combine the wine with edibles such as barbecue or pepper soup or
tasty cowhides (kponmo). To help your customers relax properly,
you could set up a sound system on the background.
The demand for bottled palm wine cuts across social, economic
and religious strata. The demand for bottled palm wine is
estimated at 29.2 million litres per annum. The current level of
supply is about twenty percent (20%) of the demand estimate.
The equipment required for production are Stainless Steel
Pasteurizer, Stainless Steel Mixer, Stainless Steel Holding
Tank, Refractometer, pH Meter, Corking Machine, Weighing Scale,
Semi-automatic Filling Machine with Stainless Steel Conveyor,
Project Vehicle, Generator and Wood Pallets.
The installed capacity of the proposed factory is two thousand
(2,000) litres per day of single shift of eight (8) hours each
working at ninety percent (90%) of the installed capacity for
three hundred (300) working day producing about sixty-two
thousand, two hundred and fifty (62,250) cartons of twelve (12)
bottles of sixty (60) cl bottle of palm wine bi-monthly.
If you do not intend to run a wine parlour, you could as well
brand and package your palm wine and distribute to retailers and
directly to consumers using marketers and salespersons.
The palm wine market in Nigeria continues to grow as more
nutritional benefits are discovered. More so, the sweet taste of
palm wine advertises itself, and keeps people coming back for
it. All you have to do is invest in the right quality of palm
wine as well as a good business site, and you’re bound to make
your profits every day!
Get our Practical Training Guide on How to start a Palm wine Production Business in Nigeria. The installed capacity of the proposed factory is two thousand (2,000) litres per day of single shift of eight (8) hours each working at ninety percent (90%) of the installed capacity for three hundred (300) working day producing about sixty-two thousand, two hundred and fifty (62,250) cartons of twelve (12) bottles of sixty (60) cl bottle of palm wine bi-monthly. This report seeks to examine the financial viability or otherwise of preserving and bottling palm wine in Nigeria.
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