Steps to Start Edible Oil Manufacturing Business

If you’ve been thinking about starting your own edible oil manufacturing business, I know exactly what’s going through your mind—Is it profitable? Where do I start? What’s the process? I’ve been in this industry for over two decades, and I’ve seen people turn a simple idea into a thriving global business. But I’ve also seen great ideas fail because they skipped the fundamentals.

To start an edible oil manufacturing business, you need to understand the market, create a solid plan, choose the right location, secure funding, select quality equipment, hire skilled staff, and establish strong packaging and marketing strategies. These steps form the foundation for a profitable and sustainable business in this competitive industry.

In this guide, I’ll walk you through the exact steps that experienced manufacturers like us follow when building a new plant from the ground up. I’ll also share practical tips that can save you costly mistakes and help you get to market faster.

How to Start an Edible Oil Manufacturing Business

1. Learn About the Business
Before you invest a single dollar, understand the edible oil industry inside out. Study global and local market demand, industry trends, raw material availability, and your competition. This knowledge will help you make informed decisions and avoid unnecessary risks.

Key considerations:

● Market demand for different types of edible oils.
● Raw material sources and seasonal variations.
● Regulatory and quality compliance requirements.

2. Craft a Business Plan
Your business plan is your roadmap—it should outline every critical detail, from plant location to machinery selection and ROI projections.

To get investors or bank loans, your plan must include:
Capital requirements and sources of funding.
Projected production capacity.
Target market and sales strategy.
Operational cost estimates.

Example: If your raw materials are mainly soybeans, choose a location near soybean farms to reduce transport costs and improve profitability.

3. Select Raw Materials
Choosing the right raw materials determines both your product quality and your profitability. Decide whether you’ll purchase seeds from suppliers or cultivate your own.

Common raw materials include:
Soybean
Sunflower
Rapeseed/Canola
Peanut (Groundnut)
Cottonseed
Palm

Pro Tip: Secure contracts with multiple suppliers to avoid production downtime during shortages.

4. Choose a Suitable Plant Location
Your location should be close to both raw material sources and your target market. This minimizes logistics costs and keeps your products fresher. Consider access to utilities like electricity, steam, water, and roads.

5. Arrange Funding
● Set a clear budget that covers:
● Land and construction.
● Machinery and installation.
● Raw material procurement.
● Initial operating costs.

Funding options include bank loans, government grants, and private investors. Presenting a solid business plan increases your chances of securing financing.

6. Choose Turnkey Plant Provider
This is where Myande Group’s 20+ years of expertise comes in. Selecting high-quality, automated, and energy-efficient machinery and engineering solution will:

● Increase output.
● Reduce operating costs.
● Ensure consistent quality.

Typical machinery includes:
Oilseed preparation (Vertical Seed Conditioner, Oilseed Cracker, Oilseed Flaker, Horizontal Rotary Cooker, Oil Press).
Solvent extraction (Extractor, D.T.D.C).
Oil refining (Degumming, Neutralizing, Bleaching, Deodorizing, Dewaxing).
Packaging machine.

7. Hire Employees
Your team will determine the efficiency and safety of your plant operations. Hire skilled operators, maintenance staff, and quality control experts. Provide ongoing training to keep them updated with industry standards.

8. Focus on Packaging and Marketing
Your packaging should keep oil fresh and appealing while meeting regulatory requirements. Combine this with a strong marketing plan to build your brand. Digital channels like FAO – Food and Agriculture Organization Edible Oil Outlook can help you track market trends for better positioning.

What is the Process of Making Edible Oil?

1. Seed Cleaning and Preparation
First, raw oilseeds are cleaned to remove impurities such as dust, stones, and plant debris. Depending on the seed type, they may be dehulled or cracked into smaller pieces to improve oil extraction efficiency.

The edible oil production process includes cleaning and preparing seeds, extracting oil via pressing or solvent methods, refining to remove impurities, and packaging for distribution.

2. Oil Extraction
There are two main extraction methods:

Mechanical Pressing: Using screw presses to physically extract oil from seeds.
Solvent Extraction: Using solvents (commonly hexane) to dissolve and extract remaining oil from press cake.

3. Oil Filtration and Clarification
The crude oil is filtered to remove solid particles, then allowed to settle to separate moisture and impurities.

4. Refining
Refining involves:

● Degumming: Removing phospholipids.
● Neutralization: Removing free fatty acids.
● Bleaching: Removing pigments.
● Deodorization: Removing odor and flavor compounds.
● Additional Processing (optional): Process such as winterization or dewaxing to remove waxes depending on oil type and quality requirements.

5. Packaging
The refined oil is packed into bottles, tins, or bulk containers depending on the target market.

What are the Most Popular Edible Oils?

Global Consumption Leaders
According to the USDA Oilseeds: World Markets and Trade Report: 

Health and Culinary Uses
Palm oil dominates due to its versatility in cooking and industrial use. Soybean oil is widely used for frying and processed foods. Canola oil is favored for its low saturated fat. Sunflower oil’s light flavor makes it popular for salads and light cooking. Olive oil, though less consumed globally, is valued for its flavor and health benefits in Mediterranean diets.

Final Thoughts

Starting an edible oil manufacturing business is a serious commitment—but if you follow the right steps, it can also be incredibly rewarding. The key is to combine solid planning with the right technology and operational discipline.

At Myande Group, we’ve helped build over 800 edible oil plants in more than 80 countries. We know what works, and we’re here to guide you through every step—from initial concept to full-scale production.

If you’re ready to take the next step, make sure you research your market, invest in quality equipment, and never compromise on product quality. In this industry, reputation is everything, and a solid foundation will ensure your business thrives for decades to come.