Setup Small Oil Mill Plant, how to do Cost Estimation?

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Start Your Own Edible Oils Business: Invest in Oil Mill Plant

One of the most basic commodities in the world is oil. This substance comes in different types and thus sourced from different substances. For human being livings, the edible oils are essential for our body. Edible oils is usually extracted from from plants and animals. Oils extracted from the plant seeds or fruits are known as vegetable oils. Vegetable oil from plants is specifically extracted through mechnical oil pressing or solvent extraction process. In screw oil pressing process, the oil-bearing materials undergo pressing with precision to get the needed oil. With the demand for food grade oil steadily showing significant increase over the years, there are more and more people ventured in this business both large-scale and small-scale. (Read more about how to start mini soya oil mill plant >>)

Project Reports of Our Successful Small Edible Oil Mill Plant

The followings are some of small edible oil mill plant we built for our clients. If you are planning to open your own edible oil manufacturing factory and are working on making your edibe oil business plan, you can take these projects for references. 

Small oil mill plant cost in India
5ton/day Mustard Oil Plant Setup in India
small edible oil mill plant cost
10ton/day Sunflower Seed Oil Processing Plant in Uganda, Africa

We can offer turnkey oil milling project plan for both small oil extraction workshop and industrial scale oil production factory. All our plan is customized based on your specific situation, investment budget and other requirements. Refferring to the cost to start a small scale edible oil plant, many factors should be took into consideration. Here is a reference for you: the setting up cost of a 5 ton/day oil factory is around $7500. Don't hesitate to send us an inquirey to get customized business plan with exact investment cost for FREE!

More of our Edible Oil Production Projects

How to Do Cost Estimation for Setting Up Small Oil Mill Plant?

For small scale business type, the basic concept of small oil mill should be kept in consideration to fully be able to maximize the investment. For a small oil mill plant, there are elements to consider in determining the total cost of running a business like this. (Recommend Post: Start Edible Oil Production Business in Pakistan )

  • Plant Area Cost for Edible Oil Milling Equipment

For any business, ample space is necessary to hold the equipment and host the manpower necessary for the operation. For this one, it does not require a large work space and a space of 6 square meters can suffice. The space should not be too big to save on overhead cost.

  • Cost for Purchasing Oil Mill Machinery

In the process of extracting oil from plants or vegetable oilseeds, oil mill machinery is required. They are not as huge as in any other manufacturing industries, but the equipment are specific for every step of the process:


  1. Cooking Machine: Cooker are necessary machine in heating the seeds to a certain temperature. Heating for the seeds, such as rapeseed, flower seed, can ensure the maximum oil yield. Some of the cookers are designed to supply the power by steam from the recycled dry waste. For convenience, there are also electric boilers as alternative.
  2. Oil Press: Screw oil press is widely adopted by most small oil mill plant to serve as the key oil extraction equipment. Nowadays, oil press has been greatly improved in the automaticity and performance. It squeezes oil out from the raw materials by mechanical pressure to ensure no additives in the crude oil. (Related product: Commercial Oil Extraction Machine )
  3. Oil Filters: When oil pressed or expelled from seeds & nuts, the oil that comes out needs to go through cooking oil refining process. This is what the filters are for. For bigger industries, edible oil refinery plant do this process, but for small-scale one, oil filter press can be enough. Additional costs can come from other substances that can further improve the quality of the oil. These substances can be from different suppliers. One example is alkaline solution that can lessen the saturation of the oils prior to packing. Unsaturated oils do not go rancid for long periods of time compared to those with high levels of saturation.
  • Manpower Cost for Running the Oil Mill Plant

The last consideration for costing for a small oil mill plant is labor cost. Not a lot of people is required to run a business like this. Two people who can carry out the procedures and two who can manage the administrative duties are enough to keep the small business running. Of course, investing on highly-trained quality assurance personnel will also be beneficial to ensure that the customer satisfaction is guaranteed. Like a lot of small-scale businesses, the key to maintaining this type of business is sustainability. This goes for raw materials, equipment and manpower. If the business is anchored on practical principles and social responsibility, the cost of running the business would not be too high. (Read more about how to set up sesame oil factory >>)

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