zoliansanga
New Member
Hi,
How do Soybean oil manufacturers get their profit?
Raw Soybean seed is Rs.38/Kg (approx) and 1 litre of Soybean oil cost Rs.90(Approx market price) per litre.*
The problem comes from this, you can squeeze out only 14% of oil from the seed.*
So, if you take a rough calculation, take the seed price as Rs.40(round up)/Kg, then the cost per Kg. comes as 4000/14=285.714.*
To extract 1Kg. of oil we need to squeeze around 7 to 8 Kg of the soybean seed, which is a loss in the layman prespective.
There must be some mechanism to get the profit out of this.
I want to set up Soybean oil extraction industry, but this is a question which I could not understand.
Thanks,
Zova
How do Soybean oil manufacturers get their profit?
Raw Soybean seed is Rs.38/Kg (approx) and 1 litre of Soybean oil cost Rs.90(Approx market price) per litre.*
The problem comes from this, you can squeeze out only 14% of oil from the seed.*
So, if you take a rough calculation, take the seed price as Rs.40(round up)/Kg, then the cost per Kg. comes as 4000/14=285.714.*
To extract 1Kg. of oil we need to squeeze around 7 to 8 Kg of the soybean seed, which is a loss in the layman prespective.
There must be some mechanism to get the profit out of this.
I want to set up Soybean oil extraction industry, but this is a question which I could not understand.
Thanks,
Zova