Equipment Cost by Capacity and Configuration
Quick answer: A complete edible oil processing plant costs $5,000–$15,000 (1–5 TPD mini mill) to $600,000+ (100+ TPD industrial refinery) for equipment FOB China. Add 35–55% for total delivered and commissioned cost including shipping, duties, civil works, and working capital.
The table below shows equipment FOB (Free On Board Qingdao/Shanghai) prices by capacity and configuration. These prices do not include shipping, duties, civil works, or installation.
| Capacity | Configuration | Equipment FOB | With Refinery | Full Turnkey |
|---|---|---|---|---|
| 1–5 TPD | Press + filter | $5,000–$15,000 | $10,000–$25,000 | $15,000–$35,000 |
| 5–10 TPD | Press + filter | $15,000–$28,000 | $22,000–$40,000 | $30,000–$55,000 |
| 10–20 TPD | Press + filter | $25,000–$45,000 | $38,000–$68,000 | $50,000–$90,000 |
| 20–30 TPD | Press + filter | $38,000–$65,000 | $55,000–$95,000 | $70,000–$120,000 |
| 30–50 TPD | Press + filter | $60,000–$100,000 | $88,000–$150,000 | $110,000–$185,000 |
| 50–100 TPD | Press + refinery | $140,000–$280,000 | included | $175,000–$350,000 |
| 100+ TPD | Continuous | $280,000–$600,000 | included | $350,000–$750,000 |
FOB = Free On Board Qingdao/Shanghai. Does not include shipping, duties, civil works, or installation.
Shipping & Import Duties
Shipping is a significant and variable cost — particularly for smaller plant capacities where equipment fits in fewer containers. Use the table below for rough budgeting, then get specific quotes from a freight forwarder once you know your exact cargo dimensions and weight.
| Destination | 1×20ft Container | 1×40ft HC | Transit Time |
|---|---|---|---|
| West Africa (Lagos, Abidjan) | $2,200–$3,500 | $3,500–$5,500 | 25–35 days |
| East Africa (Mombasa, Dar) | $2,000–$3,200 | $3,200–$5,000 | 20–28 days |
| South Asia (Mumbai, Chittagong) | $1,500–$2,500 | $2,500–$4,000 | 15–22 days |
| Middle East (Jeddah, Dubai) | $1,800–$2,800 | $2,800–$4,200 | 18–25 days |
| South America (Santos, Cartagena) | $3,500–$5,500 | $5,500–$8,500 | 28–40 days |
Import Duties
Import duties vary widely by country. Industrial food processing machinery typically falls under HS Code 8479.20 (machines for extracting or preparing animal or fixed vegetable fats or oils). Typical duty rates:
- Nigeria: 5% + 7.5% CISS levy + 7.5% VAT (check current schedule — subject to periodic review)
- Ghana: 0–5% for most industrial machinery (check EAC Schedule)
- Kenya: 0–10% depending on EAC tariff schedule
- India: 7.5–15% BCD + applicable GST
- Egypt: 5–10%
- UAE: 5% GCC common external tariff
Important: Always verify current duty rates with a licensed customs agent in your country before finalizing your budget. Tariff schedules change, and special exemptions for agro-processing equipment exist in many countries. A customs agent typically charges $300–$600 for clearance but can save multiples of that in correctly identifying the duty category.
Civil Works & Site Preparation
This is the most consistently underestimated cost in oil mill investment plans. Site preparation typically runs 15–25% of equipment cost, and can exceed 30% if the site requires significant work.
| Civil Works Item | Typical Cost Range | Notes |
|---|---|---|
| Concrete foundation | $2,000–$8,000 | Depends on soil conditions and equipment weight |
| Electrical main supply upgrade | $1,500–$5,000 | If existing supply insufficient for three-phase requirement |
| Building modifications | $1,000–$4,000 | Doors, drainage channels, ventilation |
| Water supply connection | $500–$2,000 | For refinery cooling and steam generation |
| Site leveling and drainage | $500–$3,000 | Oil-resistant floor coating recommended |
| Generator / power backup | $3,000–$8,000 | Essential in unstable-grid locations (much of Africa, South Asia) |
Real data point: A 30 TPD soybean plant client in Kano, Nigeria (2024) spent $17,800 on civil works versus $65,000 on equipment — that's 27% of equipment cost, significantly higher than their initial 15% estimate. The main unplanned cost: upgrading from a single-phase to three-phase supply, plus foundation work for an unexpectedly shallow soil layer. Site survey before equipment order prevents this.
Annual Operating Costs
Operating costs determine your long-term profitability. Use this reference table for a 30 TPD peanut plant running 300 days/year at full capacity:
| Cost Item | Calculation Basis | Annual Cost (USD) |
|---|---|---|
| Electricity | 45 kW × 16h × 300 days × $0.08/kWh | ~$17,000 |
| Press screws (alloy steel) | 2 replacements/year per press, 4 presses | $1,600–$2,400 |
| Filter cloths + misc. wear parts | Quarterly cloth changes + cage bars | $800–$1,200 |
| Gearbox oil, lubricants | Per manufacturer schedule | $250–$400 |
| Steam generator maintenance + fuel | Annual service + daily fuel cost | $3,000–$6,000 |
| Labour (4 operators at local rate) | Varies significantly by country | $6,000–$20,000 |
| Total operating cost | $29,000–$47,000/year | |
| Per-tonne processing cost | 30 TPD × 300 days = 9,000 tonnes/year | ~$5–$8/tonne seed |
Video: a turnkey oil milling plant (third-party).
Complete Investment Examples
Three real-scale worked examples using actual project data. Figures include all costs to first commercial production.
Expected economics: Monthly gross revenue ~$18,000 (6 tonnes refined peanut oil at $3,000/tonne). Monthly operating cost ~$6,500. Monthly net margin: ~$11,500. Estimated payback: ~4.5 months.
Expected economics: Monthly net margin ~$15,000–$20,000 (oil + soy meal). Estimated payback: ~6–8 months at current Nigerian market prices.
Expected economics: Monthly net margin ~$45,000–$65,000. Estimated payback: ~9–11 months.
ROI Analysis Framework
Use this framework to model the economics for your specific situation. The key variables are local raw material price and local refined oil selling price — get real quotes for these before committing to any investment.
Simple ROI Formula:
Monthly gross margin = (Daily oil output kg × oil price per kg) − (Daily seed cost + daily operating cost)
Payback period = Total investment ÷ Monthly net margin
Key Variables to Model
- Local seed price (per tonne): Get quotes from 3+ local suppliers. Check seasonal variation — seed prices can vary 20–40% between harvest season and lean season.
- Local refined oil selling price: Survey 5+ local wholesale buyers. What does refined peanut/soybean/sunflower oil fetch per litre at wholesale in your market?
- Operating hours per day: 8h/day (single shift), 16h/day (double shift — most common), 24h/day (continuous, large plants only).
- Plant utilization rate: Typically 75–85% in the first year, improving to 85–95% by year 2–3 as maintenance routines are established and raw material sourcing is optimized.
Rule of thumb: At current African and Asian market prices, a well-run 20–30 TPD plant with good local raw material supply typically achieves an 18–30 month payback period. The outliers: plants in thin markets (5 TPD, niche seeds) take 36–48 months. Plants with exceptional raw material price spreads (e.g., large peanut crushers in northern Nigeria during peak season) can achieve 6–9 month payback.