1. Palm oil processing plant is a capital-intensive industry

2. Management-intensive industry

3. It is quite difficult to get the best location and the required facilities.

4. Your palm oil processing plant is likely to be located in a remote area, close to the source of supply (plantation farm). So you should be able to expect some difficulties in transporting the palm fruit from the farm to the factory. You may also encounter the same problem when transporting processed palm oil, that is, the problem from plan to market.

5. Because the factory is located far away, it is very likely that there will be no power supply. So you have to provide power yourself by using generators, which will inevitably increase your operating costs.

6. In stable operation, you need a continuous supply of raw materials (palm fruit), which is actually a big challenge, especially during the period of palm fruit scarcity. A good way to solve this problem is to have your own plantation farm or better yet, to increase storage. This will enable you to sell palm oil to customers continuously during the period of palm fruit shortage.

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