Project Profile of Soybean Oil and Meal Production Unit in Bangladesh
Soybean oil and meal production is one of the most promising agro-industrial ventures in Bangladesh. Because the demand for edible oil and animal feed ingredients is rising every year, entrepreneurs are showing growing interest in this sector. A well-planned soybean oil and meal production unit not only serves local consumption but also opens export opportunities to neighboring countries.
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1. Introduction
Bangladesh imports most of its edible oil and soybean meal from countries like Argentina, Brazil, and India. Every year, the nation imports over 2 million tons of soybean oil and 1.5 million tons of soybean meal. Establishing local soybean oil and meal production plants can significantly reduce import dependency, strengthen food security, and generate employment for thousands.
Therefore, setting up a Soybean Oil and Meal Production Unit is a lucrative investment opportunity for agro-industrial entrepreneurs.
2. Objectives of the Project
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To produce high-quality refined soybean oil for the domestic market.
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To produce de-oiled soybean meal for poultry and livestock feed industries.
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To reduce import dependency on edible oil and protein feed ingredients.
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To create employment and contribute to national GDP growth.
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To utilize agricultural by-products efficiently and ensure sustainable value addition.
3. Raw Materials and Utilities
The main raw material is soybean seed. Other minor inputs include caustic soda, bleaching earth, packaging materials, and utilities like electricity, water, and steam.
| Item | Unit | Requirement (per year) | Source |
|---|---|---|---|
| Soybean Seed | Metric Ton | 60,000 | Local Farmers / Import |
| Caustic Soda | Kg | 20,000 | Local Suppliers |
| Bleaching Earth | Kg | 30,000 | Local Market |
| Packaging Material | Unit | 500,000 | Local Printing & Packaging Firms |
| Electricity | kWh | 800,000 | Rural Electrification Board |
| Water | Litre | 2,000,000 | Deep Tube Well |
4. Production Process Flow
The soybean oil extraction process follows a standard industrial method. Below is the simplified flow chart:
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Soybean Cleaning and Dehulling →
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Crushing and Flaking →
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Solvent Extraction (Hexane) →
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Desolventizing and Toasting →
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Crude Oil Filtration →
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Neutralization and Degumming →
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Bleaching →
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Deodorization →
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Refined Soybean Oil
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Soybean Meal for Feed Industry
This dual output—refined oil and soybean meal—makes the business doubly profitable.
5. Estimated Project Cost (in BDT)
The total project cost depends on capacity, technology, and location. Below is an estimated cost breakdown for a medium-scale plant with 50 tons/day capacity.
| Cost Component | Amount (BDT) |
|---|---|
| Land & Land Development | 25,000,000 |
| Factory Building & Civil Works | 30,000,000 |
| Machinery & Equipment | 90,000,000 |
| Erection & Installation | 10,000,000 |
| Utility Connection (Electric, Water, Gas) | 7,000,000 |
| Furniture & Office Equipment | 3,000,000 |
| Vehicles & Transport | 5,000,000 |
| Pre-Operational Expenses | 5,000,000 |
| Working Capital (6 months) | 25,000,000 |
| Total Estimated Project Cost | 200,000,000 BDT |
6. Production Capacity and Output
| Product | Annual Output (MT) | Utilization (%) | Market Price (BDT/MT) | Total Value (BDT) |
|---|---|---|---|---|
| Refined Soybean Oil | 12,000 | 90% | 160,000 | 1,920,000,000 |
| Soybean Meal | 42,000 | 90% | 60,000 | 2,520,000,000 |
| Total Sales Value | 4,440,000,000 BDT |
7. Manpower Requirement
| Designation | No. of Persons | Monthly Salary (BDT) | Annual Cost (BDT) |
|---|---|---|---|
| General Manager | 1 | 120,000 | 1,440,000 |
| Production Engineer | 2 | 70,000 | 1,680,000 |
| Quality Control Officer | 1 | 60,000 | 720,000 |
| Mechanical Technician | 2 | 40,000 | 960,000 |
| Electrician | 1 | 35,000 | 420,000 |
| Machine Operators | 6 | 25,000 | 1,800,000 |
| Helpers & Laborers | 10 | 18,000 | 2,160,000 |
| Administrative Staff | 3 | 25,000 | 900,000 |
| Security Guards | 2 | 15,000 | 360,000 |
| Total Annual Salary Cost | 10,440,000 BDT |
8. Financial Analysis
A. Fixed Cost
| Item | Annual Cost (BDT) |
|---|---|
| Depreciation (10%) | 15,000,000 |
| Insurance | 1,000,000 |
| Administrative Salaries | 2,000,000 |
| Factory Maintenance | 2,500,000 |
| Total Fixed Cost | 20,500,000 |
B. Variable Cost (Annual)
| Item | Amount (BDT) |
|---|---|
| Raw Materials | 1,800,000,000 |
| Power & Fuel | 8,000,000 |
| Packaging | 12,000,000 |
| Transportation & Marketing | 10,000,000 |
| Direct Labor | 8,000,000 |
| Total Variable Cost | 1,838,000,000 |
C. Income Statement (Annual Projection)
| Description | Amount (BDT) |
|---|---|
| Total Sales | 4,440,000,000 |
| Less: Total Variable Cost | 1,838,000,000 |
| Gross Profit | 2,602,000,000 |
| Less: Fixed Cost | 20,500,000 |
| Net Profit Before Tax | 2,581,500,000 |
This high-profit margin shows that the soybean oil and meal sector has enormous potential when managed efficiently.
9. Market Opportunity
Bangladesh consumes over 2.5 million tons of edible oil annually. The per capita oil consumption is rising fast, especially in urban areas. Major players like City Group, Meghna, and TK Group dominate the market, yet the growing demand leaves room for new entrants.
Besides, soybean meal is a key ingredient in poultry and fish feed. The country’s poultry feed demand exceeds 6 million tons annually, ensuring a huge and stable local market for soybean meal.
Furthermore, government policies are favorable to agro-industries, with tax benefits and soft loans for import-substitute manufacturing projects.
10. Machinery and Equipment List
| Equipment Name | Capacity | Origin | Approx. Price (BDT) |
|---|---|---|---|
| Soybean Cleaning Machine | 5 T/H | China | 3,000,000 |
| Flaking Mill | 5 T/H | China | 4,500,000 |
| Solvent Extraction Unit | 50 T/D | India | 30,000,000 |
| Desolventizer & Toaster | 50 T/D | India | 8,000,000 |
| Oil Refinery Unit | 10 T/D | China | 12,000,000 |
| Neutralizer & Bleacher | 10 T/D | China | 5,000,000 |
| Deodorizer | 10 T/D | China | 5,000,000 |
| Filter Press & Pumps | - | Local | 3,000,000 |
| Packaging Machine | 2 T/H | China | 4,000,000 |
| Boiler and Generator | 1 Unit | Local | 5,000,000 |
| Total Machinery Cost | 79,500,000 BDT |
11. Implementation Schedule
| Activity | Duration (Months) | Remarks |
|---|---|---|
| Project Feasibility Study | 1 | Completed before financing |
| Land & Building Construction | 4 | Parallel to machinery order |
| Machinery Procurement | 3 | From China & India |
| Installation & Commissioning | 2 | With supplier engineers |
| Trial Production | 1 | Initial testing |
| Commercial Operation | - | After 12 months total period |
12. SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| High domestic demand for edible oil and soybean meal | High initial investment cost |
| Dual product output (oil & meal) | Dependence on imported soybeans |
| Government support for agro-industry | Technical expertise required |
| Opportunities | Threats |
|---|---|
| Growing poultry and feed industry | Global price fluctuation |
| Export opportunity to South Asia | Rising logistics and transport cost |
| Import substitution advantage | Power supply instability |
13. Environmental Consideration
Modern soybean processing plants use solvent recovery systems to minimize pollution. Waste soybean husk can be used for biomass fuel, while wastewater can be treated through effluent treatment plants (ETP). Following DOE (Department of Environment) standards ensures environmental compliance.
14. Financial Feasibility at a Glance
| Parameter | Value |
|---|---|
| Total Investment | 200 Million BDT |
| Annual Sales Revenue | 4.44 Billion BDT |
| Annual Gross Profit | 2.60 Billion BDT |
| Payback Period | 3 – 4 Years |
| Internal Rate of Return (IRR) | 28% |
| Break-Even Point | 48% of Capacity |
The figures clearly show that a soybean oil and meal production unit is highly profitable when properly managed with modern technology and efficient operation.
15. Risk Mitigation Strategies
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Secure long-term contracts with soybean suppliers to avoid price volatility.
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Diversify product lines (e.g., soybean cake, animal feed supplement).
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Install backup generators to counteract power failure.
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Regular maintenance and skilled operation to ensure smooth production.
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Maintain product quality to compete with branded oils in the retail market.
16. Marketing Strategy
A strong marketing approach includes:
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Wholesale and retail distribution across all divisions.
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Collaboration with feed mills for bulk soybean meal sales.
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Partnership with supermarkets and online grocery platforms.
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Attractive branding and packaging emphasizing purity and quality.
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Participation in food and agro exhibitions to build brand trust.
17. Conclusion
Bangladesh’s edible oil and livestock feed industries are expanding rapidly. Establishing a Soybean Oil and Meal Production Unit is a sound investment with long-term sustainability. It meets national demand, creates jobs, and ensures industrial growth through import substitution.
Because the market is vast and still growing, now is the best time to invest in this project.
18. Call to Action
If you want to set up a Soybean Oil and Meal Production Unit or any other industrial project in Bangladesh or abroad —
we can help you prepare a bankable project profile for bank loan, investor proposal, or industrial setup approval.
📞 Mobile: 01716752370
🌐 Website: rayhans.com.bd
We specialize in preparing bankable project profiles trusted by entrepreneurs, investors, and financial institutions across Bangladesh.
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