# 2. Oil Yield & Extraction Efficiency

Key Considerations:

Oil yield per ton of Moringa seeds

Market price analysis and feasibility of R60,000 per ton

Extraction efficiency and processing costs

Buyer preferences: raw seeds vs. extracted oil

Scalability risks, price fluctuations, and competition

# Oil Yield & Extraction Methods

Moringa seeds contain 35–40% oil by weight. The actual extraction yield depends on the method used:

Cold-Pressed Yield:
- Recovers 65–70% of the oil in the seeds.
- Produces 250–280 kg of oil per ton (~25–28% yield by weight).
- Requires 3.5–4 kg of seeds per liter of oil.
Solvent Extraction Yield:
- Extracts up to 35–40% of seed weight.
- Produces 350–400 kg of oil per ton (~35–40% yield).
- Requires 2.5–3 kg of seeds per liter of oil.

✅ Conclusion: Cold pressing is lower-yield but preferred for food & cosmetics. Solvent extraction maximizes output but requires industrial processing.

# Market Price & Feasibility of R60,000 per Ton

Seed Pricing:
- R60,000/ton (R60/kg) is on the high end of global farmgate prices.
- International prices range from $2 to $25 per kg.
- Bulk suppliers quote prices as low as $650 per ton (~R10,000).
Oil Pricing:
- Wholesale Moringa oil prices range from $25 to $60+ per kg.
- European cosmetic-grade oil: €63 per kg (~R1,200/kg).
- U.S. bulk importers: $30 per kg (~R550/kg).
- South African retail price: R450–R500 per liter.

🔎 Feasibility: If one ton of seeds (~250 kg cold-pressed oil) costs R60k, the break-even oil cost is ~R240/kg. High-end pricing is needed to sustain profitability.

# Processing Costs & Profitability

Estimated costs per liter of oil:

Raw seed cost: R240
Processing costs: R50–R150
Total cost: R290–R390 per liter
Selling price required for profit: R500+ per liter

# Value Addition vs. Selling Seeds

Approach	Revenue (per ton)	Profit Potential
Sell Seeds	R60,000	Limited Profit
Extract Oil	R450,000+ (if R1800/kg oil price)	Higher Profit

💡 Conclusion: Oil extraction significantly increases value but requires secure premium buyers.

# Buyer Demand & Market Trends

Preferred Product: Buyers prefer extracted oil over raw seeds.
Key Buyers: Cosmetics industry, health supplement producers.
Market Growth: Global demand is rising, but oversupply risks exist.
Scalability Risks: Competition from India, Kenya, Ghana, and other producers.

📊 A successful business requires differentiation through organic certification, branding, or specialized processing techniques.

# Scalability & Investment Risks

Agricultural Risks: Supply bottlenecks due to limited seed availability.
Processing Challenges: Scaling up requires significant investment.
Market Risks: Price volatility and increased competition.
Quality & Regulatory Compliance: Buyers demand consistent quality & certifications.

⚠️ Mitigation Strategy: Secure forward contracts, conduct pilot tests, and ensure production consistency before scaling.

# Final Viability Assessment

Factor	Feasibility
Market Demand	✅ Strong but competitive
Raw Material Cost	⚠️ High (R60,000/ton is optimistic)
Processing Costs	✅ Manageable with efficiency
Profit Potential	✅ High if premium market secured
Scalability	⚠️ Requires careful risk management

# Recommendations:

✅ Validate R60,000/ton price with traders.
✅ Conduct a pilot extraction for cost/yield analysis.
✅ Target premium buyers and secure purchase commitments.
✅ Explore value-added products (cosmetics, supplements).

🔥 Moringa oil is a lucrative opportunity, but success depends on securing high-value markets and optimizing extraction efficiency.