What Do You Need To Set Up a Soybean Oil Factory?

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Soybean Oil Factory
Soybean Oil Factory

The purpose of setting up a soybean oil factory is to extract oil from Soybeans. Soya oil, or soybean oil, is a vegetable oil that is extracted from the soybean. This oil is used in cooking as well as in inks, and paints. In addition, the oil is high in healthy fats so it is good for those who want to eat healthily. Therefore, once a soybean oil plant is established, the production business of soybean oil will obtain high profits.

By setting up your own factory, you can control the whole soybean oil making process. For example, first, you can make your own business plan. Second, you can negotiate and establish a relationship with the buyers. Third, you can start small with cheap small-scale equipment and expand the scale when you start to grow.

ABC machinery is a large grain and oil machinery sales and manufacturing company integrating design, manufacturing and installation. We have an experienced technical service team to provide customers with engineering services such as process design, plant layout and technical consultation of new or expansion projects.

If you don't know how to start when setting up your own soybean oil plant? Click the link below to consult us!

how to start your own production line with best business plan

What Do You Need To Set Up a Soybean Oil Factory?

Some of the things that you need to consider are:
1. Raw material supply – Where will be sourcing your soybeans from? How will you transport the soybeans to your factory?

Answer: Sourcing your soybeans from the following countries would be the best:

Region Annual Output
China 12.2 million metric tons
Argentina  53.4 million metric tons
Brazil 86.8 million metric tons

These countries produce quite a lot of soybeans and the cost is quite affordable. Depending on where you are in the world, you may choose a country that is closer to reduce transportation costs. As for transportation, these costs will vary based on weight.

Market of Raw Material of Soybean Oil
Market of Raw Material of Soybean Oil

2. Financial support – How much money will you require to set up your soya bean oil factory? Will you put your own money into the factory or will you obtain a loan?

Answer: Costs vary between $21,000 and $115,000 to establish a soybean oil factory. If you are setting up a small factory the cost will be cheaper as you will require smaller equipment. There are pros and cons of putting your own money into your factory. If you have sufficient funds to put into a venture, then you can invest. If, however you require a loan you should look around to find a suitable bank or lending institution. Do not forget that you can also approach an investor who may want to partner with you.

The beauty with investors is that you have the flexibility of borrowing more money as the business grows and, sales figures increase. Banks and lending institutions are a lot more stringent with their lending criteria.

3. Workshop including equipment – What type of workshop/factory is required? Is it small or large? What type of equipment will you require to get started?

Answer: You may want to establish a small soya oil factory to begin with and then grow it. Or, you may want to establish a larger business from the outset. The choice is yours and is based upon how much money you have. The type of equipment you will require for your factory will include:

  • Heat Conduction Oil Furnace: 1 set (Produce enough heat for the refining sections, temperature≥280℃)
  • Steam Generator: 1 set (Produce steam for the deodorization process)
  • Refining Pot: 2sets (Remove the gum, phosphoric acid etc.)
  • Decolorizing Pot: 1set (Made of stainless steel, be used to remove the color from neutralized oil)
  • Deodorizing Pot: 1 set (Remove the solvent, smell, water from decolorized oil)
  • Other Auxiliary Equipment: Hot water Tank, Bleaching earth Tank, Air compressor, pumps, filters, Valves, Electricity Control Cabinet, etc.

Make Turnkey Project Soybean Oil Mill Plant
Make Turnkey Project Soybean Oil Mill Plant

Safety, reliability and energy saving are the principles of our production equipment. If you are interested in understanding the details of our oil production equipment and free quotation, please feel free to contact us!

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4. Soybean oil distribution channels – Who will be your customers? How will you distribute your product to your customers? Who will assist you in the distribution process?

Answer: World soybean oil demand has grown between 5-6% per year over the last 15 years. This means there is a demand for soybean oil. Europe is a popular region for importing Soybean. You may be able to distribute your product through ship or airfreight.

Shipping is probably the better option for large bulk orders. You will need to examine the need for transport companies, agents who may be able to negotiate with importers over price, customs and other authorities in your country who will help you with the shipping process.

 Video of Soybean Oil Production Line


Setting up a Soybean Oil Factory is not an easy task. Once established however, there is an opportunity to grow your business to be highly profitable. As you are in control of your own operations, market prices, production and customers you will have greater flexibility and, be able to develop and establish a reputation for producing a quality product.
You can contact our sales staff through our website, online customer service, e-mail, telephone ,and various channels. Whether you send e-mail, online consultation, or telephone contact, our sales staff will contact you within 24 hours to answer any of your questions and questions.

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