With the population increasing, the demand for cooking oil is also increasing. So building an edible oil mill plant is profitable. This post will start from scratch to explain how modern oil mills are established. It includes selecting a location, choosing raw material, designing oil mill layout, choosing the right machine, installing and testing the machine, training personnel and starting production and packing and marketing.
Step 1: Choose the Right Location
- Proximity of raw material sources: we should give preference to choose the main production areas of oilseed, such as soybean, canola, and peanut. This could reduce transportation costs and ensure the freshness of raw materials.
- Transportation convenience: we should choose areas that are close to main roads, railways, or ports so that raw material input and transportation of finished oil are convenient. This could target the radiation market.
- Energy and facility support: We should stabilize the electric supply and water. If we use the traditional physical pressing process, we also need to ensure the supply of boiler fuel.
- Market demand matching: we should choose locations that are close to densely populated areas or areas where food processing enterprises are concentrated, such as catering concentration areas, edible oil processing industrial zones, and shorten the distribution radius.
- Policy and Environmental Compliance: choosing an area that allows oil processing and confirms pollution exhaust criteria.Labor and cost: area with an abundant labor force and low labor costs, while also considering the accessibility of skilled workers
Step 2: Select Suitable Raw Materials
If you want to purchase raw material that is suitable for oil extraction. First, you should know which ingredients are suitable for oil extraction. Generally, common ingredients for oil extraction include peanuts, rapeseed, rape, flaxseed, and sesame. Different raw materials should choose different oil extraction equipment. This needs to choose the appropriate raw materials according to equipment requirements.

| Vegetable Oil Type | Market Size (USD billions) |
| Soybean Oil | 27.4 (2020) to 38.5 (2027) |
| Palm Oil | 30.3 (2020) to 39.3 (2027) |
| Sunflower Oil | 15.5 (2020) to 21.1 (2027) |
| Rapeseed/Canola Oil | 28.8 (2020) to 38.6 (2027) |
| Groundnut Oil | 6.8 (2020) to 9.6 (2027) |
| Castor Oil | 1.8 (2020) to 3.0 (2027) |
| Others | 95.2 (2020) to 130.7 (2027) |
As shown in the table, the market demand for palm oil is the largest. The next are rapeseed oil and soybean oil. If the target is mass market, large production volume, and extensive exports, one could choose palm oil plant or soybean oil plant. They have sufficient raw material supplies, mature processing techniques, and highly versatile equipment. If the target is the high-end healthy cooking oil market, one could choose sunflower oil mill or rapeseed oil mill. The customers of this target market prefer products that are healthy and low in saturated fat. If you pay attention to flavorful oils or regional specialty markets, you could choose peanut oil mill. Their consumer base is solid in parts of Asia and Africa. They are suitable for small to medium oil mills. If the target is non-food oil or diversified development, one could choose castor oil mil. But they need different refining and extraction equipment.
Step 3: Design the Oil Mill Layout

Meet edible oil production process requirements
The design of a modern oil mill should take into consideration the character of edible oil production, including the production process of edible oil, raw material, transportation tools, and the method of final product.
Suitable choose plant structure
In addition, you should choose right structural system according to production process requirements, materials and construction conditions.
Ensure good running environment
A standard edible oil mill should equip with good lighting, ventilation and greening conditions, etc. in addition, we also should efficiently control various indicators such as noise, temperature and humidit.
AGICO has extensive experience in the design of edible oil mill plants ranging from small to large scales. It is benefit of 20 years industry experience and various turnkey solution. If you don’t know how to layout the modern oil mill plant, please contact us immediately. We will design it for you based on your site and your requirements.
Step 4: Choose the Right Machinery






- Pre-treatment: first, you should clean the oilseed. You will use cleaning screens and magnetic separators to remove various impurities from the raw materials, such as sand, leaves, stones, liquids, and metals.
- Separate the oil components: secondly, you could use an oil pressing machine to separate oil from oilseed. In the oil pressing machine, the oilseed will be heated, and oil will be squeezed out through the oil press.
- Extraction: The extraction device will extract oil from the pre-pressed layer of the material. This can be done either by a cold pressing method or a hot pressing method.
- Refining: The extracted oil needs to be refined. The refining process includes steps such as degumming and desalination to get pure oil.。
- Filling: After the oil product has been tested and confirmed to be qualified, it will be filled into bottles using a filling machine and stored in a warehouse that meets the sales requirements.
Due to the different oilseed varieties that need to be treated, the oil mill equipment that needs to be selected will also be different. Generally, a complete oil mill plant is made up of cleaning equipment, a cooker, an oil press machine, an oil filter press, an edible oil refinery machine, and more.
Step 5: Install and Test the Machinery
- Infrastructure construction: pour the foundation according to the drawings to ensure the ground is level and stable, capable of bearing the weight of the equipment.
- Equipment positioning: place the main unit steadily and adjust the foot pads to ensure the machine is level, avoiding any running vibrations.
- Connection of pipes to circuits: connect the inlet and outlet pipes, cooling water pipes , and electrical circuits according to the instructions, and check the firmness of the connection points.
- Debugging and calibration: before officially commencing production, you should carry out a comprehensive trial operation. When the trial operation is underway, you should monitor key parameters such as temperature, pressure, oil production, and energy consumption etc. If necessary, the device settings should be adjusted to achieve the best performance.
Before fully commencing production, you must provide appropriate training for operators and technicians.
Step 6: Train Your Staff and Start Production
Safety training
Work standards: emphasize the correct operation procedures of the equipment and the proper use of protective gear to avoid mechanical injuries or chemical leaks.
Operation skills
- Equipment maintenance: learn daily inspection and simple troubleshooting of faults of the oil press machine and filtration systems.
- Process Flow: master the key operation points throughout the entire process, from raw material selection, pressing, to filling.
Quality control
- Indicator testing: training on the detection methods of key parameters such as moisture content and impurity content.
- Standard implementation: ensure that the product complies with international standards.
Through a professional talent team and advanced equipment, your modern oil mill could achieve continuous, safe, and high-quality production.
Step 7: Packaging and Marketing
According to your target market, choosing suitable packing material, such as PET bottles, bags, cans, or bulk barrels, is essential. Clearly mark the brand name, production date, and nutritional information on each package to comply with regulatory requirements. Automatic filing and sealing equipment could increase packing efficiency and reduce pollution risk. Appropriate packaging not only helps to maintain the freshness and flavor of the oil but also enhances your brand image in the market.
Start Your Modern Oil Mill


In conclusion, the time required from preparation to operation is approximately 3 to 4 months. Setting up an oil mill needs balancing strategic vision with meticulous operation. The process from site selection to packaging and sales forms a complete closed loop. By investing in advanced, energy-saving, and automatic edible oil processing equipment, you could get production of edible oil and stable quality.
If you wish to start a modern oil mill from scratch, you can contact AGICO GROUP. We could offer a turnkey project, fully responsible for the establishment of a modern oil mill.