Post by Ismail AbdulAzeez on Dec 10, 2017 22:34:25 GMT 1
Oil palm production is a money spinner, honey pot and goldmine rolled into one.
Nigeria used to be a pet exporter even though we then relied on oil palm wild grooves and not on the hybrid one which now produces higher yield.
Malaysia which in the 1960’s came to collect oil palm seedlings from Nigeria together with Indonesia has become net importer of palm oil production so much, so that while Nigeria has become net importer of palm oil, they have become net exporter.
Indonesia is the world’s largest producer with 20.9 million tonnes followed by Malaysia with 18.79 million tonnes of crude palm oil on roughly 5,000,000 hectares of cultivated oil palm plantation.
Benefits Of Oil Palm Cultivation
Palm oil refining and production has in the recent times become lucrative business in Nigeria.
Palm tree is one of the most economical plants in the world. Everything in palm tree is a money spinner, from fruit to the palm front. Everything about palm tree brings wealth.
Expert say 24 out of Nigeria’s 36 state have cultivable land for oil palm industry.
The oil palm industry just like its petroleum counterpart has the upstream and downstream sectors where both government and the organized private sector can invest in.
If well-harnessed, the return on investment is as good as that of the oil and gas sector of the petroleum industry.
A country like Australia is said to have been able to come up with high yield breed that is capable of producing 45 metric tonnes per hectare.
Some private companies that have invested in the oil palm sector are being quoted on their countries` stock exchange.
The oil palm tree is one of the greatest economic assets a state or nation has, provided it importance is realized and potential fully harnessed.
It is an irony that Malaysians got their palm fruit seedling from Nigeria
Who used to be one of the largest producer in the past. Today, Malaysia is a reference point in oil palm plantation technology.
If Malaysians could depend on this product as there economic backbone, you can imagine the amount of revenue in palm oil plantation.
An oil palm begins to produce three to four years after it has been planted.
Oil Palm Products
The main products from oil palm are:
Palm kernel oil
Palm kernel cake
Uses Of Oil Palm:
Ninety percent of palm oil is consumed by food industry and the remaining 10 percent is used by the non-food industry, food like noodles, vegetable oil, biscuits, chips, margarines, shortenings, cereals, baked stuff make use of palm oil.
Palm oil is used for preventing vitamin A deficiency, cancer brain disease, and aging. It is used for treating malaria, high blood pressure, high cholesterol and cyanide poisoning. It is also used for weight loss and increasing the body’s metabolism.
Palm Kernel Oil And Cake
The processing of palm kernel to crude palm kernel oil and cake is also lucrative. This requires acquisition of palm kernel crushing plant and further investment in bleaching plant and machinery that will convert both crude palm kernel oil and red palm oil and table oil and other bi - products.
This bi - products will further be used as raw materials by many manufacturing outfits in the country.
Raising Oil Palm Seedling
Another lucrative aspect of oil palm business is raising seedling for farmers. The seedlings could be developed to about eight or nine months before being sold to farmers who will plant them in their farms.
If the seedling will begin to produce palm fruits after two three years, the seedling will begin to produce palm fruits after two years.
This business involves buying seeds from a reliable source and seedling bags to start raising the seedling.
At eight or nine months old, one can start to sell the seedling to farmers in the local markets.
It is very profitable, even if you are selling the seedling at the rate of N200 per one you may soon become a millionaire if you can raise a sizeable number of the seedling.
Challenges Of Oil Palm Business
The challenges facing the oil palm industry are as follow;
The subsistence nature of oil palm cultivation in Nigeria. Generally there is a low technology application in the sector
Another problem facing oil palm cultivation is the long gestation period before harvest which is put at an average of five years.
Lack of social infrastructure in the rural areas where palm tree cultivation is supposed to take place.
Policy inconsistency from government
Huge capital outlay required for oil palm cultivation and high interest rate on agriculture loan.
Inadequate extension services to enlighten farmers in the sector.
Problem of getting vast contagious land with title deeds.
Uncontrolled importation of vegetable oil into the country
Indiscriminate granting of waivers by government to crude palm oil and refined vegetable oil importers.
The challenges listed above have constituted major limitation on oil palm production for instance, Nigerians need about 1.4 metric tonnes of palm oil per annum but at present we are experiencing a shortfall of 600,000 MT.
In order to bridge this gap, all the aforementioned challenges are being dealt with. The government and private sector initiatives are gradually being felt in the sector.
i.NIFOR for example, the Federal Government established NIFOR to take care of research and development in the Oil Palm industry.
The institute has been able to produce about nine million disease resistance and hybrid seedling which have a gestation period of about two-and-a half years.
The institute has also been able to craft small scale processing equipment which is available to farmers at affordable price
ii.Now that the Nigerian Government is thinking of ways to boosting her non-oil (petroleum) revenue seriously attention is now being paid to palm oil cultivation processing, marketing and consumption.
Because palm oil cultivation and processing is a high income earner, the Bankers Committee of the Central Banker of Nigeria said it had set a target of N300bn to boost lending to small and medium scale enterprises and the agriculture sector in 2016.
In Private sector companies such as PZ Wimar and DUFIL Prima Foods have already commenced the process of backward integration which includes cultivating palm tree plantations.
PZ Wimar at present has 26,500 hectares of oil palm plantation in Cross River State and also has a refinery for processing of it yields.