From Tony Osauzo, Benin
Nigerian palm oil producers are under pressure to meet the demand for palm oil and its byproducts, following the recent ban by the Indonesian government on the exportation of its palm oil.
The development is said to have created a huge opportunity to build palm oil cultivation and production in Nigeria.
The Managing Director and Chief Executive Officer of Raedal Farms Limited, Uwadiale Agenmonmen, disclosed this when he led a team of investors to the company’s farm in Iguemokhuwa village, Orhionmwon local government area of Edo State.
Speaking to journalists shortly after the tour of the farm, Agenmonmen said finance remains the major challenge for the company, adding that the company needs at least N2 billion to complete its current expansion programme.
“The business environment is interesting. It may have its ups and downs but lately, the palm oil value chain has been the best in a while, fostered by Indonesia shutting down its export recently and that has driven the pressure back home.
“People that normally import can no longer import palm oil and other products from them so the prices are going up and it is good for us farmers that actually cultivate and sell so right now the business environment is okay.”
He said the Central Bank of Nigeria (CBN) has provided funds to boost the industry but they must pass through commercial banks which set their conditions or evaluation.
He disclosed the farm sits on 1,509 hectares of land and has currently cultivated 700 hectares while another 500 hectares would be cultivated this year.
Agenmonmen further explained that the mill on the farm currently has the capacity of producing 16 tons of red oil and 27 tons of palm kernel, respectively, when there is a full stock of raw materials.
“We have to bring our current investors and bankers here to physically see what we are doing because there is a difference when you talk to people about what we do on paper, and phone calls; we want to connect real-time to where they have their money and with this, we look forward to better business opportunities. To plant what we have left and do some further development, we are looking to raise the excess of N2 billion”, Agenmonmen stated.