12 / BUSINESSOAY: www.businessdayonline.com
Wednesday 3 1 Octo ber 20 12
Prospects for palm oil in Nigeria
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reduced II. exporl t ax on In Nl8erl. h .. had re.Oned producu to promoce the mldortune of proceulng, and Malay.la Calling from grace hulnereased lu CPO export 10 gras~. Yet om- quota by two mUUnn Ions free d.t connlv.nce to reduce or las. tariff on imported crude palm There I.J ample delall on oil (CPO) from South East the (ate thaI h" befallen the Asian countries like Malaysia product In Nigeria over time. may k~p the nation', palm Igerla used to produce a oU Industry hi. quandary. large proportIon of the paJm Palm 011 Is predicted 10 011 sold In the world mvkel. ,f1ake up 34 pc.rcenlto 46 per- Ie W85 a dominant 1I0urce nf ce.nl of v~el.b l e supply be- rorelgn exchange. In 1800, tween 2010 and 2020. Prod- 80 percent of /'IIl~a'sexpot1 ucts derived from palm 011 was palm 011 and kernels; It ue gnuln, InduslrI.1 and feU to 50 percent In 1920 and commercial activities. Global vanished In 1969. demand for food. consumer Small holder plantations can products and bloolese.1 contributed Immensely 10 are ruelllngdemand. PaLm oU the palm oll bOom. 11,~ roryields In South E.nt Mia ve tunes o f Nigeria's palm 011 failing. Standard Charlered production plunged as a Bank reckons lI,al -a large resull o lth e discovery or proportion or estale owners crude 011. By 1969, Nigeria'. In South EIISI Asia have un- over· reUance o n traditional derl",·ested ln their Htates.- palm 011 processing tech · Indonesia has Increased nlques, and lhe Nigerian lis CPO export tarlrr and Ovtl War which was greatJy almOUProdUction
pronounced In Nigeria" 011 palm bell,cau~ lhedemlse ohhe industry. Yel, agriculture remains lhe maIn.!tay of the Igerlan economy, conlrlhutlng al most 40 percent of the GOP, compued wHh petroleum and gas which contribute 25
percent. lltough Nigeria's 011 palm polentlaJ Is large, the coun · try l!l one of the world 's lop len con!lumers but a net 1m· porter owtng to 115 Inability to produce enough palm 011 to mtttiocal demand. Other dominant users are India, Indon"la, China, 1\IaJaysla, Pakistan and Bangladesh. lhl!l Is an opportunlly for Increasing producllvlty In planting, tradln!V'lran5port, rennin, .eed production, crude palm oU bulk. mctlon· aUon storage, manuracturing of food and non · food prod · ucts, packaging and hrand Ing. etc. It 15 already cheap
to Imporl CPO even wtlh a 35 ~rcenllariff. Pro-market polldell that promote local and foreign Investment In bolh uLaIe:s and smallholder openUoo!l In over 24 ,Ia'es of Nigeria will ge nerate toM, and perhaps make Nizeria Well Arrica'. 011 palm hub. Otherwtse, investors will look to olher African coun tries on lhe equator band, e.s., Angola. Gabon and SenrgaJ. l'hyslcaJ conditions for cultivating paJm oU Include a humid tropical cllmalt, a lemperature range of2410 32 dqvees Ceblus, ample 5un · !lhlne and t'\-"t'.nlydl<lrlbuttd annuaJ raJnfaU. lhere b . therefore. a need to share Information on lht' sector 10 refocus altentlon on the potential for palm oll production and boo t Ihe Nigerian Konom y by conCt:nlral· Ing on de\--eloplng a mode m and efficie nt Hllue c haIn lor palm oU production.
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