. , . ~ THE
FRIDAY, MARCH 18, 2011
Unveiling wealth potential of oil palm
BIG ftaira Begins with
Small Kobo Everest Amaefule HIEF Charles Ugwu is a former Minister of Commerce and Industry. Before venturing into politics. he had earned a name as an entrepreneur. In fact, he rose to become the President of the Manufacturers Association of Nigeria So. If Ugwu is described as an accomplished man. it would amount to st~ting the obvious However. there is something Ugwu craves for that he has not yet accomplished. It is not the governorship of Imo State that blew over his face in 2007 His new love is the revival of the oil palm economy. At a recent summit on the oil palm industry, the former minister reca lled with nostalgia how Nigerian families were sustained from incomes they earned from oil palm. Ugwu watched his mum process oil palm and earn income for the family. Without the oil palm. many men and women that are now above 60 years could not have gone to school. he added Unfortunately. the
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crop that sustained most
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Nigerian families, esrecially from the South-South and SouthEast geopolihcal zones. been abandoned in the wake of the discovery of crude oil In the Niger Delta region . He. however. expresses optimism that the industry can be revived to playa key role as the nation's bid to be one the 20 largest economies by the year 2020. consequentl y. the former MAN president has laid his own plan for investment In the industry You too may also want to tap into the rich potential of the oil palm tree. If you are thinking of getllng Involved, th e following information contained in a communique from the stakeholders' summit would interest you. The oil palm industry has current estimated value of $155bn and future projected value of $11 65bn by the year 2020 The market price ol:.oil palm produce is very attrachve for Investment in the oil palm industry. Apart from the fact that palm oil sells at higher price per metric tonne than crude 011. World palm oil price has been on a steady increase, rising from $424 per metnc Ion in 2006 to $824 in 2007 and $ 1146 in
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• Market price of oil palm produce remains attractive to investors ·Technology has expanded the scope of application ·Segments include palm oil extraction, palm kernel oil extraction and refining of glycerin • Large domestic and export market exists 2010. Today. a gallon (3751) of palm oil sells for between $18 and $25 depending on the grade Besides, at the current annual growth rate of 788 per cenl, World consumplion of oil palm is expected to rise from 29 12 million tonnes in 2004 to 43.2 million tonnes in 2020. Different segments of the Industry that can be explored Include palm oil extraction and processing; palm kernel oil extrachon and refining: production of glycerin. animal feed formulation and processing: palm wine tapping: palm wine processing; oil palm nurseries development and marketing and research and development Others are palm oil and kernel processing plants development and installation: manufacture of soaps and detergents; pomades. margarine. biscuits; transportation and marketing of palm produce; plantations development and management ,
harvesting and post harvest handling. For those interested in oil palm exports, Chairman. Nigerian Inshtution of Agricultural Engineers, Prof Ike Oluka, says world leaders in consumption of palm oil include China, European Union, Indonesia and India, while leading exporter. are Malaysia and Indonesia Oluka, the dean of engineenng at the Enugu State University of Science and Technology. adds that the oil palm tree can grow naturally in most parts of the country including the South-East. South-South. South-West and North-Central regions. He says. " In recent years. technology has expanded the applications of the oil palm tree to the extent of converting the entire biomass harvested from a palm plantation Into renewable electricity. cellulosic ethanol. blogas. blo-hydrogen and bio-plastics. "Available research has shown that oil palm logs or trunks are convertible Into different industrial raw matenals. such as lumber and plywood. noor Illes. furniture. wood panels. insulation matenals. packaglngmaleriais.lntenor decorative utility, concrete formworks as well as a law material ror activated carbon production
''The successful application of 011 palm trunk to multi industrial usages portends huge economiC opportunities for our people This offers opportunity for wealth creation and economic ~ empowerment of our people If properly . harnessed .. According to Director-General of the Raw Materials Research and Development Council, Prof Peter Onwualu, Nigena can generate excess of $50m annually in foreign from the scheme . exchange ir oil palm is harnessed and ~ The commissioner also told NAN th at o nly 35 per ce nt of the developed fund had been distributed so far and urged th e beneficiari es to The RMRDC boss listed the challenges take advan ta ge of th e scheme to boost their productivity and facing the Industry to include lise of overincome generation. aged palm trees, predominance of wild palm According to him . th e loan is being distributed through grooves: water related stresses resulting town lInio ns, churches, cooperalive societies, th e All Farmers from erratic rainfall, neglect and failure of Association of Nigeria. individuals and private entrepreneurs . extension officers to educate farmers Since there are various sectors of Industry, H e said that the state government supported nine National It is important for each investor to deCide Programme for Food Security si tes which benefitted 400 on which aspect to get involved based on farmer groups during the period . requisite skills Training will enhance ability Anyanwu said th at the ministry, in collaborahon with the to explore the rich potential of the oil palm Agricultural Developmenl Programme, Irained over m ore Nelworking and alliance wilh the relevanl than 150 yout hs in various agricultural enterprises . agencies such as RMRDC and the Nigenan He added that the 20 11 cropping season, wil h the theme Institution of Agncultural Engineers will help investors to hone their skills and tap Into Empowerment of Farmers : A Panacea for Food Security: available opportunities would be launched March 30, 2011.
'Oluko
Spotlight: Small and medium-sized busio_e ss
Imo Govt spends N2.8b on fertiliser procurement - Commissioner HE Imo State Governm ent has spe nt N2.8bn in the past four years to procure 113,000 tonnes o f fertiliser. the Commissioner for Agriculture , Chief Lo ngers Anyanwu , has said Anyanwu disclosed this in an interview wit h the News Agency of Nigeria III Owerri on Thursday. He said thal th e sta te government spent so much money on fertiliser procurement because of the administration's determination to ensure food security in th e state . Anyanwu sa id th at the state government had maintained 25 per cent strategic supply reserve all year round, add ing that the approach had helped to prevent fertiliser diversion since 2007 . The commissioner said th at to ensure effective distribution of th e input. three 2,000-tol1ne communi ty ware ho uses were built in each of the three senalorial dislricl. On Ihe N2bn Imo Farmers Loan Scheme inaugurated early this month . he said that some cheques had already been distributed to the beneficiaries H e fllrth er said that 10.000 farmers were expected to bene fit
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