Ban on Exportation of Palm Oil by Indonesian Govt, Blessing to Commodity’s Production in Nigeria, Says Agenmonmen
The recent ban on the exportation of palm oil and oil palm produce by the Indonesian government have not only increased the pressure on Nigerian oil palm producers but is a blessing as well as an opportunity to build palm oil cultivation and production in Nigeria.
The Managing Director and Chief Executive Officer of Raedal Farms Limited, Uwadiale Agenmonmen, stated this when he led a team of investors to the company’s farm in Iguomokhua village, Orhionmwon local government area of Edo state where he said the farm needed at least N2 billion to complete its current expansion programme.
Speaking to journalists shortly after the tour of the farm, Agenmonmen said finance remain the major challenge of the company.
According to him, “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 their 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.”
Though he said the Central Bank of Nigeria (CBN) has provided funds to boost the industry, one of the major huddles he said was that such funds must pass through commercial banks which set their conditions or evaluation.
Agenmonmen said the farm sits on a 1,509 hectares of land and has currently cultivated 700 hectares while another 500 hectares would be cultivated this year.
He also disclosed that the oil mill in the farm currently has the capacity of producing 16 tons of red oil every day and from palm kernel oil, it can produce 27 tons every day when there is 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 you do on paper, 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,” the Raedal Farm boss declared.