A call has gone to investors to support palm oil production with funds so as to take advantage of the recent ban by the Indonesian government on the exportation of oil palm and oil palm products.
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 Iguemokhuwa village in the Orhionmwon Local Government Area of Edo State.
According to him, the ban has increased the pressure on Nigerian palm oil producers, thereby giving rise to an opportunity to build palm oil cultivation and production in the country.
Speaking to journalists shortly after the tour of the farm by the investors, Agenmonmen said finances remain the major challenge for the company, noting that the farm needed N2bn to complete its current expansion programme.
He said, “It is time for investors to support palm oil production with funds so as to take advantage of the recent ban by the Indonesian government on the exportation of oil palm and oil palm products.
“The business environment is interesting. It may have its ups and downs but lately, the palm oil value chain has gone up boosted by Indonesia shutting down its export recently which has driven the pressure on Nigeria.
“People that normally import can no longer import palm oil and other products from Indonesia so the prices are going up and it is good for us farmers that actually cultivate and sell products. So right now the business environment is good.”
He said the Central Bank of Nigeria had provided funds to boost the industry but they must pass through commercial banks which set their conditions.
According to him, 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 said the mill on 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 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 N2bn.”
