Indonesia’s ban on oil palm products exportation puts pressure on Nigerian producers

The recent ban by the Indonesian Government on the exportation of oil palm and oil palm products has put enormous pressure on the Nigerian palm oil producers, thereby creating a rare opportunity to build palm oil cultivation and production in Nigeria.

The Managing Director and Chief Executive Officer, MD/CEO, Raedal Farms Limited, Uwadiale Agenmonmen, stated this on Monday when he led a team of investors to the company’s farm in Iguemokhuwa village, Orhionmwon Local Government Area of Edo State, where he said the farm needed at least N2bn to complete its current expansion programme.

Speaking to journalists shortly after the tour of the farm, Agenmonmen said inadequate finances remained the major challenge for the company.

“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,” Agenmonmen explained.

According to him, “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), had provided funds to boost the industry but they must pass through commercial banks which set their conditions or evaluation.

This was just as he disclosed that 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 disclosed that 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,” he added.

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