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Tag: Oil palm

  • Stakeholders to align sustainable oil palm outcomes with CAADP III strategies

    Stakeholders to align sustainable oil palm outcomes with CAADP III strategies

    Stakeholders in oil palm value chain has met to harmonise key sustainability outcomes of the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS) with focus areas of Comprehensive African Agricultural Development Programme (CAADP) III Kampala Declaration.

    Speaking in Abuja, Programme manager at Solidaridad Nigeria, Kene Onukwube, said the session focused on aligning NISCOPS’ four key outcome areas with the six strategic pillars of CAADP III.

    He said: “We are looking at how to mainstream NISCOPS’ key areas into the deliverables and expectations of CAADP III Kampala Declaration.

    “We want to see how the outcome areas of NISCOPS can add value to the expected deliveries of the six strategies.”

    Onukwube highlighted four priority outcomes, noting they emphasise productivity, sustainability and inclusivity.

    He said raising smallholder farmers’ income is an objective.

    “In summary, the outcomes are looking at productivity, but productivity in line with nature. We want to see that where oil palm is produced is properly policy-governed and deforestation free,” he said.

    “We want to see producers, especially smallholder farmers, raise their income. The sourcing of oil palm or palm oil should be smallholder-inclusive,” he said. He said the fourth outcome reinforces need for deforestation-free policies in oil-producing states, ensuring smallholders are fully included in policy design and benefit-sharing.

    Onukwube noted that the six CAADP III strategic areas complement NISCOPS priorities, especially regarding climate-resilient agriculture, inclusivity, and investment.

    “The six strategies talk about resilient agriculture, which aligns with climate-smart oil palm production,” he said.

    “They also emphasise inclusivity, women, youths, and people living with disabilities and this resonates with our own inclusive outcome area.”

    He added that the strategy also encourages investments in agriculture, particularly by private sector actors who source palm oil from Nigeria, urging them to support smallholders to adopt sustainable and deforestation-free production practices.

    Onukwube stated that Nigeria’s palm oil sector remains underperforming despite its potential.

    “Currently, we are lagging behind. About 1.6 million metric tonnes are said to be our difference. We have the potential to cover that and do more,” he said.

    He noted that with 27 out of 36 states suitable for oil palm cultivation, Nigeria could significantly expand production if the sector is properly supported and coordinated.

    “If these 27 states, including the FCT, are engineered to be palm oil-producing areas, the economy will be tripled,” he added.

    Responding to concerns about limited access to improved seedlings, Onukwube said NISCOPS is working to address the problem.

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    “A lot of the things we have done from 2019 till now show that we have seedlings that smallholder farmers have been capacitated to raise by themselves,” he said.

    He noted that farmers in Cross River, Akwa Ibom, Enugu, Kogi, Edo and Ondo states have benefited from interventions aimed at strengthening their capacity to produce improved varieties.

    “We think governments at all levels should deliberately invest in smallholders’ capacity to produce more seedlings to replace the large concentration of wild oil palm across the states,” he added.

    Also speaking, Senior Programme Manager at IDH, Ogu Abraham Dayo, stressed the importance of improving data coordination across the oil palm sector.

    “There is a paucity of data. We need to work with data banks to ensure we have synchronised and validated information, especially from what is happening at the sub-national level,” he said.

    He emphasised the need for NISCOPS to partner with the National Bureau of Statistics (NBS) for proper data coordination.

    “NBS has indicated willingness to collaborate, and that is important because such data will be useful for the AU, who are driving this policy,” Dayo said.

    He explained that IDH works directly with private sector partners to support smallholders through market linkages and capacity building, with operations currently focused in Edo State.

  • Oil palm producers move to stabilise price

    Oil palm producers move to stabilise price

    The Plantation Owners Forum of Nigeria (POFON) said it has devised means to stabilise prices of crude palm oil across the country.

    The forum said the decision to stabilise oil palm price was to ensure Nigerians purchase the product for their daily needs.

    Chairman of POFON and Chief Executive Officer (CEO) of Aden River Estates Limited, Mr Emmanuel Ibru, who spoke in an interview in Benin City, said the prices for cooking palm oil would be stabilised throughout the year-round in the country irrespective of the production seasons.

    Ibru said members of POFON were working to close the gap between demand and supply of palm oil and ensure that its price remained stable.

    He said production of crude oil palm has increased to 1.5 million tonnes.

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    He said: “Our members are trying to see what they can do this time around to try to stabilise the prices so that there is not much difference between the peak and lean seasons prices.

    “POFON and its members have resolved this year to try and ensure that we maintain a stable price in the commodity even throughout the off-peak.

    “There is no doubt that there is still a gap in the supply and demand of palm oil in Nigeria, but POFON and its members over the last 10 and 15 years have made tremendous efforts to increase the production of oil palm in the country.”

    He said the country need to increase its hectarage to 500,000 hectares to meet the local needs as well as become more efficient in production.

  • Organisations collaborate on oil palm development

    Organisations collaborate on oil palm development

    Solidaridad, a solution-oriented civil society organisation, with  Sustainable Trade Initiatives (IDH) and key stakeholders in  agriculture, are poised to advance climate-smart oil palm development in Nigeria.

    The gathering, under National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (#NISCOPS), brought together policymakers, value chain actors, farmers, researchers, and funding partners.

     Discussions focused on assessing progress, shaping policy directions, and exploring innovative financing models for agricultural sustainability.

    Country Representative for Solidaridad, Gabriel Fapojuwo, said the forum is a platform to align efforts across the agricultural value chain.

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    “This event allows all stakeholders to come together, review past achievements, set new targets, and ensure everyone understands their role in achieving shared goals,” he said.

    Discussions, he said, will centre on emerging financing mechanisms, particularly integration of carbon credits into Nigeria’s agriculture.

    This, he said, will make stakeholders explore ways to adapt successful carbon credit models to benefit smallholder farmers.

    Fapojuwo stressed the need for an inclusive approach, ensuring policymakers, implementers, and regulators align their efforts for more effective outcomes.

    “New generations are introducing alternative funding models that could revolutionise access to finance. It’s time we explore these opportunities and localise successful global practice within Nigeria”.

    He, however, made a strong case for smallholder farmers,  ensuring that policy recommendations and financial strategies benefit those working on the ground.

    Programme Manager for Oil Palm at Solidaridad, Kenechukwu Onukwube, noted the importance of translating discussions into actionable strategies.

  • ‘Poor traceability system bane of oil palm production’

    ‘Poor traceability system bane of oil palm production’

    Stakeholders in agriculture have expressed concern over proper implementation of a traceability system in the oil palm subsector.

    They spoke yesterday in Abuja during a policy dialogue on implementation of a traceability system in the oil palm subsector, saying the system is  a standardised way of handling products to meet global standards which Nigerians must adhere to attract investors.

    They noted with proper implementation of a traceability system in the oil palm subsector, local and private sectors will have confidence in investing in the subsector.

    Programme Manager of National Initiative for sustainable and Climate Smart Oil Palm Smallholders (N-SCOPS), Kene Onukwube, said there is no particular traceability system that most actors comply with, with the exception of a Roundtable on Sustainable Palm Oil (RSPO) standard that has some sections on traceability but implementation is not effective across board.

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    Onukwube, who spoke on enhancing oil palm sustainability system: Traceability for effective market, said: Solidaridad and IDH are facilitating policy dialogue to stimulate and draw attention of sector actors to the fact that there is a need to establish traceability system for Nigeria.

     He explained “traceability systems are to improve food safety quality for palm oil, it will enhance the market, because when the market is improved, you will have an enhanced market.

    He added there are 80 per cent smallholder farmers involved in the oil palm sector as most of them don’t know about this traceability system and don’t practise it.

  • ‘ISP launch to address challenges in oil palm, cocoa sectors’

    ‘ISP launch to address challenges in oil palm, cocoa sectors’

    The Incorporated Society of Planters (ISP) has said the launch of the association in Nigeria will address the issue of labour shortage in the country’s oil palm plantation sector, minimise operational cost and improve the yield of palm oil and cocoa.

     This, it said, will increase the income of players, including the smallholder farmers.

     Proterm Vice Chairman, Incorporated Society of Planters (ISP), Africa, Fatai Afolabi, stated this at a media briefing ahead of the launch of the Africa chapter of the association slated for May 24, 2024 in Abuja.

     Afolabi added that the establishment of ISP in Nigeria will also help create an African hub as it will act as a regional organization.  Nigeria is currently the fourth largest producer of cocoa globally.

     He noted that the country cannot rely on planting materials and methods from 70 years ago while expecting results comparable to countries that use modern technologies and techniques.

     While reiterating the need for the country to learn from countries such as Indonesia, Malaysia and Ireland, he said the launch of ISP will advance sustainable agriculture and foster collaboration among planters in the African continent.

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    Speaking further, Afolabi noted that Nigeria’s Cocoa and Oil Palm production could contribute significantly to the nation’s Gross domestic product (GDP) if potentials of the industry were properly harnessed. 

    He noted that Nigeria, formerly the world’s leading cocoa producer, had slipped in the rankings due to neglect of the sector, particularly application of old age technologies and outdated farming techniques in the production processes.

     Chairman, Incorporated Society of Planters (ISP), Africa, Shermal Perera, called on Nigerians to emulate the strides made by Malaysia in oil palm production.

     While noting that Malaysia had at one time learnt from many African countries, he said the country is leading in oil palm production.

  • C/River secures $15m oil palm investment

    C/River secures $15m oil palm investment

    Governor Bassey Otu of Cross River says his administration has secured a private sector investment of 15 million dollars for the Ayip Eku Oil Palm Estate in Akamkpa Local Government Area of the state.

    Otu said this when he spoke in Calabar at a media parley to mark his 100 days in office.

    He said that his administration plans to leverage on the state’s comparative advantage in agriculture to provide the needed employment opportunities and also to guarantee food security.

    He said that in addition to the oil palm investment, the government had also developed a six years N30 billion agriculture guarantee fund for rice, maize, fisheries and livestock farmers.

    He said that 100 hectares of cassava would be cultivated within the next one year while the government had commenced planting 3.5 million hybrid oil palm seedlings in 13 locations across the state.

    “In order to ascertain with precision, the soil texture for specific crops in the different zones of the state, the government has commenced the state-wide digital soil fertility mapping.

    “This is to ensure that all we are doing will translate to greater yields of different crops.

    “Also, in partnership with the Oil Palm Growers Association of Nigeria (ORGAN), the state government has commenced the planting of 3.5million hybrid oil palm seedlings in 13 identified locations across.

    Read Also:Eyes on oil palm fortunes

    “In agric-related human capital development, the state has sponsored its indigenes to participate in cassava-bio value chain conference in Asaba-Delta for subsequent establishment of cassava-biofuel factory in the state, as well as workshop on sustainable oil palm economy,” he said.

    Otu added: “Similarly, 50 starter-rice growers have been given free rice seedlings, fertiliser and pesticides, while 30 starter-livestock farmers have been assisted with day-old chicks and feeds.

    “The objective is to leverage the multiplier effect of agriculture on employment and growth of the state’s Gross Domestic Product (GDP),” he said.

  • New oil palm agenda

    •Great idea, in the short run. But to be sustainable, banks, not CBN, must drive lending towards palm oil renaissance

    It is a welcome development that the apex bank has added oil palm to the ever-expanding bouquet of development activism. At a stakeholders’ meeting on the palm oil value chain in Abuja which had in attendance the governors of Akwa Ibom, Edo and Abia, the CBN governor Godwin Emefiele laid out an ambitious programme to launch the country among the top three producers of palm oil globally.

    He gave these out as establishment – by the Bankers Committee – of a special sub-committee to make recommendations on sustainable financing models for oil palm and four other critical agricultural commodities that include cocoa, sesame seed, shea-butter and cashew. Also, as part of its Anchor Borrowers Program (ABP) and Commercial Agriculture Credit Scheme (CACS), the apex bank, he said, “will work with large corporate stakeholders and small holder farmers to ensure availability of quality seeds for this year’s planting season”; also on the list are measures to guarantee availability of agro-chemicals to enable improved cultivation of palm oil; encouragement of viable off-taker agreements between farmers and large-scale palm producing companies”. Finally, he also disclosed that state governors in South-south and Southeast had agreed to provide at least 100,000 hectares each for large scale oil palm farming, as part of efforts to boost both domestic needs and exports.

    Says he: “If we had kept pace with our peers in supporting improved cultivation of palm oil, at the current global market price of $600 per tonne, and an assumed production level of 16m tonnes, Nigeria could have generated close to $10bn worth of foreign exchange for the country”.

    To begin with, we find nothing overly ambitious that a country that started off with some 40 percent share of the global market in the late 50’s and 60’s is only now clambering to reclaim the top spot nearly five decades after slipping into the abyss. We are talking of a country that had, as far back as 1964, established a flag-ship research institute – the Nigerian Institute for Oil Palm Research (NIFOR) – to expand the frontiers of research and practice in oil palm production and utilization. A country that has a specialized bank – the Bank of Agriculture established for that purpose – in addition to the one-score plus commercial banks and countless other primary lenders offering a wide range of credit services.

    The irony is that the apex banking institution, rather than the primary lenders, is the agency leading the charge. Even when seen in the context of the developmental role that apex banks have increasingly come to play in a developing economy such as Nigeria’s, it is still hard to resist the conclusion that the current lending architecture is still largely too feeble to deliver on the scale that the country badly needs. It therefore goes that much as we find nothing fundamentally wrong with the apex bank providing leadership both in terms of setting the goal and putting the necessary financial mechanisms in place; only that this must be appreciated as a necessary guiding hand for the moment until those institutions are enabled to play their roles more effectively.

    As for the goals, pragmatism is certainly needed. We know for a fact that palm oil importation has been declining in years. From a peak of 506,000 metric tonnes (MTs) in 2014, it went down by about 40 per cent to 302,000 MTs in 2017 only to surge to 330,000MTs in 2018. The obverse side of the coin, perhaps more telling is that the country continues to shell out some $500 million annually on palm oil importation. And the CBN on its part believes that net deficit of $500 can be converted to a revenue haul of $10 billion in few years’ time. That being the crux of the current effort is admittedly a tall order.

    Be that as it may, the position of the apex bank deserves every support. We however hasten to point out that finance is only one leg of the problem. The other leg is to broaden the opportunities for extension services not only to ensure that improved seedlings reach farmers in far-flung locations but also to ensure that the benefits of simple technologies to aid their productivity are availed them.  This is where the role of NIFOR comes as important. Perhaps far more than what obtained before, the agency deserves support. On its own, it can seek collaboration with those multinationals traditionally relying on importation for their local needs knowing that it can only in the end, be a win-win for everyone.

  • Mimiko warns oil palm vandals

    Mimiko warns oil palm vandals

    ndo State Governor Olusegun Mimiko has warned illegal occupants on the Okitipupa Oil Palm Plc to leave the plantation.

    Giving the warning at the weekend, Mimiko said with the inauguration of the 27.5KM Ajagba-Iyansan Road, sanity would be restored to the plantation.

    Noting that the road passes through the plantation, the governor said the cost of transportation from the plantation, which was limited to the waterways, had been a major issue militating against the company’s smooth operation.

    ”One of the factors that has over the years affected the production cost of this company is the cost of transportation of harvested palm fruits through the waterways.

    “The absence of this road over the years has resulted in the illegal occupation of the farm by unscrupulous persons.”

    Mimiko warned the illegal occupants to steer clear of the plantation.

    Handing over the quit notice, he said: “Let me sound it loud and clear to those occupying the plantation illegally that  the endgame has come and that it would no longer be business as usual.”.

  • Fire destroy crops worth N50m at Edo community

    The people of Orhua community in Uhumwode local government area of Edo state are now counting their losses following the devastation of their farmlands by a wild bush fire.

    The agrarian community is home to business mogul, Dr Nosa Okunbo and the member representing Uhumwode in the Edo state House of Assembly, Mrs Elizabeth Ativie who was expected to raise the issue at plenary Wednesday. 

    The fire disaster which community dwellers said destroyed ‎ Oil palm, plantain and  Allied plantations,  also devastated subsistence  arable crop farms, leaving many jobless and hopeless.

    Elder Samuel Ozigbo, the oldest man in the community expressing frustration at the turn of events said though no lives and properties were lost, the farmlands destroyed is in the region of N50million.

    He said, “Cassava, Yam, Pineapple, cocoa, Plantain, Oil palm plantations are all gone. We are completely helpless. As you can see, we live in a forest area…our food is gone and there is none to even sell to get money to survive”.

    Elder Ozigbo said the fire came through a neighbouring village, Ozalla adding that many farmers are now in agony because they took loans to expand their farms and repayment ‎is a few months away.

    Community spokesperson, Mr. Francis Ebowe who ruled out sabotage in the incident said, “farming is our only source of income. We sell from the farms and also eat from it and now that all our farms are burnt, we don’t know what to do”.

    He then appealed to the state and federal governments to come to their rescue not by providing such relief materials as mattresses, blankets and assorted building materials but food items and cash support to enable many breadwinners meet their obligations.

  • ‘Oil palm plantations can create 100,000 jobs’

    Oil palm  plantations  can create  about 100,000 jobs, an  expert, Dr  Umoru Omodi.

    Omodi, a former Executive Director, National Institute For Oil Palm Research(NIFOR), Benin, Edo State,  said  the  palm oil industry can  provide  jobs  in rural areas and contribute to economic development.

    According  to him,  many  experts  and  households can  be   involved in palm oil production and this  would   have major repercussions for the livelihoods and food security of many people.

    As demand for palm oil increases, he said companies  should   be  cleared to make room for large plantations.

    To avoid contributing to deforestation and social problems, he   said   buyers of palm oil should subscribe  to the Roundtable on Sustainable Palm Oil (RSPO), which requires producers to apply strict environmental and social standards to their operations. He   said   the  RSPO has set strict standards for responsible oil palm plantations, coupled with an independent system for auditing plantations, mills and the supply chain right up to the end users.

    Globally,  he  said many large corporations have already made commitments to use only certified sustainable palm oil by next year causing ,adding  it was critical  for  local  companies  across  the  entire palm oil supply chain to set globally agreed upon standards for best practice in palm oil production.

    According  to him,local companies that do not follow suit may easily be left behind in the changing landscape of the global market.

    He   said  oil  palm  plantains   would   create  new opportunities for developing agriculture and infrastructure to support farming.

    Where outside investment is needed to sustain agriculture and improve productivity and livelihoods, he   said   foreign  investment  in  oil palm business  would   support  local farmers.

    Getting the best deal from incoming investors, Omodi noted, re-quires effective regulation, rigorous scrutiny of investment proposals, transparency in decision-making, skilfully negotiated contracts and robust social and environmental impact assessments.