From Ighomuaye Lucky
The Plantation Owners Forum of Nigeria (POFON) has devised measures to stabilise the prices of crude palm oil (CPO) in the country despite the high cost of living.
The forum said the decision was to ensure that citizens can purchase the product for their daily needs.
Chairman of POFON, Mr Emmanuel Ibru, disclosed this in a chat with newsmen after the forum’s meeting in Benin City.
Ibru, who is also the Chief Executive Officer of Aden River Estates Limited, an agro-industrial subsidiary of Ibru Organisation, said the prices for cooking palm oil would be stabilised year-round in the country, irrespective of production seasons.
According to him, just as the Nigerian government is working to stabilise the country’s economy, POFON is committed to ensuring that palm oil prices remain stable.
“In Nigeria, we have two seasons for palm oil. When it is peak season, prices go down, and when it is lean season, prices go up. Our members are trying to see what they can do this time to stabilise prices so that there is no significant difference between peak and lean season prices.
“POFON and its members have resolved this year to maintain a stable price for the commodity, even during the off-peak season.
“We are not unaware of the inflationary trends. We know that the cost of inputs is rising, but despite that, it is also our duty to ensure that we maintain a satisfactory price profile in the market,” he said.
He said members are also investing in expanding their plantations to increase capacity to meet local demand in the Nigerian market.
“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 to 15 years have made tremendous efforts to increase the production of oil palm in the country.
“Some new players have come in. The traditional large holders, such as Presco and Okomu, have continued to invest and expand their plantation holdings, while new players such as Dufil, Saro Africa, and others have come into Edo State.
“Saro Africa has developed around 20,000 hectares in Edo State. Wilmar has just acquired the shareholding of PZ Wilmar from their former joint partner and is in the process of developing another 8,500 hectares, bringing their holdings in Nigeria to close to 50,000 hectares.
“JB Farms has increased its holdings in Cross River State and is also in the process of developing a further 10,000 hectares in Ondo State. We also have Agric Palm, which has continued to increase its holdings.
“There are also new players who have acquired lands but have not started yet, hoping to take possession and start in the next one to two years.
“So, in all, attempts have been made, and we can see those attempts coming to fruition. About eight years ago, the total amount of Crude Palm Oil (CPO) produced in the country was in the region of 900,000 to one million tonnes per annum.
“Today, we have been able to increase it to about 1.4 million to 1.5 million tonnes, which means there has been a 50 percent increase in production, which is no mean achievement,” he added.
Ibru, who noted that there was still a supply gap, added that the organisation is working closely with some government agencies to develop a roadmap for the sustainable development of oil palm in the country as well as sustainable finance for the industry.
He opined that the roadmap is not only for large-scale plantation holders but also for small and medium-scale holders.
He added that in the lean season, there is a tendency for a reduction in the supply of palm oil, which correspondingly leads to an increase in prices, as opposed to the peak season when the supply is high.
Ibru, who also stated that Nigeria is the highest producer of palm oil in Africa and fifth in the world, said it needs to increase its hectarage to about 500,000 hectares to meet local needs and become more efficient in production.
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