Flour Mills acquires 20,000 hectares for Palm oil plantation in Edo
by Josephine Okojie
July 5, 2017 | 12:33 am| | | Start Conversation
Flour Mills of Nigeria Plc has acquired 20,000 hectares of land in Edo State for oil palm plantation in the state.
“On the upstream we have 4,500 hectares and have recently acquire an additional 20,000 hectares also in Edo state for our palm oil plantation,” Sadiq Usman, head-corporate business development, Flour Mills told BusinessDay on the side-lines of the ALP agric seminal series.
“On the downstream side we are involved in the production of palm oil, vegetable oil in Ibadan. We also produce margarine and spreads both for industrial use as well as consumers,” Usman said.
Oil palm plantations have the capacity to produce up to ten times more oil than any other oilseed crop. Overall, Flour mills own over 24,500 hectares of oil palm plantation in the state.
Recently, many big players in the industry with the largest oil palm farms have turned to backward integration by cultivating palm tree plantations.
According to stakeholders, Nigeria needs a total plantation of about 3,000,000 hectares of land if it wants to be self-sufficient in the production of oil palm to meet local demand.
There are conflicting data on the demand and supply gap in palm oil industry. Data from the Manufacturers Association of Nigeria (MAN) show that there is about 700,000 metric tonnes demand-supply gap in palm oil.
The National Oil Palm Association says the country produces one million metric tons of palm oil per annum, with local consumption estimated at 2.7 million MT and demand-supply gap put at 1.7 million metric tons yearly.
While data from the Agricultural Promotion Policy, the country’s agricultural roadmap show that the country’s palm oil demand is 8million MT and produces 4.5million MT, leaving a supply-demand gap of 3.5million MT per annum.
The oil palm belt covers twenty-four states, including all nine states of the Niger Delta and 80 percent of production comes from dispersed smallholders who harvest semi-wild plants and use manual processing techniques.
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