FLAP Cooperative reflects on the positive impact of oil palm farming
Agricultural development is one of the powerful tools to end extreme poverty. No doubt, agriculture is a viable way to improve a country’s economy and therefore a worthy investment. In Nigeria, Agriculture employs about 35 percent of the population and is also the principal source of food and income for most people. Several lucrative segments of the agricultural sector can be invested in for economic growth. In the crop production aspects, oil palm farming can adequately generate local and international revenue for any country that invests in and sustainably grows it.
To this end, At FLAP Multipurpose Cooperative, it is said to understand that Palm Oil makes up nearly 50% of edible oils consumed worldwide, apart from being a popular ingredient in almost every African food, palm oil has become one of the most versatile uses of any plant product. Its’ different properties and functions make it high in demand and widely used. Palm oil and palm kernel oil-based ingredients are found in approximately 50% of products on supermarket shelves, including food and non-food items.
According to GMD FLAP Multipurpose Cooperative, Mr. Rotimi Ojamamoye, FLAP Multipurpose Cooperative started PalmOil Vest about 4 years ago which is simply an investment opportunity that engages a community of farmers in the cultivation, production, and distribution of Palm Oil and other Palm products on a large scale by making everyone earn from this high-value agricultural produce.
Investing in the palm oil business is like investing in an everyday product as it cuts across various areas such as consumer retail food and snack manufacturers, personal care and cosmetics, biofuel and energy, animal feed, Pharmaceutical, Industrial, Foodservice/service industry.
One important factor that makes palm oil farming and investment very lucrative is that every part of the palm tree can be used for different things.
On why Nigerians Invest in Palm Oil, “An oil palm plantation will require a significant upfront investment. This is because it usually takes about 3 to 5 years before the trees start to produce any fruit that can be harvested and during this period money will be spent on fertilizers, labor, and so on. However, once the early-stage work is done and the seedlings are properly cared for in the early stage, oil palms can live for up to 80 years. A worthy investment indeed.
Boom with modem technological equipment for processing. The traditional processing of oil palm has been one of the leading reasons for low palm oil production in Africa. This traditional process often makes harvesting and processing of palm oil not only very slow but also very ineffective and wasteful. Modern mills process harvested palm fruits into final grade palm oil with little or no waste and minimal use of human capital. The machines would sterilize, thresh, purify and get the oil ready for storage and sale in both local and international markets.
Buying off harvested palm fruits directly from small-scale farmers, produce the oil and then sell directly to both local and international markets is also another way to make a profit off the milling and processing unit. This strategy has a great potential for huge profits because of the mill’s capacity to buy palm fruits at low prices and sell the processed palm oil at a much higher price. One major issue the milling and processing plant can expect is power and the required skills to operate the machines.
According to research by World Bank in 2018, Nigeria is the largest consumer of palm oil in Africa with a population of 197 million people. The nation consumed approximately 3 million MT of fats and oils in 2018, with palm oil accounting for 44.7% or 1.34 million MT.
Investing in Palm Oil is a great investment as it has a ready market from production companies to the kitchen the need for the project is everywhere ensuring that there will always be buyers.
As a nation, we are yet to adequately explore the juice that oil palm farming has to offer. It is very lucrative and solves many problems at once. Individuals and the Government need to invest more in this sector of Agriculture and investment platforms should offer and promote more investment in Palm oil production.
Want to know more about PalmOil Vest?
CLICK HERE to visit our website.
No comments yet