Raedial Farms Limited’s management has said they are committed to bridging the huge gap in the country’s crude palm oil (CPO) and palm kernel oil (PKO) supply through the current expansion program of her 1590 hectares oil palm plantation and mill.
This was revealed by Uwadiale Agenmonmen, the company’s managing director and chief executive officer, when he led a team of investors and stakeholders from United Capital, Suntrust Bank, Central Bank, Boston Advisory, Zenith Bank, CAGL Global, United Capital, and United Bank of Africa to the company’s plantation in Iguomokhua village, Orhionmwon local government area of Edo state.
Agenmonmen noted shortly after the farm tour that funding and adequate government support remain a major challenge for the industry if it is to rise to the status of giant that it once was.
He went on to say that there was no better time to invest in palm oil cultivation and production in Nigeria than now, especially given the Indonesian government’s recent ban on the exportation of palm oil and oil palm produce.
Agenmonmen added that rather than viewing the ban as a setback, it should be viewed as a blessing because it will lead to increased investment in Nigerian oil palm production.
He continued, “The business environment is interesting.” There may be ups and downs, but the palm oil value chain has recently been the best in a long time, thanks to Indonesia recently shutting down their exports and putting pressure back home. People who normally import palm oil and other products from Indonesia are no longer able to do so. As a result, prices are rising, which benefits farmers who cultivate and sell. In a nutshell, the business environment is fine right now.”
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While praising the Central Bank of Nigeria (CBN) for its financial support for the industry’s growth, he stated that the main impediment to farmers’ success in the oil palm industry is the set of conditions or evaluation commercial banks apply to those who want to access CBN funds.
He revealed that the farm sits on 1,509 hectares of land and has already cultivated 700 hectares, with another 500 hectares planned for this year.
He also revealed that the farm’s oil mill currently has the capacity to produce 16 tons of red oil per day and 27 tons of palm kernel oil per day when raw materials are in stock.
“We need 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 you do on paper or over the phone.
“We want them to feel connected to where their money is, and with that, we look forward to better business opportunities.” “We are looking to raise more funding in order to cultivate more plantations, purchase existing plantations, expand milling capacity, build a refinery for the production of consumable packaged products, and other development,” he stated.
