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There are increased local efforts to enable Nigeria take advantage of Indonesia’s palm oil export ban, as competing countries swoop in and expand its market share.
Recently, Indonesian President Joko announced a total export ban on all palm oil, both crude and refined/processed, out of the country to tackle local price hikes. Palm oil prices could hit a record 8,100 ringgit ($1,938) a tonne following a plunge in global edible oil stocks and a decline in export surpluses, including the impact of war in Ukraine.
Already, the ban is sending soaring cooking oil prices even higher worldwide, exacerbating global food security fears amid adverse weather and the war in Ukraine.
Analysts said global palm oil prices have soared in recent months, with other vegetable oils including sunflower and soy on similar trajectories, driving the UN Food and Agriculture Organization’s vegetable oil price index to a record high in February – a peak that has continued to rise.
Speaking with newsmen, Chief Executive, Agricultural and Rural Management Training Institute (ARMTI), Dr Olufemi Oladunni said the Indonesia’s palm oil export ban has left the door open for Nigeria to expand its market share.
According to him, Nigeria could benefit from Indonesia’s palm oil ban and reap higher export profits this year.
Currently, Indonesia’s major import partners such as China and the Philippines have shown concerns with the move likely to cause disruption and exacerbate price rises in food commodities, which were already running at 10-year highs in the Food and Agriculture Organization’s index .
Oladunni said the economy needs to ensure adequate supply for use in food, a state-backed Malaysian palm oil group said on Monday, warning of a supply crisis following an Indonesian ban on palm oil exports.
Right now, Malaysia and Indonesia were the top producers of palm oil and Nigeria the fifth. Malaysia accounts for 31 per cent of global palm oil supply, second after Indonesia’s 56 per cent.
National President, National Palm Producers Association of Nigeria (NPPAN) , Amb Alphonsus Inyang said the association is working on increasing distribution of oil palm seedlings.
Inyang said, the association, is encouraging each family across the country to plant at least 20 oil palm seedlings.
Inyang, stated that Nigeria can become self-sufficient in the production of oil palm if some measures are put in place by government and other stakeholders.
He however said to achieve self-sufficiency there is a need for a programme where seedlings , fertilisers and other agro chemicals, will be made available to farmers ,urging the government to partner the association in the implementation of its One Family Twenty Palm Project’, where they give twenty seedlings and fertilisers to families.
He also called on state governments to partner with NPPAN in keying into the programme, adding that “some states can plant 5 million oil palm trees, some 2 million, and another 3 million oil palm trees.
According to Inyang, palm trees when planted will be harvested up to 50 years; one hectare of palm trees will give a minimum profit of N2 million from the third year.