Establishment of oil palm plantation
Nigeria used to be the world’s largest producer of oil palm before the oil boom era, but Malaysia has now taken the lead. Oil palm plantation and allied industries is now the main stay of Malaysian economy. Malaysia came to Nigeria in the seventies to obtain oil palm seeds and seedlings.
Oil Palm can be used in various ways: the leaves are used in making brooms and for roofing materials especially in the rural areas. The bark of the fond can be peeled and woven into baskets. The main trunk can be split like sawn timbers and used as part of building materials. Palm wine can be obtained from oil palm and red palm oil are readily obtainable from the fresh fruit bunches. When the fruit is processed, the residue obtained can be used as fuel (for cooking and fertilizer to improve soil nutrient).
Red palm oil is used in cooking, making soap, candle and margarine. Palm Kernel oil can be extracted from the nut. The residue obtainable in the process of palm kernel oil extraction, otherwise called palm kernel cake, is used as livestock feed. Palm kernel oil is used in vegetable oil and soap making. Palm Kernel shells are also useful as energy sources and industrial raw materials such as mosquito coils. The uses to which oil palm can be made seem non exhaustive. This clearly indicates investment made in the establishment of oil palm plantation is nothing but a wise one. The market is guaranteed for all the products of oil palm plantation in this era of global food crisis.
Technical information
To establish oil palm plantation, it involves getting a good site where rich, well-drained acidic soils are abundant. The soil should have adequate quantities of potassium, magnesium and nitrogen. Soil tests should therefore be carried out to determine the nutrient status of the land.
It is usually better to use the early maturing variety called Tenera, which bears fruits as from the fourth year. Other requirements include seedlings procurement; this can be obtained from reputable nurseries. Prospective investors must engage the services of Agricultural experts in the course of establishing this project. Other cultural practices are planting, regular weeding, pruning and fertilizer application. Serious minded investors will be guided accordingly in the implementation of this project.
Financial aspect
We are recommending a 20 hectare plantation for a start. 20 hectare oil palm plantation can conveniently service a palm oil mill that will be established by the owner when the plantation starts to fruit.
Various governments (Federal, States and Local) can also set up this project and lease it out to individuals and corporate bodies, on maturity. It is a way of diversifying the economy and also creating jobs and income opportunities for Nigerians. It is also one of the strategies for food security in the country and is also in line with the transformation agenda of the present Federal Government of Nigeria.
Income analysis
A mature plantation will start to give investor 12.5 tonnes per hectare of red palm oil annually from the fourth year per hectare. 250 metric tons of oil can be obtained annually from 20 hectares plantation. A tonne of red palm oil is a minimum of N150, 000. Gross revenue of N37.5 million is obtained from red palm oil.
We can also get 7.5 metric tons of palm kernels per hectare. This gives us 375 tons from 20 hectares. This translates to annual income of N26.25 million. Total income realisable is about N63.75 million while the annual operating expenses is put at N15 million. This leaves us with a net income N48.75 million, annually for the investor through his/her lifetime. There are still other sources of income such as palm fronds and palm kernel shells.
OLUMAKINDE ONI
Serious minded investors can be assisted in the realisation of this worthwhile investment.The author can be contacted through 08033660177, e-mail: olumakindeoni2@yahoo.com