The Plantation Owners Forum of Nigeria on Thursday said that the price of palm oil will remain stable all year round.
The forum said the decision was to ensure that both the wealthy and the not-too-wealthy were able to purchase the product for their daily needs.
Chairman of the POFON, Mr. Emmanuel Ibru, disclosed this in a chat with newsmen after the forum meeting in Benin-City, the Edo State capital.
Ibru, who is also the Chief Executive Officer of Aden River Estates Limited, an agro-industrial subsidiary of the Ibru organisation, said the prices for palm oil would be stabilised throughout the year in the country, irrespective of the production seasons.
He said just like the Nigerian government is working to stabilise the country’s economy, POFON is also interested in making sure that prices of palm oil also remain stable.
He said, “In Nigeria we have two seasons for palm oil. When it is peak season, the prices will go down, and when it is lean season, the prices will go up.
“Our members are trying to see what they can do this time around to stabilise the prices so that there is not much difference between the peak and lean seasons prices.
“POFON and its members have this year resolved to try and ensure that we maintain a stable price of the commodity even throughout the off-peak.
“We are not unaware of the inflationary trends. We know that the cost of inputs is going up, but despite that, it is also our duty to ensure that we maintain a satisfactory price profile in the market,” he said.
He noted that members were also investing in expanding their plantations geared towards increasing their capacity to meet the local demands in the Nigerian market.
He added, “There is no doubt that there is still a gap in the supply and demand of palm oil in Nigeria, but POFON and its members over the last 10 to 15 years have made tremendous efforts to increase the production of oil palm in the country.
“Some new players have come in; the traditional large holders such as Presco and Okomu have continued to invest and expand their plantation holdings, while new players such as Dufil, Saro Africa, and others have come into Edo State.
“So, in all, attempts have been made, and we can see those attempts coming to fruition. I will say about eight years ago the total amount of crude palm oil produced in the country was in the region of 900,000 to one million tonnes per annum.
“Today we have been able to increase it to about 1.4 million to 1.5 million, which means there has been a 50 per cent increase in production, which is no mean achievement.”
Ibru, who noted that there was still a supply gap, added that the organisation is working closely with some government agencies in developing a roadmap for sustainable development of oil palm in the country as well as sustainable finance for the industry.
He noted that the roadmap is not only for the large-scale plantation holders but also for the small and medium scale holders.
He added that in the lean season there is a tendency to be a reduction in supply of palm oil, which correspondingly leads to the increase in prices as against the peak season when the supply is high.
Ibru asserted that Nigeria is the highest producer of palm oil in Africa and 5th in the world but needs to increase its hectarage to about 500,000 hectares to meet the local needs and also become more efficient in production.
