MARKET DEVELOPMENT
BoI, Agric Ministry Raise the Stake in Oil Palm Industry
BoI, Agric Ministry Raise the Stake in Oil Palm Industry
16/09/2014 (THISDAY Live) - In line with its commitment to increase financing efforts in the agro-processing sector, the Bank of Industry (BoI) and the Federal Ministry of Agriculture have expressed optimism of increased investment in the sector.
Indeed, both agencies note that capacity utilisation in the cottage industry is expected to increase with commitment of funds to the sector.
Witnessing the commissioning of two oil palm processing cottage industries in Osun State, stakeholders noted that the initiative will serve as a catalyst for expanding industrial capacity and enhancing value addition efforts to the nation’s raw materials.
According to the Osun State Special Adviser to the Governor on Agric and Food Security, Festus Agunbiade, most farmers are challenged at the stage of processing, because when they sell without adding value, they are bound to get a poor price.
“If we don’t take care of processing facilities then we would just be producing for wastages and if you are sure that your commodities would be processed you will be encouraged to add more value. From today, in Osun state you can be assured that farmers would be encouraged to grow oil-palm because they are sure that their incomes will increase as wastages are being drastically reduced,” he said.
He noted that the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina understands the challenges of farming and the farmers and his efforts have resulted in the increase of production capacity.
“We are also witnessing a better approach to the issue of funding by BOI because they have come down to the real issues; farmers can no longer bear the high costs of commercial bank facilities, it is very good that BOI has now come down to its real mandate and is financing agriculture by charging single digit interest rates. I will advise them that they increase their monitoring activity so that such facilities will be well monitored,” he said.
On his part, Company Secretary to one of the beneficiary cottage industry, E99 Oasis Integrated Services Ltd, Bola Adebowale, commended the initiative as a worthy one under the ATA championed by Adesina.
“Let me sincerely thank the Bank of Industry for the support provided on this project. This is a clear indication of a financial institution building strong support in the actualisation of agricultural programmes, especially in the oil palm cottage processing mill.
Today’s commissioning is a great event and a milestone in the annals of the history of farm E99 that was established to aid food production in the country as well as enhance stable food availability to the people. With this Mill, I am sure palm oil produced in the farm will meet the international standard quality,” he said.
He stressed that it was heart-warming to note that the problems facing the producers and farmers of oil palm will soon fade away, as it was now possible for farmers to get their palm-oil produced without the body-aching old and unhygienic system.
Fabricator and installer of the machines at the industries, Chief Executive Officer, Process Concepts and Technologies Ltd, Victor Olomo, explained that the machines will be used to process palm-oil from harvested bunches from the oil-palm plantation.
“The idea is that we want to produce palm-oil that is of high enough quality that can be safely consumed, used by industries and meet export specifications and this facility here meets the requirement,” he said.
He noted that so much has been done but that much can still be done in the agricultural sector because of its vast potential for job creation, income generation and income substitution.
“Another great thing about this project that is being supported by BOI is that part of the terms is for us to train the equipment operators and we have trained those presented by the cottage industries to ensure that there will be no problem with operation and maintenance of the installed equipment,” he enthused.
He noted that the ATA has been very positive not leaving out local equipment fabricators, as greater opportunities have arisen for processors to come in and reduce post-harvest losses and that has enabled the machine fabricating sector to grow, a clear demonstration that agriculture can be more vibrant than it was before.
He stressed that it was a demonstration of courage, determination and patriotism for BOI to partner with the federal government and investors to make sure that resources are made available to cottage industries like these ones.
Indeed, both agencies note that capacity utilisation in the cottage industry is expected to increase with commitment of funds to the sector.
Witnessing the commissioning of two oil palm processing cottage industries in Osun State, stakeholders noted that the initiative will serve as a catalyst for expanding industrial capacity and enhancing value addition efforts to the nation’s raw materials.
According to the Osun State Special Adviser to the Governor on Agric and Food Security, Festus Agunbiade, most farmers are challenged at the stage of processing, because when they sell without adding value, they are bound to get a poor price.
“If we don’t take care of processing facilities then we would just be producing for wastages and if you are sure that your commodities would be processed you will be encouraged to add more value. From today, in Osun state you can be assured that farmers would be encouraged to grow oil-palm because they are sure that their incomes will increase as wastages are being drastically reduced,” he said.
He noted that the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina understands the challenges of farming and the farmers and his efforts have resulted in the increase of production capacity.
“We are also witnessing a better approach to the issue of funding by BOI because they have come down to the real issues; farmers can no longer bear the high costs of commercial bank facilities, it is very good that BOI has now come down to its real mandate and is financing agriculture by charging single digit interest rates. I will advise them that they increase their monitoring activity so that such facilities will be well monitored,” he said.
On his part, Company Secretary to one of the beneficiary cottage industry, E99 Oasis Integrated Services Ltd, Bola Adebowale, commended the initiative as a worthy one under the ATA championed by Adesina.
“Let me sincerely thank the Bank of Industry for the support provided on this project. This is a clear indication of a financial institution building strong support in the actualisation of agricultural programmes, especially in the oil palm cottage processing mill.
Today’s commissioning is a great event and a milestone in the annals of the history of farm E99 that was established to aid food production in the country as well as enhance stable food availability to the people. With this Mill, I am sure palm oil produced in the farm will meet the international standard quality,” he said.
He stressed that it was heart-warming to note that the problems facing the producers and farmers of oil palm will soon fade away, as it was now possible for farmers to get their palm-oil produced without the body-aching old and unhygienic system.
Fabricator and installer of the machines at the industries, Chief Executive Officer, Process Concepts and Technologies Ltd, Victor Olomo, explained that the machines will be used to process palm-oil from harvested bunches from the oil-palm plantation.
“The idea is that we want to produce palm-oil that is of high enough quality that can be safely consumed, used by industries and meet export specifications and this facility here meets the requirement,” he said.
He noted that so much has been done but that much can still be done in the agricultural sector because of its vast potential for job creation, income generation and income substitution.
“Another great thing about this project that is being supported by BOI is that part of the terms is for us to train the equipment operators and we have trained those presented by the cottage industries to ensure that there will be no problem with operation and maintenance of the installed equipment,” he enthused.
He noted that the ATA has been very positive not leaving out local equipment fabricators, as greater opportunities have arisen for processors to come in and reduce post-harvest losses and that has enabled the machine fabricating sector to grow, a clear demonstration that agriculture can be more vibrant than it was before.
He stressed that it was a demonstration of courage, determination and patriotism for BOI to partner with the federal government and investors to make sure that resources are made available to cottage industries like these ones.