21/10/2008 (Solomon Star News) - THE Palm Oil Outgrowers Association of Guadalcanal Plains is seriously seeking a justification from Guadalcanal Plains Palm Oil Limited (GPPOL) for a drastic drop in palm oil prices.

They are also seeking explanation from responsible authorities within the government. Outgrower price has dropped to $626 per metric tonne from previous $1186 on fresh fruit bunches.

The chairman of outgrower association, Henry Saea, reported this to Solomon Star claiming to represent all outgrowers.

“The drop is more than drastic as one can imagine; some 47% and therefore needs a proper justification from GPPOL.

“If the company cannot provide any justification then government authorities responsible to supervise or monitor such an entity should do so likewise,” said Saea disappointedly.

He further said that if the government is satisfied with the drop then it should subsidise the decrease to avoid small holders being discouraged.

If the government is truly for rural development as they use to preach they should practice it now.

“Oil palm is a contributor to the economy as a foreign earner and I challenge the government to do it,” he said.

Saea claimed he rang the GPPOL General Manager, Harry Brook, to discuss the issue only to be told he was too busy.

GPPOL is a company that took over from the former SIPL after the ethnic tension and land owners alleged that it was no better than the previous company.

Attempt to seek clarification from CEMA, Trade Commerce and the Department of Agriculture was proven futile.

They only said the drop may due to world price but provides no further explanation stating that only GPPOL knows.

“This is just incredible and it’s just too bad,” Saea complained. “Does it mean the government has no monitor for this foreign company,” he questioned.

Greenta Tome another member of the association alleged GPPOL monopolises palm oil.

So it most probably targeting to discourage outgrowers just to lease their land and only pay royalties to landowners, she said.

Outgrower scheme is where land owners plant and harvest their own palm oil and sell fresh fruit bunch to the company.

According to Saea, outgrowers project gives more money to land owners than receiving royalties from the company.

In outgrower one hectare of land alone can earn $2000 over a month to a landowner.

In comparison, 66ha of Saea’s tribal land rented by GPPOL earns a royalty of only $1900 per month, a mere $29.79 per hectare per month.  

Outgrowers are losing confidence on the company and have threatened to transfer their land to alternative viable development that might be of better benefits.

Even new interests have been discouraged by the recent fall in fresh fruit bunches.

One for sure, Solomon Toma said: “I am also planning to have my palm oil outgrower but due to the current trait I better withdraw first.”