The expansive area of the Congo Basin rain forest in Cameroon is currently of interest to investors in search of land for palm oil plantations.  Many Asian palm oil companies are investing heavily in Central African countries to expand their production areas. This is chiefly due to the pressure to meet the rising demand for food and fuel, to limit deforestation, cope with increased land shortages and aid in closer scrutiny of land acquisitions.

Patrice Levang, a scientist at the Institut de Recherche pour le Développement (IRD) and Center for International Forestry Research (CIFOR) said, “Cameroon is of special interest to many Asian palm oil companies due to the excellent biophysical conditions, availability of cheap land and labour, political stability, the willingness of the government to develop its agricultural sector, and more importantly the closeness of the country to high-valued European and North American markets.”

The Cameroonian government is willing to offer concessions to companies in search of large acreages of land for palm oil production in forested zones since industrial palm oil production is a key element of the government’s poverty reduction strategy. According to Patrice Levang and David Hoyle (WWF), a new national strategy should invest in increasing the productivity and yield of the existing palm oil plantations as well as focus on sustainable development with minimum impact on carbon emission levels and biodiversity conservation.

Details on palm oil development in West and Central Africa, investment opportunities, sustainability, yield improvement and other aspects of oil palm plantation will be discussed at Palm Oil Africa which opens in Accra on 05-06 September. See here for more information on program agenda. Registration is opened so one may Register now, or contact Ms. Hafizah at hafizah@cmtsp.com.sg for enquiries and information.

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Ghana’s ‘Oil Palm Master Plan’ and national Tree Crop policy, recently unveiled by the Government is expected to raise the country’s competitiveness in production of commodities within the next 15 years. This will also help meet the estimated local demand of 295,000 metric tonnes for the manufacturing industry. ‘The Oil Palm Master Plan’ is expected to serve as the blue print which outlines the set of projects and programmes to be implemented for the sector’s growth.  Access to financing, certification, land-use policy, technology transfer, infrastructure development from the farm to the port, pricing mechanism and marketing will be the primary focus.

Currently, 305,700 hectares of oil palm plantations is under cultivation. But to meet the local demand there is a requirement for an additional 20,000 hectares. The 2010 palm oil output projected stood at 260,000 metric tonnes, indicating a deficit of 35,000 metric tonnes, which left the government with no choice but to spend US$100 million per year on importation to make up the deficit. If managed properly, the country can benefit from the huge market created by the unmet demand for palm oil.

Head of the Tree Crops Development Unit, Ministry of Food and Agriculture (MOFA), Joseph Baidoo-Williams said in an interview that the development of the plan would make it very easy to attract donor support to enhance palm oil production. He added that the government would support two new oil-palm out-grower schemes next year in the Western Region.

The output from Benso Oil Palm Plantation (BOPP),Twifo Oil Palm Plantation (TOPP), the major producers in the country, as well and Ghana Oil Palm Development and Norwegian firm Norpalm is only 80,000 tonnes per annum, as against the demand by Unilever alone, which is 90,000 tonnes.

At Palm Oil Africa which will take place on 05-06 September in Accra, official speakers as well as key representatives from the private sector will present their views and share their expert views on  Africa’s palm oil industry. Hon. Yaw Effah-Baafi, Deputy Minister,Ministry of Food & Agriculture, Ghana will grace the event and deliver an official Keynote Address entitled “Investment Opportunities in Palm Oil & Rubber Plantations in Ghana”.

To take part in this event, Register here now. Else contact Ms. Hafizah at hafizah@cmtsp.com.sg for queries.

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New-York based agriculture company Herakles Farms announced its decision and new details for the phased development of its Cameroon palm oil subsidiary, SG Sustainable Oils Cameroon (SGSOC), to ensure sustainable, environmental and socially sensitive growth.

Currently, SGSOC has cultivated less than 30 hectares in the Nguti, Mundemba and Toko Sub-Divisions of South West Cameroon. This includes three nurseries with 7,000 mature trees ready to be transferred to the field. SGSOC had recently performed pre-clearing studies on the initial 2,000 hectares land being evaluated for field-planting development. The studies included an examination of the flora, fauna and habitat of the adjacent land to ensure maintenance and protection of all environmental and social high conservation value areas.

Bruce Wrobel, CEO of Herakles Farms stated, "Herakles Farms is committed to listening to the concerns of all stakeholders and modifying our practices where necessary. We want to be a responsible leader in developing sustainable agriculture that prioritizes community development”. He also said, "We are focused on balancing our commitments to the Government regarding job creation and economic development with the specific and important interests of the local communities, as well as NGOs and other stakeholders. We are proceeding in systematic phases in order to be responsive to all concerned. Going forward, we want to foster greater openness, transparency and collaboration in our activities."

In September 2009, SGSOC committed to development in Cameroon. The Company and the Government of Cameroon signed an agreement to develop approximately 70,000 hectares of oil palm in an area classified by the Government as secondary forest in the South West Region.  In August 2011, SGSOC submitted an Environmental and Social Impact Assessment (ESIA) for the area to the Government of Cameroon. In September 2011, the Government issued its approval through a Certificate of Environmental Conformity. SGSOC expects approximately 60,000 hectares to be suitable for planting. Meanwhile, it has committed to perform additional pre-planting studies.

At the upcoming Palm Oil Africa in Accra on 05-06 September, Ms. Delilah Rothenberg, Project Manager of Herakles Farms / Herakles Capital is slated to present a talk entitled “Benefits and Challenges of Palm Oil in Africa – A Grower’s Perspective”.More details of palm oil development will be available at the summit.

REGISTER here to attend the event. Or contact Ms. Hafizah for enquiries at hafizah@cmtsp.com.sg

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In response to the increasing global demand for palm oil, the West African country, Cameroon is inviting foreign companies to expand industrial palm plantations. According to the government, the companies seeking acquisition of land for palm oil plantations in the South and South-West region are Sithe Global Sustainable Oils Cameroon (SGSCO) owned by US-based Herakles Farm (180,000 acres), Malaysian-based multinational and world’s biggest listed palm oil producer Sime Darby (1.5 million acres) and Indian- owned Siva Group/Biopalm Energy(500,000 acres), as well as 3 more companies.

Government statistics show that Cameroon is the 13^th largest producer of palm oil globally. 230,000 tonnes is produced annually by a mix of small holders and agro-industrial plantations, and around 470,000 acres is under cultivation. About half the total production is exported to Nigeria, France and other countries. To make up for the 150,000-tonne deficit for domestic consumption, the government’s Rural Sector Development Plan aims to triple the palm oil production to about 450,000 tons annually by 2020.

Despite opposition from environmentalists on climate threats and loss of some fauna and biodiversity, local communities in the project areas have embraced the projects. Officials say that the projects will prove economically beneficial as it is going to provide direct and indirect employment and bring more revenue to the state.

Given the rapidly growing global palm oil demand, at the Palm Oil Africa conference on 05-06 September in Accra, industry experts will examine the various aspects of palm oil plantations in countries such as Ghana, Nigeria, Liberia, Sierra Leone, Gabon, Cameroon and Cote d’ Ivoire, including investment prospects, yield management, disease control, environmental impact & biodiversity conservation, and many more.  Register here and reserve places to attend the conference. For enquiries, contact Ms. Hafizah at hafizah@cmtsp.com.sg

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Click here to view the Reuters listing of the major and emerging palm oil players in Africa.

In the recent years, West and Central Africa have gained interest in foreign investments for palm oil. The industry made over $5.9 billion between 2009 and 2011. The price of palm oil has quadrupled between 2000 and 2011, and the trend is expected to carry on with a 3% increase per year, owing to the rising demands for this natural resource which is used in the food industry, cosmetics, and bio-fuels energy sector.

Leading producers, Malaysia Sime Darby and Indonesian Golden Agri-Resources have committed to invest around $4.7bn covering 450,000ha in Liberia alone. In Gabon, Singapore’s Olam has obtained exploitation rights of close to 300,000 hectares. Other regions captured by investors for the highly profitable palm oil include Cameroon, Congo, Angola, Côte d'Ivoire, Tanzania, and Mozambique.

Favourable climatic conditions, accessible land and conducive legislation serve to complement the agricultural potential of Africa, which is currently only a marginal producer. And a growing global demand provides an excellent opportunity to take advantage of this potential. The European Union’s directive which states that 10% of EU’s total energy consumption in 2020 should be bio-fuels has driven Western groups to mark their presence in Africa. Italian ENI has reached an agreement with the Angolan government for palm-oil plantation development. This leading oil-producer on the continent is also present in Congo with an investment commitment of $345 million.  From the Asian front, Indian investors have shown interest and Chinese telecoms operator ZTE has a 100,000 hectare plantation in the Democratic Republic of Congo. Brazilians have also voiced their interest.

Given the huge business potential in Africa’s Palm Oil sector and demand for latest know-how, CMT has initiated plans to host a Palm Oil Africa conference to provide information to prospective foreign investors and production companies on financing, investment prospects, land regulations, labour laws and logistics & infrastructure support. The event which will be held on 05-06 September in Accra will also dwell on crucial subjects like applying large-scale cultivation expertise from Asia, opportunities for downstream processing, as well as R&D on improved planting materials and techniques.

The final details of the event are currently be finalized. In the meantime, one can Pre-Register to reserve places or forward queries to hafizah@cmtsp.com.sg

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