K233.5 million needed for oil palm development: Official
A TOTAL of K233.5 million is required to develop 10,000 hectares of oil palm in the country, an official says.
Oil Palm Industry Corporation (OPIC) acting general secretary Leslie Wungen said it meant 100,000 ha of new oil palm projects would entail a total investment of K2.335 billion.
“Assuming an average of 20 tonnes per ha, 100,000 ha will generate 200,000 tonnes of FFB (fresh fruit bunches),” Wungen said during the 2019 commodity board retreat in Port Moresby on Tuesday.
“This converts to 460,000 tonnes of CPO (crude palm oil) based on 23 per cent recovery rate.
“At an average, CPO market price of US$750 ( K2, 55.9) per tonne will generate US$345 million, which translates to K1.15 billion.
“In the first three years you would recover your investment cost.”
Wungen said PNG had 0.25 million hectares of oil palm planted which generated K1.3 billion.
“Imagine planting 6.24 million hectares of land suitable for oil palm and generating K72 billion.”
Meanwhile, he said oil palm feeder roads leading to small oil palm block holders in the five project areas needed upgrading and maintenance.
“Milling companies have been unable collect the FFB.
Consequently, production has dropped from areas affected by poor roads because of less attention given to oil palm and focus on other crops like beetle nuts.