Palm Oil Prices Increase
Palm oil prices have returned to normal.
According to New Britain Palm Oil Ltd (NBPOL), the cost is presently at US$880 (K3,019.95) per metric tonne cost, insurance, and freight Rotterdam mark.
Country manager Robert Nilkare said that this important achievement was a source of income for employees and smallholders and of foreign currency for the country. He added that this was a 60 per cent increase from the bottom of the market and above the cost of production, making oil palm a lucrative business for smallholders.
“The palm oil sector is currently very strong with demand for our products as food ingredients only slightly reduced in the face of significant reductions in supply,” he said. “As such prices have recovered to pre-pandemic levels and are a significant source of foreign currency for the country and a critical source of income for our smallholders and employees.”
Nilkare added that their firm has been working extra hard to protect their workers against the coronavirus and has put in place safety and health measures and protocols around the area.
“There have been a number of additional protocols that had to be implemented to ensure that the business has been able to continue as it is critical to the livelihoods of so many Papua New Guineans,” Nilkare said.“2020 has been a good year for the business due to recovering prices and the strong management that believes in the future of agriculture in PNG.”
On NBPOL topping global ranking in transparent and sustainable oil palm production, Nilkare said, “It is very important to our customers in particular that they are using sustainably sourced palm oil that is supporting the development of Papua New Guinea.”