Palm oil: Ihonvbere calls for backward integration BENIN CITY – - TopicsExpress

Palm oil: Ihonvbere calls for backward integration BENIN CITY – Secretary to Edo State Government, Professor Julius Ihonvbere has emphasised the need for backward integration by way of manufacturing and processing in the oil palm industry. He made the remark on Wednesday night at the Pre-Annual General Meeting (AGM) cocktail party of PRESCO Plc. Professor Ihonvbere who was speaking with journalists at the event noted that the growth of the palm oil industry is good for Edo State, adding that it is doing well in the international market and has not experienced any down turn. “The industry is growing rapidly as more companies are turning to palm-oil for the manufacture of a variety of things including Indomie that we eat. As I speak, we have more than six different companies on queue in Edo State asking for land to go into the palm oil sector. But we don’t just want people doing palm oil, we want backward integration. We want manufacturing, processing and the conversion of some of their products into finished goods for the local market to earn foreign exchange. It is more tax for us, it is more income for us,” he stated. “As our people get employment here, they too will earn income and improve the living conditions of their families. Overall, the growth of the palm oil sector is good for Edo State. “Indonesia makes as much money from palm oil, as we make from oil. So it is as lucrative. It is doing well in the international market and really has never experienced any down turn, even when synthetic oil was invented and was thought to replace palm oil, that romance didn’t last for long,” he further observed. He however pointed out that government has provision to assist local farmers grow palm oil through the ministry of agriculture, adding that so many people have taken advantage of it. Professor Ihonvbere however advised PRESCO PLC to strive to improve on its corporate social responsibility, and lauded the company for not being static and applying for more land for expansion.

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