Crop’s potential untapped

The National Business

By PETER ESILA
OIL palm small holder farmers generate on average between K450 million to K500 million annually on fresh fruit bunch (FFB) sales but there is potential for more, according to the Oil Palm Industry Corporation (Opic).
Opic acting general secretary Kepson Pipita said this in Port Moresby on Friday during a management meeting with project managers and accountants.
“The smallholder farmers have the potential to generate on average K500 million to K1.5 billion annually in FFB sales which is an average of 17 to 20 tons (yield) per hectare per year,” he said.
“Oil palm is PNGs major agriculture earner, generating on average K1.2 billion in export revenues per year.
“Export revenues from oil palm are equivalent to approximately 47 per cent of PNG’s total agriculture exports.”
Pupita said about 20,000 households were engaged in oil palm cultivation for and income and this supplemented their subsistence living.
“Milling companies such as New Britain Palm Oil Ltd and Hargy also provide formal employment to hundreds of Papua New Guineans,” he said.
Opic project areas include Alotau in Milne Bay, Popondetta in Oro, Kavieng in New Ireland and Hoskins and Bialla in West New Britain.
Pupita said the Opic Act of 1992 was outdated.
“The Papua New Guinea Opic Act is due for review and amendment. There are flaws in the Act that have negative implications to PNG Opic and the smallholder farmers.”
The areas of concern include:

  •  THE rate of the FFB levies contained in the Act are insufficient; they are not reflective of current inflationary trends such as the rising cost of goods and services and as cannot sustain PNG Opic’s operations; and,
  •  THE Act does not grant PNG Opic regulatory functions, as such PNG Opic is merely an extension service provider.
    Opic needs to be given the regulatory functions in order for proper coordination and management of the industry.