Oil palm minister sees partnership with overseas firm as key

A PARTNERSHIP with an overseas firm in the oil palm industry will boost downstream processing of the commodity, a minister says.
Oil Palm Minister Francis Maneke said one of the Asia-Pacific region’s leading agri-businesses, Wilmar International Limited, was looking at developing other crops in rice and corn but also enter the oil palm sector.
Maneke said this when responding to a question raised by The National on the investment potential of Wilmar International in oil palm.
“Obviously Wilmar International is a big company and they have their own specifics in terms of what agriculture crops they would want to invest in and downstream, but for oil palm, we can partner with them if the industry in PNG excites them,” Maneke said.
“Oil palm is unlike other crops. It has its own certified standard for each market. I understand Wilmar International is currently looking at rice and corn production. For them to come into oil palm is possible, but we must have a policy in place to ensure that proper measures are taken in the process of growing and production of the crop. This also includes meeting climate change guidelines as well as market regulations,” he explained.
Last year, Wilmar International Ltd signed an agreement in agribusiness with the state to expand the agribusiness sector in the country.
The agreement, facilitated by International Trade and Investment Minister Richard Maru, signified the commitment of the Government to the investor, Wilmar International, to progress into developing the agribusiness sector.
Wilmar International currently has an investment worth about K300 million, through its subsidiary Goodman Fielder in Lae.
Goodman Fielder is a leading food manufacturer and produces the popular Flame brands including stock feed, flour, oil, sugar and rice.
Maneke added that it was important to have the policy and the restructuring of the industry in place in order to make it easier for foreign investors to invest in the oil palm industry.