Smallholder oil palm takes off

The National Weekender
AGRICULTURE
Markham Valley villagers in Morobe are now reaping rewards from a crop that is better known in places like West New Britain, New Ireland and Milne Bay

By MALUM NALU
AT Dabua Village in Umi-Atzera Local Level Government (LLG), Markham Valley, you come across a unique sight.
Hundreds of oil palms are growing in this rural village bordering Ramu Valley in Madang on one side, and Eastern Highlands on the other.
These palms are not owned by Ramu Agri Industries Ltd (RAIL)), part of the giant New Britain Palm Oil Ltd (NBPOL), but by the villagers themselves through the Village Oil Palm (VOP) scheme.
This is the biggest VOP project in not only Morobe, but also the Madang and Sepik provinces as well.
It’s Sunday, February 13, 2022, and I am with Oil Palm Industry Corporation (Opic) General-Secretary Kepson Pupita, Morobe Provincial Administrator Bart Ipambonj and Markham Valley landowner leaders.
We are here to meet with landowner leaders with a view to getting the smallholder oil palm industry up and running in the valley.
It is also in line with the vision of the Marape Government to economically empower people in rural areas of the country.
Baida Isi, Chairman of the Morobe Province Outgrowers’ Association, oversees the VOP project at Dabua which sells to RAIL’s mill at Gusap in the neighbouring Ramu Valley of Madang.
“The land we plant (oil palm) on here is 80 hectares, consisting of 40 farmers who own 2ha blocks,” he tells me.
“Every year, we make about K800,000 from the sale of our fresh fruit bunches (FFB) to RAIL.
“It really depends on individual farmers: if they look after their crops, they can make good money; lazy farmers earn less.
“However, this particular area which we are standing on, has very good production.”
RAIL trucks come in regularly to pick up FFB from farmers which they take to the mill at Gusap.
Farmers’ earnings are paid into their bank accounts on a fortnightly basis, so it’s just like a fulltime job, as is the case with outgrowers in West New Britain.
“We are very fortunate in that we get money paid into our accounts every fortnight just like regular wage earners,” Isi adds.
“Simple villagers can go to the supermarkets at Gusap and use their cards to do their shopping and withdraw cash.
“The supermarkets quickly run out of food and the ATMs out of cash when the oil palm outgrowers are paid.
“They (villagers) are just like public servants or private sector employees.
“They also contribute to Nasfund’s Eda Supa scheme.”
Pupita says what is happening at Dabua should be replicated in all Markham Valley villagers from here to 40-Mile.
“We just need to do more (in the Markham Valley),” he adds.
“There is much land here but poverty is high. We need to bring down poverty and have a lot more disposable income for our farmers from 40-Mile to here.
“What is being done here should be replicated all the way to 40-Mile.”
Road access, however, remains a problem for Dabua villagers which Opic will help to solve by doing road maintenance.
The smallholder oil palm industry is set to take off in the valley following discussions between Opic, Morobe Government and landowner leaders.
Earlier, before coming to Dabua, we had a meeting at Mampin Village with landowner leaders.
The Markham villagers have been waiting for more than 10 years for smallholder oil palm to take off in the valley, following a launching by former prime minister Peter O’Neill, but to no avail.
During this time, NBPOL has taken up sizable chunks of land in the valley to grow oil palm, as the people have watched as spectators.
Opic has wasted no time and this week sent two officers to be based permanently at Mutzing sovernment station to get the industry up and running.
Following the meeting, Pupita, Ipambonj and landowner leaders visited the proposed site of the OPIC office at Mutzing, nursery and accommodation sites at Umi and Dabua.
Dabua will be the model on which to build the Markham smallholder oil palm industry.
A jubilant Pupita describes Markham as the “new frontier” which has the potential to rival West New Britain, New Ireland, Northern and Milne Bay as major players in the oil palm industry.
“Opic, with full support from the customary landowners, anticipates to set up a 2000-hectare nursery project in the Markham Plains,” Pupita says.
“The nursery will cost a total of K6.15 million and has the potential to raise 240,000 palm trees.
“Based on current market prices, this project has the potential to generate around K20.7 million to K27.6 million through the sale of fresh fruit bunch per year. In respect to export earnings, we have potential to bring K36 million to K40 million into the country.
“This money will go straight into the pockets of the local villagers engaged in oil palm cultivation.”
Pupita says Opic has requested the Morobe Government to fund the 2000ha nursery project while it will provide the technical expertise.
The Opic general-secretary is in the Markham Valley this week to ensure that the project is up and running.

  • Malum Nalu works with the Office of the Prime Minister