Colombian Investors, Agri. Ministry in talks to establish Palm Oil industry

Dec 09, 2022 News

Kaieteur News – A team of Colombian Investors on Wednesday met with Agriculture Minister Zulfikar Mustapha to discuss the possibility of establishing a local palm oil industry. The Investors are from Palnorte, a company that owns and operates palm oil mills in Colombia.

The Ministry in a Press Release said that though Guyana was once a producer of palm oil, the industry has been dormant for many years as no new plantations have been developed in decades.

According to grandviewresearch.com, the global palm oil market will be valued at US$ 66.44B at the end of 2022 and is expected to increase to US$98.9B by 2030. The market is said to be driven by exponentially growing demand from the food, beverage, biofuel, energy, personal care, and cosmetics industries, the Ministry of Agriculture said.

“An oil palm tree will begin bearing nuts three to four years after it is planted and has a life span of between 25 to 30 years before its production levels begin to decline,” the media release said.

Palm oil trees

Minister Mustapha said that in addition to industry being lucrative, the cultivation of oil palm trees will also contribute to promoting Guyana’s green agenda as the crop when mature is said to capture as much carbon dioxide as a rainforest tree.

“One hectare of palm oil is said to collect approximately 30 tons of carbon dioxide and releases 21 tons of oxygen yearly,” the Minister said.

The Ministry of Agriculture said that the Government has been working assiduously to advance and diversify Guyana’s agriculture sector in a bid to lower the national food import bill. These efforts are in keeping with CARICOM’s Vision 20 by 2025 agenda.

Meanwhile, earlier this year, President Dr. Irfaan Ali disclosed that he held bilateral discussions that could see Guyana producing coffee and palm oil, while both countries boost their agricultural sectors through mutual learning and shared opportunities with the President of Guatemala, Alejandro Giammattei Falla at a Central American and Caribbean Summit.

President Ali told Reporters that, “We’re talking about helping us to revitalize, improve coffee production in Guyana (and) other high-value crops like palm oil.”

Over the last two years, there has been an influx of overseas companies signaling their interest in establishing new industries in Guyana. Last week, the Government of Guyana, through the Ministry of Agriculture, signed a Memorandum of Understanding (MOU) with the Israeli company, KARLICO INC., making way for the development of a US$15M hydroponic production system project in Guyana.

The hydroponic project will aid in the production of fresh herbs, lettuce, and other leafy vegetables as well as other high value crops, the Ministry said.