Enugu United Palm Products begins commercial palm oil production as it invests $2.2m in refining and industrial expansion.
As Enugu State pushes ahead with its agenda of reviving its abandoned palm plantations, the Enugu United Palm Products Limited (UPPL), has commenced commercial production of palm oil for the Nigerian market.
The firm which is a public-private partnership between Pragmatic Palms Limited and the Enugu State Government, said it would also spend additional $2.2 million on refinery plant and building of a new industrial complex.
Managing Director of UPPL, Prof George Nwangwu made known the progress report Monday when he led a team of the company’s directors to brief Governor Mbah on the progress the firm has made after two years of commencing operations.
He said the company has now restored to productive use the palm tree plantations at Ibite-Olo, Umulokpa and Ugwu-Oba, located in Ezeagu, Uzo-Uwani and Oji River Local Governments, respectively.
Nwangwu narrated the sordid state of the plantations, saying that “when we took over, the place was thick forest and nothing but a dead place.”, adding that “we came in and turned the place from being a forest into a plantation”.
“We have cleared the whole place, pruned the trees that were there and started replanting. The trees we met were very old, over 50 years old, and so they needed to be replaced. Gradually, we are replacing them.
“So far, we’ve replanted over 1,000 hectares. The idea is to keep planting until we replant the entire plantation and renew all the trees that are there,” he said.
The UPPL boss said the company was moving beyond primary agricultural production by investing in processing and value addition, noting that it had installed mills and improved the quality and volume of palm oil production.
The UPPL boss said that the company’s management team was very much aware that “this is a business and not just planting (of palm tree) to make the plantations look nice, hence the need for more investment.
“Agriculture has moved beyond planting alone. We need to process (palm produce) because value addition is important. So, we’re milling our oil now. We’ve improved the quality and quantity of the oil that we’re producing.
“We have installed mills and also invested heavily in refining the products further down the line. We’re investing about $2.2 million to install a refinery. The refinery will not only refine our Crude Palm Oil (CPO) into olein and stearin, it will also refine our palm kernel oil,” Nwangwu said.
He added that the company was developing a new industrial complex to consolidate its production and processing operations.
Nwangwu said that the company’s palm oil had already been launched into the market with the brand name “EVOP”, adding that it is available in open markets and supermarkets across Nigeria.
He stated that sachet packaging of the product has commenced and within the next two weeks, satchet EVOP palm oil would hit the market.
Explaining the choice of brand name, the MD said that EVOP was chosen to connect the product with the region’s agricultural and industrial heritage, particularly the former AVOP vegetable oil brand produced in Nachi, Udi LG.
He said: “We chose the name EVOP to make sure that we keep in touch with our historical foundation. Some of us who are old enough would remember AVOP vegetable oil being bottled in Nachi, Udi.
“We feel that this is the product of our people and we had to connect with our historical beginnings. That’s why we called it EVOP, to connect with and remind people of our historical AVOP”.
Indeed AVOP vegetable oil was among the popular brands in the Nigerian market before the company owned by the old Anambra State went under, decades ago.
Nwangwu said that UPPL has a set objective of making its products readily available to households across Nigeria while maintaining strict standards of quality, natural production and traceability.
“The important takeaway about this palm oil is that it’s natural. Our plantations are in Ibite-Olo, Umulokpa and Ugwu-Oba. You can see the trees there. If you go there, you can see where we harvest the fruit bunches, how we mill the fresh fruit bunches and how we package them.
“Everything is done in-house. Nothing is contracted. We are end-to-end, and we also have certification from NAFDAC, SON and all the relevant agencies,” he said.
On traceability, the company’s MD said that UPPL products carry barcode and also a code that can be scanned to reveal where the product comes from, adding that “for us, traceability matters, and that is the fundamental advantage of our palm oil”.
He said that the company’s expansion would lead to creation of employment opportunities, growth of local economic activities and development of the state’s agricultural value chain.
Governor Mbah in his response described the partnership between the Enugu State Government and Pragmatic Palms Limited as a model worthy of emulation given the successes already recorded by UPPL.
He said that the partnership demonstrated his administration’s commitment to reactivation of dormant government assets for the benefits of Ndi Enugu.
Mbah assured the company that the state government would fulfil all its obligations under the partnership MoU and provide the necessary support to enable UPPL achieve its full potential.
The governor gave his backing for the company’s plan to be listed on the Nigerian stock market within four years, saying that Enugu needed companies capable of attracting public investment and creating greater value for the state.
“This is consistent with the state’s ambition, to optimise these assets and to grow them and make them big. We are talking about an investment outlay of over N100 billion, and if in four years you are targeting going to the market, we are with you on that. We will give you all support,” he said.
He stressed the importance of maintaining transparent and credible financial records ahead of the proposed listing, adding that government would hold regular briefings with the company to identify and swiftly resolve challenges.
Mbah stated that the state government has finalised arrangements to award contracts for speedy construction of two major road projects, including Umumba Ndiagu to Ebenebe road, in order to improve accessibility to the company’s plantations.
He also said that he has issued a directive that the headquarters of the state’s Forest Guards be located at Ibite-Olo to strengthen security around the plantations.
While assuring the company that the government would address any encroachment on its acquired land, Mbah further assured UPPL that the government would provide the 6,700 hectares committed under the partnership.
He promised that government would also work with the host commmunitiesand the company to secure additional land if it decides to expand to its targeted 10,000 hectares.