The boom in oilseeds -palm, soybeans, peanuts- in Nigeria, according to USDA

Published Jun 28, 2021

Tridge summary

Nigeria's oilseed sector is witnessing significant growth due to a large population and increasing middle class, with palm kernel production and consumption expected to surge by 23% in 2021/22. The expansion is driven by demand from the agro-industrial sector, with companies like Dufil and PZ Wilmar investing in plantations and technology, and there is an anticipated 33% rise in palm kernel imports. Additionally, soybean production and imports are set to increase by 43% and 100% respectively, and peanut seed production is expected to rise by 9%. However, peanut oil production is projected to exceed consumption, leading to an export surplus.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The oilseed sector in Nigeria is experiencing remarkable development, driven by demand from a population of 219 million, 60% of whom are under the age of 24 and a growing middle class; half of the population is now urban. For palm kernels, production is expected to increase by 23% in 2021/22 to reach 900,000 t, well above its initial forecast of 730,000 t. The area devoted to oil palm would reach 3 million hectares (Mha), or 20% more or 500,000 ha than in 2020/21, said a report from the United States Department of Agriculture released on Thursday. In 2021/22, palm kernel consumption in Nigeria is expected to increase by 23% or 175,000 tonnes (t) to reach 920,000 t. This exceeds the headline USDA estimate of 745,000 t. This sharp increase, higher than expected, would be linked to the growing demand from the national agro-industrial industry, both in cosmetics, soaps and edible oil (Dufil, PZ Wilmar, in particular), which encourages private companies invest in plantations and ...

Source: Commodafrica