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There are several economic benefits associated with oil palm estates in agriculture:
According to Ambassador Godwin Apple, one of the Global Peace Ambassador under the UN formation,.
Ambassador Agim Godwin Apple, General Consultative Status on Economic and Social Council of the United Nations.
Oil palm estates require a significant amount of labor for cultivation, maintenance, harvesting, and processing.
This creates employment opportunities, particularly in rural areas where job opportunities may be limited especially in the development countries as Nigeria.
The industry provides jobs for both skilled and unskilled workers, contributing to income generation and poverty reduction.
The economic growth is based on foreign exchange and earnings, thereby Oil palm estates contribute significantly to a country’s economy by generating foreign exchange through exports. Palm oil is one of the most widely traded commodities globally, and countries with oil palm estates can benefit from the international demand for palm oil products. The revenue earned from exporting palm oil can contribute to economic growth and development
Amb. Agim, says income generation for farmers such as smallholder farmers engage in oil palm cultivation, either in partnership with large-scale estates or through independent cultivation.
Palm oil offers higher returns compared to many other crops, making it an attractive option for smallholder farmers. It provides them with a stable income source and can improve their livelihoods.
This will bring value-added product manufacturing, Oil palm derivatives, such as palm oil and palm kernel oil, are used in various industries, including food processing, cosmetics, pharmaceuticals, and biodiesel production.
Establishing palm oil processing facilities, refineries, and industries that manufacture value-added products locally can create additional economic opportunities, attract investment, and promote industrial development.
Let’s come to infrastructure development in question, you can see that the establishment of oil palm estates often requires the development of supporting infrastructure, such as roads, irrigation systems, and processing facilities.
This infrastructure development benefits not only the estates but also the surrounding communities, improving connectivity, facilitating transportation, and boosting overall development in the region.
The Tax revenues on Oil palm estates contribute to government revenue through various taxes and levies, including land taxes, income taxes, export taxes, and import duties. These revenues can be utilized for public infrastructure development, education, healthcare, and other essential services, providing benefits to the broader population.
However, it is important to note that while oil palm estates bring economic benefits, there are also environmental and social concerns associated with their cultivation. Issues such as deforestation, habitat destruction, carbon emissions, and conflicts with local communities need to be managed effectively to ensure sustainable and responsible palm oil production.
Copyright ©️ Ambassador Godwin Apple [email protected]
www.hrwn.org
