CHAPTER ONE
INTRODUCTION
Economic growth and prosperity are central to long-term poverty alleviation for social and
environmental sustainability. The oil palm industry represents one of the most effective
avenues for poverty alleviation, food security and ensuring economic stability. It is one of the
most efficient oil bearing crops in the world with average yield of 7 to 8 tons of crude oil per
hectare (Te-Chato and Hilae, 2007).
As the most efficient oil bearing plant in the world, the oil palm provides one of the leading
vegetable oils produced globally, accounting for one-quarter of global consumption and
approximately 60 per cent of international trade in vegetable oils (Coley and Tinker, 2003;
Nellemann et al., 2007; World Bank, 2010). The oil palm industry has the prospects of
providing employment for millions of unskilled and semi-skilled people (Patrick et al; 2013)
as demonstrated in many economies, with proper focus on production of commodities of
large scale commercial values. Therefore, improvement in the production of oil palm can
effectively mitigate the poverty in the world, especially Nigeria. Hence there is need for mass
propagation of oil palm through tissue culture to meet the global demand (UNCTAD, 2012).
Between 1970 and 2010, demand for palm oil grew by 2.5 million tonnes (mt) per year and
this trend continued till date, to satisfy both food requirements and for biofuels (UNCTAD,
2012) making palm oil the most traded oil in the world. From a production level of 1.6% and
a consumption level of 6% in 1976, global palm oil production and consumption has grown
to 28% in 2009 to become the world’s largest produced and consumed oil. The technical and
economic advantage of palm oil over other oils and fats, especially soybean oil, is the main
driver of this increase (Oyeleye, 2012). Palm oil recorded its fastest increase in global
production and consumption due to the significant contributions by Malaysia and Indonesia,
which are today, the leading producers and exporters of palm oil in the world. As the world
population continues to grow, so will the demand for oil palm increase and as such, oil palm
will continue to be cultivated worldwide.
The need to reduce global carbon dioxide emission caused by fossil fuel has led to an
increasing need for vegetable oils as viable alternatives globally. Palm oil is currently
considered the most productive source of biodiesel fuel (Nellemann et al., UNEP, 2011) and
hence, a promising alternative model for its production. It is predicted that European Union
will double its consumption of biodiesel from 11.1 billion litres in 2010 to 20.9 billion in
2020 with biodiesel representing 7.9% of energy (UNCTAD, 2012).
Before the 1960s, agriculture accounted for more than 60 per cent of Gross Domestic Product
(GDP) and over 70 per cent of total export earnings, engaging about 70 per cent of Nigerian
workforce (Oyejide et al., 2003). Specifically, oil palm, cocoa, groundnut, rubber, and cotton
were the main sources of the country’s export earnings at independence (Oyaide, 2004).
From being the world’s leading producer and exporter of palm oil in the 1960s, Nigeria has
fallen to being a net importer owing to the inability to produce enough palm oil to meet the
growing domestic demand (Eshalomi, 2009). The decline of the oil palm industry in Nigeria
was as a result of the ‘petroleum boom’ which continued to take precedence over agricultural
production since crude oil was more economically valuable. Therefore, little investments
were made in agriculture, and those producers who did return to their farms, continued
exploiting old plantings without seeking to improve their outputs.
INTRODUCTION
Economic growth and prosperity are central to long-term poverty alleviation for social and
environmental sustainability. The oil palm industry represents one of the most effective
avenues for poverty alleviation, food security and ensuring economic stability. It is one of the
most efficient oil bearing crops in the world with average yield of 7 to 8 tons of crude oil per
hectare (Te-Chato and Hilae, 2007).
As the most efficient oil bearing plant in the world, the oil palm provides one of the leading
vegetable oils produced globally, accounting for one-quarter of global consumption and
approximately 60 per cent of international trade in vegetable oils (Coley and Tinker, 2003;
Nellemann et al., 2007; World Bank, 2010). The oil palm industry has the prospects of
providing employment for millions of unskilled and semi-skilled people (Patrick et al; 2013)
as demonstrated in many economies, with proper focus on production of commodities of
large scale commercial values. Therefore, improvement in the production of oil palm can
effectively mitigate the poverty in the world, especially Nigeria. Hence there is need for mass
propagation of oil palm through tissue culture to meet the global demand (UNCTAD, 2012).
Between 1970 and 2010, demand for palm oil grew by 2.5 million tonnes (mt) per year and
this trend continued till date, to satisfy both food requirements and for biofuels (UNCTAD,
2012) making palm oil the most traded oil in the world. From a production level of 1.6% and
a consumption level of 6% in 1976, global palm oil production and consumption has grown
to 28% in 2009 to become the world’s largest produced and consumed oil. The technical and
economic advantage of palm oil over other oils and fats, especially soybean oil, is the main
driver of this increase (Oyeleye, 2012). Palm oil recorded its fastest increase in global
production and consumption due to the significant contributions by Malaysia and Indonesia,
which are today, the leading producers and exporters of palm oil in the world. As the world
population continues to grow, so will the demand for oil palm increase and as such, oil palm
will continue to be cultivated worldwide.
The need to reduce global carbon dioxide emission caused by fossil fuel has led to an
increasing need for vegetable oils as viable alternatives globally. Palm oil is currently
considered the most productive source of biodiesel fuel (Nellemann et al., UNEP, 2011) and
hence, a promising alternative model for its production. It is predicted that European Union
will double its consumption of biodiesel from 11.1 billion litres in 2010 to 20.9 billion in
2020 with biodiesel representing 7.9% of energy (UNCTAD, 2012).
Before the 1960s, agriculture accounted for more than 60 per cent of Gross Domestic Product
(GDP) and over 70 per cent of total export earnings, engaging about 70 per cent of Nigerian
workforce (Oyejide et al., 2003). Specifically, oil palm, cocoa, groundnut, rubber, and cotton
were the main sources of the country’s export earnings at independence (Oyaide, 2004).
From being the world’s leading producer and exporter of palm oil in the 1960s, Nigeria has
fallen to being a net importer owing to the inability to produce enough palm oil to meet the
growing domestic demand (Eshalomi, 2009). The decline of the oil palm industry in Nigeria
was as a result of the ‘petroleum boom’ which continued to take precedence over agricultural
production since crude oil was more economically valuable. Therefore, little investments
were made in agriculture, and those producers who did return to their farms, continued
exploiting old plantings without seeking to improve their outputs.
