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Home arrow Articles & Papers arrow Latest arrow Oil Palm investments in Ceylon showing high returns: Part 2    
Oil Palm investments in Ceylon showing high returns: Part 2 PDF Print E-mail
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Wednesday, 12 May 2010

 The AEN palm oil mill was commissioned in 2007, in a 4 Hect land in Mohameddi Estate in the Kalutara District belonging to Agalawatte Plantations PLC, using Malaysian technology. Malaysia is one of the world's largest producers of palm oil.

The AEN mill, purchases palm fruit from the cultivating estates and manufactures crude palm oil and crude palm kernel oil for export as well as for local consumption. The mill also produces palm kernel meal, which is used as an animal feed ingredient.

 "The crude palm oil is sold to refineries, to manufacture vegetable oils that are used for cooking purposes. Crude palm kernel oil, which is derived from the seed of the oil palm fruit, is used for manufacturing soap. The kernel meal is also sold as animal feed ingredient," said  Goonewardene.  

Expanding production

The demand for edible oil in Sri Lanka is about 10,000 metric tonnes per month and the Company expects to expand production over the coming years.

 "Our palm trees are still young. So the yields will increase over the next few years. At the moment the average yield is about 12 - 14 metric tonnes per year, per hectare, but this yield will further increase over the next 4 - 5 years," said Goonewardene.  

 "The 03 RPCs, Agalawatte, Elpitiya and Namunukula Plantations are also looking at expanding the acreage under oil palm. "The 03 Companies are also hoping to expand cultivation from the current 3,000 hectares to 4,000 hectares in the next 3 years," he added.

Environmentally friendly

AEN maintains that contrary to some theories, oil palm cultivation does not deplete ground water, and says the mill itself, is environmentally friendly and a good example of best practice in the use of a biomass-fuelled energy system from agricultural waste as a sustainable means of addressing energy supply issues.

 THE END

Source: Daily Mirror

 
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