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New Britain Palm Oil Development Ltd is a 50/50
joint venture between the Papua New Guinea
government and Harrisons and Crosfield.
In the mid-1960s, Harrisons and Crosfield
experts found the north coast of the island of New
Britain to be suited to growing oil palms. A joint
venture, the first oil-palm scheme in Papua New
Guinea, was negotiated with the then Australian
administration. Work started in 1967, in a jungle
area which had previously been logged.
The original plan was to have a nucleus estate,
originally of 2,000 hectares, with settlers from
throughout Papua New Guinea growing oil palms on
two hectares each of nearby land, whose production
would be processed by the company. A mill was
commissioned in 1971 to process the palm fruit from
both the estate and the settlers.
The plantations now cover 7,500 hectares; and
1,681 settlers-from areas short of land-occupy
10,000 hectares, planting vegetables as well as
palms. Besides this, 1,092 villagers of the
district, have planted 2,259 hectares of oil palms.
The original palms are being replaced by a second
generation. People from West New Britain now have
priority for settlement.
To preserve the fragile soils, the jungle growth
is not burned after being cleared. It is piled
between the rows of palm and allowed to rot.
Nitrogen-fixing cover crops are planted to protect
and enrich the soil. They die out when the palms
grow up. The area is mainly flat or slightly
undulating. Some steeper slopes are terraced. The
empty bunches, after the fruit has been removed for
milling, are put back on the land.
A second mill opened in 1980. The company has
3,300 employees and about 25,000 people depend
directly or indirectly on the oil palms for their
living. Settlers had an average annual income of
£1,200, over five years to 1988, ten times
that of subsistence farmers. Payments to settlers
fell after a bumper year in 1985 but have partially
recovered.
Besides roads, the scheme has led to the
building of the town of Kimbe which has 5,000
residents and is both the provincial headquarters
and a port. The company supports schooIs and health
and leisure projects. For its employees, it
provides health care and, for most of them, homes,
water and power.
The waste from palm-oil mills can use up the
oxygen in waterways and, in excessive quantities,
make it impossible for fish to live there. Waste on
New Britain is treated and held in ponds. Fishing
has not been affected.
Most of the palm oil goes to the European
Community where the Lome Convention frees it from
the normal 4 per cent import duty. This means that
Papua New Guinea gets a 4 per cent higher price in
Europe than it would get elsewhere. Growers receive
a price based on the world prices for palm oil and
kernels, less the cost of milling and
transport.
The company trains Papua New Guineans to become
managers. A man who joined as afield assistant is
now director of smallholder affairs. Eight
agricultural students are sponsored each year at
universities. After several years with the company,
the most promising go on a course in Swaziland in
senior management. Half the plantation managers are
Papua New Guineans.
The company also sponsors students in
accountancy and engineering.
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