Okomu, located in Edo state, is one of Nigeria’s four largest palm oil producers. The company operates two palm oil mills, processing Fresh Fruit Bunches (FFB) from their own plantation into crude palm oil (CPO). In a second location, Okomu is constructing two new mills to expand its processing capacity, requiring them to increase the supply of FFB. However, due to the land tenure system, the nearby typical forest ecosystems, and the threat of sparking conflicts with surrounding communities, Okomu’s ability to expand their own plantation is limited.
Therefore, as there is a significant number of (prospective) oil palm smallholders located nearby Okomu’s mills, the company aims to integrate 5,000 smallholder farmers (SHFs) into their supply chain to fulfill their processing capacity needs, while investing in the local economy and communities.
This report provides an answer to the question: “How can Okomu source additional FFB from smallholder farmers by implementing a commercially viable outgrower model with SHFs, while improving community livelihoods and limiting deforestation?”, and recommends: