DekelOil increases palm oil output with new mill in Ivory Coast

Palm oil company DekelOil expects revenue to grow following the completion of a new mill in the Ivory Coast this year.

Executive Director, Lincoln Moore, said the mill will increase capacity to 70,000 tons of crude palm oil once up and running within the next seven to eight months. The project has taken five years of hard work, he said.

He anticipates production will increase to up to 50,000 in 2014, generating revenues between $35m and $45m.

"The key thing for us is to develop and build the mill which is due to arrive on the Ivory Coast in early March," he told Sharecast.

"Most of the ground work has been done for down the road completion."

Moore said the plans for the new mill came on the back of strong demand for palm oil.

An estimated 80% of demand comes from the food industry as palm oil is used in products including margarine, instant noodles, chocolate and processed foods.

Consumers goods such as soaps, detergents, cosmetics and pharmaceutics also contain palm oil.

Once the mill begins production, the firm will look to sell palm oil to major Ivory Coast refineries and commodity traders as well as export to bordering countries.

While the palm oil industry has come under fire for the clearing of rainforests, Moore insisted the company had ensured the protection of the environment through its investment in old farm plantations.

"There is a benefit from the fact that we are regenerating old areas such as rubber plantations," he said.

Following the completion of the mill, Moore said the firm hopes to construct a second mill of the same size in the area and is also considering acquisitions in Cote d'Ivoire, West Africa.

RD