Palm Oil Mill Company - Presco Nigeria Plc - www:presco-plc:com |

Palm Oil Mill Company of PRESCO NIGERIA PLC – Producer of Specialty Fats and Oils - Everything you need to know about Preco Plc Nigeria and Siat-Group's Palm Oil Mill Company

Presco is a fully-integrated agro-industrial establishment with oil palm plantations, a palm oil mill, a palm kernel crushing plant and a vegetable oil refining and fractionation plant. It's the first of its kind in West Africa.

Presco specialises in the cultivation of oil palm and in the extraction, refining and fractionation of crude palm oil into finished products.

Presco supplies specialty fats and oils of outstanding quality to customer specifications and assures a reliability of supply of its products year round. This is made possible by the integrated nature of the company’s production process.
Presco is the Nigerian market leader for specialty fats and oils. 
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VISION OF PRESCO PLC


To be the Nigerian market leader for specialty fats and oils
 

MISSION OF PRESCO PLC


 
To satisfy  the needs of  our customers in the food industry with respect to quality and quantity
 
To increase the planted area according to RSPO rules

To expand the process capacity according to the plantation expansion

To operate  and act as a socially responsible corporate body
 

 2014 / 2015  GOALS OF PRESCO 2015


To increase  planted area by 1500 hectares in 2014.

To improve  Key operational parameters for increased efficiency.
 
To optimally operate the increased processing capacity of the palm oil mill to cope with increasing production of fresh fruit bunches.

To consolidate leadership using the expanded capacity of the refinery and fractionation facility and
the results of our research and development efforts. 
 
To penetrate the retail market for greater market share.

Presco Plc Nigeria, Presco UK

A brief history

When Siat became involved in Presco in 1991, the Company had only the Obaretin Estate with an oil palm plantation size of 3,000 ha. Under Siat’s management, a new expansion programme commenced from 1993 onwards, as a result of which a total of 12,600 ha are planted at the Obaretin, Cowan and Ologbo Estates. 

Apart from the existing estates, Presco has acquired a total area of about 17,000 ha at Ologbo and Sakponba to develop additional oil palm and rubber plantations.

Presco has been listed on the Nigerian Stock Exchange since 2002. The Siat Group holds 60% of the shares while 10,000 Nigerian shareholders hold the remaining 40%.

Siat manages Presco under a management contract.


Environment of Presco Plc 

ENVIRONMENTAL MANAGEMENT

Presco believes strongly in sustainable production based on the reduce / reuse / recycle principle. All the organic waste from the mill is used in the plantation as natural soil enhancer helping to minimise the use of fertilizers, or as bio-fuel for the boiler to produce green energy with the turbines. 

Constant phytosanitary supervision is implemented to react pre-emptively to pest and disease occurrences. This is preferred to extensive chemical use. By conserving the natural predator-prey cycle Presco keeps its palms free of undesirable pests. Furthermore, the natural occurrence of insects promotes the full pollination of the female flowers. 

Mill and plantation operate as an integrated system in respect of waste disposal. The residues of the mill (empty fruit bunches, fibres, kernel shells, ash, palm kernel cake (PKC) and effluent) are recycled.

Once fresh fruit bunches are processed and fruitlets removed for oil extraction, about 20% of the volume of the fruit bunches is recycled as empty fruit bunches (EFB), which are returned to the field as mulch and a valuable substitute for chemical fertilisers. 

After extracting palm oil from the mesocarp of the fruitlets removed from the fresh fruit bunches the remaining fibre, the shredded empty fruit bunch and the shell are used as fuel in the boiler, which in turn generates the steam for processing. Presco is running at 75% on Green energy.

Ash from the boiler and PKC that cannot be sold also make good fertiliser and are applied in the plantation. 

Mill and refinery effluents are digested anaerobically in three large retention ponds. A fourth pond, which is aerobic, completes the process. The solution at the end of the process contains some nutrients and is applied to the plantation as liquid fertiliser. No effluent is released into any river. 

In recognition of its continuous efforts to operate in an ecologically-friendly manner, Presco received the prestigious Environment Award from the Nigerian Conservation Fund in 2000.


Presco Plc today

Presco today consists of:
  • Oil palm plantations of 12,000 hectares of which 9,000 are mature
  • A palm oil mill with a capacity of 48 tonnes fresh fruit bunches/hour
  • A refinery / fractionation plant with a capacity of 100 tonnes/day
  • A palm kernel crushing plant with a capacity of 60M tonnes/day
  • Storage capacity for products of 10,000 tonnes.

Future prospects and strategy of Presco Plc

Presco aspires to remain the leader in the oil palm agro-industry in Nigeria. Through its fully integrated production chain (from seedling to finished product) the company is able to produce speciality oils and fats of outstanding quality to customer’s specification and is able to guarantee reliability of supply of its products the whole year round. 

By increasing planted areas and improving yields using modern planting material, the company expects its production to grow. In order to cope with this increase, Presco plans to expand its processing facilities accordingly. An investment programme has been put in place for the period 2010 – 2020. This expansion programme will help the company to face its ever increasing demand from its Nigerian clients.

Presco continuously invests in research and development in high performing palm hybrids, but also for new products for the food industry.

The Company assists outgrower plantations with the financial assistance of the Edo and Delta State Governments of Nigeria.




Preco Plc - Company profile

Presco is a public limited liability company incorporated on September 24, 1991 under Nigerian law. Its corporate head office is at the company's Obaretin Estate near Benin City. 

Presco holds the Obaretin Estate (a concession of 7,000 hectares) and the Ologbo Estate (a concession of 11,000 hectares), both located in Edo State, and the Cowan Estate, a concession of 2,800 hectares in Delta State. 

Presco today consists of :

  • Oil palm plantations of 11,760 hectares of which 8,347 are mature
  • A palm oil mill with a capacity of 60 tonnes fresh fruit bunches/hour
  • A refinery / fractionation plant with a capacity of 100 tonnes/day
  • A palm kernel crushing plant with a capacity of 60M tonnes/day
Presco employs about 3,580 people: 476 are permanent staff and 3,104 are contract workers as at May 2013.
Presco is a subsidiary of Siat s.a., a Belgian agro-industrial company specialized in industrial as well as smallholder plantations of tree crops, mainly oil palm and rubber, and allied processing industries such as palm oil mills, palm oil refining / fractionation, soap making and crumb rubber factories. Siat diversified its activities into cattle ranching. Siat has as its shareholders agronomists and economists with experience in the development of agro-industrial ventures in the tropics. (http://www.siat-group.com/)

Besides Presco, Siat has a major stake in the Ghana Oil Palm Development Company (GOPDC) in Ghana (http://www.gopdc-ltd.com/), in Siat Gabon (http://www.siatgabon.com/) in Gabon and in the Compagnie Heveicole de Cavally in Ivory Coast.


Brief history of Presco Nigeria Plc

During the seventies, the Government of the then Bendel State of Nigeria (which is now divided into two states: Edo State and Delta State) initiated a programme for the development of oil palm cultivation with the financial support of the World Bank. The state-owned Oil Palm Company Ltd (OPC) established Obaretin Estate and planted 1,150 hectares between 1975 and 1980. The plantation is located in the Ikpoba-Okha Local Government Area of Edo State at km 22 on the Benin City-Sapele road, south of Benin City.

nv Siat sa became involved in Presco in 1991, at which time there were 2,700 hectares planted at Obaretin Estate. Under Siat’s management, a new expansion programme commenced from 1993 and an additional 3,000 hectares was planted at Obaretin Estate. The total planted area at 31 December 2004 was 5,527 hectares.

In 1996 Presco acquired the 2,780 hectare Cowan Estate at Ajagbodudu, Delta State, from the Delta State Government-owned Oil Palm Company Ltd.
In 2002, Presco acquired 6,000 hectares from Edo state government and further 1,500 hectares from other parties making a total of 7,500 hectares.
The company’s operations are fully integrated with plantations, palm oil mill, palm kernel crushing plant and vegetable oil refining plant. It is the only fully integrated operation in Nigeria.

Plantation of Palm Tress - Concession Areas

Obaretin Estate 

The Obaretin Estate is located 22 km by road to the south of Benin City. It is situated between the main Benin / Sapele road and the Benin / Sakpoba road. The total concession is 7,000 hectares.

Cowan Estate 

Unilever started development of the Cowan Estate in 1937. The estate was subsequently transferred to Pamol, a subsidiary of Unilever. In 1971, the Mid West Government purchased the estate from Pamol on behalf of OPC. In February 1996, Presco took over the Cowan Estate from OPC with a lease contract. The total concession is 2,780 hectares. 


Ologbo Estate 

The acquisition of the Ologbo land concession of 7,495Ha has been concluded. The Ologbo estate will be fully developed in 2012, including a conservation area of about 3,000Ha.
Address of Local and Foreign Palm oil Mill Plan Fabricators

Processing facilities of Palm Oil

Palm oil mill and palm kernel crushing process: a brief description 

Fresh fruit bunches (FFB) from the plantations are offloaded daily at the factory's offloading bay. This ramp can contain up to 600 tonnes of FFB. Before offloading, the fruit is weighed at the electronic weighbridge at the entrance gate

Palm Oil Mill 

From the offloading bay, the FFB fall into cages on a rail system. These cages are pulled into a horizontal steriliser, where during a 90 minutes steaming process, the fruits are sterilised to prevent further acidification of the oil. 

The cages with sterilised fruit bunches are emptied into a bunch hopper that feeds the thresher (bunch stripper) where the fruits are separated from the bunches. Thereafter the loose fruits are conveyed to a digester and then to a screw press. At the press, the palm oil is pressed out of the fruits. The oil goes to the de-sanding and decanting tanks, while cake, also containing the palm nuts, is conveyed to the palm kernel recovery station. 

The empty fruit bunches (EFB) are recycled in the plantation. 

When the oil leaves the screw press it contains water, sand and impurities. During a process of static de-sanding and decanting, most of the impurities in the oil are removed in a centrifugal oil purifier. The last traces of oil in the effluent are recovered in a centrifugal sludge separator. 

Now the crude palm oil (CPO) is ready for storage and further processing in the refinery and fractionation plant. There it is processed into refined bleached deodorised oil (RBDO) and palm fatty acid distillate (PFAD). RBDO is then fractionated into palm olein and stearin.

Related Article: Read about palm Oil Tester


Palm Kernel Crushing Plant 

The cake, which was separated in the palm oil mill, goes through a column where air separates fibres and nuts. The fibres are conveyed to the steam boiler as fuel, the nuts go to a nut breaker for cracking. Here the shell is separated from the kernel. Cracked shells and palm kernels are further separated in a clay bath. The shells also go to the steam boiler as fuel. The palm kernels pass through drying silos and into the palm kernel crushing plant. 

At the palm kernel crushing plant, presses crush the kernels in two stages. The oil produced is filtered and stored as crude palm kernel oil (CPKO). Here we also have the option to process the oil at the refinery to obtain refined palm kernel oil (RPKO). 

The cake remaining after the pressing, is also used in the plantation. 


Refinery and Fractionation process: a brief description 

Crude palm oil, after extraction from the bunch, looks at room temperature (e.g. 25°C) like a pasty and strongly red-coloured material. This product is traditionally consumed as such in African countries. However, some consumers and industries require a more finished product. 

It is therefore, necessary to find a process to:

  • Remove free fatty acids
  • Remove odour
  • Remove colour
  • Obtain a more free-flowing material at room temperature
  • Obtain hard fats used as bakery fats
The removal of fatty acids, colour and odour can be achieved by the refining (physical or chemical) of the oil. 

To obtain a free flowing material, a fractionation process, which allows the separation of the liquid phase from the solid phase is used.

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The Refining Process 

Presco installed the more economic physical refining, as opposed to chemical refining. 

The plant consists of three main sections: dry degumming, bleaching and distillation / deodorization. The plant uses a continuous process. 

Dry degumming:

In the dry degumming, the crude palm oil is mixed with food grade acid (normally phosphoric acid) in a static mixer followed by a retention vessel. After the retention vessel, the oil and precipitated materials are fed directly to the bleaching section. 

Bleaching:

Degummed oil mixed with earth proportioned by an automatic feeding system is heated to processing temperature before entering the vacuum bleacher where it is dried and de-aerated. 

During continuous agitation, the bleaching earth absorbs the main particles of colour bodies as well as metal contamination and oxidising materials in the oil. After the bleacher, the oil / earth mixture is passed through filters where the spent earth is removed together with the precipitated materials from degumming. The oil then passes through polishing filters before entering the distillation / deodorisation section via a de-aerator / balance tank. 

Distillation / Deodorisation:


The bleached oil is first de-aerated. Next, the oil is heated by deodorised oil (RBDO) leaving the deodoriser in an economiser. After the economiser, the oil is taken through a thermal heat exchanger in order to attain the required process temperature before entering the deodorizer.

In the deodoriser the main body of free fatty acids and other volatile odour and taste substances are removed from the oil. The free fatty acids are reduced to absolute minimum and certain flavour and odorous compounds, which require a longer retention time, are finally removed or inactivated. 

The vapours from the deodoriser are gathered in a central manifold leading to the scrubber, where they are passed through a layer of packing cooled by circulating acid oil. Here the fatty acids and other fatty volatiles are condensed and accumulated in the bottom of the fatty acid receiver tank. The level in the fatty acid receiver tank is maintained by constantly discharging a controlled amount of cooled recycled fatty acids. 

The oil leaving the deodoriser is cooled to storage temperature and then passed through one of two alternately working polishing filters. 

This arrangement was adopted in view of simplicity of operation and maintenance and is better adapted to local conditions. 

The product obtained is refined bleached and deodorised oil (RBDO).


The Fractionation Process 

The process of fractionation consists of the separation of the liquid part (olein) from the solid part (stearin). In principle the process is very simple, involving:
  • Keeping the fat at a controlled temperature to allow crystallisation
  • Separation of the formed crystals
Presco adopted the dry fractionation process operating batch-wise, as opposed to centrifugal separation with the aid of detergents or solvent fractionation. With this process oil is kept at a controlled temperature in large tanks with slow stirrers. Crystals form and build into aggregates of several millimetres in diameter. The slurry is pumped through a membrane filter press for separation of the olein and stearin fractions. 

The stearin cake obtained from the membrane filter press is melted in the stearin-melting tank below the press, which also acts as a stearin intermediate tank, prior to storage or packaging.


Products of Palm Oil

SPO - Special palm oil
Premium grade palm oil with less than 3% free fatty acid (FFA) content, extracted from the mesocarp of palm fruits. 
READ MORE
RBDO - Refined, Bleached and Deodorised Palm Oil
Refined, Bleached and Deodorised Palm Oil is the result of refining Special Palm Oil. It contains between 0.05% and 0.15% free fatty acid. 
READ MORE
PFAD - Palm Fatty Accid Distillate
Palm Fatty Acid Distillate (PFAD) contains a very high free fatty acid level and is mainly used by the quality soap industry. PFAD is obtained as a by-product of the refining process. 
READ MORE
Olein - Palm Olien
Palm Olein is a light yellow edible oil obtained from the fractionation of Refined Bleached and Deodorized Palm Oil, which is separated in two fractions by partial crystallization.
READ MORE
Stearin
Palm Stearin is the solid fraction obtained from the fractionation of Refined Bleached and Deodorized Palm Oil.
READ MORE
CPKO
Crude Palm Kernel Oil (CPKO) is a light yellow crude oil, extracted from the palm kernels, containing mainly lauric acid.
READ MORE
RPKO
Refined Palm Kernel Oil (RPKO) is the result of the refining of crude palm kernel oil.
READ MORE

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Social integration

Community Relations

The company, guided by its Host Community Policy, continues with several community development projects as a practical demonstration of the spirit of partnership with and goodwill towards the people in the host communities.

Such projects include the Presco Scholarship Scheme under which twelve students from host communities at Cowan, Obaretin and Ologbo each receive NGN50,000 as a scholarship grant. Also water pumps and boreholes are actively maintained in 11 villages. Other projects are assistance to primary and secondary schools, maintenance of roads, provision of electricity in host communities and the offer of employment to indigenes of host communities.

In 2000 the electrification of Agbomoba village in Ikpoba-Okha Local Government Area of Edo State was completed with assistance from Presco. Obagie and Uroho communities were also connected to the National electricity grid in 2009, while Ekosa and Owanoba communities were provided with electricity solely financed by Presco Plc.

Annually Presco provides several university and polytechnic students with industrial training and research placements as well as giving opportunities under the National Youth Service Corps programme.

Agbomoba School Project

Presco designed and built a model primary school for the children of Agbomoba and neighbouring villages in Ikpoba-Okha Local Government Area. The project was carried out by Presco with co-financing from the Edo State Government. The school consists of three blocks of six fully furnished and electrified classrooms facilities, headmaster's office, teachers’ office, store, library, borehole and toilets. Junior secondary school blocks with labs and science blocks have also been built to provide access to Secondary education for pupils who pass out from the primary school.

Outgrowers' Scheme

In order to spread its economic impact in the region Presco initiated an outgrowers’ scheme, which was co-financed by the Edo State Government. Under this scheme which initially enjoyed the financial support of the Edo State Government, farmers are provided with high yielding planting materials, fertilizer and technical supervision and also ready market for their fresh fruit bunches. At the end of 2008 167 farmers were involved in the schemes with 365 hectares planted.

In 2007 Presco commenced an outgrowers' scheme for farmers around its Cowan Estate in Delta State, under which 24 farmers were assisted to plant 50 hectares.

Employee Involvement and Staff Training

Presco maintains regular communication and consultation with the branch union leaders to brief employees on matters affecting them. On-the-job training facilities are provided for all categories of employees with a view to improving their performance, job satisfaction and prospects. External training programs are also undertaken as appropriate.
 
Awards and Recognitions

In recognition of the company's Human Resource Development programs and outstanding contributions thereto, Presco won the Industrial Training Fund's 2000 Award as the best training organisation in Edo and Delta States.Other awards include the Nigerian Stock Exchange (NSE) Annual President's Merit Award, 2007, Manufacturers Association of Nigeria (MAN) Chairman's Award for Community Development Excellence among companies in Edo and Delta States of Nigeria, 2008  and Nigerian Union of Journalist (NUJ), Edo State Chapter Award for remarkable contribution to the development of agriculture and for good corporate social responsibilty programmes, 2010.

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