Presco Plc is notably involved in both agricultural and industrial activities and is most prominent in oil palm farming and palm oil business throughout Nigeria and beyond.
Founded in 1991, the company is now a well-known establishment, and is particularly distinguished by its wholly integrated business model that produces from planting oil palms to its processing and refining.
If you are searching for information on Presco Plc, such as her activities, the industry, its impact on agriculture as well as the expected opportunities, this detailed examination addresses all of the key questions.
Also check: The Okomu Oil Palm Company Plc
Brief history of Presco Plc
In the 1970s, the former Bendel State of Nigeria received financial assistance from the World Bank in order to establish an oil palm development scheme.
This region was later on split in 1991 into Edo State and Delta State.
Between 1975 and 1980, the Oil Palm Company Ltd (OPC) which was an entity of the government set up the palm oil plantations in Obaretin Estate and cultivated over 1,150 hectares of land.
The plantation is located on the Benin City-Sapele Road at km 22 to the South of Benin City in the Ikpoba-Okha Local Government Area within Edo State.
In 1991 Siat sa was associated with Presco and at that time the Obaretin Estate had cultivated over 2,700 hectares.
Thereafter an additional 3,000 hectares were cultivated at Obaretin Estate under Siats stewardship and a new expansion program began in 1993.
As at 1 January 2024 the total area of land cultivation under this program was 4,923 hectares.
The 1996 figure records a transfer of ownership of the 2,780 hectare Cowan Estate Ajagbodudu Delta state of Nigeria from the Oil Palm Company Ltd owned by Delta state government to Presco Plc.
The land area cultivated under this scheme was 1,980 hectares as of January 2024.
In 2002, Presco obtained 6,000 hectares from the government of Edo State and an additional 1,500 hectares from various stakeholders to bring the total land mass in Ologbo Estate to 7,500 hectares.
The total concession area of the estate is 13,000 hectares, out of which 8614 hectares have been planted as a result of other subsequent acquisitions in Ologbo.
The Ato estate, which has a concession of 14,000 hectares, was recently acquired. As of January 2024, 10,942 hectares have been planted.
As of January 2024, the total planted area of Presco is 26,459 hectares.
The palm oil mill, palm kernel crushing plant, vegetable oil refining plant, and plantations are all entirely integrated into the company’s operations. It is the sole completely integrated operation in Nigeria.
Presco Plc VISION
To be the Nigerian market leader for specialty fats and oils
Presco Plc MISSION
- To satisfy the needs of our customers in the food industry with respect to quality and quantity
- To continually increase 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 organisation.​
Presco Plc GOALS
- To continually increase the planted area with Oil Palm and Rubber
- 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 result of our research and development efforts.
- To penetrate the retail market for greater market share.
- To operate in an environmentally friendly manner and in accordance with Food Safety System requirements.
Presco Plc profile
PRESCO constitutes the following :
- Developed oil palm plantations covering about 26,459 hectares of which about 22,658 have attained maturity.
- A working palm oil mill with a fresh fruit bunch processing capacity of about 90 tonnes per hour.
- A planned refining industry with a rough shaped kernel powder production capacity of above 500 tonnes for Castro- chocolate.
- Refining fractionated palm oil oil pretreatment with estimated daily wheat flour output of up to 500 tonnes.
- Capacity to crush palm kernels averaging up to 350 Tonnes per day of palm kernel oil.
As of January 2024, the number of employees working at Presco was 9078. Among this, a total of 1054 are permanent employees and 8024 are contract workers.
Presco belongs to Siat, a Belgian agro-business company which invests in both industrial and smallholder plantations of tree crops such as oil palm and rubber, and supporting processing industries such as oil palm mills, palm oil refining/fractionation and manufacturing of soap and crumb rubber.
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.
For more information browse: http://www.siat-group.com
A Vertically Integrated Pioneer
One of the most differentiating factors that sets Presco Plc apart from the rest of the players in the agricultural sector is its business model which is vertically integrated.
Unlike companies that rely on peripheral assistance in sourcing inputs from suppliers, Presco takes care of the whole chain from cultivating oil palm to refining it into high-value products.
This robust model helps the company to cut costs and maintain quality and sustainability standards.
Components of Presco’s Value Chain
Presco has three primary activities which it operates on;
- Cultivation: With expansive plantations across Edo and Delta States, Presco cultivates high-yield oil palm trees, using sustainable agricultural practices. Â
- Processing: Presco owns fully mechanized mills equipped to extract crude palm oil (CPO), palm kernel oil (PKO), and other derivatives efficiently. Â
- Refining: The processed oils are further refined to produce specialty fats, edible oils, and other by-products geared towards diverse market demands. Â
Creating Economic and Social Impact
Employment opportunities.
Presco Plc is a large employer in the agribusiness. A good number of employees engage in one or more of the following activities: plantation work, mill operations, and management, the company ensures livelihoods across rural and urban areas.
By prioritizing local employment and conducting workforce training programs, Presco uplifts the regions it operates in.
Boosting Self-sufficiency
Nigeria, similar to many other emerging markets, has a historical lack of self sufficiency in palm oil as it has always relied on imports.
The operations of Presco Plc reduce this reliance and supplement it with a constant provision of high quality domestic products needed in the industries and retail.
Promoting Sustainability
A key feature of the operations at Presco Plc is the focus on sustainability. From the promotion of green agricultural practices to the minimization of waste in processing facilities, the firm takes an active part in the preservation of the environment.
The Growing Demand for Palm Oil
Palm oil remains one of the most versatile and widely used commodities worldwide. It is foundational in the production of:
- cooking oil and margarineÂ
- cosmetics and make up productsÂ
- biodiesel and other biofuelsÂ
- pharmaceuticals and oil for the industryÂ
Because of this wide range of uses, the consumption of palm oil has been increasing steadily across the world. This puts Presco Plc in a particular position as a company that stands to gain from opportunities in the local market and vice versa.
Presco Plc’s Competitive Advantage
Competitively Presco operates in an effective now competitive industry. One of the core reasons it has been able to maintain competitiveness is because of the following factors:
Cost Reduction through Vertical Integration
Presco’s history of taking on every stage of the production chain has allowed the company to manage its supply chains, retaining quality while minimizing dependency on costly imports.
State-of-the-art Technology
The company leverages advanced techniques within its oil mills and processing facilities to ensure higher yields and efficiency.
Innovation in Sustainability
From zero waste policies to renewable energy initiatives, Presco focuses on advancing environmental longevity, setting a benchmark for other firms in the industry.
Superior Quality Assurance
Presco’s comprehensive farm-to-final-product vision enables them to prioritize transparency and quality control unmatched by competitors reliant on outsourcing.
Career at Presco Plc
How to Apply for Job in Presco Plc
To apply for job at Presco Plc, kindly follow the process:
- Visit the Presco Plc Job Page: Go to the official Presco Plc careers section through: https://www.presco-plc.com/jobs/
- Browse Available Positions: Look through the list of open positions to find one that matches your skills and experience, if there is no job listing, simply visit at a later date.
- Click on the Job Title: Once you find a suitable position, click on the job title to view the full job description and requirements.
- Apply Online: Most of the time, you will find the “Apply Now” button or link. Click on it to be directed to the online application form. Â
Presco Plc Shareholder and Financial Information
For investors, Presco Plc’s consistent financial performance makes it a stock worth considering. Listed on the Nigerian Stock Exchange (NSE), the company delivers strong dividends and steady growth, making it highly sought after by institutional and private shareholders.
Final Thought
The activities of Presco Plc show how agricultural businesses could succeed through innovative, sustainable agricultural practices based on the use of technology.
To those who keep an eye on agribusiness and industrial developments, it provides an encouraging perspective of achievements.
Whether you’re a stakeholder, budding entrepreneur in agribusiness, or simply curious about how Nigeria is advancing towards palm oil self-sufficiency, staying informed about Presco Plc provides a lens into innovation and progress in Africa’s agricultural sector.
Find out more on PRESCO and its role in Nigeria’s agricultural economy.Â
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