Maravi

Omnia Group invests in jatropha agronomics research

Omnia Group invests in jatropha agronomics research
By Fridah Zinyama
Saturday June 21, 2008 [04:00]

THE Omnia Group has made an investment of about K11.6 billion into research on jatropha agronomics in Zambia. Jatropha has been widely regarded as the 'next-best-thing' for biodiesel production as it is resistant to drought and pests and produces seeds containing up to about 40 per cent oil. Omnia Group chief executive officer Rod Humphris, told Engineering News Online, that it was an exciting investment, as it would help the company better understand the yields that can be attained from the Jatropha tree.

He added that there was a fertiliser spin-off, if jatropha becomes a bigger crop in the southern African region.

"We would be well-placed to really understand the nutrients required for that and then, obviously there is the fertiliser sale which we would be able to achieve in improving the jatropha economics," Humphris said.

"Omnia would continue to spend the necessary capital on research in this field on an ongoing basis."

The research will be conducted in Zambia for a number of reasons, and largely because it could not be done in South Africa because that country's government has declared jatropha an invasive plant.

"The one advantage that Zambia has, being a land-locked country is that import parity of fuel into Zambia certainly is more expensive than here in South Africa, and I think the driving force there to establish biofuel production is higher in Zambia than what it would be in South Africa," said Humphris.

And Humphris added that the "golden age for agriculture" had arrived and would continue into the next decade.

"The global shortage of raw materials in the agricultural sector drove the group's fertiliser producing division's operating profit up 98 per cent, to K122.3 billion for the year ended March 2008," he said.

Humphris said the improvements in this division had come largely from price increases, and not from volume increases.

"Omnia felt the production volumes would remain fairly constant going forward, as there was not much room for increased volumes in the South African market as there was only so much fertiliser required. Volume growth would benefit export markets.

Although that could change overnight if South Africa became more bullish with biofuels," added Humphris. "We have seen a complete shift in the agriculture sector over the last 12 months - suddenly the world appreciates agriculture."

Humphris said many of the factors driving the greater demand for raw materials were said to have taken place quite suddenly, particularly the emergence of biofuels.

Labels: BIOFUELS, JATROPHA, OMNIA GROUP

posted by MrK @ 4:04 AM