Wellington, Sept 9 NZPA - The Port of Napier has reported its first shipment of bulk palm kernel, which is used as stock feed, for farms throughout the central North Island.

Port commercial manager Chris Bain said imports of palm kernel were now exceeding one million tonnes on an annualised basis, with worldwide supplies increasing as the demand for palm oil rose.

Imports of palm kernel extract had risen from virtually nothing in the year 2000 to rival major imports such as petroleum on a tonnage basis, he said.

Palm kernel could replace grain or high quality forages for many classes of stock, and was usually used as a supplementary feed for dairy cattle. It was imported from Indonesia, Papua New Guinea and Malaysia.

In April, the Green Party urged farmers to look at alternatives to palm kernel for feeding stock because of the impact on rainforests.

Palm kernel was the most important by-product from the production of palm oil, co-leader Russel Norman said.

The palm oil industry was knocking down rainforests and burning peat across Indonesia and Malaysia to expand production to meet increased demand.

The Port of Napier is 92 percent-owned by Hawke's Bay Regional Council, with the remaining 8 percent held by Manawatu Wanganui Regional Council.

In the year to September 2007 it posted net profit up 14.6 percent to $8.3 million, on revenue up 8 percent to $42.8 million.

NZPA WGT mjd gt