09/12/2004 THAI PRESS REPORTS - In order to earn foreign exchange andprovide sufficient edible oil, crude palm oil factories have beenestablished in Tanintharyi Division. Among the target of establishing 16factories, 12 factories have been completed. The expected installationcost is about 40 million kyats for locally made machinery and 2,000million kyats for imported machinery.

The yield is 5 tons of palm crop per acre, from which 1 ton of crude palmoil can be manufactured. If advanced machinery is applied, 0.7 ton ofedible oil can be produced. The plantation of 0.3 million acres of palmoil can fulfill the import of 0.2 million of palm oil annually. The new 18entrepreneurs and 10 original palm oil businessmen have been promoting theplantation in Tanintharyi Division.

During 2003-2004 fiscal year, a total of 110,668 acres of palm oil -80,902 acres by 13 private companies, 22,071 acres by state sector and7,695 acres by the small farms - was grown. Efforts will be made to meetthe target of 0.5 million acres.

Currently, there are 21 companies undertaking the promotion of palm oilplantation in Myanmar. The companies which have established theirfactories with local-made machinery are Kaung Htet, Shwe Padonma, AnawarSoe Moe, CKB, Kanbawza, Shwe Siohn, Tet Nay, South Dagon, and Aung ZinMar. The companies which are constructing with imported machinery areYuzana, Dagon Timber, and SI Co. Yuzana Factory which is underconstruction is the biggest factory with the production capacity of 30tons per hour. Other factories are with the production capacity of 1.5tons and above per hour. Myanmar Perennial Crop Enterprise is providingnecessary assistance such as arrangement for land, technology, qualityspecies, and machinery to the interested private entrepreneurs.