28/01/2013 (Business Mirror) - Environmental groups have expressed their opposition to the government’s plan to convert Mindanao’s grasslands and marshlands into palm-oil plantations, fearing its potentially adverse impact on the environment and people.

Their opposition came after it was reported that Malaysian companies and investors, led by the Putraya Chamber of Commerce and Industry, are looking to invest as much as P23 billion to venture into growing palm-oil trees—and eyeing 68,000 hectares of land to plant them—in Mindanao.

The Malaysian businessmen were encouraged to invest in anticipation of an improved peace-and-order situation in the region after an initial peace deal was signed between the government and the Moro Islamic Liberation Front in August 2012.

Some environmental groups said that establishing more plantations involved burning forests. They also raised fears that the Linguasan Marsh, which is one of the areas Malaysians are eyeing for palm-oil production, would not be spared.

“If they convert the Liguasan Marsh—a catch-basin of water—into palm-oil plantations, where will the water from the mountains go? They will go to the low-lying populated areas in Mindanao,” said Grace Magdamo-Teoxon, executive coordinator of the Mindanao Environment Forum Inc. (Mefi).

Haribon Foundation’s Maria Belinda E. de la Paz said the marsh is a very important biodiversity area and contains lots of forest cover. She added that more efforts should be exerted to bring back forests using native species instead of adding more plantations.

Displacing indigenous peoples
Other groups have expressed their distrust of the government’s plans, fearing that these would lead to the displacement of indigenous peoples in the region.

As an example, they cited local palm-oil company A. Brown Co. Inc., which is accused of land-grabbing and harassing the Higaonon tribe in its 11,350-hectare palm-oil plantation in Opol town, Misamis Oriental province.

“The expansion of palm-oil farms there will affect both the ecosystem and the Lumad and Muslim people living in the area,” Dr. Phares Parayno of the Environmental Studies Institute said.

“We should not sacrifice the environment in the name of peace,” said Frances Kimpo, executive director of the Center for Environment Concerns.

She noted that palm-oil multinational firms have a bad reputation in leading palm-oil producers Indonesia and Malaysia.

Environmental organizations abroad alleged that palm-oil plantations are driving deforestation in those countries. Industry players have been accused of destroying forest areas equal to 300 soccer fields every hour, as well as the habitat for critically endangered animals like the orangutan and Sumatran tiger.

The clearing and burning of forests for such plantations is said to be a major cause of air pollution in Southeast Asia because it releases CO2 into the environment, which contributes to global warming.

Over 54,000 hectares planted
There are currently 54,448 hectares of land planted with palm-oil trees in the Philippines.

According to the Philippines Palm Oil Development Council, 1 million hectares of grasslands in Mindanao can be converted into palm-oil plantations.

Palm oil is used to produce shampoos, soaps and chocolates. It is being imported into the Philippines as an alternative to coconut oil, which the country is exporting.

It was hoped that establishing palm-oil plantations would boost local production and reduce imports. Its impact on the environment, however, is yet to be fully studied.