DAVAO CITY, June 24 (ANEX-PNA) -- The Philippines is holding talks withMalaysia to bring in appropriate technologies and investments for a palmoil industry venture.

Agriculture Secretary Luis Lorenzo, Jr. in his message during the Palm OilInvestment and Financing Forum in Davao City, said the Philippinegovernment is currently talking with the Malaysian government for atechnical cooperation program on palm oil production.

Considerable investments will be needed to meet the country's palm oilproduction expansion and replanting targets for the next six years,Lorenzo noted.

Lorenzo said there is plenty of room for success in palm oil productionand there is no need to compete with other producing countries.

"What we must do is produce more and add value to our end products," hepointed out.

According to Lorenzo, Malaysia is the world's super producer of palm oilbut has only grown 5.5 percent per year, below the world's growth average,due to constraints posed by limited land and labour.

He said Malaysia is in search for partners where land and labour are cheapand abundant.

It has partnered with Indonesia with about 30 joint ventures covering700,000 hectares which only means the opportunities for palm oil is vastand global demand for the commodity keeps growing yearly.

Lorenzo said the Department of Agriculture has started creatingopportunities through the Quedan and Rural Credit Guarantee Corporationwhich has opened a financing window for small palm oil growers in Agusandel Norte, Agusan del Sur and other palm oil growing provinces.

He noted Quedancor offers production loans of up to P10,500 per borrowerper hectare to enable farmers to plant new trees.

But he urged the private sector to lead the industry as he encouragedmajor key players and other small producers to continue planting.

"We need to plant more trees as many of our palm oil trees are eithermature or past maturity and producing declining yields," he said.

The forum was participated in by farmers, coop representatives and majorplayers in the palm oil sector namely Filipinas Palm Oil Plantation, Inc.,Kenram Industrial Development Corporation and Agumil Philippines, Inc.

-- ANEX-PNA