14/3/06 GENERAL SANTOS CITY (Asia Pulse) - A Mindanao-based oil palm integrator is reportedly planning to develop some 10,000 hectares of oil palm plantations and a palm oil processing plant in Tampakan, South Cotabato within the next five years.

Efren Villarina, Tampakan public information officer, said the municipal government of Tampakan has granted the Mindanao Agri-Industrial Farmers Integrated Development Corporation (MAFIDCOR) the authority to begin negotiations with local farmers and landowners for a proposed partnership scheme on the establishment of the proposed oil palm plantations.

He said MAFIDCOR has been working out its expansion program through the Socsksargen Palm Oil Grower Association, Inc. (SOPOGAI) based in barangay (community village) Malandag in Malungon, Sarangani.

He said SOPOGAI has initially conducted project briefings and orientations to the farmers and officials of the target plantation areas.

"Many local farmers immediately offered their lands for the project because (oil palm) appears to be a more profitable venture than planting traditional crops like palay and corn," Villarina said.

Vice Mayor Pedro Cagas said the town council earlier endorsed the project due to its positive prospects in terms of development as cited in the proposed expansion program submitted to them by the company.

Cagas said that based on its proposed rental scheme, the company would pay at least 60,000 for every hectare of land planted with oil palm for a contract term of 25 years. The contract would reportedly be renewed every five years.

For the first five years, Cagas said MAFIDCOR will release some P300,000 (US$5,860) as advance payment for every hectare that would be leased for the plantation. A 10 percent increase would also be added to the rental fee.

For every 10 hectares that would be offered by a landowner, at least 10 laborers would be hired by the company at a rate of P250 labor fee per day. The landowner will automatically become the plantation's manager.

As requirement for inclusion in the project, a landowner will provide the company the title of their lands, an ancestral domain clearance from the local tribal chieftain and noted by the barangay chair, tax declaration and a sketch map of the area. For stewardship, required are the lot's number and the sketch plan.

"The target area is 10,000 hectares for the company to put up one processing plant," Cagas said.

Cagas said that when it eventually becomes fully operational, the company promised to put up an oil palm nursery, a private housing project and would improve the roads and bridges, clinics, hospital and schools within the project area.

"We are giving all our support to this project so they could begin as planned within the year," he added.

Agriculture and local officials in South Cotabato endorsed the expansion of oil palm plantations in the province in a bid to help provide alternative livelihood for local farmers who have been depending much on planting traditional crops.

Reynaldo Legaste, South Cotabato agriculture office chief, said oil palm would be a viable alternative for corn, whose prices have remained low over the last decade due to the continuing bumper harvests in the area.

According to the Department of Trade and Industry, a hectare of oil palm may provide farmers at least P45,000 income on the first harvest.

So far, the provincial government identified nine of the 10 towns of the province and its lone city as suitable areas for cultivation of oil palm.

(PNA)