25/03/2009 (Business Times, Malaysia) - THE Federal Land Development Authority (Felda) and its Brazilian partner will embark on an oil palm cultivation project in Tefe this year, said Brazilian ambassador Sergio Arruda.

The initial cultivation will involve 30,000 hectares, and will be increased up to 100,000ha, he said.

"The scheme, which was successfully implemented by Felda in Malaysia, will start with 500 families who will be cultivating their own plot of fruit species in the first four to five years," Arruda said.

Felda was offered to open a 100,000 oil palm plantation in Manaus and Tefe near the Amazon River in Brazil.

The joint venture, Felda Global Ventures Brazil Sdn Bhd, was set up with a paid-up capital of RM25 million, in which Felda holds 70 per cent equity while Braspalma of Brazil holds the rest.

Arruda said a new port will also be available for transporting palm oil to refineries and the Manaus industrial area down river.

Earlier, he said biodiesel production in Brazil has grown in 2008 by 190 per cent compared to the previous year, reaching 1.1 billion litres. Last November, Brazil's installed biodiesel production capacity neared the three billion litre mark with 46 plants operating across the country.

Biodiesel is available in every part of Brazil by means of an extended network which relies on 5,500 plus national grid of gas stations operated by state-owned Petrobras Distribibuidora.