PETALING JAYA, Dec 20 (Bernama) -- Felda plans to set up a RM20 millionbiotechnology plant in Sepang to produce better quality plantation seedswith higher yield.

Felda chairman Tan Sri Mohamed Yusof Noor said that the Feldabiotechnology plant would not only provide the seeds to farmers in theFelda land schemes but also to farmers nationwide and even overseas.

"In line with the government's push towards the biotechnology industrydevelopment, we think that the setting up of the plant is appropriate andtimely. The plant will start operations by the end of 2005 or beginning of2006," he told reporters after opening a seminar on the management of theFelda group of companies at the Sunway Convention Centre here Monday.

It was attended by some 700 executives of the authority and itssubsidiaries.

Mohamed Yusof said that the plant would be used for biotechnology-relatedresearch, especially pertaining to the plantation sector.

"We want the plant to produce seeds which are of high quality, especiallyoil palm (seeds). This is not only for Felda's use but also to be used byall those involved in the plantation sector," he said.

Apart from oil palm, the plant is also expected to churn out better seedsof herbs and various other plants which could boost the nation's income.

Mohamed Yusof said that the setting up of the biotechnology plant wouldprovide an avenue for farmers to increase their income, thus lifting theirsocio-economic status.

"When farmers use high quality seeds, their yield becomes better and byselling better yield there will be an increase in income. This is good forthe country and for the farmers themselves," he said.

He said that the tender for the construction of the plant had already beenawarded and "it will certainly be operational by 2006" when Feldacelebrates its 50th anniversary.

The Felda biotechnology plant will be managed by a subsidiary of theauthority, Felda Research and Development Sdn Bhd, which will be set upsoon.

On Felda's 50th anniversary, Mohamed Yusof said that in the next 50 years,the authority would focus on selling its products and expertise tointerested parties overseas.

"We will be holding a Felda international congress in 2006. We have manyinterested overseas parties wanting to know more about Felda and want towork closely with us. In the next 50 years, Felda will go international,"he added.

-- BERNAMA