MARKET DEVELOPMENT
Stakeholders Push for Government-private Sector Partners in Mindanao’s Palm Oil Industry
Stakeholders Push for Government-private Sector Partners in Mindanao’s Palm Oil Industry
23/05/2013 (PIA) - Major stakeholders of palm oil industry in Mindanao believe stronger collaboration between the private sector and the government could boost the region’s potential for palm oil investments.
In a statement, the Mindanao Development Authority (MinDA) revealed that out of the almost 900,000 hectares of land identified to be suitable for oil palm plantation, 177,000 hectares are already under negotiation for palm oil development.
Most of these areas are located in the Autonomous Region in Muslim Mindanao (ARMM) and the CARAGA Region.
“This calls for a better and stronger participation of our private sector, and more facilitative policies and programs from the government’s end,” said MinDA Chairperson Luwalhati Antonino.
Antonino added that in the next two years actual investments are expected after the conduct of several business-matching sessions with potential investors, in partnership with the Board of Investments (BOI) and the Department of Trade and Industry (DTI).
“Several international players in the palm oil industry are actually very interested in the vast lands that Mindanao has to offer, we just have to continue facilitating the actual implementation of these investments,” she said.
Recently, the Univanich Carmen Palm Oil Corporation conducted its groundbreaking ceremonies for its P600 million palm oil crushing mill in Carmen, Cotabato.
The processing plant is expected to cater to oil palm farms in the municipality and its nearby towns in Cotabato Province and will have the capacity to process 30 tons of crude palm oil per hour.
MinDA also announced that more than P30 billion worth of business opportunities were forged during a business matching session held in Kuala Lumpur, Malaysia in November last year. Majority of the investments are geared towards the development of Mindanao’s palm oil industry.
Meanwhile, Dr. Pablito Pamplona, director and secretary of Philippine Palm Oil Development Council Inc. (PPDCI), said that the development of the oil palm industry is one of the viable mechanisms to reduce poverty rate, specifically in Mindanao.
In his presentation during the recently concluded 8th National Oil Palm Congress held in Cagayan de Oro City, Pamplona said the surging demand for palm oil in the international and domestic markets driven by the discovery of its many uses and an increasing global population have provided farmers with a more secure livelihood.
He added that despite the low palm oil prices since October 2012, income of palm oil farmers are still above poverty threshold level, allowing them to provide for the basic needs and health of their families.
At present, the Philippines still heavily imports palm oil. In 2011, the country imported 550,000 tons of refined palm oil, mostly from its neighboring countries in Southeast Asia, particularly, Malaysia, which supplied about 80 percent of the country’s requirements.
While limited land is being devoted to oil palm in the Philippines, by contrast, millions of hectares have been developed in Southeast Asia particularly in countries like Malaysia, Indonesia, and Thailand.
Indonesia alone, about 1.5 million small farmers grow oil palm mostly under a nucleus outgrowers scheme, a structure that is currently being studied for implementation in Mindanao’s potential oil palm farms.
Palm oil is also seen as a viable source of feedstock for biomass to help augment power capacity in Mindanao, which has been experiencing power deficit since last year.
“Palm oil is a perfect, viable feedstock for biomass generation,” said Romeo Montenegro, MinDA’s director for Investment Promotion and Public Affairs.
He cited palm oil’s higher combustible properties compared to sugar cane, corncobs, and bagasse, which form the bulk of available feedstock for biomass. If palm oil is factored into that capacity, it will add up to the viability of biomass as a major potential source of renewable energy for Mindanao.
Montenegro also pointed out that while Land Bank provides support for the development of the palm oil industry, it also provides financing for power generation facility.
“Everything is made available; it’s just a matter of taking advantage of this opportunity considering the requirement for power in Mindanao,” he said.
In a statement, the Mindanao Development Authority (MinDA) revealed that out of the almost 900,000 hectares of land identified to be suitable for oil palm plantation, 177,000 hectares are already under negotiation for palm oil development.
Most of these areas are located in the Autonomous Region in Muslim Mindanao (ARMM) and the CARAGA Region.
“This calls for a better and stronger participation of our private sector, and more facilitative policies and programs from the government’s end,” said MinDA Chairperson Luwalhati Antonino.
Antonino added that in the next two years actual investments are expected after the conduct of several business-matching sessions with potential investors, in partnership with the Board of Investments (BOI) and the Department of Trade and Industry (DTI).
“Several international players in the palm oil industry are actually very interested in the vast lands that Mindanao has to offer, we just have to continue facilitating the actual implementation of these investments,” she said.
Recently, the Univanich Carmen Palm Oil Corporation conducted its groundbreaking ceremonies for its P600 million palm oil crushing mill in Carmen, Cotabato.
The processing plant is expected to cater to oil palm farms in the municipality and its nearby towns in Cotabato Province and will have the capacity to process 30 tons of crude palm oil per hour.
MinDA also announced that more than P30 billion worth of business opportunities were forged during a business matching session held in Kuala Lumpur, Malaysia in November last year. Majority of the investments are geared towards the development of Mindanao’s palm oil industry.
Meanwhile, Dr. Pablito Pamplona, director and secretary of Philippine Palm Oil Development Council Inc. (PPDCI), said that the development of the oil palm industry is one of the viable mechanisms to reduce poverty rate, specifically in Mindanao.
In his presentation during the recently concluded 8th National Oil Palm Congress held in Cagayan de Oro City, Pamplona said the surging demand for palm oil in the international and domestic markets driven by the discovery of its many uses and an increasing global population have provided farmers with a more secure livelihood.
He added that despite the low palm oil prices since October 2012, income of palm oil farmers are still above poverty threshold level, allowing them to provide for the basic needs and health of their families.
At present, the Philippines still heavily imports palm oil. In 2011, the country imported 550,000 tons of refined palm oil, mostly from its neighboring countries in Southeast Asia, particularly, Malaysia, which supplied about 80 percent of the country’s requirements.
While limited land is being devoted to oil palm in the Philippines, by contrast, millions of hectares have been developed in Southeast Asia particularly in countries like Malaysia, Indonesia, and Thailand.
Indonesia alone, about 1.5 million small farmers grow oil palm mostly under a nucleus outgrowers scheme, a structure that is currently being studied for implementation in Mindanao’s potential oil palm farms.
Palm oil is also seen as a viable source of feedstock for biomass to help augment power capacity in Mindanao, which has been experiencing power deficit since last year.
“Palm oil is a perfect, viable feedstock for biomass generation,” said Romeo Montenegro, MinDA’s director for Investment Promotion and Public Affairs.
He cited palm oil’s higher combustible properties compared to sugar cane, corncobs, and bagasse, which form the bulk of available feedstock for biomass. If palm oil is factored into that capacity, it will add up to the viability of biomass as a major potential source of renewable energy for Mindanao.
Montenegro also pointed out that while Land Bank provides support for the development of the palm oil industry, it also provides financing for power generation facility.
“Everything is made available; it’s just a matter of taking advantage of this opportunity considering the requirement for power in Mindanao,” he said.