MARKET DEVELOPMENT
DBP Helps Oil Palm Growers in Bukidnon
DBP Helps Oil Palm Growers in Bukidnon
26/09/2014 (Sun.Star) - To strengthen its mandate to support agri-venture and improve the economic life of the rural folk, the Development Bank of the Philippines (DBP) signed on September 25 a tripartite memorandum of agreement with the grower and buyer of an oil palm venture in Bukidnon.
The MOA is envisioned to make the farmers belonging to the Kalilangan Oil Palm Growers Association (Kopga) of Kalilangan, Bukidnon the Bali Oil Palm Produce Corp. (BOPPC), to benefit as partners of the venture in an atmosphere of inclusive and sustainable growth and for the community to see a reduction of poverty incidence due to jobs generation.
Neogen Chavez, DBP vice president and head Regional Marketing Center for Northern Mindanao, said the MOA is just the beginning of a promising venture that would change the landscape of the town of Kalilangan and the neighboring areas.
Kopga, which is the oil palm grower, will avail of a loan from DBP amounting to P80 million that would cover 800 hectare based on the P100,000 per hectare estimated development and operational cost as determined by BOPPC, which is the exclusive buyer of the production of Kopga under a Growership Production and Purchase Agreement (GPPA).
Kopga’s area is estimated to expand to an additional 2,200 hectares in the coming years.
Components of the projects include social preparation, governance, capacity building, livelihood, among others, that will be handled by the Philippine Business Social Progress and other nongovernment organizations; the Departments of Agriculture, Agrarian Reform; Environment and Natural Resources; and the local government units to put in place infrastructure, capacity building, subsidies on agricultural inputs, health, sanitation, education and housing.
Chavez said the whole concept is to create a community of oil palm growers supported by all sectors for its sustainability.
“While the DBP, LandBank, and others in the financial support sector will provide the easy access and affordable financing, like what we are extending now to Kopga,” Chavez said, adding that “despite that the loan involved with the project has no collateral, is one way of finding ways such that this economic endeavor will come to fruition.”
BOPPC, which is inviting oil palm growers across Mindanao, will be the sole buyer of the production of Kopga.
Manuel Andres Boniao, BOPPC chairman, said the oil palm venture has a huge potential due to the demand in the world market, and putting in place communities of oil palm growers would create a vibrant local economy does helping the government’s efforts to alleviate poverty.
“We have envisioned this venture two years ago, and the signing of the MOA is now the start of the journey toward a better economic opportunity for the farmers,” Boniao said.
The MOA is envisioned to make the farmers belonging to the Kalilangan Oil Palm Growers Association (Kopga) of Kalilangan, Bukidnon the Bali Oil Palm Produce Corp. (BOPPC), to benefit as partners of the venture in an atmosphere of inclusive and sustainable growth and for the community to see a reduction of poverty incidence due to jobs generation.
Neogen Chavez, DBP vice president and head Regional Marketing Center for Northern Mindanao, said the MOA is just the beginning of a promising venture that would change the landscape of the town of Kalilangan and the neighboring areas.
Kopga, which is the oil palm grower, will avail of a loan from DBP amounting to P80 million that would cover 800 hectare based on the P100,000 per hectare estimated development and operational cost as determined by BOPPC, which is the exclusive buyer of the production of Kopga under a Growership Production and Purchase Agreement (GPPA).
Kopga’s area is estimated to expand to an additional 2,200 hectares in the coming years.
Components of the projects include social preparation, governance, capacity building, livelihood, among others, that will be handled by the Philippine Business Social Progress and other nongovernment organizations; the Departments of Agriculture, Agrarian Reform; Environment and Natural Resources; and the local government units to put in place infrastructure, capacity building, subsidies on agricultural inputs, health, sanitation, education and housing.
Chavez said the whole concept is to create a community of oil palm growers supported by all sectors for its sustainability.
“While the DBP, LandBank, and others in the financial support sector will provide the easy access and affordable financing, like what we are extending now to Kopga,” Chavez said, adding that “despite that the loan involved with the project has no collateral, is one way of finding ways such that this economic endeavor will come to fruition.”
BOPPC, which is inviting oil palm growers across Mindanao, will be the sole buyer of the production of Kopga.
Manuel Andres Boniao, BOPPC chairman, said the oil palm venture has a huge potential due to the demand in the world market, and putting in place communities of oil palm growers would create a vibrant local economy does helping the government’s efforts to alleviate poverty.
“We have envisioned this venture two years ago, and the signing of the MOA is now the start of the journey toward a better economic opportunity for the farmers,” Boniao said.