MANILA, Jan 22 Asia Pulse - The Philippine government is looking at apossible technical cooperation with Malaysia for the development of thecountry,s palm oil sector.

Agriculture Secretary Luis Lorenzo Jr. said "the development of palm oilplantations in the country could be enhanced with the availability ofsuper quality planting materials of which Malaysia is considered to be thebest source."

He said the Philippines can procure the variety "Dura pecefira" germinatedseeds which can immediately be planted on 1,000 hectares at 165 seedingsper hectare through A. Brown Energy and Resources Development Inc.(ABERDI), a private investor which has signified its interest to import theplanting materials.

Lorenzo has recommended that the possibility of procuring the seedlingsthrough a government-to-government counter-trade arrangement was exploredduring the bilateral meeting between President Gloria Macapagal Arroyo andMalaysian Prime Minister Abdullah Badawi, who was here a few days ago fora state visit.

Last week, when the DA chief was the guest of honor during the launchingof the palm oil project in Bukidnon, he noted that over P1 billion worthof crude palm oil was imported by the Philippines last year and domesticconsumption is increasing by at least 10 percent annually.

"The Philippines should devote at least 70,000 hectares for palm oilplantations to be able to meet the growing local demand for the next fiveyears," he said.

The Bukidnon palm oil project is a joint effort of the DA, localgovernment units, Oil Palm Industry Association of Northern Mindanao, theQuedancor and the National Agribusiness Development Center.

At present, only 18,000 hectares, mostly in Mindanao, are devoted to palmand more than 50 percent of the trees planted are already old and must bereplanted in the next seven years.

In contrast, Lorenzo said Malaysia has about three million hectares ofpalm oil plantations.

"Palm oil is a very competitive crop. What is even more encouraging isthat most of the marginally developed agricultural areas in Mindanao aresuited for palm oil growing," he said.

The DA chief said that a palm oil plantation would need an investment ofabout P50,000 per hectare with a gestation period of four years. After thefirst harvest, a hectare planted to palm oil could yield an average ofP60,000 income a year. About 4,000 hectares of contiguous land are neededto ensure the sustainability of a palm oil mill.

The Bukidnon palm oil project aims to establish about 5,000 hectares ofoil palm plantation in northern Mindanao from 2003 to 2006, with aninitial 1,000 hectares set to be established this year during which timean oil mill would have also been put up.

At present, local farmers cooperatives had planted a total of 130 hectaresin Balingasag, Misamis Oriental, with another 150 hectares set to beplanted in the first quarter this year.

ABERDI, for its part, had already planted 20 hectares at Darilig, ManoloFortich, Bukidnon, and intends to plant another 60 hectares at Maluko,Impasugong, Bukidnon, after establishing an oil palm nursery at Lanocan,Manolo Fortich, Bukidnon.

A mill site in Impasugong, Bukidnon, had already been identified andABERDI is in the process of buying the lot where the mill will beconstructed.

(PNA)