OIL PALM OPPORTUNITIES

IN ARMMBy: ATTY. MAKMOD D. MENDING, JR.

DA-ARMM, Regional Secretary

“The ARMM government is pleased that the Philippine Palm Oil Development Council, Inc. recognizes the region as a key area in the development of the country’s palm oil industry.

The ARMM currently ranks 3rd among the top oil palm producing regions and has one of the largest potential areas for oil palm. Its average yield per hectare of oil palm fruits, the highest in the country, places it in the same rank with established plantations in Malaysia and Indonesia, the world’s leading palm oil producing countries.

We are banking on these potentials and on the investment incentives we provide to encourage growth in the region’s palm oil industry.”

“We expect it to continue to expand in the coming years given the growing demand for palm oil.

Aside from encouraging more investments, the ARMM government is keen to keeping the industry robust and sustainable. We want to ensure that its expansion will benefit the locals and will not have adverse effect on the environment.

We know this congress will help promote what ARMM offers and allow us to get more insights on palm oil. We look forward to fruitful partnerships with stakeholders, both in the government and the private sector, in developing the region’s palm oil industry.”

MAGUINDANAO – the lone province of ARMM with viable Oil Palm Industry , registering 7,210 hectares as of 2015.(updated data

from MPDCs and MAOs)

The PLGU’s Vision:We envision Palm Oil industry as a vital contributor towards

attainment of sustainable and inclusive socio-economic growth geared towards a meaningful peace and order by the year 2025.

MAGUINDANAOMaguindanao aims to expand oil

palm areas by 1,500 hectares each year. An initial 1,000 hectares was proposed under DA-PRDP Year 1 implementation (2015). The rest will be shouldered by the Provincial Government in the coming years.

LANAO DEL SUR– Potential for revival and expansion because of its vast suitable area based on agro-climate parameters.

LANAO DEL SUR

The province has vast suitable areas for Oil Palm based on agro-climatic parameters. It indeed engaged in Oil Palm some 15 years ago with the coming of a Malaysian investor (Tabung HaJ) for 1,100 hectares. Several hundreds of hectares were already planted as of DAF-ARMM 2004 field monitoring. But eventually conflict on landownership led to the discontinuance of the foreign investment and the eventual abandonment of the project.

A source from RBOI-ARMM said that efforts are being exerted to look for alternative investor to continue the operations. The planted oil palm trees had been bearing fruits but there are no available reports on harvests or operations in the area.

Potential for Revival and Expansion

A processing plant for oil palm is existing at a nearby province. This could very well cater to the Lanao Sur area if oil palm industry resumes in the area, particularly if RBOI succeeds in engaging a new investor for the 1,100 hectares Oil Plantation Project. Like Maguindanao, Lanao del Sur has vast areas agro-climatically suited for Oil Palm expansion.

BASILAN - Oil Palm Plantation in the Philippines was pioneered by MENZI CORP. in the 1950’s

BASILAN

Basilan was first to engage in Oil Plantation in year 1950 by Menzi Corp. It was later supplanted by rubber industry. In Sibugay, the Consunji Company is reported spearheading Oil Palm planting and processing. In the long run, this may influence Basilan to revive its Oil Palm industry given its huge potential areas.

The figure shows the Oil Palm Production in the Philippines in 2012. CARAGA served 48% of the total production while SOCCSKSARGEN ranks second with 25% share followed by ARMM with 11% in the production.

Figure 1. Breakdown of Oil Palm Production in the Philippines

Source: Mindanao Oil Palm VCA

Area Planted to Oil PalmCY 2008 - 2012

Top 3 Producing Provinces 2008 2009 2010 2011 2012

% Change (08/12)

Philippines 38,599.00 41,444.00 45,044.00 49,327.75 53,014.75 37%

Agusan del Sur 16,245.00 16,265.00 16,365.00 16,385.00 16,395.00 1%

Sultan Kudarat 7,255.00 7,255.00 9,755.00 9,755.00 9,800.00 35%

Maguindanao 800.00 800.00 805.00 1,480.00 1,935.00 142%

Year-on-Year 0% 1% 84% 31%

Source: BAS

Among the top 3 oil palm producing areas, Maguindanao/ARMM had the highest increase in area planted during the 5 year period.

Significant expansion took place in 2011 and 2012.

According to the Mindanao Development Authority (MinDA), of the 959,000 hectares of land in Mindanao identified to be suitable for oil palm plantation, 177,000 hectares of it are already under negotiation for palm oil development. Majority of the areas under negotiation are located in the ARMM and Caraga.

Sukran / Thank You