philippines-the next frontier for palm oil investment mr.brielgo pagaran_caraga... · philippines...
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Philippines – The Next
Frontier for Palm Oil
Investment
Brielgo O. PagaranRegional Director, DTI-Caraga and Palm Oil Industry Cluster National Coordinator
Top Palm Oil Producing Countries
Papua New Guinea
Malaysia
Indonesia
NigeriaColombia
Thailand
Comparative Global Production
Volume of Vegetable Oil
Vegetable OilProduction (2010)
Volume (000 MT) Percent
1. (a) Palm 45,064 32.28
(b) Palm kernel 5,212 3.75
2. Soybean 35,805 25.65
3. Rapeseed 21,430 15.29
4. Sunflower 12,965 9.29
5. Cottonseed 4,687 3.36
6. Groundnut 4,116 2.95
7. Coconut 3,223 2.31
Source: Oil Palm World, European Biodiesel Board and Agricultural Development of Indonesia.
The Philippine Palm Oil Industry Roadmap
Philippine Palm Oil Industry
Situationer
1950
Menzi Agricultural Corp.
established the first oil palm plantation in Basilan; was later turned
over to farmers’ cooperative
Kenram Industries, Inc.
in Sultan Kudarat
converted their ramie plantation to oil
palm; established
1,100 has. nucleus farm and 3,000 ha.
outgrower farms and 20-
ton capacity crude palm oil mill
Guthrie of
Malaysia and
a group of Filipino
investors
established
the Filipinas
Palm Oil Plantations,
Inc., in
Agusan del
Sur;
developed 8,000 has. of
oil palm and
established a
40-ton crude
palm oil mill
Filipino,
Singaporean
and Malaysian
investors
organized
the Agusan
Plantations, Inc. (API)
thru a joint
venture;
developed
about 1,800 has. in
Agusan del
Sur
Oil palm
plantations
were developed in
Agusan del
Sur, Sultan
Kudarat,
CompostelaValley and
Bohol. As of
2012,
the total oil
palm area in the country
reached
about
56,000 hectares.
API formed a sister company,
the AgumilPhil. Inc. which established a 20-ton
crude palm oil mill that started operating in 1998.
19972000-2012
19831981
1960
History of the Philippine Palm Oil Industry
Region ProvinceArea Planted
(Has)No. of Palms*
MIMAROPA Palawan 5,293.61 677,582.08
CENTRAL VISAYAS Bohol 6,493.69 831,192.32
WESTERN MINDANAO Zamboanga Norte & Sur 1,146.40 146,739.02
NORTHERN MINDANAO Bukidnon & Misamis Or. 2,419.15 309,651.02
SOUTHERN MINDANAO Compostela Valley 1,217 155,776.00
SOCSKSARGEN Socsksargen 17,241.51 2,206,913.28
CARAGAAgusan del Norte, Agusan
del Sur &Surigao del Sur20,040.13 2,265,136.64
ARMM Maguindanao Dist. 1 & 2 2,786.44 356,664.32
TOTAL 56,637.93 6,949,654.68
Oil Palm Area, Philippines @ 2012
Source: PCA & Oil Palm Mills
The Philippine Palm Oil Industry Roadmap
The Philippine Palm Oil Industry Roadmap
The Philippine Palm Oil Industry Roadmap
Source: Bureau of Agricultural Statistics, 2012
Market YearProduction
(1000 MT)Growth Rate
2003 59 5.36 %
2004 60 1.69 %
2005 61 1.67 %
2006 68 11.48 %
2007 75 10.29 %
2008 82 9.33 %
2009 90 9.76 %
2010 92 2.22 %
2011 95 3.26 %
2012 100 5.26 %
Oil Palm Production, Philippines
2003-2012
www.indexmundi.com/agriculture/?country=ph...palm-oil...production
Top 5 Palm Oil Producing Countries
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2012 2020
Increasing Huge National Shortage of Vegetable Oil. Shall We Produce or Import?
PA
LM
O
IL
IMP
OR
T
(MT
)
YEARYEARYEARYEAR
2017
� Philippine population of 95.8M
� Palm oil import of 500,750 MT
� Import value of P27.50 billion
� Philippine population of 120.1 M
� Palm oil import of 1,000,000 MT
� Import value of P54.50 billion
Source: Dr. Pamplona, 2013
kg
Volume of Philippine Production, CPO
and PKO*
CPO
PKO
* Estimated equivalent yields of CPO
and PKO based on
fresh fruit bunches harvested as
indicated in BAS stat (2013)
0
2
4
6
8
00 01 02 03 04 05 06 07 08 09 10 11
Ph
P
Farmgate prices of
African Palm Oil in the
Philippines
The Philippine Palm Oil Industry Roadmap
Region Name and Location Maximum
Capacities
(MT FFB/hr)
Actual output
(MT FFB/hr)
MIMAROPAAgumil Phil Inc Maasin,
Brookes Pt. Palawan
30
Central VisayasPhil Agric Land Devt. Mill, Inc (PALM Inc), Matin-ao, Carmen,
Bohol
40
Northern MindanaoA.Brown Energy Resources, DevtMalubog, Impasugong, Bukidnon
ABERDI RBD MillMalubog, Impasugong, Bukidnon
10
50 (on-going
construction)
10
SOCCSKSARGEN(Sultan Kudarat)
KENRAM INDUSTRIESIsulan, Sultan Kudarat
KPII P.O.M.Isulan, Sultan Kudarat
20
60 (on-going
construction)
20
Palm Oil Mills, Location & Capacities, Philippines, 2012
Region Name and Location Maximum
Capacities
(MT FFB/hr)
Actual output
(MT FFB/hr)
Caraga Region(Agusan del Sur)
1.) Agumil Phil Inc.Manat, Trento, Ag. Sur
2.) FPPIMaligaya, Rosario, Ag. Sur
30
36
ARMM Agumil Phil Inc.Buluan, Maguindanao
30
TOTAL, all operating mills only 196
Palm Oil Mills, Location & Capacities, Philippines, 2012
KENRAM Industries Palm
Oil Mill: 20t, FFB/hr Isulan,
Sultan Kudarat
Agumill Palm Oil
Mill : 20t, FFB/hr
Trento, Ag. Del Sur
FPPI Palm Oil Mill
40 T, FFB/hr
Rosario, Ag. del Sur
PALM INC. 40 t FFB/hr;
Ubay, BOHOL
Agumil Palm Oil Mill :
30T, FFB/hr
Palawan
ABERDI Palm Oil Mill :10 MT, FFB/hr
Impasugong, Bukidnon
Buluan Palm Oil Mill:
30T,FFB/hr Buluan,
Maguindanao
Palm Oil Mills, Phil. (total cap of 180 MT FFB/hr), as of 2012
Mills Under Construction:
1. KENRAM
2.Univanich-Carmen, North Cot
The Philippine Palm Oil Industry Roadmap
The Philippine Palm Oil Industry Roadmap
PCA – Accredited Oil Palm Nurseries, 2012
Region X
A. Brown Energy Resources
Development, Inc (ABERDI)
Region XIIKIDI
KENRAM Industries
Triple P Farms
Kabacan, Cotabato
E Y G Oil Palm Seedlings Kilapasawit VenturesTacurong City , Sultan
Kudarat
AIDA AGRO indstrial ventures
Kidapawan City
North Cotabato Palm Oil Corp.
Makilala, North
Kilambay Farms, Oil Palm Nursery
Carmen, North Cotabato
Caraga Region
FPPI
Rosario, Agusan Sur
URAYA Farms Bunawan, Agusan Sur
AGUMIL Trento, Agusan Sur
Region IX
Zanorte Palm Rubber
Region IV-BAGUMIL
Palawan
Location
Potential Areas (Has)
New Estimate
1. R-I-IVB - Palawan 16,300 (1.68%)
1. R-IX Western Mindanao 102,000 (10.46%)
2. R-X Northern Mindanao 154,000 (15.8%)
3. R-XI Southern Mindanao 104,000 (10.7%)
4. R-XII SOCSKSARGEN 112,000 (11.5%)
5. R-XIII CARAGA 384,000 (39.4%)
6. ARMM 103,000 (10.6%)
TOTAL 975,300 (100.0%)
Potential land areas for oil palm, Philippines
The Philippine Palm Oil Industry Roadmap
Potential land areas for Oil Palm, Caraga
The Philippine Palm Oil Industry Roadmap
Representative Municipality Tenurial Instruments
IP - House Hold
Brgy Coverage
Slope Total Hectares
‘Datu Mabanao’ Conrado Reyes Rosario CADC No. 153 1,300 5 3-50% 14,225
Artates Mique Bunawan 3-50% 34,000
Datu Oyamag Filicisimo Fuentes Trento R11-CADT MON-0703-0007
3,000 7 0-50% 30,000
‘Datu Mankumbati” Deo S. Manpatilan
Esperanza CADC No. 154 6,000 12 0-50% 74,827
Datu Manbeyahe Benhur Mansolonay
La-paz CADC No. 158 324 1 8-50% 6,095
Datu Hawodon Tagleong Coguit La-paz CADC No. 132 1,614 4 18-50% 51,000
Datu Hilarion Padua La-paz CADC No. 176 182 1 3-50% 1,539
Datu Mansaligan Alejandro Suarez La-paz CBFM 100 1 3-50% 2,200
‘Datu Sumapnay Carlos Lebanon Veruela CADC No. 155 3,26 4 0-50% 7,478
Datu Kandibiko Wenceslao Reyes Loreto CADC No. 157 362 3 0-30% 3,800
Welfredo E. Otaza Loreto A & D / CADC 1000 3 0-50% 41,279
Datu Kaluwasan Casiano Tana Sibagat CBFA 500 2 3-50% 2,909
Sub-total 269,352
Agusan del Sur
Potential land areas for Oil Palm, Caraga
The Philippine Palm Oil Industry Roadmap
Representative Municipality Tenurial Instruments
IP - House Hold
Brgy Coverag
e
Slope Total Hectares
Datu Malisang Reynaldo Lingay Gay-od
Lingig CADC – on process
500 3 8-50% 17,966.60
Sub-Total 17,966.60
Surigao del Sur
Representative Municipality Tenurial Instruments
IP - House Hold
Brgy Coverage
Slope Total Hectares
Datu Dapig Noel Morta Cabadbaran, Tubay, Santiago, Jabonga, Kitcharao
Native Title 0-50% 82,000
Sub-Total 82,000
Agusan del Norte
Yield Per Hectare Per Year (MT) 20 20 20
FFB Buying Price / Ton 1,500 3,500 4,500
GROSS Income/ Hectare/ Year 30,000 70,000 90,000
===============================================================
Expenses:
Field Maintenance 12,500 12,500 12,500
Harvesting, Loading, Transport 7,380 7,380 7,380
Total 19,880 19,880 19,880
===============================================================
NET Income Before Tax 10,120 50,120 70,120
===============================================================
Return on Investment Analysis as of 2012
(ROI) 0.51 2.52 3.52
===============================================================
The Philippine Palm Oil Industry Roadmap
Schedule Annual Budget (Php)
1st Year 76,558
2nd Year 32,014
3rd Year 41,734
4th Year 38,960
Grand Total 189,266
The Philippine Palm Oil Industry Roadmap
Prices as of 2012
Development cost per hectare
End Market of Palm Oil Products
The Philippine Palm Oil Industry Roadmap
Improved
balance
of payments
Social amelioration
of impoverished
masses
Milling plants Nucleus
farms
Cooperatives
as outgrowers
Of nucleus farms
� Technology
� Planting materials
� Farm supervisionDomestic and
Export markets
Oil palm
produce
Oil palm
What the Oil Palm Industry can do
Surigao del Sur Surigao del Sur
455,216 has.455,216 has.
Abundant land and natural resources
TOTAL LAND AREA 1,913,842has.
Certified A & D 582,351has.
Total Forest land 1,331,491has.
Agricultural 536,845has.
Residential 3,290has.
Commercial 198has.
Industrial 38has.
Civil Reservation 5,367has.Military & Naval
Reservation 2,207has.
Mineral Reservation 14,248has.
PROVINCE
TOTAL ALIENABLE & DISPOSABLE
SURVEYED AREA
TITLED LANDS
UNTITLED & UNSURVEYED AREAS
(HAS.) (HAS.) LOTS (HAS.) LOTS (HAS.)
Agusan del Norte 84,134 82,292 59,939 75,656 10,172 8,478
Agusan del Sur 216,043 205,340 152,655 193,226 27,380 22,817
Surigao del Norte 95,969 93,427 69,476 81,089 17,858 14,880
Dinagat Island 17,661 17,661 7,359 17,661 - -
Surigao del Sur 168,544 165,523 126,237 156,697 14,216 11,847
TOTAL 582,351 564,243 415,666 524,329 69,626 58,022
Abundant land and natural resources
Abundant land and natural resources
Tenurial Instruments
TENURIAL INSTRUMENTS ISSUED
AREA (has.)
Integrated Forest Management Agreement ( IFMA)
286,473
Socialized Integrated Forest Management Agreement (SIFMA)
500
Community Based- Forest Mgt. Agreement (CBFMA)
198,731.78
Timber License Agreement 132,577.22
Co – Timber Production Sharing Agreement
110,790
GRAND – TOTAL 729,072
UNTENUREDAREA (has.)
Agusan del Norte30,038
Agusan del Sur 115,477
Surigao del Norte 34,032
Surigao del Sur 47,094
Dinagat 35,815
GRAND – TOTAL 262,456
Abundant land and natural resources
Potential Reforestation and Afforestation
Areas within CBFM Areas
Province Class Area
Agusan del
Norte
Other wooded land,
wooded grassland
10,590.23
Other lands, natural
grassland
4,591.64
Agusan del
Sur
Other wooded land,
wooded grassland
25,576.30
Other lands, natural
grassland
6,692.00
Surigao del
Sur
Other wooded land,
wooded grassland
10,819.50
Other lands, natural
grassland
314.08
TOTAL 58,844.76
Abundant land and natural resources
CBFM Areas available for Joint Venture Agreements (JVA)
PENRONo. of CBFM
HoldersTotal Area, Ha
Area Available
for JVA, Ha
Agusan del Norte 32 35,103.63 6,227.89
Agusan del Sur 34 76,872.84 11,569.59
Surigao del Norte 11 6,115.61 565.60
Surigao del Sur 49 80,639.70 1,704.50
Grand Total 126 198,731.78 20,066.58
Abundant land and natural resources
Co-Management Agreement with Local Government Units
(LGU) open for Joint Venture Agreement (JVA)
Province Location Area (has.) Remarks
Agusan del
NorteLas Nieves, Buenavista, Nasipit & Carmen 56,093.81
MOA approved, open
for investment
City of ButuanBrgys. San Mateo, Bitan-agan, Mla. De
Bugabos, Tungao, Dulag, MJ Santos10,956.00 MOA for Approval
Agusan del
Norte
Poblacion 2, San Roque, Jaliobong, Bangayan,
Agusan del Norte477.00 MOA approval
Agusan del Sur On process
Total 68,369.81
Abundant land and natural resources
Tripartite Agreement with LGUs, DENR and investors for Eco-tourism
Caimpugan Peatland Adventure Enchanted Sohoton Adventure
Agusan Marsh Adventure Magpupungko in Pilar, Siargao
Abundant land and natural resources
Priority Watersheds, Per Province
# of
Water-
sheds
Area (has.)
Agusan
del Norte
3 122,936.54
Agusan
del Sur
4 321,435.24
Surigao
del Norte
1 16,734.28
Surigao
del Sur
3 245,137.98
TOTAL 11 706,244.05
PROCLAIMED WATERSHED FOREST RESERVE
Watershed/ProvinceArea (has) Date
Proclaimed
Caraga Region 38,241.44
Agusan del Norte 20,392.44
1
Taguibo River Watershed Forest Reserve 4,367.44 Sep. 4, 1997
2
Cabadbaran Watershed Forest Reserve 16,025.00 Nov. 13, 1991
Agusan del Sur 16,855.00
3
Andanan River Watershed Forest Reserve 15,097.00 May 29, 1991
4Mt. Magdiwata Watershed Forest Reserve 1,658.00
October 25, 1993
5Alfred Watershed Forest Reserve 100.00 May 24, 1998
Surigao del Norte 967.00
6
Surigao Watershed Forest Reserve 967.00
August 29, 1990
Surigao del Sur 27.00
7Adlay Watershed Forest Reserve 27.00
November 8, 1993
Abundant land and natural resources
Ancestral Domain Areas, Per Province
# of
CADCs
Area
(has.)
Agusan del
Norte
4 53,345
Agusan del
Sur
10 273,483
Surigao del
Norte
1 25,000
Surigao del
Sur
6 109,296
TOTAL 21 461,124
Approved Certificate of Ancestral Domain Titles
Province # of CADTs Tribe Area
(has.)
Agusan del
Norte 1 Manobo 26,881
Agusan del Sur 7 Banwa-on
Manobo
Higao-non
176,892
Surigao del
Norte
1 Mamanwa 25,000
Surigao del Sur 3 Manobo
Mamanwa
Mandaya
41,000
TOTAL 12 269,773
Abundant Renewal Energy (RE) Resources
� 9 awarded RE projects
(geothermal, hydro, solar and wind) with total
potential capacity of 84 MW
� 9 pending RE projects (hydro, solar,
biomass) of 20.3 MW
CARAGA RENEWABLE ENERGY PROJECTS
CARAGA RENEWABLE ENERGY PROJECTS
• Taguibo 1 Hydroelectric Power Project – 2MW
• Taguibo 2 Hydroelectric Power Project – 2 MW
• Asiga Hydroelectric Power Project – 5 MW
EQUI-PARCO
CONSTRUCTION
CO.
• Wawa 1 – 7.70 MW
• Wawa 2 – 7 MW
• Wawa 3 – 5.60 MW
• Cabadbaran Hydroelectric
Power Project – 14 MW
• Puyo Hydroelectric Power
Project – 30 MW
CARAGA RENEWABLE ENERGY PROJECTS
CARAGA RENEWABLE ENERGY PROJECTS
AGUSAN POWER CORPORATION
CARAGA RENEWABLE ENERGY PROJECTS
HYDROLINK Projects Corp., a unit of
listed A Brown Company, Inc.,
• Carac-an Hydroelectric Project – 25 MW
CARAGA RENEWABLE ENERGY PROJECTS
ENFINITY PHILIPPINES RENEWABLE
RESOURCES, INC.
• Butuan City Solar Power Project (Parcel 1) – 10 MW
• Butuan City Solar Power Project (Parcel 2) – 10 MW
• Butuan City Solar Power Project (Parcel 3) – 10 MW
• Dinagat Solar Project – 1 MW
CARAGA RENEWABLE ENERGY PROJECTS
• Mainit Geothermal Project –
30 MW
• Siargao Wind Project
• Dinagat Wind Power Project
CARAGA RENEWABLE ENERGY PROJECTS
New Palm Oil Investment in Caraga
Target Production Area – 36,000 hectares
Target Areas: Loreto, Veruela, and Sta. Josefa,
Agusan del Sur, Philippines
Will establish 3 processing plants with a
Capacity of 60 tons/hr.
THANK YOU