RP eyes foreign investors for palm oil industry

MANILA, Philippines - The government is seeking investors from neighboring countries Malaysia and Indonesia to further develop the local palm oil industry. Manila will also begin the survey of farmlands in Bukidnon that are suitable to oil palm plantations, said Jesus Arranza, incoming president of the Coconut Industry Investment Fund and member of the governing board of the Philippine Coconut Authority. "The PCA will conduct a topographic survey of around 100,000 hectares of farmlands in Bukidnon. This way, we have something to show investors in terms of where they can locate," Arranza said. The topographic survey is part of a program approved by the PCA three months ago, he said. Contiguous areas will be preferred by the PCA since it will be more cost-effective for investors to locate their plantations and milling plants in one area. "The plantation and plant should be near each other to allow immediate processing to avoid deterioration of the quality of the oil," said Arranza. Investors, particularly from Malaysia and Indonesia, will be encouraged to locate in the Philippines. "Foreign investors will give the local industry a chance to learn other technologies in palm oil processing," he said. Arranza said developing the local palm industry will be good for the coconut industry because it will allow stakeholders to further take advantage of the export market for coconut oil. A previous report by the Mindanao Economic Development Council (Medco), Mindanao, particularly Caraga Region, has the highest potential for the palm oil industry because of the locality's good quality soil type and fair weather condition. Presently, the major milling plants operating in the Caraga region are Filipinas Palm Oil Plantations Inc., Agusan Plantations Inc., and Kenram Philippines Inc. Palm oil is considered the world's most productive oil product as its versatile composition is used for edible oils, food, chemical, cosmetic, and pharmaceutical manufacturing. Domestic demand for palm oil is seen to rise five percent annually from 1995 to 2015, a study by the University of Asia & the Pacific indicated. GMANews.TV