More investments urged in palm tree industry

MANILA, Philippines – The Philippines should encourage and attract  Malaysian and Indonesian investments in palm tree plantations in the country which would also help the Philippines develop a two-crop industry for coconut oil and palm oil, incoming CIIF Oil Mills Group president and current Philippine Coconut Authority (PCA) director Jesus Arranza said.

In a talk with newsmen yesterday, Arranza said the Philippines should go into palm tree production instead of sticking to just coconut production.

He said palm oil production, would allow the Philippine coconut industry to concentrate on higher value products such as fatty coco oil. A local palm oil industry could concentrate on lower cost domestic cooking oil, he added.

According to Arranza, palm trees produce more oil than coconuts.

He said a one-hectare palm tree plantation, produces up to five tons of oil as compared to a one-hectare coconut tree plantation which produces only 870 kilos of copra.

At present, Arranza said, Malaysia and Indonesia dominate the palm oil sector and are thus able to produce lower cost cooking oil.

Inviting Malaysian and Indonesian investors to grow and produce palm oil in the Philippines, Arranza said, would make them less “reckless” in dumping their palm oil in the country and allow for more stable pricing.

At present, Arranza said, less than 20,000 hectares are planted to palm trees in the country.

The PCA, Arranza said, has initially identified about 100,000 hectares in Bukidnon as being suitable for palm tree plantations.

Agriculture Secretary Arthur Yap, Arranza said, has ordered the drawing up of a topographic map to show other potential areas suitable for palm tree production.