MVP goes into comm'l rice production

MANILA, Philippines - Hybrid seeds rice producer SL Agritech and the group of businessman Manny Pangilinan has earmarked an initial $10 million to develop at least 1,000 hectares of rice lands for commercial farming. 

In a press conference yesterday, SL Agritech president Henry Lim said the project would be carried out in idle lands fit for cultivation. 

The Philippine Agricultural Development and Commercial Corporation (PADCC) of the Department of Agriculture and Pangilinan’s Metro Pacific Investment Corp. (MPIC) has so far identified potential areas in Palawan, Occidental Mindoro, Iloilo, Negros Occidental, Zamboanga Sibugay, Davao del Sur, Campostella Valley, North Cotabato and Sultan Kudarat.

Los Banos-based consulting firm Mandala Development Corporation has been tapped to conduct a feasibility study for the project once the cultivation area has been confirmed.

“We have to confirm this as soon as possible,” said Lim.

“We have to closely coordinate with concerned regions and provinces to confirm if those areas are existing and available,” he added.

Under the joint venture, SL Agritech would provide the hybrid rice seeds that would be used in large-scale farming as well as the technical assistance.

“I think this is a very good agreement. With the financial muscle of Metro Pacific and the technology of SL Agritech, we have a good tie up,” said Lim.

He said hybrid rice seed produced in the Philippines are competitive to those produced in China and India.

The initial planned expenditure of $10 million would will be alloted for the development of farm infrastructure, particularly irrigation facilities for rainfed-lowland areas. The cost of farm inputs would be on top of this.

Irrigation is normally placed at between P400,000 to P600,000 per hectare.

“I think MVP (Pangilinan) also realized that there is a big market for rice,” said Lim.

He noted that domestic rice consumption is now placed at P450-billion annually. 

“If you can get a 10 percent market share of P450 billion, that is big,” said Lim.