Philippines to bolster palm oil industry

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Philippines to bolster palm oil industry

The global palm oil industry is big business and its dominated by Indonesia and Malaysia, but now their regional neighbor the Philippines plans to step up its game with the widely-used food, cosmetics and vitamins industry product. The move comes at a time when the global laders in production are aiming to contain expansion due to sustainability concerns over deforestation.

The Filipino government has slated 304,350 hectares of land on the island of Mindanao for palm oil production, website reported.

The Department of Environment and Natural Resources (DENR) has identified the land with several companies looking to get involved in the profitable business, including A. Brown Energy and Resources Development Inc subsidiary Nakeen Corp, which plans to expand its plantation to 1,000 hectares by 2012.

A. Brown Energy operations manager Fernando Mercurio, told the website the industry was emerging as a 'lifeline' for the island of Mindanao and the company planned to plant 10,000 hectares of palm oil trees by 2015.

The company currently has a 600-hectare plantation and has applied with the government to plant another 400 hectares by 2012 under the Upland Agro-Forestry Program.

"Those lands are found to be timberlands, so we are entering into an agreement with people’s organizations. The deal is called Community-based Forest Management Agreement involving three participants, namely, DENR, A. Brown and people’s agreement," Mercurio was quoted as saying.

Photo: Agri Corner

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