Fedco to venture on oil palm plantations

Thursday, February 23, 2012

THE Federation of Cooperatives (Fedco) announced Wednesday that they are venturing on 5,000 to 7,000 hectares of oil palm plantations this year, transcending their usual banana plantation business.

Ermie Dilodilo, assistant manager for Fedco, speaking during Wednesday's Club 888 Forum at Marco Polo Hotel Davao, said they have coordinated with the members of the cooperatives to start an oil palm plantation this year.

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"Fedco will be the one to manage the production," he said, adding that Fedco itself will plant its own oil palm trees.

To grow oil palm trees, at least P180,000 will be needed to allocate for every hectare, of which the LandBank of the Philippines will give assistance amounting to P144,000 and the remaining amount of P36,000 will be under the equity of the farmers.

He also said that 70 percent of the total cooking oil consumption in the Philippines is imported and by starting up this new venture will suffice the total requirement of the country.

Dilodilo also said that oil palms will not only supply palm oil products but also it will supply seeds, a component which can be sold at expensive prices used for foods and cosmetics.

He also said that at least 128 seedlings can be planted in every hectare. However, he cannot disclose yet the amount of cooking oil that these plants can produce for every hectare, as it will depend on the quality of the trees.

"It may cost P250 per seedling," he said, pointing out that the moment Fedco will have its own nurseries, they will sell the seedlings 50 percent cheaper.

Meanwhile, Dr. Anacleto Pedrosa, chief operating officer of Banapalma Corporation, said there's not much land conversion with the new venture as they will locate the plantations on idle lands, or areas where grasses abound.

He also said that the palm oil industry will also save the country by supplying enough biodiesel fuel in the future.

The province of Davao del Norte has 60,000 to 80,000 hectares for crops, which means that there are still much land areas to be used for plantation of any crops, according to Pedrosa.

The interested farmers will be subject for credit evaluation of LBP.