DavNor welcomes oil palm investments

Feb. 29, 2012

23 February 2012

DavNor welcomes oil palm investments

DAVAO CITY–The  Federation of Cooperatives (FedCo)  eyes the planting of oil palm to around 5,000 hectares of land  in Davao del Norte .

Davao del Norte Governor Rodolfo del Rosario in Wednesday’s Club 888 at the Marco Polo Davao  supported the plan of FedCo saying province is not just about bananas as it was known to many. Rather, it is now geared towards multi-cropping which includes oil palm as a potential product for the idle lands in the province, he said.

“I welcome FedCo and all other investors who wish to plant oil palm in Davao del Norte. This is a product that is produced in three to four years,” del Rosario said.

He clarified that financing institutions are now more favorable to lend money for an investment that yields products fast.

The Landbank of the Philippines (LBP) announced that it has long offered financing to oil palm investments.

“We have already funded 400,000 hectares of oil palm in Agusan del Sur, Compostela Valley and Davao del Norte,” said LBP Branch Manager Charlotte Conde.

The bank further awaits borrowers that would invest on this particular crop. LBP finances P180,000 per hectare of land to be planted with oil palm.

However, twenty percent of the said amount will come as equity of the farmer while the bank shoulders 80 percent of the amount.

Malaysian investor Shawing Lo said oil palm would not compete with the banana industry in the said province, saying that oil palm production would become additional source of revenues for Davao del Norte considering that idle lands or even cogon lands can be planted with the said crop.

Lo said that there are 150,000 hectares of idle lands in Mindanao potential to be converted into oil palm plantations.

“This encourages wasted idle lands to become productive,” he added.

Malaysian investors said to have chosen Davao del Norte as the area for oil palm investment since the local government unit opted to push for economic development by trying out oil palm production. (PIA-11)

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