Palm oil has been identified as the next major industry in the Davao Region, more than a year after typhoon Pablo (international name: Bopha) tore through large areas of Davao Oriental coconut farms at the end of 2012.
“Palm oil production is a lucrative industry,” said Dr. Pablito P. Pamplona of the provincial oil palm development council, during a consultation between the provincial government of Davao Oriental and industry representatives on March 31.
Palm oil resources are concentrated in the tropical zones immediately north and south of the equator, but Mr. Pamplona pointed out that 90 per cent of the world’s palm oil is accounted for by three other members of the ASEAN (Association of SouthEast Asian Nations) — Indonesia, Malaysia and Thailand.
Mindanao is said to be highly suitable for oil palm, but the Philippines has yet to catch up with its neighbors. The country has only 45,608 hectares planted with the crop compared with Thailand’s 625,000, Malaysia’s 4.5 million and Indonesia’s 7.5 million.
After intensive studies on possible alternative crops for Davao Oriental after Pablo, oil palm was considered the best alternative since farmers can already harvest within two and a half years.
Mr. Pamplona said oil palm trees mature fast, or in 28 months, compared with coconut trees, which mature in four to five years. Oil palm trees also remain productive for up to 30 years, are easier to grow, help mitigate climate change as a heavy sinker of carbon dioxide in the atmosphere and is versatile as both biofuel and food.
The Davao Oriental export crops that suffered most after typhoon Pablo are coconut and banana.
Governor Corazon N. Malanyaon said the oil palm industry seems to show a high success rate, and she hopes it will help the province not only recover from the ravages of the typhoon but also make it possible to achieve economic growth even after her term.
Ireneo D. Dalayon, chief executive officer of the Federation of Cooperatives in Mindanao (Fedco), said several hectares of banana plantations in the region were abandoned by farmers after these were wiped out by Panama disease, a fungus that attacks the roots of the banana plant.
Mr. Dalayon said oil palm is a good alternative crop, especially for farmers whose banana farms were affected by flooding and Panama disease, as oil palm is more resilient to floods and climate change.
Industry leaders in the region are presently organizing farmers’ groups so they can transform their unused lands into oil palm plantations.
Romeo M. Montenegro, director for investment promotion of the Mindanao Development Authority, said that while coconut remains a priority, the government is encouraging farmers to look into the prospects of the palm oil industry, also considering that oil palm waste is a viable feedstock source for biomass.
Mr. Montenegro said oil palm is perfect as a biomass resource since it has higher combustible properties compared with other feedstock sources such as bagasse, corn cobs and sugarcane. With oil palm plantations in the area, it will make biomass more viable as a potential source of renewable energy for Mindanao, he said.
Mr. Pamplona, in his paper “Palm Oil Conquers Rural Poverty”, said the crop has become a “potent tool in overcoming rural poverty”, but since the Philippines failed to harness it, the country has put itself at the tail end when it comes to overcoming poverty in the rural areas.
Market analysts (including Mr. Pamplona) who participated in the International Conference on the Future of Palm Oil Business in Kuala Lumpur in 2010 predicted an increase in the price and demand of palm oil from 2011 onwards due to an increasing demand from emerging Asian economies like China and India. They also saw a slowdown in the production of major vegetable crops due to climate change and increase in petroleum prices.
Considering these and more, Mr. Pamplona said Mindanaoans would be able to combat rural poverty once they learn how to take advantage of the opportunities offered by oil palm.
