philippines-the next frontier for palm oil investment mr.brielgo pagaran_caraga... · philippines...

Philippines – The Next

Frontier for Palm Oil

Investment

Brielgo O. PagaranRegional Director, DTI-Caraga and Palm Oil Industry Cluster National Coordinator

Top Palm Oil Producing Countries

Papua New Guinea

Malaysia

Indonesia

NigeriaColombia

Thailand

Comparative Global Production

Volume of Vegetable Oil

Vegetable OilProduction (2010)

Volume (000 MT) Percent

1. (a) Palm 45,064 32.28

(b) Palm kernel 5,212 3.75

2. Soybean 35,805 25.65

3. Rapeseed 21,430 15.29

4. Sunflower 12,965 9.29

5. Cottonseed 4,687 3.36

6. Groundnut 4,116 2.95

7. Coconut 3,223 2.31

Source: Oil Palm World, European Biodiesel Board and Agricultural Development of Indonesia.

The Philippine Palm Oil Industry Roadmap

Philippine Palm Oil Industry

Situationer

1950

Menzi Agricultural Corp.

established the first oil palm plantation in Basilan; was later turned

over to farmers’ cooperative

Kenram Industries, Inc.

in Sultan Kudarat

converted their ramie plantation to oil

palm; established

1,100 has. nucleus farm and 3,000 ha.

outgrower farms and 20-

ton capacity crude palm oil mill

Guthrie of

Malaysia and

a group of Filipino

investors

established

the Filipinas

Palm Oil Plantations,

Inc., in

Agusan del

Sur;

developed 8,000 has. of

oil palm and

established a

40-ton crude

palm oil mill

Filipino,

Singaporean

and Malaysian

investors

organized

the Agusan

Plantations, Inc. (API)

thru a joint

venture;

developed

about 1,800 has. in

Agusan del

Sur

Oil palm

plantations

were developed in

Agusan del

Sur, Sultan

Kudarat,

CompostelaValley and

Bohol. As of

2012,

the total oil

palm area in the country

reached

about

56,000 hectares.

API formed a sister company,

the AgumilPhil. Inc. which established a 20-ton

crude palm oil mill that started operating in 1998.

19972000-2012

19831981

1960

History of the Philippine Palm Oil Industry

Region ProvinceArea Planted

(Has)No. of Palms*

MIMAROPA Palawan 5,293.61 677,582.08

CENTRAL VISAYAS Bohol 6,493.69 831,192.32

WESTERN MINDANAO Zamboanga Norte & Sur 1,146.40 146,739.02

NORTHERN MINDANAO Bukidnon & Misamis Or. 2,419.15 309,651.02

SOUTHERN MINDANAO Compostela Valley 1,217 155,776.00

SOCSKSARGEN Socsksargen 17,241.51 2,206,913.28

CARAGAAgusan del Norte, Agusan

del Sur &Surigao del Sur20,040.13 2,265,136.64

ARMM Maguindanao Dist. 1 & 2 2,786.44 356,664.32

TOTAL 56,637.93 6,949,654.68

Oil Palm Area, Philippines @ 2012

Source: PCA & Oil Palm Mills



Source: Bureau of Agricultural Statistics, 2012

Market YearProduction

(1000 MT)Growth Rate

2003 59 5.36 %

2004 60 1.69 %

2005 61 1.67 %

2006 68 11.48 %

2007 75 10.29 %

2008 82 9.33 %

2009 90 9.76 %

2010 92 2.22 %

2011 95 3.26 %

2012 100 5.26 %

Oil Palm Production, Philippines

2003-2012

www.indexmundi.com/agriculture/?country=ph...palm-oil...production

Top 5 Palm Oil Producing Countries

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2012 2020

Increasing Huge National Shortage of Vegetable Oil. Shall We Produce or Import?

PA

LM

O

IL

IMP

OR

T

(MT

)

YEARYEARYEARYEAR

2017

� Philippine population of 95.8M

� Palm oil import of 500,750 MT

� Import value of P27.50 billion

� Philippine population of 120.1 M

� Palm oil import of 1,000,000 MT

� Import value of P54.50 billion

Source: Dr. Pamplona, 2013

kg

Volume of Philippine Production, CPO

and PKO*

CPO

PKO

* Estimated equivalent yields of CPO

and PKO based on

fresh fruit bunches harvested as

indicated in BAS stat (2013)

0

2

4

6

8

00 01 02 03 04 05 06 07 08 09 10 11

Ph

P

Farmgate prices of

African Palm Oil in the

Philippines


Region Name and Location Maximum

Capacities

(MT FFB/hr)

Actual output

(MT FFB/hr)

MIMAROPAAgumil Phil Inc Maasin,

Brookes Pt. Palawan

30

Central VisayasPhil Agric Land Devt. Mill, Inc (PALM Inc), Matin-ao, Carmen,

Bohol

40

Northern MindanaoA.Brown Energy Resources, DevtMalubog, Impasugong, Bukidnon

ABERDI RBD MillMalubog, Impasugong, Bukidnon

10

50 (on-going

construction)

10

SOCCSKSARGEN(Sultan Kudarat)

KENRAM INDUSTRIESIsulan, Sultan Kudarat

KPII P.O.M.Isulan, Sultan Kudarat

20

60 (on-going

construction)

20

Palm Oil Mills, Location & Capacities, Philippines, 2012

Region Name and Location Maximum

Capacities

(MT FFB/hr)

Actual output

(MT FFB/hr)

Caraga Region(Agusan del Sur)

1.) Agumil Phil Inc.Manat, Trento, Ag. Sur

2.) FPPIMaligaya, Rosario, Ag. Sur

30

36

ARMM Agumil Phil Inc.Buluan, Maguindanao

30

TOTAL, all operating mills only 196

Palm Oil Mills, Location & Capacities, Philippines, 2012

KENRAM Industries Palm

Oil Mill: 20t, FFB/hr Isulan,

Sultan Kudarat

Agumill Palm Oil

Mill : 20t, FFB/hr

Trento, Ag. Del Sur

FPPI Palm Oil Mill

40 T, FFB/hr

Rosario, Ag. del Sur

PALM INC. 40 t FFB/hr;

Ubay, BOHOL

Agumil Palm Oil Mill :

30T, FFB/hr

Palawan

ABERDI Palm Oil Mill :10 MT, FFB/hr

Impasugong, Bukidnon

Buluan Palm Oil Mill:

30T,FFB/hr Buluan,

Maguindanao

Palm Oil Mills, Phil. (total cap of 180 MT FFB/hr), as of 2012

Mills Under Construction:

1. KENRAM

2.Univanich-Carmen, North Cot



PCA – Accredited Oil Palm Nurseries, 2012

Region X

A. Brown Energy Resources

Development, Inc (ABERDI)

Region XIIKIDI

KENRAM Industries

Triple P Farms

Kabacan, Cotabato

E Y G Oil Palm Seedlings Kilapasawit VenturesTacurong City , Sultan

Kudarat

AIDA AGRO indstrial ventures

Kidapawan City

North Cotabato Palm Oil Corp.

Makilala, North

Kilambay Farms, Oil Palm Nursery

Carmen, North Cotabato

Caraga Region

FPPI

Rosario, Agusan Sur

URAYA Farms Bunawan, Agusan Sur

AGUMIL Trento, Agusan Sur

Region IX

Zanorte Palm Rubber

Region IV-BAGUMIL

Palawan

Location

Potential Areas (Has)

New Estimate

1. R-I-IVB - Palawan 16,300 (1.68%)

1. R-IX Western Mindanao 102,000 (10.46%)

2. R-X Northern Mindanao 154,000 (15.8%)

3. R-XI Southern Mindanao 104,000 (10.7%)

4. R-XII SOCSKSARGEN 112,000 (11.5%)

5. R-XIII CARAGA 384,000 (39.4%)

6. ARMM 103,000 (10.6%)

TOTAL 975,300 (100.0%)

Potential land areas for oil palm, Philippines


Potential land areas for Oil Palm, Caraga


Representative Municipality Tenurial Instruments

IP - House Hold

Brgy Coverage

Slope Total Hectares

‘Datu Mabanao’ Conrado Reyes Rosario CADC No. 153 1,300 5 3-50% 14,225

Artates Mique Bunawan 3-50% 34,000

Datu Oyamag Filicisimo Fuentes Trento R11-CADT MON-0703-0007

3,000 7 0-50% 30,000

‘Datu Mankumbati” Deo S. Manpatilan

Esperanza CADC No. 154 6,000 12 0-50% 74,827

Datu Manbeyahe Benhur Mansolonay

La-paz CADC No. 158 324 1 8-50% 6,095

Datu Hawodon Tagleong Coguit La-paz CADC No. 132 1,614 4 18-50% 51,000

Datu Hilarion Padua La-paz CADC No. 176 182 1 3-50% 1,539

Datu Mansaligan Alejandro Suarez La-paz CBFM 100 1 3-50% 2,200

‘Datu Sumapnay Carlos Lebanon Veruela CADC No. 155 3,26 4 0-50% 7,478

Datu Kandibiko Wenceslao Reyes Loreto CADC No. 157 362 3 0-30% 3,800

Welfredo E. Otaza Loreto A & D / CADC 1000 3 0-50% 41,279

Datu Kaluwasan Casiano Tana Sibagat CBFA 500 2 3-50% 2,909

Sub-total 269,352

Agusan del Sur

Potential land areas for Oil Palm, Caraga



IP - House Hold

Brgy Coverag

e


Datu Malisang Reynaldo Lingay Gay-od

Lingig CADC – on process

500 3 8-50% 17,966.60

Sub-Total 17,966.60

Surigao del Sur


IP - House Hold

Brgy Coverage


Datu Dapig Noel Morta Cabadbaran, Tubay, Santiago, Jabonga, Kitcharao

Native Title 0-50% 82,000

Sub-Total 82,000

Agusan del Norte

Yield Per Hectare Per Year (MT) 20 20 20

FFB Buying Price / Ton 1,500 3,500 4,500

GROSS Income/ Hectare/ Year 30,000 70,000 90,000

===============================================================

Expenses:

Field Maintenance 12,500 12,500 12,500

Harvesting, Loading, Transport 7,380 7,380 7,380

Total 19,880 19,880 19,880

===============================================================

NET Income Before Tax 10,120 50,120 70,120

===============================================================

Return on Investment Analysis as of 2012

(ROI) 0.51 2.52 3.52

===============================================================


Schedule Annual Budget (Php)

1st Year 76,558

2nd Year 32,014

3rd Year 41,734

4th Year 38,960

Grand Total 189,266


Prices as of 2012

Development cost per hectare

End Market of Palm Oil Products


Improved

balance

of payments

Social amelioration

of impoverished

masses

Milling plants Nucleus

farms

Cooperatives

as outgrowers

Of nucleus farms

� Technology

� Planting materials

� Farm supervisionDomestic and

Export markets

Oil palm

produce

Oil palm

What the Oil Palm Industry can do

Surigao del Sur Surigao del Sur

455,216 has.455,216 has.

Abundant land and natural resources

TOTAL LAND AREA 1,913,842has.

Certified A & D 582,351has.

Total Forest land 1,331,491has.

Agricultural 536,845has.

Residential 3,290has.

Commercial 198has.

Industrial 38has.

Civil Reservation 5,367has.Military & Naval

Reservation 2,207has.

Mineral Reservation 14,248has.

PROVINCE

TOTAL ALIENABLE & DISPOSABLE

SURVEYED AREA

TITLED LANDS

UNTITLED & UNSURVEYED AREAS

(HAS.) (HAS.) LOTS (HAS.) LOTS (HAS.)

Agusan del Norte 84,134 82,292 59,939 75,656 10,172 8,478

Agusan del Sur 216,043 205,340 152,655 193,226 27,380 22,817

Surigao del Norte 95,969 93,427 69,476 81,089 17,858 14,880

Dinagat Island 17,661 17,661 7,359 17,661 - -

Surigao del Sur 168,544 165,523 126,237 156,697 14,216 11,847

TOTAL 582,351 564,243 415,666 524,329 69,626 58,022



Tenurial Instruments

TENURIAL INSTRUMENTS ISSUED

AREA (has.)

Integrated Forest Management Agreement ( IFMA)

286,473

Socialized Integrated Forest Management Agreement (SIFMA)

500

Community Based- Forest Mgt. Agreement (CBFMA)

198,731.78

Timber License Agreement 132,577.22

Co – Timber Production Sharing Agreement

110,790

GRAND – TOTAL 729,072

UNTENUREDAREA (has.)

Agusan del Norte30,038

Agusan del Sur 115,477

Surigao del Norte 34,032

Surigao del Sur 47,094

Dinagat 35,815

GRAND – TOTAL 262,456


Potential Reforestation and Afforestation

Areas within CBFM Areas

Province Class Area

Agusan del

Norte

Other wooded land,

wooded grassland

10,590.23

Other lands, natural

grassland

4,591.64

Agusan del

Sur

Other wooded land,

wooded grassland

25,576.30


grassland

6,692.00

Surigao del

Sur

Other wooded land,

wooded grassland

10,819.50


grassland

314.08

TOTAL 58,844.76


CBFM Areas available for Joint Venture Agreements (JVA)

PENRONo. of CBFM

HoldersTotal Area, Ha

Area Available

for JVA, Ha

Agusan del Norte 32 35,103.63 6,227.89

Agusan del Sur 34 76,872.84 11,569.59

Surigao del Norte 11 6,115.61 565.60

Surigao del Sur 49 80,639.70 1,704.50

Grand Total 126 198,731.78 20,066.58


Co-Management Agreement with Local Government Units

(LGU) open for Joint Venture Agreement (JVA)

Province Location Area (has.) Remarks

Agusan del

NorteLas Nieves, Buenavista, Nasipit & Carmen 56,093.81

MOA approved, open

for investment

City of ButuanBrgys. San Mateo, Bitan-agan, Mla. De

Bugabos, Tungao, Dulag, MJ Santos10,956.00 MOA for Approval

Agusan del

Norte

Poblacion 2, San Roque, Jaliobong, Bangayan,

Agusan del Norte477.00 MOA approval

Agusan del Sur On process

Total 68,369.81


Tripartite Agreement with LGUs, DENR and investors for Eco-tourism

Caimpugan Peatland Adventure Enchanted Sohoton Adventure

Agusan Marsh Adventure Magpupungko in Pilar, Siargao


Priority Watersheds, Per Province

# of

Water-

sheds

Area (has.)

Agusan

del Norte

3 122,936.54

Agusan

del Sur

4 321,435.24

Surigao

del Norte

1 16,734.28

Surigao

del Sur

3 245,137.98

TOTAL 11 706,244.05

PROCLAIMED WATERSHED FOREST RESERVE

Watershed/ProvinceArea (has) Date

Proclaimed

Caraga Region 38,241.44

Agusan del Norte 20,392.44

1

Taguibo River Watershed Forest Reserve 4,367.44 Sep. 4, 1997

2

Cabadbaran Watershed Forest Reserve 16,025.00 Nov. 13, 1991

Agusan del Sur 16,855.00

3

Andanan River Watershed Forest Reserve 15,097.00 May 29, 1991

4Mt. Magdiwata Watershed Forest Reserve 1,658.00

October 25, 1993

5Alfred Watershed Forest Reserve 100.00 May 24, 1998

Surigao del Norte 967.00

6

Surigao Watershed Forest Reserve 967.00

August 29, 1990

Surigao del Sur 27.00

7Adlay Watershed Forest Reserve 27.00

November 8, 1993


Ancestral Domain Areas, Per Province

# of

CADCs

Area

(has.)

Agusan del

Norte

4 53,345

Agusan del

Sur

10 273,483

Surigao del

Norte

1 25,000

Surigao del

Sur

6 109,296

TOTAL 21 461,124

Approved Certificate of Ancestral Domain Titles

Province # of CADTs Tribe Area

(has.)

Agusan del

Norte 1 Manobo 26,881

Agusan del Sur 7 Banwa-on

Manobo

Higao-non

176,892

Surigao del

Norte

1 Mamanwa 25,000

Surigao del Sur 3 Manobo

Mamanwa

Mandaya

41,000

TOTAL 12 269,773

Abundant Renewal Energy (RE) Resources

� 9 awarded RE projects

(geothermal, hydro, solar and wind) with total

potential capacity of 84 MW

� 9 pending RE projects (hydro, solar,

biomass) of 20.3 MW

CARAGA RENEWABLE ENERGY PROJECTS


• Taguibo 1 Hydroelectric Power Project – 2MW

• Taguibo 2 Hydroelectric Power Project – 2 MW

• Asiga Hydroelectric Power Project – 5 MW

EQUI-PARCO

CONSTRUCTION

CO.

• Wawa 1 – 7.70 MW

• Wawa 2 – 7 MW

• Wawa 3 – 5.60 MW

• Cabadbaran Hydroelectric

Power Project – 14 MW

• Puyo Hydroelectric Power

Project – 30 MW



AGUSAN POWER CORPORATION


HYDROLINK Projects Corp., a unit of

listed A Brown Company, Inc.,

• Carac-an Hydroelectric Project – 25 MW


ENFINITY PHILIPPINES RENEWABLE

RESOURCES, INC.

• Butuan City Solar Power Project (Parcel 1) – 10 MW



• Dinagat Solar Project – 1 MW


• Mainit Geothermal Project –

30 MW

• Siargao Wind Project

• Dinagat Wind Power Project

New Palm Oil Investment in Caraga

Target Production Area – 36,000 hectares

Target Areas: Loreto, Veruela, and Sta. Josefa,

Agusan del Sur, Philippines

Will establish 3 processing plants with a

Capacity of 60 tons/hr.

THANK YOU

philippines-the next frontier for palm oil investment mr.brielgo pagaran_caraga... · philippines...

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