PALM OIL PROGRAM

PRESENTATION
May,29 2012
MALAYBALAY CITY,BUKIDNON
Presentation outline:
• Program phases
• The palm oil industry
• Background on palm oil
• Features of a good palm oil project site
• Recommended areas for palm oil
• Project implementation
• Farmer’s income from palm oil
• Next steps
 Program phases

• Awareness – information campaign to make farmers and

the LGUs aware of the palm oil project; gather
information to make the program effective
• Identification and ocular inspection of target areas –
identify participants in the proposed program; determine
suitability of the areas for inclusion in the program
• Requirements – identify what is needed by the area, the
LGUs and the farmers to join the program.
• Agreement – understanding and acceptance of the
program
• Implementation
THE PALM OIL INDUSTRY
Four members of the ASEAN, namely:
Indonesia, Malaysia, Thailand, and the
Philippines are blessed with favorable
environment to produce palm oil.  
Unfortunately, the Philippines has ignored this
opportunity. 
At present the Philippines has only 46,000 has
planted to oil palm as compared to 7.5 million
has for Indonesia, 5 million ha for Malaysia and
625,000 ha for Thailand. 
 Leading Countries in the Production of Palm Oil in
Leading countries ininthe production ofofpalm oiloil
terms
in termsof
ofarea
leading andproduction
countries
area and production
the in 2009
production
in 2009. palm
in terms of area and production in 2009.
Production Percent Oil PDN

Country Area in (Has) Crude palm Oil

(1000) (CPO) PDN
(MT)(1000)
1. Indonesia 7,500.00 24,500 49%

2. Malaysia 5,000.00 18,600 37%

3. Thailand 625.00 1,500 4%

4.Nigeria 460.00 850 2%

5. Columbia 390.00 810 2%

6. Others 1,126.00 3,077 5%

TOTAL 14,601.00 49,337 100%

 Leading Importing Countries of Palm Oil
Country Volume (MT) Percent
1.India 8,200 22%

2.China 7,150 20%

3.Europe 5,300 14%

4.Pakistan 2,300 7%

5.United States 952 3%

6.Bangladesh 900 3%

7.Others 12,175 31%

Total 37,377 100%

Background on Palm Oil
PRE-NURSERY
BALI PALM COOPERATIVE
Balingasag, Misamis Oriental
The fruits of the oil palm consist of the following parts:
Pulp: the pulp is yellow; when the pulp is crushed it yields
palm oil.
Seed: inside the shell of the seed is the kernel; when the
kernel is crushed, it yields palm kernel oil
OIL PALM CROP CYCLE
• Pre-nursery 3 months
• Nursery 9 months
- Transplanted to field 1 year old
• First harvest 5 years old
• Peak harvest start 8-9 years old
• Productive life 25 years
Palmera Resources,
Inc.
 The company

• Agricultural affiliate of a conglomerate based in Quezon

City
• Conglomerate is engaged in manufacturing vegetable oil,
bio-diesel, chemicals and resins, agricultural chemicals,
consumer products and real estate development.
• Requirement for palm oil and coconut oil is about
100,000 metric tons per year (25,000 hectares of oil
palm)
Objectives of the project
1. To secure long term, stable supply of
palm oil for company requirements by:

• backward integration and involvement in

actual production of palm oil
• set up palm oil mill near the farm
production area
 2. To uplift the lives of farmers in the
rural communities by providing a
means of livelihood that gives
regular, stable, substantial and long
term income for the farmers and
their families.
3. To significantly increase economic
activity and raise the level of
development in the municipalities
and barangays.
Project Initiation
1. Identify areas technically feasible for production
of palm oil.
2. Identify farmers and farmers groups with
adequate areas for production in the technically
feasible areas.
3. Determine farmers group’s willingness and
capability to join the program and the resources
they can commit into the palm oil producton
project.
4. Come to agreement with farmers, landowners
and farm organizations on palm oil production
systems with equitable sharing of resources,
costs, profits and benefits.
A GOOD PALM OIL
PRODUCTION SITE
- economically viable size (at least 5,000 hectares)
- ideal location with the following:
1. favorable weather (evenly distributed rainfall),
topography and soil type
2. accessible
3. project is acceptable to local population and
the land owners
4. good peace and order situation
5. available farm labor
 Land

• Best results are obtained where land is flat or gently

undulating
• Deep soil and easily drained
• No compacted or impermeable horizons close to the
surface
• Capable of retaining sufficient moisture
• Contains a high percentage of any naturally occurring or
added nutrients
Property Favorable Marginal Unfavorable

Terrain (slope degrees) 12 or less 12 – 20 >30

Soil depth (cm) 75+ 50-75 <50
Texture deep sandy sandy loam loamy sand
to clay loam heavy clay
white clay
Structure and friable to very friable weak
Consistency strongly very firm massive
developed unstructured
unstructured
Embedded gravel nil fragmented thick or
below 15 cm
massive
pH 4 to 6 3.5-4 under 3.5
Permeability moderate rapid or slow very rapid
or
very slow
Category Soil characteristics

1 Well structured soil, with reasonable clay content and

unrestricted rooting volume.
2 Unrestricted rooting volume but on sandy soil with limited
water holding capacity.
3 Rooting slightly impeded by dispersed gravel, or shallow
soils or fairly steep land leading to run-off
4 Rooting positively impeded by gravel, or very shallow soils,
or slightly impeded but steep slopes leading to very rapid
run-off
5 Rooting restricted to about 1 meter by a hard pan or very
high water table.
 Climate
• Temperature – ideal 29 to 32 degrees Celsius
minimum 22
• Sunshine
Sunshine hours
Total / year Mean / day % potential yield
1,000 2.7 60
1,250 3.4 65
1,500 4.1 75
1,750 4.8 85
2,000 5.5 95
2,250 6.2 100

• Wind – no typhoons or strong winds

• Rainfall – annual total of 2,000 mm of rain, evenly distributed

throughout the year, with no pronounced dry season
 BALINGASAG

CLAVERIA

DIPOLOG MALITBOG

BAUNGON

TALAKAG

LANAO DEL
NORTE SOUTH
BUKIDNON SAN FERNANDO
AREA
FINANCIAL PROJECTIONS
INTERCROP WITH OIL PALM
TREE DURING EARLY
STAGES
NEXT STEPS
• Identify landowners, cooperatives or
associations with available land willing to join the
project.
• Determine suitability, location and size of
available areas.
• Reach agreement with landowners
• If suitable area size is committed
- set up nursery
- training for farmers
- organize the area
• Set up the oil mill
THANK YOU