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25-26 June 2009

Asturias Hotel
Puerto Princesa City, Palawan

__________________________

PROCEEDINGS

I. Executive Summary 1
II. Introduction .

III. The Sessions


Session I : Industry Updates & Programs
 Philippine Palm Oil Development Council, Inc.: Updates ..
 Status of RP Palm Oil Industry
 Status of Palawan Palm Oil Industry ..
 Palm Oil Update in BIMP-EAGA ..
 Open Forum
Session II : Development Initiatives, Trends & Prospects
 Development Initiatives
 Sustainable Peace & Economic Stability with Oil Palm ..
 Oil Palm Master Plan Development .
 Policy Framework for the Development of Philippine
Palm Oil Industry ..
 Open Forum ..
Session III : Oil Palm Pests, Diseases & Other Concerns
 Management of Rhinoceros Beetle Infestation on
Coconut & Oil Palm .
 Uses of Pheromone in the Philippines .
 Performance of Oil Palm in Poorly-Drained
and Well-Drained Soils
 Oil Palm Nutrients
 Palm Oil Harvesting Technology .
 Open Forum ..

8
9
11
11
13

14
15
16
18
20

21
23
23
24
25
26

Session IV : Oil Palm Financing & LGU Initiatives on Oil


Palm Development
 Land Bank Oil Palm Financing Program .. 27
 Nutreeno Fertilizer of Oil Palm . 27
 LGU Oil Palm Development Initiatives 28
 Open Forum .. 28
IV. Congress Resolutions . 29
V. Annex
A. The Actual Program
B. Delegates & Guests
C. Papers & Powerpoint Presentations

31

The 6th National Palm Oil Congress


Asturias Hotel
Puerto Princesa City, Palawan
25-26 June 2009
PROCEEDINGS
VI. Executive Summary
1. On June 25-26, 2009, the 6th National Palm Oil Congress was held in Puerto
Princesa City, Palawan. A total of 332 participants and guests composed of
various stakeholders, government and private, of the nations Oil Palm Industry,
including some based in Malaysia, attended the activity. Palawan led the number
of participants with 120 or 36% of total. Below is the breakdown of the
participants:
Province/Country
Palawan
North Cotabato
Metro Manila
Davao
CARAGA
South Cotabato
Sultan Kudarat
Laguna
Zambo del Norte
Cebu
Not indicated
Albay
Ilocos Sur
Malaysia
Leyte
Total

No.
120
85
27
24
23
17
13
7
6
3
3
1
1
1
1
332

% of
Total
36.1
25.6
8.1
7.2
6.9
5.1
3.9
2.1
1.8
0.9
0.9
0.3
0.3
0.3
0.3

2. The Puerto Princesa City government, led by Vice Mayor Cecil Bayron, and ViceGovernor David Ponce de Leon of Palawan, warmly welcomed the participants.
Both stressed that choosing Palawan as the venue for the Congress contributed
much to the continuing efforts of Puerto Princesa and the province as a whole, of
promoting the city as a major destination for conventions, study tours, seminars
and eco-tourism.
The Provincial government initiated the establishment of the oil palm industry in
2007 with investments coming primarily from the private sector. It was hoped
that the planting of oil palm in the southern municipalities of Palawan would, in a
few years, show the profitability of growing the crop and, result to more planting
in areas where oil palm is also suitable.

The renowned City Mayor Edward Hagedorn joined the participants later in the
welcome dinner hosted by the City government.
3. Mr. Chang Chee Kong, President of the Philippine PalmOil Development
Council, Inc. or PPDCI, reported on the accomplishments of the industry since the
last Congress held in Bohol. Among others, his report revealed that:


In 2008, the Palm Oil price reached a historical highest level of more than
US$1,000 per metric ton. This resulted from the continuous increase in price
of petroleum oil and the moves of many country to go into Bio-fuel.
However, in the later part of 2008 until the first quarter of 2009, the Palm Oil
price settled down to its healthy US $600 level when the price of petroleum oil
had softened.

In the same year, although the Philippine crude palm oil production exceeded
50,000 metric tons, it was not enough to meet the local demand. Hence, the
country imported about 300,000 metric tons. This volume of crude palm oil
import translates to an immediate requirement of 80,000 hectares of mature oil
palm plantation to cope with the domestic demand

Also In 2008 :
 The Agumil Phils Inc. and the University of Southern Mindanao signed a
Memorandum of Agreement where the University would take the lead
role in Research and Development for oil palm in the Philippines;
 The PPDCI passed a resolution requesting the Hon. Secretary Arthur S.
Yap, of the Department of Agriculture and Hon. Congressman Khalil B.
Mitra, Chairman of Committee of Agriculture to allocate funds for 2009
in the National Budget for Oil Palm Research and Development.

As of June 2009, the total area devoted to oil palm in the country had already
reached 44,000 hectares, covering the islands of Mindanao, Bohol and
Palawan. These areas are currently supporting more than 4,000 oil palm
farming families and other sectors which have forward and backward linkages
with the industry.

While the industry went into aggressive expansion, the growth rate was set
back for more than two years due to the discovery of the new yellow Ringspot
Virus disease and the outbreak of brontispa. These disease and pest resulted in
the the governments banning the importation of planting materials which was
later lifted in the middle of 2008.

4. The Congress covered four sessions with the following topics:




Session 1 : Industry Updates & Programs


a. Phil. PalmOil Development Council, Inc. Updates
b. Status of RP Palm Oil Industry
c. Status of Palawan Palm Oil Industry

d. Development of Vegetable Fats and Oils and Lauric Oil in the World
Market
e. Palm Oil Updates in BIMP-EAGA


Session 2: Development Initiatives, Trends and Prospects


a. Development Initiatives
b. Trends and Prospects
c. Sustainable Peace and Economic Stability with Oil Palm
d. Successful Story of an Oil Palm Grower

Session 3 : Oil Palm Pest, Diseases & Other Concerns


a. Management of Rhinoceros Beetle Infestation on Coconut & Oil Palm
b. Uses of Pheromone in the Philippines by IPM
c. Performance of Oil Palm in Poorly-drained and Well-drained soils
d. Palm Oil Nutrients
e. Palm Oil Harvesting Technology

Session 4 : Oil Palm Financing & LGU Initiatives on Oil Palm


Development Programs
a. Land Banks Oil Palm Financing Program
b. Nutreeno Fertilizer for Oil Palm
c. LGU Oil Palm Development Initiatives

5. Congress Resolutions - Chaired by the Hon. Joselito Piol, Mayor of Mlang,


North Cotabato, the Congress Resolution Hour yielded the following approved
resolutions:
 Resolution on appreciation for Hon. Gov. Joel T. Reyes, Vice-Governor David
A. Ponce de Leon of Palawan, for hosting the 6th National Oil Palm Congress
 Resolution of appreciation for Hon. Mayor Edward E. Hagedorn of Puerto
Princesa City, for hosting the 6th National Oil Palm Congress.
 Resolution requesting the DENR to waive ECC requirements for oil palm
plantations 100 hectares and above
 Resolution for RDCs and LGUs of the provinces to formulate the Oil Palm
Development Master Palm and asking NEDA to include oil palm in their
foreign-assisted projects in Mindanao, Visayas and Palawan.
 Resolution asking PCA to look deeper into the Brontispa and Beetle Problem.
 Resolution asking NCIP for free issuance of pre and prior consent
certificatesand to localize the giving of certificates for CADC.
 Resolution asking Central Bank thru Dept. of Finance to lower the interest rate
for oil palm growers availing of loan to the level of rice and corn which is 6
or 7%/annum.
 Resolution requesting LBP to waive/or lower the 20% equity to oil palm
financing.
 Resolution requesting the establishment of oil palm nursery in every
municipality to be part of the Oil Palm Development Master Plan.
 Resolution for DENR to localize the acquisition of Pre and Prior Consent
(PIC) for CADC and CADT areas intended for Oil Palm Plantations
6. The AGELA Cooperative of Kidapawan, North Cotabato won the bid to hold the
7th National Palm Oil Congress in 2011.

II. INTRODUCTION
We continue to advocate for the development of the Palm Oil Industry and to
uphold that commitment!
These words, coming from Mr. CK Chang who heads the Philippine Palmoil
Development Council, Inc. (PPDCI) reverberated throughout the two-day 6th National Palm
Oil Congress held in Puerto Princesa City, Palawan from 25-26 June, 2009.
The Congress theme, Oil Palm: Solution to Global Warming, Sustainable Peace and
Enhancing Economic Stability, put those words in clearer terms.
The 6th National Palm Oil Congress was conducted with one aim: To generate more
interest from the private and the government sectors towards developing the countrys Oil
Palm Industry by putting their idle and unproductive lands into good use through the
planting of oil palms.
And providing helpful information was essential to intensify that interest. Thus, the
PPDCI decided to hold four key sessions during the Congress.
Mr. Chang said that as of June 2009, the total area devoted to oil palm in the country
had already reached 44,000 hectares, covering the islands of Mindanao, Bohol and
Palawan. These areas are currently supporting more than 4,000 oil palm farming families
and other sectors with forward and backward linkages with the industry.
There is, therefore, a dire need for the government and the private sectors to join
hands in hastening the development of the industry. And the holding of oil palm activities
like the 6th National Palm Oil Congress is an undeniable step towards that end.
National Government Agencies, the Banking sector and private companies
contributed to the holding of the Congress. Among others, Mr. Chang cited the Department
of Agriculture, Philippine Coconut Authority, Department of Trade and Industry,
Department of Environment and Natural Resources, Department of Land Reform, Local
Government Units, Land Bank of the Philippines, First Consolidated Bank, One Network
Bank and various major sponsors and partners, for their continuous support.
The Opening program of the Congress consisted of welcome speeches from the ViceMayor of Puerto Princesa and the Vice-Governor of Palawan.
MR. CECIL BAYRON , Vice Mayor - Puerto Princesa City
Vice-Mayor Bayron expressed his thanks to the PPDCIs choosing Puerto Princesa as
the venue for the 6th NPOC because it contributed to the citys and the peoples efforts to
promote the City as a major destination for conventions, study tours, seminars and ecotourism.
He welcomed the participants and guests to the City which he claimed as the greenest
and cleanest city in the country today. He also announced that Saint Paul subterranean river
called the Underground River is the Philippine nominee to the global search for the

Seven New Wonders of Nature. The


Underground River is doing good in the
global search. In fact as of June 2009, it
already ranked second to the Amazon River
which is its closest competitor. Eight other
countries are vying for the search. If the
Underground River winds up at the top, it
would surely make the province and the City
a major tourist destination.
The City government is focusing on
two vital industries only: Tourism and
Agriculture.
The Tourism Industry is
increasingly growing.
The Vice-Mayor said that tourist arrivals had more than doubled compared to last years
and that the flights of 3 major airlines increased from three (3) to nine (9) and sometimes, 11
flights a day all big aircrafts. As a result, most hotels are fully-booked.
Expecting more tourists, the local government is pouring in more investments to
establish and improve the Citys tourism facilities and will soon start constructing its
international airport. More regional flights from other Asian countries are expected.
In agriculture, the Vice-Mayor said that the city will develop farming as a business.
We believe in farming as a good business, the Vice-Mayor stressed. The southern
municipalities of the province have already started planting oil palm.
Maybe, the best thing Puerto Princesa can do is to wait and see how farmers in the
southern part of Puerto Princesa will make money out of it (oil palm) and the more money,
the more incentive we provide to our farmers, the Vice-Mayor added.
The Vice-Mayor ended by asking the Congress organizers to provide the City with the
results of the proceedings of the Congress. He also invited the participants and guests to join
the people of Puerto Princesa in celebrating the annual PISTAYAN TAGUBAN or the
FEAST OF THE FOREST where massive tree planting would be done with a music
festival. The aim is to help mitigate the problem of global warming, the Vice-Mayor
concluded.

MR. DAVID PONCE DE LEON, Vice-Governor, Palawan

The Vice-Governor welcomed the delegates to the Congress encouraging them to gather
the most current information and insights into the development and market directions of the
oil palm industry.
He said that the province is proud to have joined the industry development. He noted that,
back in 2002, the PCA-led Oil Palm Development Plan had already included Palawan. With
this, the provincial government promptly initiated moves to establish the provincial oil palm
development program which involved multi-sectoral participation.

The government encouraged private sector investments and provided support to the
program. Through an ordinance, the provincial government created a one stop shop which
provided the legal structure and appropriate climate of investment.
This was the local governments
response to Mr. C.K.Chang, of Agumil
Phils., Inc. who asked the local
government to do its part in developing
the industry in its province. The ViceGovernor recalled Mr. Chang saying:
We will not ask from the provincial
government a single centavo, just
help us. Make sure that there will be
no bureaucracy, no red tape.
Some Palawan municipalities and
barangays soon responded. The ViceGovernor particularly cited the municipal government of Brookes Point, and barangays
Epilan and Maasim which provided areas for a long term lease.
The Governor acknowledged the participation of agricultural cooperatives in Brookes
Point and Espanola, Rizal and Bataraza as well as the full support of PCA and the Land Bank
of the Philippines.
the palm oil industry in southern Palawan did not involve destroying our forests
because the areas chosen and planted were areas long eroded and all of these areas have
been idle for many yearsUnlike in other places, the oil palm industry in Palawan is
environmentally friendly and so because of this the Palawan oil and vegetable oil mill
incorporated was launched. In May 2006, we sowed the pre-germinated seeds imported
from Papua New Guinea started May 2006 the Governor said.
The Governor believed that the Congress would provide platforms for fruitful
exchange of ideas and to get updates on pertinent issues defining the oil palm industry and
its relationship to environmental concerns. He also expressed his firm faith that oil palm
could indeed lead to sustainable peace and enhanced economic stability because we all
know that poverty breeds insurgency. Palm oil is viewed as an economic potential. It will
generate foreign exchange and above all help overcome poverty and reduce insurgency.

Keynote Speech
Hon. Sec. Arthur Yap
Dept. of Agriculture
(paper read by DA Carlos B. Carpio, Research Development and Extension Branch of PCA)

In his paper, the Secretary pointed out that the PCA needs to decide whether or not it
wants more coconut palms in coastal areas where the temperature and available chlorine are
ideal.

He said that all DA programs must be participatory in nature where stakeholders,


farmers, and local leaders in the community are involved in decision making from oil palm
production to processing including the determination of the criteria for sustainability,
environmental soundness, and community acceptance among others.
This is necessary to put in place the right policy directions for the oil palm industry.
He said that oil palms should be planted only in areas where oil mills are available to ensure
the delivery of fresh and quality fresh fruit bunches.
Among other points cited in the paper, the Secretary highlighted the following:
 Survey of suitable areas in Mindanao so that investors looking for areas will
know where to go for inspection;
 Revalidate potential areas over and above 25,000 hectares
 Need for the private and the government to work as partners in formulating
incentives and regulatory measures in order for the industry to move towards the
right direction
 Need for credit support to and long-term financing for oil palm projects
especially from the Land Bank and DBP
 Reviewing the rules and regulations on crop insurance to know how they can be
strengthened and applied to the oil palm industry.

III. THE SESSIONS


The Congress covered four sessions immediately followed by open forum. The topics are
shown below. On the second day, a Resolution Hour was provided to get suggestions and
resolutions from the body related to the development and strengthening of the countrys Oil
Palm industry.
Topic
Session I : Industry Updates & Programs
1. Phil. Palm Oil Development Council,
Inc. Updates
2. Status of RP Palm Oil Industry
3. Status of Palawan Palm Oil Industry
4. Palm Oil Updates in BIMP-EAGA
Session II : Development Initiatives, Trends & Prospects
1. Development Initiatives
2. Trends & Prospects
3. Sustainable Peace & Economic Stability with Oil Palm
4. Success Story of an Oil Palm Grower
5. Oil Palm Master Plan Development
Session III : Oil Palm Pest, Diseases & Other Concerns
1. Mgt.of Rhinoceros Beetle Infestation
On Coconut & Oil Palm
2. Uses of Pheromone in the Philippines by IPM
3. Performance of Oil Palm in Poorly-drained and welldrained Soils

Resource Person

Chang Chee Kong, Pres. PPDCI


Oscar G. Garin, Administrator, PCA
David A. Ponce de Leon, Vice-Gov.,
Palawan
Mary Jean T. Roxas, GTZ-Phil.
Lim Chan Lok
Dennis T. Villareal
Engr. Vernoulli B. Belgira
Bartolome M. Navalta
Dr. Ponciano A. Batugal

Ambrosio Raul R. Alfiler


Hernando A. de Castro
Dr. Adeflor G. Garcia

Topic
4. Palm Oil Nutrients
5. Palm Oil Harvesting Technology

Resource Person
Dr. Reynaldo N. Callano
Engr. Romy L. Peligro

Session IV : OP financing & LGU Initiative on OP Devt Programs


1. Land Bank OP Financing Program
Gilda E. Pico
2. Nutreeno Fertilizer for Oil Palm
Mr. Shaik Wasim
3. LGU Oil Palm Development Initiatives
Mayor Lito Piol

Session I : Industry Updates & Programs


Phil. Palm Oil Development Council, Inc.: Updates
Chang Chee Kong
President
Philippine Palm Oil Development Council, Inc.

Mr. Chang said that the current total area devoted to oil palm in the Philippines has
already reached 44,000 hectares, covering Mindanao, Bohol and Palawan. He said that this
area is now supporting more than 4,000 oil palm farming families and other sectors which has
forward and backward linkages with the industry.
Mr. Chang also said that in 2008, the country produced more than 50,000 metric tons
of crude palm oil. In spite of this, the country still imported about 300,000 metric tons.
While the industry went into aggressive expansion, the growth rate was set back for more
than two years due to the discovery of the ringspot virus disease and the outbreak of
brontispa that resulted to the banning of importation of planting materials. This however was
lifted in the middle of 2008.
Mr. Chang also said that in
2008, the Palm Oil price reached a
historical highest level of more than
US$1,000 per metric ton.
This was caused by the
continuous
increasing
price
of
petroleum oil which prompted many
countries to shift to the use of biofuels.
In the latter part of 2008 until
the first quarter of 2009, however, the
price of palm oil price dropped to its
healthy level when the price of petroleum oil had soften. Today, crude palm oil price still
remains above US$600 level, added Mr. Chang.
Mr. Chang also cited two developments in 2008 initiated by the PPDCI:

1. The signing of a MOA between Agumil Phils Inc. and the University of
Southern Mindanao where the University would take the lead role in the
Research and Development for oil palm in the Philippines; and
2. The passing by PPDCI, of a resolution requesting the Hon. Secretary Arthur S.
Yap, of the Department of Agriculture and Hon. Congressman Khalil B. Mitra,
Chairman of Committee of Agriculture to allocate funds for 2009 in the
National Budget for Oil Palm Research and Development.
Chang concluded with the hope that the industry will contribute to improving peace
and order situation, lifting the domestic economy and re-greening our mother earth.

Status of RP Palm Oil Industry


Oscar G. Garin
Administrator
Philippine Coconut Authority
(paper read by Carlos B. Carpio, Deputy Administrator, Research Development & Extension Branch)

The
Administrator
said that based on reports
presented during the miniworkshop on Oil Palm
Planning conduced in June
2008, the Philippines now
has a total of more than
46,000 hectares.

Estimated Oil Palm Area, 2003, March 2005 &


June 2009, Philippines
Regions

2003

As of March 2005

@ June 2009 *

I- IVB Luzon Palawan

3,592

VII- Central Vis.

3,994.15

5,300.00

6,506

IX- W estern Min.

0.00

0.00

62

X- Northern Min.

190.00

413.30

1,128

CARAGA registers
XI- Southern Min.
217.38
244.38
1,217
with the largest area of more
XII-SOCSARGEN
6,766.81
6,905.81
13,961
than 17,000 hectares or 37 %
XIII- CARAGA
13,461.72
15,404.29
17,252
of total oil palm area in the
ARMM
596.89
735.89
2,890
country.
Region
XIITotal
25,226.95
29,003.67
46,608
SOCSKSARGEN
follows
CARAGA
with
13,961
* Source: M ini-Workshop on Oil Palm Devt in M indanao, June 18,2009
hectares or almost 30 percent.
Zamboanga
Peninsula
reported with only 62 hectares planted, the lowest oil palm area in Mindanao.
From 2003 to 2009, the area planted to oil palm increased from about 25,227 hectares
to 46,608 hectares, an increase of about 85% within a 7-year period or about 14% per year.
This slow expansion was largely due to the initiative of the private sector,
particularly, the oil mills which still remain as the countrys general sources of planting
materials for the industry. And these materials are imported mostly from Papua New Guinea.
Based on estimates by Malaysian prospective investors, the potential areas for oil
palm development in Mindanao alone, can reach more than 304,000 hectares. But out of this
total, only 36,510 hectares or 12% of the total\ potential area is currently planted.

The Administrator noted that we need


not go fast in using our lands. More than
anything else, the government must give priority
to food crops to feed its people.
He then went on to cite a report made by
Asian Intelligence which said that in one
country, more corn and palm oil was diverted
into the production of ethanol, which caused the
prices of these commodities to surge.
Seeing that there was money to be made,
wheat and soybean farmers then started
switching to corn and oil palm thus lessening the area for wheat, soybean and even oats. This
meant that their area for food decreased. Consequently, this decrease in planting also raised
the prices of wheat and soybean.
We do not want this to happen in our country. Even if oil palm would prove very
attractive economically to our farmers, we need to regulate and ensure that food areas will
be not used in favor of oil palm, the Administrator continued.
Administrator Garin also cited several concerns of the oil palm industry.
1.
2.

3.

4.

Decreasing production due to senile palms. Hence, the industry must consider
nationwide and selective replanting.
Growers of oil palms have no income for the first three years after planting. Hence,
on-farm livelihood programs such as intercropping or livestock raising in young oil
palm plantations may have to be made a part of the governments support program for
oil palm growers;
Lack of planting materials. On this the Administrator indicated that while the country
continues to import planting materials, it shall, at the same time, use technologies to
identify existing highly-productive oil palms as sources of our hybrids for distribution
to farmers. The PCA research has declared that it has the technology to produce highyielding oil palms out of the existing TENERA hybrids now growing in the country.
The Administrator hoped that PCA and PCARRD will be able to source the money
for this work. The government will also support research and development efforts not
only in production but also in processing and value-adding.
Need to assure good quality planting materials entering the country. The
Administrator noted that PCA and BPI-Quarantine Services came out with EO 664
last year. This Order provided for efficient quarantine and phytosanitary inspection of
planting materials. The PCA will also strengthen the regions or create a body in the
PCA which will solely accredit and oversee the activities of all oil palm nursery
operations. The PCA will also review its Administrative Order governing the
registration and renewal of nursery permits. And through information drive and
extension materials, the PCA will help the private sector in educating the oil palm
growers so that they will produce good quality fresh fruit bunches.

5.

6.

Need to open up forest lands in Mindanao where oil palm is most suitable. The PCA,
for instance, plans to develop its forest reserve area in Agusan del Sur in the next few
years.
And finally, since the country has limited number of oil mills most of which are
operating below their full capacity, the government shall encourage more planting and
provide necessary incentives in places where oil mills are needed.

Administrator Garin also pointed out the need for strong coordination among
institutions concerned with oil palm industry development. He encouraged local government
units to come up with resolutions, policies and regulations at their level or propose policies of
nationwide significance to the Philippine Coconut Authority. He said that PCA governing
Board is now crafting an Administrative Order governing the registration of natural or
juridical persons engaged in business involving palm and other oil palm products and byproducts.
Garin also said that the 7th National Palm Oil Congress should review the resolutions
of the past six Congresses and see which ones were accomplished and which ones still need
following up.

Status of Palawan Palm Oil Industry


David A. Ponce de Leon
Vice-Governor, Palawan
(paper read by Apollo Diao, Philippine Coconut Authority)

The Vice-Governor highlighted the ordinance that the Palawan provincial government
approved sometime in January 2004. The ordinance established the Palawan Palm Oil
Industry Development Council to direct the development of the industry. He said that
establishing the Council was timely because the province needs to augment the agriculture
industry through alternative farming strategies like planting oil palm which is found to be
suitable in the province.
He also said that oil-palm growing countries have reported that the crop has increased
farmers income thereby greatly contributing to the economic upliftment of rural
communities.
The ordinance places the Governor at the helm of the Council (PPOIDC), with the
Vice-Governor acting as the Vice-Chairman. Among others, different provincial offices and
the Palawan State University composed the membership of the Council.

Palm Oil Update in BIMP-EAGA


Mary Jean T. Roxas
Senior Adviser, GTZ-Philippines

Ms. Roxas described GTZ as an international cooperation enterprise for sustainable


development with worldwide operations. It promotes complex reforms and change
processes, often working under difficult conditions. Its corporate objective is to improve

peoples living conditions on a sustainable basis. GTZ is commissioned to implement


projects mainly by the German Federal Ministry of Economic Cooperation and Development,
other German ministries, other governments, bilateral and multilateral development agencies.
In the Philippines, the GTZ portfolio covers
health, sustainable economic development,
environment
and
natural
resource
development,
peace
and
conflict
transformation.
She said that the Oil Palm is one of the
countrys resources that can be used as a
vehicle
for
sustainable
economic
development.
The GTZs key intervention areas include:
1. Strengthening Pubic Sector Institution, notably the BIMP-EAGA Facilitation Center
(FC) to transform into a joint Secretariat capable of carrying out coordination and
promotion tasks effectively and efficiently;
2. Facilitating dialogues at different levels among public and private sector stakeholders,
including regional development partners like ASEAN and ADB with the goal to
create new strategic options for a more accelerated and extensive development of
BIMP-EAGA; and
3. Supporting sub-regional cooperation in cross-border value chains through the
Valuelinks Approach, specifically in tourism, seaweeds, palm oil and halal
products.
BIMP-EAGA countries include Brunei, Indonesia, Malaysia and Philippines. Ms.
Roxas presented a 2007 data showing the worlds palm oil production. She pointed out that as
of that year, Indonesia produced palm oil equivalent to more than 18 million tons or 45% of
the worlds total palm oil production. Malaysia followed with more than 17 million tons
(42% of the world total). These two countries still remain as the major contributors to palm
oil production in the world.
BIMP-EAGAs demand for palm exceeded 9.5 million metric tons in 2007. In a
recently conducted Oil Palm Industry Stakeholders Analysis, GTZ-EAGA identified the
industrys stakeholders composed of small holder growers/plantations, private large estates
plantations/millers, government large estates plantations/millers, government Agencies,
industry associations and non-government organizations.
The stakeholder groups made significant recommendations for the development of the
Oil Palm Industry in the region in the areas of:
1.
2.
3.
4.
5.
6.

Infrastructure, Research & Development


Institutional Development and Cooperation
Training and Capacity Development
Improving Communication Systems
Development of Guidelines and Information Base
Policy Support Mechanisms

The group also identified Sub-Regional Action Items to promote oil palm cooperation
such as:
1. Conducting business matching to encourage more trade and investment in BIMPEAGA (e.g., EU-EAGA Business Matching)
2. Developing and Promoting Group Certification for Small holders under the RSPO and
3. Documenting the Best Practices on sustainable palm oil production
OPEN FORUM : SESSION 1
Moderator : Carlito Nunez, Board Member, PPDCI

RESPONSE
No. QUESTIONS/CONCERNS
From Danny Aguilar of Agusan del Sur Mr. Carpio:
1
to PCA DA Carlos Carpio :
Lets wait for the presentation of Dir.
PCA is giving full support to coconut Danilo Coronation of the PCA
planters but to oil palm planters, no Governing Board. He will talk on policy
support. May we request PCA to framework and hopefully may pera na
support us especially in sourcing the dadating.
seedlings. We plan to plant more but
its very hard to find good quality
seedlings.
From Rey Magbanua of the Rural Ms. Roxas:
2
Development Institute, a NGO working
in 3 cooperatives in Sultan Kudarat: The RSPO has a worldwide operation
Addressed to Madam Roxas:
and I do not know which countries are
already certified in the RSPO. You can
Is there any effort in disseminating get the information from their website:
information on criteria for the RSPO RSPO.org.com
(Roundtable
for
registration because as far as I know Sustainable Palm Oil Production)
only the companies of Indonesia and
Malaysia have applied and
are
approved for the RSPO.
From South Cotabato Teachers Coop Ms. Roxas :
3
for Ms. Roxas :
We can do it better in the Philippines.
My concern is its effect on animals We dont follow Indonesia. I think
can BIMP explain this?
PCA has some guidelines on where oil
palm can be planted.
4
Ms. Roxas: Theres a ban from govt. in
Question: How can BIMP-EAGA help oil palm seedling importation because
us to import our oil palm seeds?
there are some diseases. If you have
some issues for BIMP-EAGA to act on,
you can submit a proposal or an action
agenda to the BBC and they will
certainly elevate this to the proper
authorities in BIMP-EAGA. If in Davao
you can contact Tony Santos.

No. QUESTIONS/CONCERNS
From Missionary Participant Ms.
5
Estrella Paren:
I am a private grower of oil palm in
Kudat Sabah Malaysia. I already spent
$15,000 for fertilizers for 2 years now
and I only get class C. Is there a
financer? Pls help.

RESPONSE
Land Bank of the Philippines provides
financial assistance to oil palm growers.
But, you are in Malaysia!

Session II : Development Initiatives, Trends & Prospects


Development Initiatives
Mr. Lim Chan Lok
CEO, Agusan Plantations, Inc.

Mr. Lim said that Oil palm cultivation involves knowing and understanding a number
of practices that are all intended for the productivity, marketability and profitability of any oil
palm cultivation project. Among others, the following practices must be considered:
1. There is a need to select the best planting
material that is suitable to the
environment. Breeding programs have
been and are being directed towards
understanding the effects of factors on
oil palm yield. The ultimate goal of
having the best quality of palm oil
products starts from the chosen planting
materials. Mr Lim cited current oil palm
hybrids which appear to have very
interesting characteristics.
2. In land selection, the geographical
characteristics of the area must be
assessed first and foremost. On slopes
<20% (>10), terracing, platform
construction,
legume
cover crop
establishment and proper placement of
pruned palms are required to increase
water infiltration and to reduce soil erosion.
3. The water level must be maintained particularly in peat and acid sulphate soils. There
must be optimal management of water and nutrients.
4. Weed management and pest and disease monitoring are another two important tasks
in the plantation. If the use of herbicides cannot be avoided, alternate the use of
herbicides to ensure that the weed resistance would not be developed.
5. Clearing methods that cause minimal soil disturbance are generally preferred.

6. Terracing is recommended for preparing steep land (>10) for planting of oil palm.
The slope shall be 8 towards the higher ground to avoid soil erosion and prevent
rapid water run-off.
7. Establish legume covers to prevent soil erosion, build up organic matter and nitrogen
in soil, recycle the organic matter, improve soil structure, keep out weeds, reduce soil
compaction and erosion, and promote rainfall acceptance.
8. Choose a density that involves a compromise between early yield and long-term
benefit. Most experienced oil palm growers believe that within any normal range of
densities, yield is proportionate to the number of palms until other climatic factors
delimit their growth.
9. Plant at the start of the wet season. However, planting during dry season is feasible if
watering of the palms will be undertaken. Seedlings which are well grown may be
planted as early as seven (7) months and these seedlings have been proven to grow
well with early maturity. Take care to avoid transplanting shock.
10. Practice regular weeding, palm maintenance and pruning, fertilizing and mulching,
and management of pests and diseases. Weeding is important in the paths and palm
circles to ensure the unimpeded collection of harvested FFB and loose palm fruits.
Mr. Lim ended by encouraging the participants bo add to the development initiatives
towards enhancing the oil palm industry.

Sustainable Peace & Economic Stability with Oil Palm


Engr. Vernoulli B. Belgira
KIDI-Area Manager
Board of Director, PPDCI

Engr. Vernoulli raised points that make the oil palm a crop that can help sustain the
peace and economic stability in the country.
a. The demand for palm oil is increasing.
This demand should encourage many
farmers to go into oil palm planting. In
2001, the uninterrupted and remarkable
growth of the oil palms share in the
global oils and fats production
demonstrated the growing demand for
the palm oil.
During that year, the demand for palm oil
posted an average annual growth rate of 10.5
percent. A study made by the University of
the Asia and Pacific (UA&P) showed that palm oil's domestic demand will continue
to increase by 5 percent annually from 1995 to 2015.
Growing at an average of 82,500 metric tons in 2000, it is projected to reach 171,700
metric tons in 2015. Along with this data, the palm oil industry players need to
expand their current plantations and out grower farms to 30,499 hectares by 2010 and
to grow more by 38,934 hectares by 2015.

b. Oil palm produces high yields and can therefore give farmers high potential earnings.
According to Engr. Belgira, oil palm, compared to other oil crops, produces the
highest oil yield per hectare as shown below:
Crop
Oil Palm
Soybean
Rapeseed
Sunflower
Groundnut

Oil Yield (kgs./ha.)


3,000-5,000 (palm oil)
300-500 (palm kernel oil)
400-600
800-1100
600-1,000
600-1,000

Oil palm also has an economic life span of 25 - 30 years, is slightly affected by
season and weather and can be harvested throughout the year
He also said that the Land Bank of the
Philippines now has a financing package for
oil palm. The loan ceiling is about P 144,000
covering the development costs for the first
3 years and for working capital for the 4th
year. This loan ceiling is open for
cooperatives and small and medium
enterprises. The loan term is 10 years with a
grace period where the interests for years 1-4
are deferred and spread equally over the
remaining loan term.
Bartolome M. Navalta, a successful oil
palm grower

Oil Palm Master Plan Development


Dr. Ponciano A. Batugal
Chairman, Coconut & Oil Palm Cluster
PCARRD

Dr. Batugal said that the countrys Oil Palm


Industry need to have a Development Master
Plan in order to harmonize development
objectives & policies, to effectively support
and promote private sector-government
efforts, to make the Philippine Palm Oil
Industry competitive and sustainable and to be
able to get money for its development.
Without the plan ,it will be difficult to get
money from the government and even from
international funding agencies.

Dr. Batugal then said that oil palm is one of the most strategic crops that could help
develop Mindanao and Palawan. The crop has vast potential markets in China and India and
there is already constrained expansion in other countries like China, India, Indonesia,
Malaysia, Thailand, Vietnam, Myanmar, Cambodia and Laos.
He said that sometime in 2008, PCARRD and PCA conducted a Seminar-Workshop
that drew some policy recommendations which the government could consider, some of
which include:
1. Expanding the Oil Palm Industry to meet local demand for export
2. Promoting access to land and create favorable environment for use of public lands and
other lands
3. Promoting access to capital
4. Promoting joint venture with foreigner investors
5. Access to technology
6. Access to markets
7. Maximizing profit to small holder grower in production and nurseries.
8. Adopting the NES (Indonesia) and FELDA (Malaysia) development models and similar
models for helping farmers
9. Accelerating the passing of an IRR for oil palm quarantine - Executive Order & AO 22
10. Developing progressive and facilitative quarantine, reliable techniques to enable the
country to detect fast oil palm diseases and pests
11. Harmonizing the rules of PCA and BPI
12. Bringing down the cost of planting materials.
The workshop participants also gave recommendations to ensure the development and
growth of the industry, to wit:
1. Formulate a Palm Oil Development Master Plan (with the help of PCARRD, PCA,
PICRI, PPDCI, DA/LGUs)
2. Assess Oil Palm site suitability and formulate crops zoning
3. Formulate guidelines and strict implementation of quality standards of planting
materials
4. Review the AO governing the accreditation of Nursery Operators and renewal of oil
palm nursery permits to be based on seedlings ordered
5. Rationalize the use of palm oil for bio-fuel vis--vis vegetables
6. Training of technicians
To prepare the Philippine Palm Oil Development Master Plan, Dr. Batugal cited the
following data as necessary:
1.
2.
3.
4.
5.

Potential area for development by province, municipality, barangay


Existing plantations area, production
Existing oil mills capacities & expansion
Analysis of profitability of oil palm processing
Regional Development Council target areas for planting

Dr. Batugal also cited the following activities left to do for the industry to finally draw
up the Development Master Plan for the industry:

1. A more serious attempt to gather remaining data. This needs greater participation of the
members of Philippine Palm Oil Development Council, Inc. Regional Development
Councils and the local government units;
2. A survey to determine suitability of recommended areas for oil palm development.
3. A more definitive selection of sites of provinces to participate (total of 300,000
400,000 hectares?)
4. A meeting to be participated by Governors and Mayors of suggested provinces for
growing oil palm.
5. Finalization of Philippine Palm Oil Development Master Plan
6. Submission of POPMP to Regional Development Councils and NEDA
7. Formulation of oil palm project proposals for foreign assistance
8. Submission of proposal to NEDA

Policy Framework for the Development of Philippine Palm Oil Industry


Danilo M. Coronacion
Director, PCA Governing Board

Dir. Danilo M. Coronacion of the PCA


Governing Board spoke in behalf of the Board. He
reiterated the PCAs mandate, to wit:
To promote the rapid integrated
development and growth of the coconut
and other palm oil industry in all its
aspects and to ensure that the coconut
farmers become direct participants in,
and beneficiaries of, such development
and growth. (P.D. 1468)
He further reaffirmed the following Policy Framework for the development of palm oil
industry in the Philippines :
1. The palm oil industry shall complement the Coconut Industry. Ultimately the palm oil
industry will go beyond self-sufficiency and aim for the emerging regional markets in the
Asia-Pacific.
2. The development of palm oil industry shall be pursued through the initiative of the
private sector. The government shall provide the incentives and necessary regulatory
measures that will promote, hasten and protect the industry.

3. Priority in oil palm cultivation shall be given to idle, unproductive and underdeveloped
areas.
4. Planting of oil palms shall be encouraged only in areas where oil mill facilities are
available or assured. Investments in oil mills shall be facilitated where there is anticipated
large-scale planting.
5. Oil palm cultivation shall be promoted through organized growers who have marketing
tie-ups with oil millers.
6. All oil palm nursery operators shall be required to register and be accredited by the
Philippine Coconut Authority to assure growers of quality planting materials.
7. Local R & D efforts shall be supported and coordinated by the government.
He also said that the Governing Board takes cognizance of industry issues and concerns
presented during the PCA/PPDCI dialogue on 24 June 2009 at Puerto Princesa, Palawan and
commits to take the following actions, to wit:
a. To take initiatives in partnership with PPDCI, to refine and implement the Palm Oil
Development Plan as presented in the 6th PPDCI Congress in Puerto Princesa, Palawan;
b. To issue appropriate guidelines on promotion of on-farm livelihood development
programs for oil palm farmers and cultivators;
c. To support programs to improve quality of planting materials such as the applications of
tissue culture technology, as initiated in the University of Southern Mindanao in
Kabacan, Cotabato and genetic marking as proposed by the R & D of the PCA ;
d. To undertake immediate action towards the creation of a multi-stakeholder body such as
a Philippine Palm Oil Council which shall ensure cooperation and partnership between
government and the private sector in facilitation of a one-stop shop system for
processing of requirements and coordination of measures for regulation of the palm oil
industry;
e. To adopt the proposed amendment to Administrative Order No. 14 dated June 23, 2004
on renewal of permit of nurseries on annual basis regardless of quantity of seedlings
germinated;
f. To encourage inclusion of specific actions to address issues relating to availability of
limited oil mills in some areas and under capacity utilization of existing oil mills in
others;
g. To consider all other measures to accelerate development of the Palm Oil Industry.
Dir. Coronacion, reminded all the stakeholders that PCAs mandate is to promote the
rapid integrated development of both the coconut and other palm oil industries so that the

palm and oil palm farmers become the direct participants and beneficiaries of such
development.
He also said that it is unfortunate we could not accomplish our target of 120,000
hectares by year 2010. I am hoping the election will accelerate the process of replanting
we have a lot of catching up to do the 120,000 hectares will enable us to produce about
250-300,000 metric tons which will enable us to be self-sufficient in palm oil for our
domestic consumption
Dir. Coronacion also stressed that the local R and D effort shall be supported and
coordinated by the government and that, on the issue of Development of master plan, the
PCA shall certainly take the initiative and partnership with PPDCI to revisit the original plan
as done in the framework presented by Dr. Pons Batugal.
On the issue of promoting on-farm livelihood development program for oil palm
farmers and cultivators, Dir. Coronacion cited the report of Mr. C.K.Chang that, based on
their experiment, cash crops can be raised during the first 3 years of oil palm growth. But
from years 4 to 10, livestock raising is a good livelihood activity to pursue.
Dir. Coronacion also announced that the PCA Governing Board unanimously adopted
the proposal to create a Philippines Palm Oil Council similar to the institution and
organizations being done in Malaysia.
On the renewal of PCA registration of oil palm nurseries, Dir. Coronacion said that
PCA will now look into registering oil palm nurseries based, no longer on importation and
quantity of seedlings germinated in the nurseries, but on yearly operation of the nurseries.
Dir. Coronacion ended by saying that I would like to highlight here is consider all
other measures to accelerate development of palm oil industry particularly the participation
of the Philippine Palm Oil Industry in the round table on sustainable palm oil, so that we can
ensure a sustainable Philippine Palm Oil Industry in the country.
This is not an imposition or any requirement in global market.though in our
discussion in the Association of Vegetable Oils Club or AVOC, I have heard complains from
our Indonesian and Malaysian partners. The RSPO certification is being imposed by the AEU
yet they do not want to pay the premium.so we have RSPO certified oil but the AEU
market still buys the non-certified ones because they are cheaper. We take a look in these
issues, we just dont jump a blindly in the whole process without examining the implications
on the way we do business in Philippines in the way AEU is treating the RSPO certification.

OPEN FORUM :SESSION II


Moderator: Apollo Diao

No.
1

Questions/Concerns/Clarifications
From Andres Tan of Caraga :

Response
Mr. Coronacion :

On nursery Why cant government


establish oil palm nurseries in every
municipality? Why not include in the
Policy Framework. We fund so many
mango nurseries, etc. but no for oil palm
nurseries!
2

3.

This is a critical part of POPMP as


presented by Dr. Batugal. Dr. Batugal
will include that. We agree that is why
we are pushing for the POPMP.

Mr. Bahala
Request for update on Chlorotic Ring Accordingly, what we have in the
Spot Virus in Oil Palms
Philippines is not a very serious strain
compared to other countries.
No
problem in Palawan as far as CRSV is
concerned. We are happy to note that
Palawan does not have that problem.
PCDM Barboza of Agusan Sur:
Dir. Coronacion :
We are working on the ground but the We will include the budget of PCA oil
money is with DA. Can we not suggest palm development component
to DA that the downloading of the
money be direct to PCA, not to DA.
From an Oil Palm Planter in Kota Dr. Pons Batugal :
Kinabalu:
Zambales is both typhoon and drought
I want to plant oil palm in Zambales. area not suitable to oil palm.
How do I go thru this?
Suggest you choose fruit trees like
mango, etc.
From a lady in Bataraza, Palawan - Dir. D. Coronacion :
Mina Canaje:
Mr. Coronacion said that applying for We will just have to amend the
import permit will be done annually, no existing Administrative Order but this
longer per batch basis. When will this is not effective tomorrow.
be effective?

Session III : Oil Palm Pests, Diseases & Other Concerns


Management of Rhinoceros Beetle Infestation on Coconut & Oil Palm
Ambrosio R. Alfiler
Division Chief III
Entomology-Epidemiology Division
Philippine Coconut Authority-Albay Research Center

Mr. Alfiler said that the Rhinoceros


Beetle is the most important pest attacking
coconut. Its damage is so serious that it needs
immediate response from the farmers and
growers.

The Rhino Beetle also attacks oil palm. And it can be found in areas where decaying
wood materials are abundant. They can therefore be found in coconut sawmills, in cattle
plantations and in areas where coconut or oil palm felling is done.
The most destructive stage of the beetle is the adult. To prevent the beetle from
spreading and damaging oil palms, the following should be done:

1. Practice Sanitation
This means that the breeding sites of the beetle
should be removed an example of which is by
burning.
2. Covercropping
Like planting covercrops to cover the decaying
materials in the farm.

3. Planting intercrops
This practice enables the farmer to clean his farm thereby removing the possible breeding
sites for the rhino beetles.
4. Mechanical Control
The beetles are manually extracted from the young palms and coal tar is applied on wounds.
5. Chemical Control
The farmer can apply insecticide-treated sawdust at the leaf axils to protect young palms from
rhinoceros beetle attack
6. Biological Control
The farmer can use green muscardine fungus which feeds on the larva or adult of the beetle.
The fungus can be dispersed in beetle breeding sites. Baculovirus is another biocontrol agent
that is already proven in the field to kill the larva and adult stages of the beetle.

Larva killed by Green Muscardine


Fungus or GMF

Healthy Rhino Beetle Larva(R) and larva infected by


Baculovirus (L)

Healthy adult beetles are inoculated with baculovirus. They are then released in the
field so that through breeding the virus can infect other beetles in the area.
7. Use of Pheromones
Another way of controlling the beetle population in the farm or plantation is by
installing pheromones which are synthetic attractants for the adult beetles. The pheromones
(in sackets) will attract the beetles so that they can be trapped and then killed or used for
baculovirus inoculation.
Mr. Alfiler suggested an integrated approach to managing the rhino beetle problem in
coconut and oil palm plantations.

Uses of Pheromone in the Philippines


Hernando A. de Castro
H. C. Covercrops International

Mr. de Casto discussed about the effects of Pheromone and its increasing popularity
in the country. He said that the Pheromone is effective in controlling the rhinoceros beetles
which are now wreaking havoc among the newly established oil palms in Palawan and in
Mindanao.

Performance of Oil Palm in Poorly-drained and well-drained Soils


Dr. Adeflor R, Grant-Garcia, Ph.D.
Professor V, Soil Science Department
College of Agriculture
University of Southern Mindanao
Kabacan, Cotabato

Dr. Garcia said that the soil exchangeable bases holds the key to sustainable nutrient
management in oil palm plantations.

Her topic covered information on the


potassium saturation of the different soil series,
calcium-magnesium ratios that may inhibit
magnesium or phosphorous uptake and calcium
deficiency and potassium-magnesium ratios that
may result to decreased magnesium uptake.
Dr. Garcia said that magnesium should be
part of the fertilizer program in oil palm areas.
Magnesium sources are magnesite, keisirite or
langebenite. She also recommended that after heavy
floods in flood-prone areas, soil analyses should be
done to monitor the new deposits carried by the most recent flood.
Dr. Garcia also said that potassium should never be delayed even if it is expensive. In
sandy soils, potassium application should be more frequent to avoid losses due to leaching.
The potassium may be divided into 4-6 times per year.
Calcium-Magnesium ratios affect the uptake of magnesium and phosphorous by crops
like oil palm. Hence, soil and leaf analyses are indispensable in oil palm plantations. To
sustain the palm production, a farmer or plantation owners need to invest on these analyses.

Oil Palm Nutrients


Dr. Reynaldo N. Callano

Dr. Callano said the oil palm needs sufficient amounts of nutrients for healthy growth,
increased fruit bunch yield and resistance to pests and diseases. Soil nutrients needs to be
replaced because they are removed when fronds and fruit bunches are harvested. Hence,
recycling palm residues like empty fruit bunches (EFB), palm oil mill effluent (POME),
bunch ash (BA) and pruned palm fronds is highly advisable.
Oil palm needs macro elements like Nitrogen (N), Phosphorus (P), Potassium (K),
Magnesium (Mg), Calcium (Ca) and Sulfur (S). The crop also needs microelements which
when deficient, can limit the yield of oil palm even when all other nutrients are in optimal
supplies.
Oil Palm wastes and residues are good sources of nutrients.


Bunch Ash contains high potassium. Hence, it is a good substitute for muriate of potash.
It is recommended that each oil palm be applied with 5 kg. of bunch ash every 4-5 years.
The ash is also found useful in raising the soil pH. Research has found that 25 tons of
fresh fruit bunches or FFB produces 150 kg of bunch ash.

Empty Fruit Bunches is also high in potassium. It also contains nitrogen, phosphorous,
magnesium and calcium. However, EFB provides an ideal breeding place for rhinoceros
beetles which attacks not only coconut but also oil palms. Apply EFB at 30 tons/ha once

every 6 years. However, in soils with low organic matter, EFB can be applied yearly.
Twenty-five (25) tons of fresh fruit bunches (FFB), yield 5 tons of EFB.


Pruned or harvested fronds remove nutrients


from the soil at a yearly average of 125 kg
Nitrogen, 23 kg Phosphorous, 176 kg Potassium
and 25 kg Magnesium
Old frond stack will completely decompose in 612 months. Spread the harvested or pruned fronds
over areas of degraded soils.
Alternate the position of the frond stack at 3-5
year intervals. Apply empty bunches over the
harvesting path before changing the location of the frond stack. Arrange the pruned
fronds across sloping land to reduce surface run-off and erosion

Palm Oil Mill Effluents or POME are produced at the mill. One ton of processed FFB
generates 670 kg of liquid wastes. The waste is 100 times more polluted than ordinary
raw domestic sewage. Twenty-five (25) tons yield of FFB produce 16.75 tons of POME
containing over 20 kg of total nitrogen (of which 1 kg is ammonia), 0.5 kg Phosphorous,
60 kg Potassium and 16 kg Magnesium. POME is a good source of water and nutrients
during drought. Applying POME in the field is costly.
Dr. Callano also discussed the role of different nutrients to the oil palm.

Palm Oil Harvesting Technology


Engr. Romy L. Peligro

Chief Executive Officer


Ago-Industrial Cable Transport, Inc. (ACT, Inc.)
Engr. Peligro discussed the Palm Oil Cableway System which was designed for
harvesting FFBs by the company , Centro Aceros of South America.
Centro Aceros designed this modern and efficient palm oil cableway system with the
following benefits and features:







Low maintenance and operational costs, up to 49% cheaper than traditional


harvesting systems
Requires no internal farm roads which means no more need of in-farm harvesting
trucks and carts
Requires less people, hence, low operational costs
Passes over channels, rivers, drainage and eliminates construction of bridges
Ensures continuous harvesting activities in rainy and sunny days
Easy transportation of equipment, farm inputs and people

The system transports harvested FFBs through a cable system that reaches up to where trucks
that will carry the FFBs to the mill wait.

OPEN FORUM- Session III : Moderator Mr. Ferdie de Dios, PPDCI

No.
1

Question/Concern/Clarification
From PCDM Barboza of Agusan Sur The usage common salt adds 20% to
production in coconut.
Is salt
applicable to oil palm?

Response
Dr. Garcia :
Oil palm is not very keen on chlorine
application. It can substitute potassium, so it
can be applied.

From Mrs. Docto (Palawan) -

Dr. Callano : Black bug will never survive


in oil palm. It is not true that Black Bug
I am producing palay and we are comes from oil palm.
infested with black bug. How true is it
that black bugs breeds in palm oil?

Question:

From Genevive Bangcaya:

From Mr. Laguras, South Cotabato:

Dr. Callano :
One at a time only. Apply fertilizer based
Is it okey to apply all the elements as a on
the deficiency symptom e.g. if
fertilizer all at the same time in our yellowing, apply potassium do not apply
palm oil?
NPK.
Boy Poblador from South Cotabato:

You need soil and tissue test to make sure


of the nutrients to apply. We have no field
What ratio of Urea should we use if the trials yet. The amount of fertilizer depends
crop is deficient in nitrogen?
on soil & leaf analysis.
Centro Aceros: = P27,000/ha. (based on 50
ha. dimension of farm, if road system is 270
How much is the cost of the cable m apart) The farther, the cost will bring
system? What is the pay back period of down. Expansion will definitely offset the
the system and what is the life span of cost of installation of roads, etc.
the system?
Cant give the exact time frame. Only
launched this product in the Philippines this
year. For banana, the payback period is 5
years. Using GI pipes life span is 30
years.
Mr. de Castro:

May I know the name of the chemical Pheromone will last 3 years. Prices vary.
that keeps the beetles away? How much The brochure in your
kit gives the
is the cost of chemical to prevent rhino information you need.
beetle? Where can we buy it?

SESSION IV : OIL PALM FINANCING & LGU INITIATIVES ON OIL


PALM DEVELOPMENT
Land Bank Oil Palm Financing Program
Gilda E. Pico
President and CEO
Land Bank of the Philippines

Ms. Picos paper was read by her representative. Ms. Pico indicated that as of the
middle of 2009. Land Bank has already approved loans for oil palm worth P 1.309 Billion
resulting in the development of 15,000 hectares of land benefiting more than 5,000 farmers
and 42 cooperatives.
Of the 1.309 Billion, the biggest release was in Mindanao with 748 Million or 57%,
followed by Visayas with 370 Million or 28% and Luzon with 191 Million or 15 per cent.
Aside from cooperatives, LANDBANK also extends financing to processors for the
construction of plant, purchase of machineries & equipment, acquisition of delivery trucks
and permanent working capital
The loan ceiling is up to P144,000 per hectare (P109,310 for production & development
cost), payable in 10 years, and with grace period on the principal & interest for the first four
(4) years. A working capital loan of P34,690 per hectare on the fourth year is also provided.

Nutreeno Fertilizer of Oil Palm


Mr. Shaik Wasim
General Manager for Marketing
VITEX Industries, Malaysia

Mr. Wasim talked about their new


fertilizer for oil palm. It is called Nutreeno. It
is economical needing only just 25 to 50 ml
per palm every 3 months.
A liquid nutrient, the Nutreeno is
especially formulated to:
 Deliver the balanced amount of
nutrients
 Expedite the flowering and fruiting
 Prevent oxidation
 Prevent volatilization
Nutreeno is given to oil palm through a Trunk Injection System that is easy to use and
involves no direct skin contact.

Through direct infusion into the plant, Nutreeno enters the plant system effectively so
that the required nutrients are absorbed directly
Nutreeno is also environment-friendly. It gets to the palm, including fruit trees, directly
without spreading on the ground. It does not contaminate the water supplies and does not
affect livestock. It can also be applied rain or shine.
According to Mr. Wasim, Nutreeno was applied to oil palms in Malaysia in 2007. Two
years later, the fruits were found bigger and yield increased by 10 percent. Another farm was
yielding 22 tons of FFB per hectare per year. After only a year, the yield increased to 33
tons/ha. year.

LGU Oil Palm Development Initiatives


Mayor Joselito Pinol
(representing Vice Governor Emmanuel F. Piol of North Cotabato)

Vice Governor Piols paper


cites his provinces Plant Now Pay
Later Program which requires no
collateral from participating farmers.
Only a certification from the barangay
captain that the farmer owns the land
(with or without land title).
The program provides for an oil
palm nursery, training of trainors for
extensionists
of
the
different
municipalities, study mission on oil palm
and allocation of funds for the program.
The provincial government signed a Memorandum of Agreement with KENRAM,
Land Bank of the Philippines, and the Maunlad Farm Multi-purpose Cooperative for
financing. The province plans to put up a mill and continue to provide seedlings for interested
farmer-participants of the program.

OPEN FORUM- Session IV: Moderator : Larzon Santos, PPDCI


No. Question/Clarification/Concern
1
From. South Cotabato to Nutreeno :
The drill bit is so big can you design
a smaller one and modify the plug like
plugging with cellophane for as long
as the water wont come out. The
hole is so big, the tree might die.
2
What if the plant is newly planted?
How old should be tree?

Response
Inject 50 ml into the tree. Need 14 cm
hole. If done properly, you wont see
water. Yes, we can modify but we have to
work together to see the modification.
We can modify only the cap.
You cannot use this on nursery and young
plants

To LBP: We are a new coop seeking


LBPs assistance. LBP does not give
assistance to KIDI because KIDI is
not assisted by LBP.

LBP : Am not so familiar with your


account. LBP wants to ensure that the
seedlings will be of qood quality. .
There is a Stamp requirement on the
seedlings. LBP will try to look at it. Part
of the contract is the assurance on the
quality of the seeds (Marketing
agreement)
How old is the right age of the oil Anytime once it starts fruiting
palm? How many times do we Every 3 months, 50 ml.
fertilize with Nutreeno?
Nutreeno is injectable.
To our For coconut, make sure coconut has the
coconut and mango, when do we right size of stem.
apply?
PCDM Barboza :
Using tank When you use root transfusion or
injection is hazardous to coconut as it broadcasting,
nutreeno is no longer
creates an entry point of cadang- unique. As liquid injection fertilizer, it
cadang. Can we use Nutreeno by root provides 95% of what is injected.
transfusion or broadcasting method?
We had a farmer who tried Nutreeno on
his mango trees. His trees flowered
earlier.
From KIDI, Mr. Montecillo to LBP : LBP : No accreditation process just
LBP requires a marketing agreement. agreement then we try to link-up with the
Is there a special accreditation with coop. Part of the cost of the seed is put
the miller? Clarification as to whether up by the miller. Not a straightforward
the loan amount is given directly to MOA just some requirements to
the coop or thru the miller. How much guarantee that the seedlings can produce
is the interest for the loan on capital?
good seedlings. Interest rate depends on
coop that will apply for loan. Now it is
10-11% per annum.
To Nutreeno: I would like to know the 25 ml is the recommended dosage. If
mode of action of Nutreeno.Has this less, not as effective.
been FDA approved?

IV. Congress Resolutions


The Congress organizers held a Resolution Hour which was chaired by the Hon.
Joselito Piol, Mayor of Mlang, North Cotabato. The participants approved the following
resolutions:
 Resolution on appreciation for Hon. Gov. Joel T. Reyes, Vice-Governor David A.
Ponce de Leon of Palawan, for hosting the 6th National Oil Palm Congress
 Resolution of appreciation for Hon. Mayor Edward E. Hagedorn of Puerto Princesa
City, for hosting the 6th National Oil Palm Congress.
 Resolution requesting the DENR to waive ECC requirements for oil palm
plantations 100 hectares and above
 Resolution for RDCs and LGUs of the provinces to formulate the Oil Palm
Development Master Palm and asking NEDA to include oil palm in their foreignassisted projects in Mindanao, Visayas and Palawan.
 Resolution asking PCA to look deeper into the Brontispa and Beetle Problem.







Resolution asking NCIP for free issuance of pre and prior consent certificatesand to
localize the giving of certificates for CADC.
Resolution asking Central Bank thru Dept. of Finance to lower the interest rate for
oil palm growers availing of loan to the level of rice and corn which is 6 or
7%/annum.
Resolution requesting LBP to waive/or lower the 20% equity to oil palm financing.
Resolution requesting the establishment of oil palm nursery in every municipality to
be part of the Oil Palm Development Master Plan.
Resolution for DENR to localize the acquisition of Pre and Prior Consent (PIC) for
CADC and CADT areas intended for Oil Palm Plantations

During the Congress, Mayor Hagedorn of Puerto Princesa gave a talk on his
administrations priority project on environment preservation and protection.

V.

Annex
a.

THE ACTUAL PROGRAM

TIME
TOPIC
Day 1 June 25, 2009

RESOURCE PERSON

7-9 AM
9:00

Secretariat

12-1 PM

Registration
Opening Program
 Invocation/Pambansang Awit
 Welcome Address

Mr. Cecil Bayron


Vice Mayor, Puerto Princesa

Inspirational Message

Mr. Davic Ponce de Leon


Vice-Governor, Palawan

Keynote Speech

Carlos B. Carpio
Deputy Administrator
PCA-RDEB

Lunch Break
Session I : Industry Updates & Programs
1-1:15 PM
PPDCI Updates
C.K.Chang
115 1:30
Status of RP Palm Oil Industry
Carlos B. Carpio, PCA
1:30- 1:45
Status of Palawan Palm Oil Industry
Apollo M. Diao
1:45- 2:15
Palm Oil Updates in BIMP-EAGA
Ms. Mary Jean T. Roxas
Session II : Development Initiatives, Trends & Prospects
2:15-2:35
Development Initiatives
Mr. Lim Chan Lok
Sustainable Peace and Economic Stability with Oil
Palm
Vernoulli B. Belgira
2:35- 3:00
3:00 3:10 Successful Story of an Oil Palm Grower
Bartolome Navalta
3:10 3:35 Oil Palm Master Plan Development
Dr. Ponciano A. Batugal
335 4:00
Policy Framework for Oil Palm Development
Dir. Danilo M. Coronacion
4:00-4:15
Open Forum
Apollo M. diao
Session III: Oil Palm Pest, Diseases & Other Concerns
Mgt. of Rhinoceros Beetle Infestation on Coconut
4:15- 4:35
& Oil Palm
Ambrosio R. Alfiler
4:35-4:50
Uses of Pheromone in the Philippines
Hernando A. de Castro
Performance of Oil Palm in Poorly-drained &
4:50-5:10
Well-drained Soils
Dr. Adeflor G. Garcia
5:10-5:30
Palm Oil Nutrients
Dr. Reynaldo N. Callano
5:30-5:50
Palm Oil Harvesting Technology
Engr. Romy L. Peligro
5:50-6:10
Open Forum
Fernando P. de Dios
Day 2 June 26,2009
Session IV : Oil Palm financing & LGU Initiative on OP Development Programs
Land Bank of the Philippines Oil Palm Financing
8:30-9:00
Program
Gilda E. Pico
9:00-9:30
Nutreeno Fertilizer for Oil Palm
Mr. Shaik Wasim
9:30-10:00 LGU Oil Palm Development Initiatives
Mayor Joselito F. Piol
10:00-10:20 Open Forum
Larzon G. Santos
10:20-11:10 Resolution Hour
BOD Joselito F. Piol
11:10
Closing Address
BOD Reynaldo G. Espaola

ANNEX C. POWERPOINT PRESENTATIONS


b. SPONSORS/DONORS (c/o Pedix/Secretariat thru Tonton)
c.
GUESTS/DELEGATES DURING THE OPENING CEREMONIES

Vice-Gov. David Ponce de Leon


Vice Mayor Cecil Bayron

PPDCI Pres. C.K. Chang


Lim Chang Lok CEO, API Group
of Companies
Engr. Vernoulli Belgira, KIDI
Alfredo Montecillo, Kenram
Mr. M. Ayesa, KIDI President
Congressman Datu Manong
Vice Mayor Antonio Saludong
Bartolome Navalta, OP Grower
Avito Javilan, FPPI
Mr. Ludivino Guion, LBP

Hernando de Castro , Proprietor &


Manager, Pheromone
Engr. Teresita Guian
Vtex
AC Garcia Corp
Sime Darby
Golden Fiesta Cooking Oil
Provincial Delegates
North Cotabato
Compostela Valley
Davao del Norte
Sultan Kudarat
Cotabato
Metro Manila
Municipalities of Palawan
Puerto Princesa City
Rizal
Bataraza

PCA-DA Carlos B. Carpio


Rodolfo Romasanta, PCDM, PCAPalawan
Apolo Diao (PCA-POPDO)
Ambrosio Raul Alfiler, PCA-ARC

PCA R-IX, RM Antonio Bal Faustino


RI-IVB PCDM Domingo Frugal
Dr. Adeflor Garcia, USM
Vice Mayor Rogelio Kabukid
Jose Kaputilla
Dr. Ponciano Batugal, PCARRD
Dr. Johnny Batalon, PCARRD
Vincent Lao
Petron

ADM Construction
Nutreeno
Department of Agriculture
Philippine Coconut Authority
Media Representatives from Palawan

Agusan del Sur


Agusan del Norte
Bohol
Zamboanga del Sur
Iloilo City

San Vicente
Brookes Point
Sofronio Espaola
Quezon

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