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BUSINESS OPPORTUNITIES IN CARAGA REGION, PHILIPPINES

The Oil Palm industry is the “sunrise” industry in the region.  Big companies and individual growers are now into oil palm plantation because of its high return. A hectare of oil palm can produce 4 to 5.5 tons of crude palm oil, which is five to ten times greater than the yield of any commercially- known oil crop. 

 

Palm oil is used in food preparation as household cooking oil, in industrial frying, and as a main ingredient in the production of margarine, shortening, vegetable ghee, ice cream, confectionery and non-dairy creamers.  It is also used as an ingredient in soaps and detergents, surfactants, cosmetics, and oleochemicals.

 

Caraga is home to the pioneering large-scale oil palm plantation started by NDC-Guthrie in the early 80’s.  The region has fifty three percent (53%) of the total oil palm area in the country, 13,478.22 hectares.

  

Currently, there are two cluster members which have large-scale oil palm plantations and processing plants.  The Filipinas Palm Oil Plantation, Inc. (FPPI) operates an 8,000-hectare plantation in San Francisco and Rosario, Agusan del Sur and an oil mill with a capacity of 36 tons of fresh fruit bunches (FFB) per hour.  The Agumill Inc. in Trento, Agusan del Sur operates a 1,815-hectare plantation in Manat, Trento and an oil mill with a capacity of 20 tons of FFB per hour that can be expanded to accommodate an additional load of 20 tons. 

      

Sustainable supply of fresh fruit bunches are also available from other palm oil growers in the region such as Uraya Farms, KUFTRIMCO, and Evergrow Development Agricultural Farms, Inc.  There are also hundreds of individual growers with existing marketing agreements with FFPI and Agumill. 

 

Considering the marketability of the oil palm, the cluster is bent on making Caraga a globally competitive producer of palm oil products.  The members want to achieve an increase in the income of the oil palm growers and alleviate poverty in general by developing potential areas for oil palm production, as well as building strong partnerships among stakeholders. The cluster aims to increase production from the current status of 13,000 hectares to 45,500 hectares in 5 years and 85,000 hectares in 10 years. 

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Above is the Oil Palm Industry Cluster booth exhibit during the launching of Caraga's Industry Clusters last May 16, 2005 at Almont's Inland Resort, Butuan City.  Two (2) members of the Oil Palm Industry Cluster Leadership Group, Mr. Charlie F. Cinco (FPPI) and Mr. Raul Nuevas (COPDC), have attended the activity.

Oil Palm Plantation Areas in Caraga
As of June 2004
     

Province

No. of Growers

Area (has.)

Agusan del Sur

133

13,215.72

Agusan del Norte

26

229

Surigao del Sur

3

33.5

Total

165

13,478.22

Source: PCA

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Major Oil Palm Growers in Caraga
As of December 31, 2003
 

Name of Firm/Location

Date Established

Plantation Area

Filipinas Palmoil Plantations, Inc. /San Francisco & Rosario

1979 & 1983 for NDC-Guthrie Plantation/Estates

8,429.68 has.

Agusan Plantation Inc./ Trento

1993

1,815 has.

Evergrow Dev’t Agricultural Farm, Inc. / Trento

1998

350 has.

Kabingwangan Upland Farmers Tribal MPC / Bunawan

1999

440 has.

Uraya Farms

-

666 has.

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Existing Palm Oil Mills in Caraga
 

Name of Firm/Location

Date Established

Capacity

Filipinas Palm Oil Plantations, Inc./ Rosario, Agusan del Sur

1980

36 MT of FFB/hour

Agumil Phils. Inc./ Trento, Agusan del Sur

1993/operated in 1996

20 MT of FFB/hour (expandable by additional 20 MT/hour)

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 Oil Palm Industry Cluster Leadership Group:
 
   1.  Mr. Andres Tan
       Cluster Chairperson
       Caraga Oil Palm Dev't Council
 
   2.  Sammy F. Monton
        Sr. Manager, API
 
   3.  Charlie F. Cinco
        Filipinas Palm Oil
 
   3.  Raul Nuevas
        Caraga Palm Oil Dev't Council
  
   4.  Atty. Papias P. Romero
       Contract Grower
       Trento, Agusan del Sur
 
   5.  Charles Pulido
        Reg'l Coordinator, PPDCI
 
   6.  Doroteo E. Jaquias
        President, ASSCAT
 
   7.  Robert A. Acob
        Manager, LBP-San Francisco,
        Agusan del Sur
 
Lead Agencies: PCA-Caraga & DTI-Caraga
Member Agencies:
 
  DA-Caraga
  RAFC-Caraga
  DENR-Caraga
  Dept. of Land Reform
  Quedancor
  Land Bank of the Phils.
  DTI-Caraga
  Butuan LGU
  Agusan del Norte LGU
  Agusan del Sur LGU
  Surigao del Norte LGU
  Surigao del Sur LGU
  
 

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If you want a copy of the Caraga Oil Palm Industry Cluster Background Paper, please email or call any of the following offices:
 
      Carmencita S. Cochingco
      Regional Director
      National Economic Development Authority- 
      Caraga Regional Office
      Nimfa Tiu Building, J. Rosales St.,
      Butuan City
      Email: neda13@bayandsl.com
 
      Brielgo O. Pagaran
      Regional Director
      Department of Trade & Industry - 
      Caraga Regional Office
      764 Silaga Building, Capitol Avenue,
      Butuan City
      Email: dti13@hotmail.com,
                caragaclusters@yahoo.com
 
 

For more information and investment assistance related to Oil Palm production, please call the following offices:
 
PCA-Caraga - (085) 342-2076
 
DTI-Caraga - (085) 342-5615
 
NEDA-Caraga - (085) 342-5774