Phl palm oil industry optimistic

The recent National Palm Oil Congress in Davao City painted a positive outlook for the Philippine palm oil industry. Ares Merchants Philippines Inc. (AMPI), a leading supplier of vegetable oils, noted significant growth in local production and anticipated further expansion.

AMPI managing director Jose Leonardo Tanada attributed the industry's growth to strong global demand for coconut oil, which has created a gap in the local vegetable oil market. Palm Olein, a more economical substitute, has filled this void.

Tanada also expressed optimism about the industry's expansion, citing a steady increase in oil palm cultivation.

According to the Department of Agriculture's (DA) Philippine Palm Oil Industry Roadmap 2024-2033, production is on the rise.

The area planted with palm oil has grown from 53,000 hectares in 2022 to approximately 63,000 hectares in 2023, as reported by the Philippine Statistics Authority. Region XII leads in production, followed by the Caraga Region.

Tanada stressed the need for continued government support to ensure the industry's sustainable growth, adding that the financial burden on farmers during the gestation period of oil palm plantations, which typically start producing fruit after 3-4 years.

He also highlighted the importance of balancing domestic production with palm oil imports to prevent hoarding and mitigate inflationary risks.

Industry experts estimate that approximately one million hectares are suitable for oil palm cultivation, with the majority located in Mindanao. The Philippines currently faces a surplus in milling capacity, but growing palm oil production is expected to support and fully utilize these facilities.