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AN INVITATION FOR A MULTI-PARTITE PARTNERSHIP
Palm Oil Development Proposal
Development of Oil Palm Plantations and Oil Mills in Bukidnon
Contents
An Overview of the Palm Oil Industry
Bali Oil – The Project Proponent
Projects Being Undertaken by Bali Oil
Proposal for a Multi-Partite Partnership
Moving Forward
Palm Oil Development Proposal 2
Why Plant Oil Palm?
High value crop easy to plant and to maintain
3
Long productive lives (30 years)
Harvest of Fresh Fruit Bunch (FFB) all year round
Palm Oil Development Proposal
Why Plant Oil Palm?
Palm Oil Development Proposal 4
Highest Yielding and Lowest Land Use (compared to other vegetable oils such as soybean, sunflower and rapeseed)
Starts yielding fruits in 3 years. 25-30 yrs economic lifespan.
High yield per hectare of 20-30 MT of Fresh Fruit Bunch (FBB) or 4-5 MT crude palm oil (CPO) and 0.5 MT of kernel oil (10 x more than soybean)
COMPARISON WITH OTHER HIGH VALUE CROPS (HVC)
Palm Oil Development Proposal 5
Comparison with other High Value Crops (HVC)
6
An environmentally friendly crop – fewer pest and disease problems, so less pesticide usage. Uses less fertilizers and less herbicides for weed control
Does NOT heavily deplete soil nutrients (Phosporous, potassium, nitrogen) like sugarcane, cassava and pineapple.
More frequent and higher incomes for farmers – harvests of fruits every 10-15 days.
Easier harvesting and post-harvest handling – pluck the fruits and deliver to truck haulers. No shelling, drying, packaging
Palm Oil Development Proposal
Comparison with other High Value Crops (HVC)
7
Least affected by climate change (e.g., drought)
Help mitigate climate change - through the reduction of greenhouse effect . Help to reforest denuded hills.
Additional revenues from carbon credits
Negligible pilferage and stealing vs mango,
coconut and rubber
Palm Oil Development Proposal
COMPARATIVE COST AND RETURNS OF HIGH VALUE CROPS (HVC)
Palm Oil Development Proposal 8
Palm Oil Development Proposal 9
Comparative Cost and Returns of High Value Crops (Per Hectare)
Source: Dept of Agriculture (Bureau of Agricultural Statistics), Dept of Trade, Pioneer Seeds, Nestle
PALM OIL CORN POTATO COFFEE PINEAPPLE
(Hybrid) (White) (Robusta) Fresh Roots Dried Chips
Initial Investments:
Gestation Period (Years) 2-3 6 mos 3 mos 1 8-12 mos 8-12 mos 12 mos
Number of Croppings per year Year round 2 2 1 1 1 1
Crop Lifespan (Years) 25-30 6 mos 3 mos 50 years 8-12 mos 8-12 mos 12 mos
Investment (Per hectare) 120,000 35,182 X 2 194,184 82,000 28,000 42,250 66,372
(Peak Period) Year 9-20 Year 1 Year 1 Year 3-8 Year 1 Year 1 Year 1
Average Yield Tons 25-30 15.6 40 0.70-1.4 25 10 13530 kg
Farmgate Price Per kg (2 yr ave) 5.75 10.8 10 70 2.25 8.50 6.86/kg
Gross Income 172,500 168,480 400,000 98,000 56,250 82,500 92,816
Less: Production Costs 47,891 92,960 194,184 27,000 28,000 42,250 66,372
124,609 75,520 205,816 71,000 28,250 40,250 26,444
FINANCIAL HIGHLIGHTS CASSAVA
Net Income
AN OVERVIEW OF THE PALM OIL INDUSTRY
Palm Oil Development Proposal 10
11
Country Production (Mt) Yields(T/ha) Mature area (M ha)
2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011
Indonesia 19,40 21,00 22,20 23,90 3.90 3,91 3,87 3,92 4,98 5,37 5,74 6,09
Malaysia 17,73 17,57 16,99 18,00 4,55 4,38 4,11 4,26 3,90 4,01 4,13 4,23
C&S America 2,31 2,40 2,31 2,51 3,00 2,93 2,66 2,70 0,78 0,82 0,87 0,93
Other countries 4,13 4,30 4,35 4,31 2,24 2,17 2,09 2,12 1,84 1,98 2,08 2,16
Total World 43,54 45,27 45,85 48,98 3,79 3,72 3,58 3,65 11,50 12,18 12,82 13,41
Source: Oil World
2011 Total World Production: 49 million MT Indonesia produced 24 million MT (48%) Malaysia produced 18 million MT (36%)
Global Palm Oil Production
Palm Oil Development Proposal
US$ 53 Billion market for palm oil in 2011
2011 global production of Total 49 million tons
World Prices (US$ Per MT)
Palm Oil Development Proposal 12
2000 2010 2011 2012 2013 2014 2015 2016
310 901 1100 900 850 810 800 782
Source: World Bank
Price of Palm Oil (US$ per Metric ton)
Oil mills produce crude palm oil (CPO), palm kernel oil (PKO) from Fresh Fruit Bunch (FBB)
Oil Palm Tree Products & Uses
13 Palm Oil Development Proposal
Plantation Fresh Fruit Bunch (FBB) (10-40 kg)
Palm Nut (6-10 grams)
Crude Palm Oil
Pericarp: outer oily flesh (CPO)
Endosperm: oil rich kernel (PKO)
Oil Palm Tree Products & Uses
14 Palm Oil Development Proposal
Palm Oil Is Versatile
Cheapest traded edible oil with food and no-food uses
Examples of food uses:
Cooking oil Shortening Margarine Cocoa butter substitute Key ingredient in instant noodle production
Examples of non-food uses:
Oleochemicals Biodiesel Power generation
Palm Oil Is Healthy
Cholesterol free, no transfat acid. (no hydrogenation when used)
High carotene content:
15X higher than carrots 50X higher than tomatoes
Balanced composition of saturated and unsaturated fatty acids.
Saturated acids (40%) Monosaturated acids (40%) Polysaturated acids (10%)
Contains Vitamin E
15
Palm oil Food & Non-food Uses
Palm Oil Development Proposal
16 Palm Oil Development Proposal
Best Oil Palm Growing Regions
5⁰
5⁰
0⁰ 0⁰ Plantable Areas
Prime Areas
17 Palm Oil Development Proposal
Best Oil Palm Growing Regions
10º
10º
0º
10º
15º Oil Palm spreading to dryer areas up to 15⁰ of equator using drought tolerant hybrid seeds
18
Physical Conditions for Oil Palm
Plantable = + / - 10 degrees off the equator
Prime Areas = + / - 5 degrees off the equator
Agro-Climatic Conditions
Temp range of ~24 – 32º C throughout the year.
Ample sunshine (~5-7 hours a day)
Evenly distributed annual rainfall (2000 mm)
Soil pH , 7.5; Relative humidity ~ 85%
Ideal Soil: flat, heavy, water retaining alluvial soil
Palm Oil Development Proposal
IDEAL LOCATION: Advantages of Mindanao
Closer to Equatorial Line than Luzon and Visayas
Availability of suitable land for Oil Palm
Favorable agro-climatic conditions
Familiarity of farmers to out-growership
BIMP-EAGA initiative
19 Palm Oil Development Proposal
Potential Land Areas for Oil Palm
20 Palm Oil Development Proposal Source: PPDCI (June 2013)
LOCATION POTENTIAL AREAS (Ha)
1. R-IVB Palawan 16,300 (1.68%)
1. R-IX Western Mindanao 102,000 (10.6%)
2. R-X Northern Mindanao 154,000 (16.1%)
3. R-XI Southern Mindanao 104,000 (10.8%)
4. R-XII SOCSARGEN 112,000 (11.7%)
5. R-XIII CARAGA 384,000 (40.0%)
6. ARMM 103,000 (10.7%)
TOTAL 975,300 (100.0%)
Areas Planted to Oil Palm @2012
21 Palm Oil Development Proposal
Source: PCA, Oil Mills and PPDCI (June 2013)
Palm Oil Mills as of 2012
22 Palm Oil Development Proposal Source: PPDC (June 2013)
PCA-Accredited Oil Palm Nurseries 2012
23 Palm Oil Development Proposal Source: PPDC (June 2013)
Packaging and branding of food and non-food products
Cooking oils Margarine Shortening Ice cream, non-
dairy cream Confectionery Candles, soap Animal feeds
Refining Fractionation Oleochemicals Esterification Oil storage RBO palm oil RBO palm olein RBO palm stearin RBO PK olein RBO PK stearin Palm fatty acid Cocoa butter
equivalent, subs
Trading CPO bulking
Crude Palm Oil Palm Kernel Crude Palm
kernel oil Palm kernel
cake
ACTIVITIES
Seed Production Nursery Cultivation Harvesting Oil Milling
PRODUCTS Palm oil seeds Fresh fruit
bunches Crude palm oil Palm kernel Biomass (FFB,
kernel shells) Oil mill effluents
Palm Oil Industry Supply Chain
24
CONSUMER PRODUCTS
DOWNSTREAM PROCESSING
MIDSTREAM UPSTREAM
Palm Oil Development Proposal
DOWNSTREAM PROCESSORS
Asian Plantation Phils Inc.
Mina Oil Mill Corp.
Oleo Fats Inc.
Pacific Oil Products
RFM Corporation
Universal Robina Corp.
25 Palm Oil Development Proposal
DOWNSTREAM USERS
Food Manufacturers Nestle’
RFM
URC
Non-Food United Chemicals
Malabon Soap
Trigon Link
26 Palm Oil Development Proposal
Philippine Palm Oil Demand and Supply Gap
(As of 2010)
Demand = 293,000 Tons
Supply* = 34,000 Tons (11.6%)
Imports = 259,000 Tons (88.4%)
Est. Annual Demand Growth = 10%
27
* 2010 supply is a decline from a 2000 high of 54,000 tons due to old maturing trees
Palm Oil Development Proposal
Demand and Supply Gap (As of 2010)
Source: Dept of Agriculture 2009 Powerpoint Presentation 28 Palm Oil Development Proposal
YEAR PRODUCTION DEMAND IMPORT(Tons) (Tons) (Tons)
2000 54,000 113,000 59,000
2001 52,000 124,000 72,000
2002 50,000 136,000 86,000
2003 48,000 150,000 102,000
2004 44,000 165,000 121,000
2005 46,000 182,000 136,000
2006 42,000 200,000 158,000
2007 40,000 220,000 180,000
2008 38,000 242,000 204,200
2009 36,000 266,000 230,000
2010 34,000 293,000 259,000
2020 34,000 601,000 567,000
AGRICULTURAL TRENDS IN SOUTHERN BUKIDNON
Palm Oil Development Proposal 29
Challenges Faced by Bukidnon Farmers
Coffee – Very stringent quality requirements of a
multinational company resulting in low buying prices
or reduced volumes bought.
Pineapple – High fertilizer inputs and low prices
offered by buyers. Contract growers are losing.
Banana – Growing opposition to toxic spraying
High depletion of soil nutrients (sugar, cassava
and pineapple)
30 Palm Oil Development Proposal
Trends in Bukidnon Agriculture
By 2015, tariff of imported sugar will be 5%.
Flooding of cheap sugar imports expected.
Some sugar planters have started to convert
their land to oil palm (1,200 hectares already
converted).
Farmer Coops and independent planters have
signified converting to oil palm. Availability
of seedlings and financing are essential.
31 Palm Oil Development Proposal
32
Potential areas for oil palm
Kalilangan: 17,000 Has
Pangantucan: 17,000 Has
Talakag: 30,000 Has
Maramag: 20,000 Has (sugar)
10,000 Has (Corn)
Quezon: 20,000 Has
Don Carlos: 13,000 Has
Valencia: 20,000 Has
Agricultual Areas in Bukidnon
Total Areas Planted (Major Crops)
Corn 194,000 has (51%)
Sugar 62,000 has (17%)
Palay 60,000 has (16%)
Pineapple 20,000 has (5%)
Coffee 11,000 has (2.5%)
Palm Oil Development Proposal
SWOT ANALYSIS (STRENGHTS, WEAKNESSES, OPPORTUNITIES & THREATS)
Palm Oil Development Proposal 33
34
SWOT ANALYSIS
Palm Oil Development Proposal
STRENGTHS
Strong local and global market for palm oil (293,000 tons worth US$234 Million and 49 million tons worth US$53 billion respectively)
Oil palm is highly competitive with other High Value Crops (high returns, suitability, ease of planting and maintenance)
Available large areas for oil palm in Bukidnon
Oil palm is a forest tree species that can be part of National Greening Program
35
SWOT ANALYSIS
Palm Oil Development Proposal
Weaknesses
Limited local supply of local FFBs (aging oil palm trees in Agusan and few oil mills)
Lower priority by Dept of Agriculture and Phil Coconut Authority in terms of Policy, incentives, infrastructure and financial support. The private sector is driving the development of oil palm.
Absence of oil mills near potential areas of oil palm plantation areas
36
SWOT ANALYSIS
Palm Oil Development Proposal
OPPORTUNITIES
Create an integrated, sustainable poverty alleviation and livelihood programs in Bukidnon
Through the development of an oil palm plantation intercropped with hybrid corn (first four years) and other high value crops thereafter (potato, squash) and/or livestock raising (goat, cattle, carabao,)
Involving Coops (CARP beneficiaries), Indigenous Peoples and groups awarded by DENR with ISF or CBFMA and by NCIP with CADTI and rebel returnees
And supported by Bali Oil, Landbank, DAR, DENR, DAR, DND, OPPAP CDA and LGUs
37
SWOT ANALYSIS
Palm Oil Development Proposal
OPPORTUNITIES
CONTRACT GROWING PARTNERSHIP WITH BALI OIL
For sugar planters
Oil palm will mitigate the impact and effects of the reduction of sugar tariff in 2015.
Oil palm intercropped with hybrid corn will
provide new sources of income
For farmers, Coops of other high value crops
Sustainable sources of high income from intercropped high value crops
38
SWOT ANALYSIS
Palm Oil Development Proposal
OPPORTUNITIES
For Bali Oil
Develop its own oil palm plantation and sign Growership contracts with Coops and farmers of other high value crops Bukidnon
Construct oil mills near areas where it has Growership contracts with farmers
39
SWOT ANALYSIS
Palm Oil Development Proposal
OPPORTUNITIES
For Lending Institutions
DBP or Landbank to provide financing to support
Farmers, Groups, IPs with sustainable livelihood programs for poverty alleviation and reduction
Rural and countryside development
The value chain in food supply and security
40
SWOT ANALYSIS
Palm Oil Development Proposal
THREATS
Competition from other vegetable oils (coconut)
Peace and order, land claimants and illegal settlers.
Impact of Climate Change (drought, typhoons, abnormal rainfall)
THE PROJECT PROPONENT
41 Palm Oil Development Proposal
BALI OIL: The Project Proponent
Bali Oil developed 200 hectares of palm
oil plantation in Balingasag, Misamis Or.
Rolling hills, 100-400 meter elevation
and moderate climate
The plantation’s average yield is 30 MT
FFBs per hectare or 6,000 MT per annum
Annual revenues Php 42 million.
42 Palm Oil Development Proposal
BALI OIL: The Project Proponent
Palm Oil Plantation in Balingasag, Mis OR (200 hectares)
43 Palm Oil Development Proposal
44
BALI OIL: The Project Proponent
Palm Oil Development Proposal
Bali Oil Palm Plantation in Balingasag, Mis Oriental
BALI OIL: The Project Proponent
Bali Oil has the experience and track record
in developing a high yielding oil palm
plantation. It has the technical team to
provide technical training and services
To implement a 48-60 month plantation
development program (Malaysian
technology).
To operate a nursery to ensure quality
seedlings are provided to farmers
45 Palm Oil Development Proposal
BALI OIL: The Project Proponent
Bali Oil has strong alliances and partnerships
with Pioneer Hybrid to provide and to finance
the seeds for Hybrid Corn to be used as
intercrop in the first four years of the
gestation period of oil palm
Bali Oil has an affiliate, PASSI, a strong
partner of a fertilizer company to provide
and to finance fertilizers formulated
specifically for oil palm and corn.
46 Palm Oil Development Proposal
BALI OIL’S CURRENT PROJECTS BEING DEVELOPED
Palm Oil Development Proposal 47
48
Bali Oil Proposal to DND
Bali Oil to develop 5,000 to 15,000 hectares of
Camp Kibaritan, Kalilangan into an oil palm
plantation intercropped with hybrid corn, sweet
potato and squash. Livestock (cattle, carabao and
goat) raising will be done on the 5th year.
Project costs range from Php 600 million to Php
1.8 Billion. An oil mill will be included.
Production sharing scheme (70%-30% of net
income) Bali-DND.
Palm Oil Development Proposal
49 Palm Oil Development Proposal
TRIPARTITE PARTNERSHIP PROPOSAL
Grower/Oil Mill
Project Financing
Land Owner
DND
AFP
DND – Department of National Defense
AFP – Armed Forces of the Philippines
Bali Oil Proposal to DND
50
LOCATION OF CAMP KIBARITAN, KALILANGAN, BUKIDNON
Camp Kibaritan
Cagayan de Oro
Bali Oil Proposal to DND
Palm Oil Development Proposal
CAMP KIBARITAN MILITARY
RESERVATION (42,264 HAS)
Camp Kibaritan, Kalilangan, Bukidnon
Palm Oil Development Proposal 51
Rolling hills and grass lands
Large, contiguous area
One Owner
53
Presentation to Dept of National Defense
Palm Oil Development Proposal
HQ, TF Diamond, 4ID, PA
USEC Manalo (DND) AFP & BCDA Bali Oil Team
Bali Oil Team Bali Oil & Phil Army
BALI OIL’S PROPOSAL FOR OIL PALM CONTRACT GROWING BY FARMERS AND COOPERATIVES IN KALILANGAN, BUKIDNON
Palm Oil Development Proposal 54
55
Marketing Oil Palm in Kalilangan (Mar 6)
Palm Oil Development Proposal
Bali Oil Team Mayor’s Office Conference Room
Mayor Suyao Brgy Captains, Farmers Bali Oil Presentor
56
Marketing Oil Palm in Kalilangan
Technical Training Technical Training DBP Team
DBP Financing scheme Open forum (Q&A) Open forum (Q&A)
Palm Oil Development Proposal
57
Multi Partite MOA (Growership)
Kalilangan Oil
Palm Growers
Association
(Mother COOP)
LGU
Bali Provides tech training, seedlings, Fertilizers
Planters delivers Fresh Fruit Bunch
DBP provides loan funds to Bali for seedlings and Agricultural inputs
Bali divides value of FBB delivered into % to planter and % to DBP (payment of loan)
LGU may pay loan interests of Growers during first 4 years of gestation period.
2
4
5
3
1
Palm Oil Development Proposal
(Bali) Marketing
(COOP) Production
(Bali) Buys FBB & collects Loan repayments
(DBP) Financing
BALI OIL (Big Brother)
Multi-Partite MOA (Big Brother Concept)
(CPO)
BALI OIL’S PROPOSAL FOR OIL PALM CONTRACT GROWING BY INDIGENOUS PEOPLES IN CABANGLASAN, BUKIDNON
Palm Oil Development Proposal 58
59
IP Community
Public Sector Perspectives
(LGU, NCIP, IP, OPPAP)
Private Sector Perspectives (Bali Oil/Landbank)
Jesuit Mission
Perspectives
Conceptual Framework Cabanglasan IP
Governance & management training of LGUs, IPs,; Jesuit Volunteers; XU Agri student internships at plantation
Bali Oil: Plantation Devt, Purchase of FFBs, Oil Mill
Bridge, farm to market roads, seedlings, fertilizers, tech services & training, health, education, housing
Landbank: Loans to Coop with CADTI and to Bali Oil for Oil Mill
Umayamnen Tribe
5,000-10,000 Has
CADTI
60
Status of Current Projects of Bali Oil
Proposal to DND/AFP
DND is currently evaluating Bali Oil proposal.
Target signing Q1, 2014
Proposal to Kalilangan Coop and LGU
Ongoing discussions, refinements on terms &
conditions of MOA and the Growership Production
& Purchasing Agreement (GPPA). Target: Q3 2013
Proposal to Cabanglasan LGU
Ongoing discussions with LGU
Palm Oil Development Proposal
Future Bali Oil Marketing Initiatives
Schedule of Marketing Activities (Roadshow):
Central Bukidnon LGUs & Coops (Aug, 2013)
o Cabanglasan, San Fernando, Malaybalay,
Valencia
Sugar Planters Associations (Aug, 2013)
Southern Bukidnon LGUs & Coops (Aug, 2013):
o Maramag, Quezon, Don Carlos, Kadilingan,
Pangantucan, Talakag, Kalilangan
61 Palm Oil Development Proposal
HIGHLIGHTS OF THE PROJECT PROPOSALS TO DND AND THE KALILANGAN COOPS AND LGU
Palm Oil Development Proposal 62
63
Project Timetable
Palm Oil Development Proposal
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
MOA SIGNING
NURSERY OPERATIONS
LAND PREPARATION
PLANTING
OIL MILL CONSTRUCTION
OIL MILL OPERATIONS
ACTIVITY2013 2014 2015
PROJECT HIGHLIGHTS
64
Bali Oil Palm shall also establish nursery
stations to develop 10-12 mos old seedlings
of Tenera hybrids.
Palm Oil Development Proposal
PROJECT HIGHLIGHTS
Project Components
OIL PALM PLANTATION
Nursery to develop one year old seedlings
5,000 Has expandable to 15,000 has
Palm Oil Development Proposal 65
OIL EXTRACTION MILL
30-Ton per hour capacity 2 shifts
PROJECT HIGHLIGHTS
66
Typical Intercropping
NORTH
SOUTH
EAST WEST
9.2 meters equidistance between palm oil trees (max 137 trees per hectare)
Potato Corn Palm Oil
Palm Oil Development Proposal
Oil palm with corn
PROJECT HIGHLIGHTS
67 Palm Oil Development Proposal * Yield dependent on soil conditions or suitability
Year
Low Medium High Low Medium High
1 0 0 0 0 0 0
2 0 0 0 0 0 0
3 0 4 6 0 20,000 30,000
4 5 13 16 25,000 65,000 80,000
5 6 13 24 30,000 65,000 120,000
6 9 20 30 45,000 100,000 150,000
7 12 23 30 60,000 115,000 150,000
8 18 23 35 90,000 115,000 175,000
9 21 25 35 105,000 125,000 175,000
10 23 25 35 115,000 125,000 175,000
FFB Yield (Ton/Ha) Oil Palm FFB Yield (Tons for 5000 Hectare)
Typical Yields of FFBs
Palm Oil Development Proposal 68
Oil Palm Investment Costs
A. Development & Land Preparation (Labor) 1,500
B. Planting
Labor in Planting 6,339
Materials in Planting 41,078
Total Planting Costs Per Hectare 47,417
48,917
PLANTATION MAINTENANCE
A. Materials for Farm Maintenance 7,260 8,499 7890 17,520
B. Labor for Maintenance 3,115 6,647 6900 6,946
10,375 15,146 14,790 24,466
TOTAL ANNUAL COSTS 59,292 15,146 14,790 24,466
DBP LOANS DRAWDOWNS 48,338 8,499 7,890 17,520
TOTAL DBP LOANS PER HECTARE 82,247
TOTAL PLANTATION MAINTENANCE COST
GROWER SCHEDULE OF ACTIVITIES YEAR 1 YEAR 2 YEAR 3 YEAR 4
PLANTATION DEVELOPMENT (One Hectare)
TOTAL PLANTATION DEVELOPMENT COST
For 10,000 hectares = Php 820 Million investment cost
69 Palm Oil Development Proposal
Costs & Returns (per hectare)
* Yield dependent on soil conditions or suitability
Year Price Costs
Low Medium High (Peso/ton) Low Medium High Low Medium High
1 0 0 0 5,000 0 0 0 51,229 (51,229) (51,229) (51,229)
2 0 0 0 5,250 0 0 0 11,009 (11,009) (11,009) (11,009)
3 0 4 6 5,500 0 22,000 33,000 12,753 (12,753) 9,247 20,247
4 5 13 16 5,500 27,500 71,500 88,000 20,743 6,757 50,757 67,257
5 6 13 24 5,500 33,000 71,500 132,000 40,931 (7,931) 30,569 91,069
6 9 20 30 5,800 52,200 116,000 174,000 44,991 7,209 71,009 129,009
7 12 23 30 5,800 69,600 133,400 174,000 44,991 24,609 88,409 129,009
8 18 23 35 6,000 108,000 138,000 210,000 46,731 61,269 91,269 163,269
9 21 25 35 6,000 126,000 150,000 210,000 47,891 78,109 102,109 162,109
10 23 25 35 6,500 149,500 162,500 227,500 47,891 101,609 114,609 179,609
OIL PALM FFB ESTIMATED COSTS & RETURNS (PER HECTARE)Yield (Tons per Hectare) Returns (Php5,000/ton) Net Income
Palm Oil Development Proposal 70
Intercrop Plan During Gestation Period
Oil Palm (medium yield Yield)
Yield (tons) 0 0 4 13 13 20 23 23 25 25
Price (Peso/ton) 5,000 5,250 5,500 5,500 5,500 5,800 5,800 6,000 6,000 6,500
Gross Revenues (Peso 1000) 0 0 22 72 72 116 133 138 150 163
Production Costs (Peso 1000) 51 11 13 21 41 45 45 47 48 48
Gross Margin (Peso 1000) (51) (11) 9 51 31 71 88 91 102 115
Yield (tons) 80% of One hectare 12.5 12.5 12.5 12.5 32 32 32 32 32 32
Price (Peso/kg) 10.80 10.80 10.80 10.80 15 15 15 15 15 15
Gross Revenues (Peso 1000) 135 135 135 135 480 480 480 480 480 480
Production Costs (Peso 1000) 74 74 74 74 194 194 194 194 194 194
Gross Margins (Peso 1000) 60 60 60 60 286 286 286 286 286 286
Combined Total Gross Revenues(Peso1000) 135 135 157 206 552 596 613 618 630 643
Total Production Costs (Peso 1000) 126 85 87 95 235 239 239 241 242 242
Total Net Return (Peso 1000) 9 49 70 111 316 357 374 377 388 400
10
Hybrid Corn White Potato
Per Hectare Per Year
Costs & Return with Intercrop 5 6 7 8 91 2 3 4
Palm Oil Development Proposal 71
Reference: DBP Loan Terms & Conditions
LOAN TO THE COOP AS A GROUP
COLLECTION OF PRINCIPALS & INTERESTS
INTERESTS FROM THE NET PROCEEDS OF
FFBs SOLD BY GROWERS TO BALI OIL
PASSBOOK KEPT BY DBP ALWAYS
DBP LOAN TERMS AND CONDITIONS
TERMS
7-10 YEARS
GESTATION PERIOD
3-5 YEARS
INTEREST RATES
Less than 10%
ONE PASSBOOK ISSUED TO COOP
LOAN AMOUNTS RELEASED TO PASSBOOK
NO CASH RELEASED TO COOP
BALI OIL TO RELEASE AGRI INPUTS
BALI OIL REIMBURSED BY DBP
BALI OIL COLLECTS DUE LOANS &
Note: Interests due during the
gestation period (1st-4th year)
can be paid by the LGU or
capitalized by DBP
BALI OIL’S STRATEGIC AND DEVELOPMENT PLANS IN THE NEXT FIVE YEARS
Palm Oil Development Proposal 72
73
Bali Strategic and Development Plans
Palm Oil Development Proposal
Independent Farmers, Farmers’ Coops and
Associations,
Awardees of CADTI, ISF and CBFMA
Local Government Units
74 Palm Oil Development Proposal
Bali Oil Invites You……………
To Participate in an Oil Palm Growership
Program in Partnership with Bali Oil and Lending Institutions (DBP, Landbank)
For interested parties:
Please leave the following information with the
Bali Oil representatives:
o Individual or Organization’s name, address, contact number, location and size of your farm to be included in the Growership Program.
For inquiries and additional information on the Growership Program, or for presentations to
farmer groups, please call or email:
Romy Posadas (0918-9263230) [email protected]
PASSI c/o Manny Boniao ([email protected])
Loloy Donque (0918-9282540)
Palm Oil Development Proposal 75
Moving Forward
Palm Oil Development
Proposal 76
IT’S MORE FUN TO PLANT OIL PALM
GO! GO! GO! PALM OIL
77