The Department of Agriculture (DA) announced the inauguration of a P600-million palm oil facility in Sultan Kudarat seen helping spur development of the palm oil industry in the country.
The enterprise is owned by the Garcia Refinery Corp. (Gareco) and the first palm oil refinery in Mindanao funded by a loan from the Land Bank of the Philippines.
According to the DA, the facility will produce high-quality palm oil derivatives such as palm olein, palm stearin, margarine and other products for the local and international markets.
“The establishment of the first palm oil refinery in the Soccsksargen region underscores the immense potential for growth and development within the palm oil sector. This embodies the aspiration of the industry stakeholders to become a dynamic, innovative and self-sufficient industry that provides benefits and stable supply of vegetable oils for the country,” said DA Secretary Francisco Tiu Laurel Jr., in a statement.
Tiu Laurel said the new Gareco refinery also brings job opportunities for local communities and provides employment to farmers, laborers and other stakeholders.
Gareco has already formed partnerships with 63 farmers to manage 3,065 hectares of farm land planted to palm oil trees. Sultan Kudarat already has 14,000 hectares of land planted to palm oil trees.
Tiu Laurel also said the five-year palm oil roadmap has also recently been updated to support the industry.
“The DA is committed to collaborating closely with stakeholders, including the private sector partners such as GARECO, in addressing challenges, promoting innovation, and ensuring the inclusive growth of the Philippine palm oil industry,” Tiu Laurel said.
The Philippines produced 540,643.52 metric tons of palm fruit bunches in 2023, or 1.4 percent more than in 2022 of only 533,398.52 MT.
