The Department of Agriculture (DA) is pushing to expand oil palm production in Mindanao, saying it can cut imports, raise farmer incomes, and secure the country’s cooking oil supply.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the agency plans to increase funding for the sector to P1.2 billion in 2027. This comes after the proposed P1 billion budget for 2026 was reduced to P79 million. The DA wants the higher budget to support fertilizer subsidies, expand plantation areas, and improve farm productivity.
Tiu Laurel said public funds should be directed to crops that generate higher income for farmers. Oil palm yields average 3.8 metric tons per hectare, compared to less than one metric ton per hectare for coconut. Palm oil farmers are estimated to earn at least twice as much as coconut farmers, who make about P90,000 a year.
The Philippine Coconut Authority (PCA), led by administrator Dexter Buted, is preparing to support the expansion by producing planting materials locally. The PCA plans to set up oil palm nurseries in selected areas in the Caraga region using imported germinated seeds through government-to-government deals. This is expected to lower the cost of seedlings.
Oil palm plantations now cover around 100,000 hectares nationwide, mostly in Mindanao. Despite growing local output, the Philippines still imports large volumes of palm oil, leaving a supply gap the DA hopes to reduce.
Mindanao is central to the expansion plan. The DA is considering the University of Southern Mindanao as a base for reviving and expanding a government-backed nursery. Disease-free planting materials may be sourced from Malaysia.
The DA also acknowledged gaps in data on the oil palm sector, which it says must be addressed to guide investment decisions.
There are currently 11 palm oil mills and five refineries operating nationwide, including a P600 million facility in Sultan Kudarat financed by the Land Bank of the Philippines and the DA.
With cooking oil demand rising and imports affecting the trade balance, the DA is positioning palm oil as a priority crop for expansion, particularly in Mindanao, with policy support expected to increase in the coming years.
