By Alexandria Grace C. Magno, Reporter
DMCI Holdings Inc. Chairman and Chief Executive Officer Isidro A. Consunji said his family’s oil palm business goals to expand its plantation to twenty,000 hectares (ha) over the subsequent seven years because it seeks to assist reduce the Philippines’ reliance on imported palm oil.
Speaking at an agribusiness forum last week, Mr. Consunji said the expansion will cover the corporate’s existing operations in Zamboanga, Negros, Agusan, and Sultan Kudarat.
Sirawai Palm and Rubber Corp. (SPRC), the Consunji family’s agricultural company, currently manages about 5,000 ha of oil palm with around 600,000 trees.
Mr. Consunji said developing one hectare of oil palm costs between P250,000 and P350,000.
Based on the corporate’s goal of expanding its plantation by about 15,000 ha, the expansion could require roughly P3.75 billion to P5.25 billion.
Mr. Consunji said the corporate goals to succeed in the 20,000-ha goal inside seven years.
“I actually have been stepping back from lively management at DMCI and attempting to spend more time in our circle of relatives’s agriculture business,” he said.
“And the more time I spend on it the more I’m convinced that agriculture done right is one of the crucial meaningful investments anybody could make on this country. Not only economically, but when it comes to real, visible impact on people’s lives,” he added.
Mr. Consunji said the country’s continued dependence on imported palm oil underscores the necessity to expand domestic production.
“The opportunities ahead are significant and we’re committed to grow throughout the industry,” he said.
He said large parts of Mindanao and the Visayas have favorable conditions for oil palm cultivation, citing rainfall, soil quality, and elevation.
“Every dollar of import is a job, a farm, a community and foreign exchange savings that might have happened here,” Mr. Consunji said.
“Large parts of Mindanao and Visayas have the rainfall, soil elevation that oil palm needs. The chance is here — the query is whether or not we’re willing to construct the industry,” he added.
The family’s oil palm operations currently employ about 1,200 employees, including harvesters, mill employees, civil works personnel, and support staff. The corporate also works with 275 outgrowers cultivating around 2,500 ha of oil palm.
Mr. Consunji said SPRC is targeting a combined plantation area of 12,000 ha, including outgrower farms, over the subsequent five years.
“Along with our plantation areas, we are actually targeting 12,000 hectares in total over the subsequent five years. To support this scale, we’re investing in processing infrastructure,” he said.
DMCI Holdings is one among the country’s largest listed conglomerates, with interests in construction, real estate, mining, power generation, water utilities, and infrastructure.