MALAYSIAN FIRM KEEN ON SETTING UP KENAF PLANTATIONS IN PH
Malaysia-based Kenaf Venture Global (KVG) plans to put up multiple kenaf plantations in the Philippines as part of a bigger plan to expand operations in Asia, with an initial investment plan of $100 million for a 10,000-hectare farm which can generate about 300 jobs.
KVG CEO and cofounder Jazman Shahar Abdollah said they are already looking at three pieces of land in Mindanao and Luzon after conducting two ocular visits.
“We have identified a few lands where we can start cultivating and doing the planting in the Philippines,” Abdollah said.
Aside from the Philippines, the group is also looking to invest in countries such as Indonesia and Thailand, to add to Malaysia and Cambodia.
Kenaf is a fast-growing crop under the hibiscus family that can grow to a height of 20 feet if tended well.
The body or stem of the plant is harvested for the bark and core, which can then be processed further to make a variety of products from mattresses to vehicle insulation and bicycle frames, down to more simpler things like rope, sack and paper.
The KVG executive said that places in the Philippines where rice and banana can grow without issues can also host kenaf plants.
He added that the prospective places they have surveyed in Mindanao are also safe from typhoons, which the Philippines experiences an average of 20 times a year.
“We also have kenaf seeds that can survive a few months under water,” he said, adding that they are still determining which type of kenaf seeds among 16 varieties should be planted in future Philippine plantations.
Abdollah added that kenaf is also very resilient when it comes to pests, saying that while pesticide can be used to prevent infestation, a damaged crop can still be harvested and used since only its leaves are eaten by insects, leaving the stem mostly intact.
He said that kenaf plants can also be harvested a hundred days after planting, which makes two or three planting and harvest cycles possible within a year.
“In this business, we can do three cycles, which is more profitable. But if we want to do long-term business then we have to take care of the soil. That means that we cannot exhaust it,” Abdollah said, citing that the ideal way is to stick to two planting and harvesting cycles in a year.
Abdollah said that they also intend to put up factories in the Philippines that can process the harvested plants, which would entail an additional initial investment of about $20 million to $25 million.
“After harvesting and within 24 hours, we need to bring that to the factory. At the factories, we use a few technologies. It depends on what we need at the end of the process,” said Abdollah.
Abdollah said they are also planning to reach out to local firms to see what end products they can produce which will have local demand in the Philippines.
The KVG executive said that the global demand for the advanced products which uses the bark and core of the plant as components is a trillion-dollar global industry, with multiple plantations in the Philippines seen having the potential to generate billions of dollars of revenues each year.