Invest in Davao Oriental

Falcata Industry

Industry Background/Situationer

Paraserianthes falcataria (falcata) is a fast-growing tree species, grown commercially in the Philippines particularly in Bislig or in Surigao del Sur eventually spreading to nearby provinces.

The industry has long started in Surigao prior to the operationalization of the Paper Industries Corporation of the Philippines (PICOP) in anticipation for the milling requirements of the company. Farmers of the area were at first reluctant to plant the tree, but later joined due to the disseminated prospects of the industry both by the government and the paper company. Henceforth, they ventured into tree farming and over the years, the said agricultural venture evolved into a full-blown sunrise pulpwood industry as it stands today.

The tree species attract the populace in the community due to its suitability in the intercropping of coffee, cacao, abaca, and root crops. In fact, they complement each other because of the shade that the tree provides to other growing crops.

The stability of the market for its wood/timber was later on realized, providing adequate income for the tree farmers. Along with other provinces, Davao Oriental embraced the program of falcata planting. Practically, all the areas of Davao Oriental have falcata tree plantations, but the Municipality of Boston has the largest area grown with falcata tree.

The participation of the Indigenous communities, made possible
the successful propagation of the tree inspired by their long dream of becoming the “Falcata Capital” of Davao Oriental.

Efforts in promoting the development of the industry have already been done by national government agencies and Local Government Units way back years ago, The DENR, included the falcata in their National Greening Program, (NGP) where thousands of hectares were cultivated provincewide, soon to be harvested. In support, the DTI started promoting the industry in their investment promotion activities in collaboration
with the City Government of Mati.

It is said that the industry is a very profitable industry, that testimonies of tree farmers were living proof to this day. With the road map currently pursued by the provincial government, it is foreseen that local landowners will soon join the march to become millionaires.

Existing Players

• Falcata tree planters
• Falcata tree plantations
• Falcata program of the DENR
• Local Millers
• Landowners
• Suppliers of planting tools, equipment & accessories

QUICK FACTS

Total Land Area 516,446 has
Total Agricultural Area 315,600 has
No of Has Planted to Falcata 1,200 has
Total No of Farmers 1,600
Average Hills/Ha 200-300 Hills
Average Yield/Ha/Yr (Kgs) 950-1,200 Kgs

Market Potentials

• Wood/Timber
• Paper, Plywood, and Veneer
• Nursery seedlings
• Furniture and Fixtures
• Dermatology Medicines

Investment Potentials

• Paper Mill
• Plywood and Veneering Plant
• Nursery seedlings
• Medicinal Processing Plant
• Tree Harvesting Equipments
• Heavy Duty Trucking /Tranport System
• Sawmill
• Planting Tools, Equipment & Accessories
• Water system
• Renewable Energy Plant