KUALA LUMPUR: The Federal Land Development Authority (Felda) will commence its oil palm cultivation project in Tefe, Brazil this year and the initial area would be about 5,000ha, Brazil's Ambassador to Malaysia Sergio De Souza Fontes Arruda said on March 24.
Brazil had offered the land to Felda, which would see it teaming up with a local company there, Braspalma, to develop up to 100,000ha in Manaus and Tefe in Amazonas state. The agreement to undertake the development was signed in September.The new entity handling Felda's investments in Brazil will have a paid-up capital of RM25 million. Felda via its entity Felda Global Ventures Brazil Sdn Bhd, will have a 70% stake in the joint venture and Braspalma the rest. The initial cultivation would involve 30,000ha in Tefe, said Fontes Arruda. Felda also has investments in other countries and they include 105,000ha of land in Papua New Guinea and 45,000ha in Aceh, Indonesia, the agreements of which would be signed soon. Other Felda investments include biodiesel plants in the US and Canada. It also owns real estate, hotels and restaurants in Saudi Arabia.