The Philippine Board of Investments (BOI) has approved the application for registration of Consolidated Coconut Corporation Php924 million desiccated coconut project. As a new export producer of desiccated coconut, the project is expected to shore up the country’s export of the product with target markets in various countries.
Starting its commercial operations in September 2022, the firm’s project will soon operate in Plaridel, Misamis Occidental with an annual capacity of 93,750 metric tons (MT) of desiccated coconut.
“Indeed, we are making headways in sustaining Philippine exports, particularly desiccated coconut with the approval of the project by Consolidated Coconut Corporation. We are truly seizing the opportunity, as the Philippines is the top producer of such product globally,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.
The project exploits the country’s competitive advantage in manufacturing and exporting desiccated coconut. Based on the Philippine Coconut Farmers and Industry Roadmap (2021-2040), the Philippines is the world’s largest exporter of desiccated coconut and has the greatest ability to compete in the global market.
The firm will engage in the production and export of high-quality food-grade desiccated coconut. Further, the target markets for the product to be exported are North and South America, Europe, China, Asia, Australia, and the Middle East.
An existing enterprise engaged in selling coconut by-products, the company is now entering the manufacturing industry by producing coconut products such as desiccated coconut. The firm acquired brand new equipment which was imported from India, Sri Lanka, and Singapore amounting to Php430 Million (USD 7.78 million).
During the first five years of its commercial operations and construction, the project is projected to produce 475 jobs. The project will utilize raw materials specifically the de-husked coconuts from coconut farmers in Misamis Occidental and nearby provinces.
In 2020, the total volume of desiccated coconut exported in the world is tallied at 438,052 MT. The Philippines sits at the top with 147,000 MT of desiccated coconut exported, representing 33.56 percent share of the world exports, and the country’s top export destinations of desiccated coconut are the USA, the Netherlands, Australia, the UK, and Russia.
To produce desiccated coconut, the firm will use an array of equipment such as a biomass boiler, shelling machine, paring dryer, generator set, and steam system control, among others, which will all be sourced locally. Specifically, the paring machine, desiccated coconut dryer, and laboratory equipment will be imported from Sri Lanka, India, and Singapore, respectively.
The Philippines has the largest land area devoted to coconut farms and the second-largest coconut production in the world, representing a 23.4 percent share of global production. Notably, the project will contribute to the attainment of the Coconut Farmers and Industry Development Plan’s (CFIDP) goal of promoting integrated processing systems to optimize the utilization of coconut.
Furthermore, coconut is the second largest crop sector in the country in terms of area planted with 3.6 million hectares in 2020, or approximately 26 percent of the country’s total agricultural lands. The Philippines represents 26.8 percent of global coconut exports which are valued at US$ 229.79 million annually.END