BOI OKs P56-M VCO project

The Board of Investments (BOI) has approved the P55.9-million project of Rizal VCO Phils. Corp. as a new export producer of virgin coconut oil (VCO), the agency reported yesterday.

A total of 748,800 liters of VCO is expected to be produced annually by the project in its Bocaue, Bulacan plant as operations started last month.

“The project utilizes a process that will convert refined/bleached/deodorized (RBD) coconut oil into VCO, a process which they claim is groundbreaking in the country,” the BOI said.

The RBD coconut oil will be mixed with their proprietary mixture of herbal extracts composed of papaya, banana, carrot, and calamansi that will serve as the catalyst to convert the RBD coconut oil to VCO.

A mostly “hands-free” production system will be used from raw material reception up to loading of final output of the project.

“To attain the finished VCO product, the firm uses a centrifuge separator machine and a filtering machine to deliberately remove “fatty” content that is formed after a day of mixture and fermentation,” the BOI added.

The recently-approved project qualified under the export activities list of the 2017 Investment Priorities Plan (IPP).

“This innovative approach would sustain the growing popularity of coconut oil products in our export markets which will bring more jobs and additional income opportunities for our countrymen,” Trade Undersecretary and BOI managing head Ceferino Rodolfo said.

The company will initially market its VCO as raw material for the manufacture of cosmetics and personal care products, and for (topical) use in health and wellness applications, according to the BOI.

Targeted markets for the product are Middle Eastern countries such as Bahrain, United Arab Emirates and Qatar.

Based on figures released by the Philippine Statistics Authority (PSA), coconut oil exports reached $792.3 million in the first half of the year, 88.2 percent higher from $421.1 million in the same period in 2016.

Rizal VCO said the VCO produced by its project is a far more stable prime raw material ingredient (for cosmetic and personal care product applications), unlike the current VCOs in the market.

At present, VCOs available in the market are not extensively used in the manufacture of cosmetic and personal care products because they have low stability factor when used in large portions in products like creams, soaps, shampoos and the like.

The BOI said the VCO firm’s products will have no coco-nutty smell and free from rancid odors and can be used as raw material ingredient for cosmetic products which are mostly topically applied.

It added that project’s VCO output conforms to the Philippine National Standard for virgin coconut oil set by the DTI’s Bureau of Product Standards.