Desiccated coconut exporter to get fiscal perks from govt

The Board of Investments (BOI) has approved the application for registration of Consolidated Coconut Corp.’s P924-million desiccated coconut project in Plaridel, Misamis Occidental.

The firm’s project, which will start commercial operations in september, has an annual capacity of 93,750 metric tons (MT) of desiccated coconut.

“We are making headways in sustaining Philippine exports, particularly desiccated coconut with the approval of the project by Consolidated Coconut Corp.,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said in a statement on Tuesday.

The BOI noted that the company will produce and export high-quality food-grade desiccated coconut. Its target markets are North and south america, Europe, China, asia, australia, and the Middle East.

The company, an existing enterprise engaged in selling coconut byproducts, has decided to venture into manufacturing.

“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,” the BOI said.

The attached agency of the Department of Trade and Industry said the firm had also acquired brand new equipment worth a total of P430 million ($7.78 million) from India, sri Lanka, and singapore.

The project is expected to create 475 jobs within the first five years of its commercial operations.

It will make use of raw materials, particularly de-husked coconuts from farmers in Misamis Occidental and nearby provinces.

The BOI said the project utilizes the countr y’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 agency added that the project will contribute to the attainment of the Coconut Farmers and Industry

Development Plan’s goal of promoting integrated processing systems to optimize the utilization of coconut.

Of the 438,052-MT desiccated coconut traded globally in 2020, the Philippines accounted for more than a third. The country exported 147,000 MT of desiccated coconut exported, or 33.56 percent of world exports. Top buyers of local desiccated coconut were the United states, Netherlands, australia, United Kingdom, and Russia.

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.

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 accounts for 26.8 percent of global coconut exports which are valued at $229.79 million yearly.