BOI approves R8-M Palawan cashew project

A Palawan-based roasted cashew nuts exporter is upgrading its facility with the use of automated processing machines to boost production capacity.

R-LEY Trading was granted tax incentives by the Board of Investments (BOI) for its R7.87million expansion program.

The R7.87-million project in Roxas, Palawan is considered an expansion/modernization project since it involves the installation of additional facilities or equipment that would result in the increase of capacity of the said activity within the existing plant of the enterprise.

The single proprietorship firm is a major producer as well as wholesaler/distributor of cashew nuts in Palawan.

The existing operation involves manual splitting and the use of imported decorticator, shelling machine, sorting machine, peeling and packing machines. With the expansion, they will also process roasted whole cashew nuts. R-LEY is an existing processor of semi-processed cashew nuts to several trading centers in Palawan, Pampanga, Bohol, Iloilo and Cebu since 2012 but it is not registered with BOI.

“In acquiring new machines, the firm will increase its production by over 800 percent over five years. We should take advantage of cashew’s expanding potential for commercial production as there is a continuous demand for nutritious food products. Palawan should lead the way since it is considered as the country’s cashew capital,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.

The firm churned out 11,250 kilograms of cashew nuts in 2016. In the first year of expansion, it will produce 20,000 kilograms and by the fifth year, it will increase to 102,000 kilograms. Half of its production is for the domestic market with the rest to be exported to Japan. Commercial operation is slated to start on October 2017 with an initial 19 employees which will increase to 66 personnel by year five. (BCM)