BOI approves P924 M coconut project
The Board of Investments (BOI) has approved the application for registration of Consolidated Coconut Corp.’s P924 million coconut project, which is seen to boost the country’s desiccated coconut exports.
In a statement yesterday, the BOI said the project is expected to shore up the country’s export of desiccated coconut, with target markets in various countries.
The project located in Plaridel, Misamis Occidental will have an annual capacity of 93,750 metric tons (MT) of desiccated coconut, and it targets to commence operations in September.
“We’re making head way in sustaining Philippine exports, particularly desiccated coconut, with the approval of the project by Consolidated Coconut Corp. 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.
Consolidated Coconut will engage in the production and export of high-quality food-grade desiccated coconut to target markets North and South America, Europe, China, Asia, Australia and the Middle East.
The company has now entered the manufacturing industry by producing coconut products such as desiccated coconut. It acquired brand new equipment imported from India, Sri Lanka, and Singapore amounting to P430 million or $7.78 million.
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.
In addition, the paring machine, desiccated coconut dryer, and laboratory equipment will be imported from Sri Lanka, India and Singapore, respectively.
The coconut project is expected to generate 475 jobs during the first five years of its commercial operations and construction.
The project will utilize raw materials, specifically the dehusked coconuts from coconut farmers in Misamis Occidental and nearby provinces.
In 2020, the total volume of global desiccated coconut exports reached 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 US, Netherlands, Australia, UK and Russia.
The country 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.
The coconut 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.