Thursday, May 11, 2017

Board of Investments Approves Coco Processing Plant

The Philippines is now the top coconut producer in the world. It has overtaken Indonesia in the production of coconuts. Coconut has a variety of uses ranging from food, cosmetics, industrial use and even pharmaceuticals.

While the Philippines continues t be the top coconut producer in the world for almost a century, the industry has been beset by problems ranging from ageing coconut trees to systemic industry uncertainty brought about by the Coco Levy issue for 4 decades now. This is also compounded by 2 years of Coco-Lisap infestation that has spread from Luzon all the way to the coconut plantations in Mindanao.

In order to optimize the coconut industry, efforts are being undertaken to enhance processing of coconut products within the country itself. This entails the creation and establishment of coconut milling and processing plants.

In this regard, the Board of Investments (BOI) approved a Php391 million coconut processing plant which is a project of the Ahya Coco Organic Food Manufacturing Corporation. 

“With growing demand for coconut products abroad, the country, as one the world’s largest coconut producers, hopes to address such demand,” Trade Undersecretary and BoI Managing Head Ceferino Rodolfo said.

The project is included in the exports category of the Investment Priorities Plan (IPP). This is in line with the continued leadership of the country in coconut exports worldwide. 

Ahya is engaged in the production of canned coconut milk with an annual output of 7,286 metric tons annually, canned coconut water that has an annual production of 6,970 metric tons, Virgin Coconut Milk that accounts for 485 metric tons per year and coconut flour with a yearly production of 1,061.  

Ahya’s main source of coconuts are from the coconut farmers of Davao del Norte, Compostela Valley and Davao del Sur. Production is geared towards exports to the US, Europe and China where demand has continued to increase.

The company sources its coconut requirements from the farmers in Davao del Norte, Compostela Valley Province and Davao del Sur. It will export 100 percent of its products to the United States, China and Europe.

Exports of coconut products amounted to $1.41 billion in 2016, a .4-percent increase from $1.4 billion in 2015, according to the Philippine Statistics Authority.

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The Mail Man

Author & Editor - The Philippines' Web Magazine on Agriculture.

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