P924-M desiccated coconut project gets tax incentives
Consolidated Coconut Corp. (CCC), an existing enterprise engaged in selling coconut by-products, has expanded its business to manufacture desiccated coconut for export with an investment of P924 million.
The Board of Investment (BOI) has approved the company's registration for tax incentive availment.
With a project cost of P924 million, CCC will produce 93,750 metric tons of high quality food grade desiccated coconuts annually starting September this year in Plaridel, Misamis Occidental. The project is expected to create 475 jobs.
BOI said CCC will utilize raw materials specifically the de-husked coconuts from coconut farmers in Misamis Occidental and nearby provinces. It will export its produce to North and South America, Europe, China, Asia, Australia, and the Middle East.
Part of the company's project cost was used by the firm acquired brand new equipment from India, Sri Lanka, and Singapore amounting to P430 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. Specifically, the paring machine, desiccated coconut dryer, and laboratory equipment will be imported from Sri Lanka, India, and Singapore, respectively.
In 2020, the total volume of desiccated coconut exported in the world is tallied at 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 USA, the Netherlands, Australia, the UK, and Russia.
“Indeed, we are making headways in sustaining Philippine exports, particularly desiccated coconut with the approval of the project by Consolidated Coconut Corporation. 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.
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 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. Notably, 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.
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 represents 26.8 percent of global coconut exports which are valued at $ 229.79 million annually.
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