Manila Bulletin, February 10, 2007 by Bernie Cahilles-Magkilat

Filipino-owned SC Global Coco Products, Inc. is investing P166 million for the establishment of a modern coconut oil refining facility that is expected to somehow improve the quality of life of the impoverished province of Leyte, the home province of former First Lady Imelda R. Marcos.

The project is not pioneering as it does not introduce a new technology but the Board of Investments said it is eligible for pioneer incentives because it would be located in a less developed area in Baybay, Leyte. Pioneer incentives include a longer income tax holiday of six years.

Based on its application, the facility will produce reined, bleached and deodorized (RBD) coconut oil.

RBD coconut oil can be produced by treating the crude coconut oil with alkali to remove free fatty acids, then subjecting it to steam under vacuum to remove odors and flavors and filtering with carbon to decolorize yellow or dark colors. RBD oil is edible used in food and cosmetic applications.

Copra cake or meal, the residue left after oil extraction from copra is used as an ingredient in animal feed, due to the presence of oil, protein and carbohydrates.

The project is expected to start in June this year providing employment to 101 individuals. It will have an annual rated crushing capacity of 150 metric tons of copra per day for local manufacturers of food / snacks, restaurants, among others.

In granting pioneer incentives to the project, the BOI said the project is expected to contribute to the economic progress of the province.

Southern Leyte is one of the top 10 highly disaster prone provinces in the country and this has slowed down economic development of the province.

In 1990-1998, the province was among the top 20 poorest provinces in the country. Although it has grown progressively in the recent years and is no longer among the poorest since 2000, recent landslide disasters in February 2006, caused immediate damage and could very well revert the province back to its old state.

The BOI further said that the project is in line with the government’s Agriculture, Fisheries Modernizations Act.

But the country’s coconut oil is rated of poor quality that it sells at a discounted price in the world market. The grant of longer ITH to SC Global would help improve the quality of local coconut oil.