Ares Merchants Philippines Inc. (AMPI), a leading supplier of vegetable oils in the Philippines, targets to export $2.768 billion worth of coconut oil over 10 years from 2025 to 2035.
The production plan forms part of the broader objective of strengthening its presence in the coconut industry and its other goal of helping transform the coconut oil supply chain.
AMPI claims significant presence in Europe, particularly in the Netherlands where it is set to operate its own refinery by 2025.
This strategic drive will provide direct access to end-users among MSMEs, challenge conventional industry practices and maximize the sale of coconut oil as a value-added commodity.
“Traditionally, major buyers and refineries established by the US and Europeans have benefited from adding value to crude coconut oil. To change this, AMPI plans to refine the coconut oil in the first Philippine-owned refinery in Europe and sell it directly to end-users starting in the EU market,” Jose Leonardo Tañada, AMPI managing director, said.
“This shift will empower our local farmers and MSMEs, ensuring that they benefit directly from the value-added process.”
Tanada said AMPI is helping cooperatives handpicked by the Philippine Coconut Authority (PCA) participate in the project.
“By selling coconut oil in the EU, these cooperatives benefit from a financial premium, generating more than $2 million annually. This collaboration not only enhances the income of local farmers but also strengthens the overall coconut industry in the Philippines,” Tañada said.
The company is pioneering transformation in the coconut oil export sector through collaborations with micro, small, and medium enterprises (MSMEs).
As part of its show of support for MSMEs, Tañada recently attended the 2024 Presidential Awards for Outstanding MSMEs and Presidential Recognition for Outstanding Development Partners at Malacañang in July this year. President Ferdinand Marcos Jr. honored MSMEs for their achievements in revenue generation, sustainability, social justice, and ecological awareness.
Tañada’s presence underscored AMPI’s commitment to empowering coconut farmers and MSMEs, highlighting the company’s ongoing initiatives to drive growth and innovation in the coconut oil export sector.
