The Department of Agriculture (DA) said the government is reviewing whether to proceed with the planned sale of United Coconut Chemicals Inc. (Cocochem), a state-owned coconut chemicals facility in Batangas, as global demand for coconut-based products rises.
Agriculture Secretary Francisco Tiu Laurel Jr. led an inspection of the 39-hectare site, saying the visit will help the government decide whether it still makes sense to sell the asset or keep and possibly revive it, especially with strong demand in Europe.
The government, through the Land Bank of the Philippines, is offering about 682 million shares of Cocochem for sale, aiming to raise at least P2.82 billion to support coconut farmers. The DA said selling the facility could allow private investors to redevelop it based on current market needs.
Cocochem was established in 1981 and was once the largest coconut chemicals and oleo fats factory in Southeast Asia, exporting to major global markets. However, policy issues and high coconut oil prices hurt its competitiveness, leading to the shutdown of operations in 2012.
Since 2014, the company has stopped manufacturing and now earns income from leasing land, warehouses, storage tanks, port facilities, utilities, and housing.
The DA said the review is timely as coconut oil prices are rising due to lower supply and growing demand, including for fresh coconuts as a health drink. The government is also aiming to strengthen the Philippines’ coconut industry as the country seeks to regain its position as the world’s top coconut producer, now led by Indonesia.
The DA noted that the Philippines’ production decline was worsened by Typhoon Yolanda in 2013, which destroyed an estimated 10 million coconut trees.
