Coco sector pushes hike in biodiesel blend

MANILA, Philippines - Stakeholders in the coconut industry are urging the government to act on the petition of the Philippine Coconut Authority (PCA) to raise the mandated biodiesel blend from two to five percent, to increase demand for  copra.

Efren Villasenor, president of coconut farmers’ group Pambansang Koalisyon ng Manggagawa at Magsasaka sa Niugan (PKSMMN), said raising the mandated biodiesel blend would improve the lives of more than three million coconut farmers nationwide because it would raise competitive prices for copra.

PSKMMN is composed of farmers’ organizations that are mostly from  the Visayas and Mindanao.

The CIIF Oil Mills Group, which operates six plants that are engaged in copra milling  and refining of coconut oil, also supports the adjustment in the biodiesel blend.

Company president and chief executive officer Jesus Arranza said he had also filed a petition before the Department of Energy way back in 2009 to adjust the blend.

“Now that the price of copra, together with crude coconut oil (CNO), has gone down, I am confident that the big petroleum  companies will cooperate and not oppose this proposed upward adjustment as they are aware that our coconut farmers now need support at this time.” he said.

If the two percent biodiesel blend mandated by the Biofuels Acts of 2006 is raised to five percent, domestic consumption of coconut oil for fuel would rise to 350,000 metric tons (MT) from the current demand of 140,000 MT.

Arranza said the higher volume could be easily supplied by the coconut industry.