CEBU, Philippines - The Department of Science and Technology (DOST) through its advisory body the National Academy of Science and Technology, is going to push the development of coconut farmers in the Philippines, by introducing the cocochemicals, especially oleochemicals to maximize the potential of coconut industry in the Philippines.
In a recent round table discussion (RTD) organized by the National Academy of Science and Technology, farmers are seen to have greater earning capacity while more engineers, chemists, and other professionals will be employed if the government and coconut industry players will focus more on developing the cocochemicals.
Cocochemicals are the highest-value products among coconut commodities and coconut-based oleochemicals, which come from plant and animal fats, are now experiencing an upsurge in terms of market interest.
The fuel industry benefits most from oleochemicals production since these may be processed to produce biodiesel, additives, lubricants, greases and solvents.
To tap the opportunities generated by oleochemicals and boost the local cocochemical sector, Dean Lao Jr., managing director of CHEMREZ Technologies and president of the Philippine Oleochemical Manufacturing Association, believes that producers should venture into the other components of the value chain.
He mentioned that the Philippines, as of now, is confined to only one component, which is ingredient manufacturing, or simply oleochemical production.
Meanwhile, the entire value chain is quite long, comprising feedstock production, ingredient manufacturing, compounding and formulation, branding and packaging, logistics and distribution, retail or direct marketing.
Lao stressed his point during the RTD by citing Pilipinas Kao, which has gone all the way to branding and packaging. “If you go all the way down the value chain, there are savings and profits. You harness value at every stage of the chain. You are less sensitive to feedstock prices, and have more options to market finished goods,†the CHEMREZ official disclosed.
The availability of highly skilled human resources does not appear to be a problem either as Lao noted many Filipino engineers and chemists who are experts in this field. Some are getting hired in Malaysian and Indonesian cocochemical companies and plants where they continue to excel, he said.
According to Carlos B. Carpio, deputy administrator for research, development and extension branch of the Philippine Coconut Authority, the Philippines was one of the first oleochemical producing countries in Asia.
In recent years however, the ballgame has changed.
Carpio said that Malaysia and Indonesia are now two of the world’s biggest oleochemical producers with the most dedicated research and development (R&D) facilities.
Fact is, Indonesia is the world’s biggest producer of palm oil, which includes oleochemicals among its end-products. /JOB (FREEMAN)