South Korean cosmetics has eyes on Davao’s VCO

Davao’s coconut industry will experience a surge once plans are finalized for exporting virgin coconut oil (VCO) to South Korea.

According to an article from SunStar Davao, Korean investors met with Davao Investor Association President and owner of MI Herbal Virgilio Sangutan at his plant in Carmen, Davao Del Norte last Friday, January 6, and Saturday, January 7.

According to Sangutan, the investors were interested in purchasing four to six 20-foot container vans of VCO from Davao every month. Each container van is said to hold up to 20 tons of VCO.

Sangutan added that South Korea has a high demand for VCO, as it is used as a major ingredient for Korean cosmetics that are exported to the United States and Europe.

Apart from a simple export-purchase agreement, Sangutan said the Korean company he spoke with proposed a joint venture wherein he will train local farmers to produce VCO and the Koreans will provide the necessary technology to produce VCO that meets industry standards.

He also said that the investors were “very committed” to push through with the project this year, according to a news brief from the Manila Bulletin.

VIRGIN COCONUT OIL COULD be the key to revitalizing Davao Region’s coconut industry if it receives support from the PCA. Image grabbed from Inquirer.net

All of this could provide a significant source of income for Davao’s coconut farmers, if only the industry could be sustained if they receive support from the Philippine Coconut Authority (PCA).

Sangutan suggest that the PCA issue an order to suspend the cutting of coconut trees as well as planting dwarf coconut varieties that can withstand impact of strong winds and produce more coconuts.

“We can continue planting the dwarf varieties, apart from the taller ones which can be toppled down by strong winds as experienced in the East Coast towns during the onslaught of typhoon Pablo,” Sangutan said.

In an article published on the Mindanao Times, Sangutan said the volume required by the Korean company is achievable, but more oil millers are needed to sustain production. He also said most coconut farmers in Davao only produce charcoal and copra, both coming from adult coconuts. VCO required the use of younger coconuts.

Davao Region Coconut Industry Cluster, Inc. Chairman Reynaldo Go, however, says the region’s farmers are capable of producing VCO given the right training.

Source: SunStar Davao, MindaNews, Manila Bulletin, Mindanao Times, Philippine Information Agency