THE coconut venture of Hong Kong-listed First Pacific Co. Ltd. will start within the year, as the company targets to have an initial 350 metric tons of daily output.
Ray Espinosa, First Pacific associate director, said the company is ontrack for the commercial operation of the facility of Legaspi Oil Co. Inc. in Davao City.
First Pacific leased the facility for the venture. “We’re devoted to have this up and running for the balance of the year, so that next year it’s in full operation. Then we will have our expansion plans,” Espinosa said, adding that the output will be all for export.
First Pacific earlier also leased the facility of the manufacturer of Minola cooking oil from the Presidential Commission on Good Government (PCGG). Espinosa said part of the plan is to build a new line in the Davao facility. Legaspi Oil, one of a number of coconut millers sequestered by the PCGG in 1986 for its ties with President Ferdinand Marcos, produces the Minola Oil brand and also crude-coconut oil, fully refined oil and cake meal. It has a milling capacity of 400 metric tons (MT) per day, with certifications for halal and kosher, in its Legaspi City plant.
First Pacific earlier wants to venture into palm oil in the Philippines, but that plan was on hold and instead started its efforts on coconut oil, where the Philippines is once the region’s top producer.
First Pacific already looked at a 30,000-hectare farm in Davao Oriental for possible palm-oil plantation and production.
First Pacific’s unit PT Indofood sent a team to assess the area. “Our palm-oil plans are on hold, as we prioritize investments in the sugar and coconut sectors,” Espinosa said earlier.
First Pacific also holds a significant ownership in listed sugar miller Roxas Holdings Inc., which has facilities in Negros and Batangas, and corners about a fifth of the Philippine sugar capacity.
It also has a minority stake in Victorias Milling Corp. Coconut exports for April rose 10.5 percent, hitting 130,986 MT in copra terms, data from the United Coconut Associations of the Philippines showed.
Coconut-oil shipments grew 19.5 percent to 71,650 MT, from 59,988 MT last year.