MALAPATAN, Sarangani (October 4, 2024) — A new chapter is unfolding in Sarangani’s coconut industry, with the commissioning of a state-of-the-art Virgin Coconut Oil (VCO) processing plant. Located in Tuyan, Malapatan, the facility is set to transform the local economy by boosting coconut production and creating new market opportunities for coconut farmers.
The project, valued at P26 million, was spearheaded by the Provincial Local Government of Sarangani (PLGU) in collaboration with the Philippine Rural Development Project (PRDP). It marks the first of its kind in the province and promises to strengthen Sarangani’s position as one of Mindanao’s top coconut producers.
Funded primarily through the PRDP’s Investments for Rural Enterprises and Agriculture Productivity (I-REAP) component, the facility received P10 million for infrastructure development, while the PLGU allocated P16 million to procure state-of-the-art processing equipment.
Economic Benefits for Farmers
Assistant Provincial Agriculturist Annabelle Tagaza emphasized the potential economic boost the facility could provide to the region’s coconut farmers. “This facility offers a new and profitable market for our coconut farmers, enabling them to sell their produce at higher prices compared to traditional copra,” Tagaza noted. By diversifying into VCO production, coconut farmers can significantly increase their income, opening doors to more sustainable livelihoods.
Adding Value to Sarangani’s Coconut Industry
Provincial Planning and Development Coordinator, Engr. Alain Alcala, highlighted the facility’s role in adding value to Sarangani’s coconut production. He pointed out that the coconut industry in Sarangani has traditionally revolved around copra, the dried coconut meat used for oil extraction. However, with this new VCO processing plant, the focus shifts toward a higher-value product.
“Virgin Coconut Oil can command a price that is five to six times higher than that of copra,” Alcala explained. “This will greatly enhance the profitability of coconut farming in the region.”
As Region 12’s top coconut producer and one of Mindanao’s leading coconut-producing provinces, Sarangani stands to gain significant benefits from this new enterprise. The facility not only offers economic incentives for local farmers but also positions the province to tap into the growing demand for VCO, both domestically and internationally.
Facility and Supply Chain Readiness
The commissioning process, held on October 3, assessed the VCO facility’s equipment for efficiency and quality standards. Now fully operational, the facility will soon be turned over to the Malapatan Multi-Purpose Cooperative, which will manage production.
To ensure a steady supply of coconuts, the PLGU has partnered with five cluster cooperatives in Sarangani. These include the Muslim-Christian Farmers Multi-Purpose Cooperative in Glan, Sta. Cruz Multi-Purpose Cooperative in Maasim, Pangi Multi-Purpose Cooperative in Maitum, Kiamba Cable TV Service Cooperative in Kiamba, and Laurel Bisaya-Kaulo Association in Malungon. These cooperatives are expected to provide a consistent supply of coconuts for processing, ensuring that the facility operates at full capacity.
Future Expansion Plans
Initially, the Sarangani VCO Processing Facility will focus on supplying the domestic market, where demand for natural and organic products continues to rise. However, there are already plans to expand production and explore opportunities in international markets.
The facility’s establishment marks a significant step forward for Sarangani’s agricultural sector, showcasing the province’s potential to become a leading player in the VCO market. By leveraging the advantages of this new enterprise, Sarangani is set to unlock the full potential of its coconut industry, benefiting both the local economy and its hardworking farmers.
With the commissioning of this P26-million facility, the province is well on its way to creating a more prosperous and sustainable future for its coconut producers.
