Another big exporter that has qualified under the export activities of the
2017 Investment Priorities Plan has been given tax and fiscal incentives by
the Board of Investments. This is the Rizal VCO Philippines Corporation, a
new export producer of virgin coconut oil.
The Rizal VCO Philippines Corporation was extended tax and fiscal
incentives worth P55.9 million by the Board of Investments or BOI. Rizal
VCO is expected to produce up to 748,800 liters of virgin coconut oil
annually in the company's plant in Bocaue, Bulacan.
The VCO project of Rizal VCO Corporation involves converting
refined/bleached and deodorized coconut oil into virgin coconut oil which
is a ground-breaking process in the Philippines. In this process, the
refined/bleached and deodorized coconut oil if mixed with the company's
proprietary mixture of herbal extracts of papaya, banana, carrot and
calamansi. These will act as the catalyst that will convert the mixture
into virgin coconut oil using a centrifuge separator and a filtering
machine to remove the fatty content that will be formed.
The resulting VCO will initially be marketed as raw material for the
manufacture of cosmetics and personal care products. It can also be
marketed for topical use in health and wellness preparations and will
initially be sold in the Middle East countries of Bahrain, Qatar and the
United Arab Emirates.
The Philippine Statistics Authority released the figures for 2017 showing
an upward trend in the Philippine coconut oil exports. For the first six
months of 2017, our coconut oil exports reached US$792.3 million which is
88.2% higher in the same period last year. It is reported that the new VCO
is a far more stable and prime raw material ingredient for cosmetic and
personal care products. At present, virgin coconut oil is not yet
extensively used for the manufacture of these products because of their low
stability factor when used in large volumes for products like soaps and
shampoos and creams.