SOUTH Korean investors are interested on virgin coconut oil exports from Davao Region for their booming cosmetic industry.
Virgilio Sangutan, president of Davao Inventor’s Association and an advocate of coconut products, said that last Friday and Saturday, he met with South Korean investors in his MI Herbal Plant in Carmen, Davao del Norte.
The investors are very much interested to purchase four to six 20-footer container vans of calamansi juice and virgin coconut oil from Davao Region every month.
Each 20-footer van can fit in as much as 20 tons of the product.
Sangutan added that previous virgin coconut oil exported to South Korea from the other parts of the Philippines has not passed their standard because of the very cold temperature in Korea, causing the product to solidify faster.
They had been to Cebu before visiting Davao del Norte last weekend but since Davao has higher coconut production, they made final transaction here.
The investors presented samples to Sangutan of the kind of the product that they like, and according to Sangutan, Davao region can actually provide and process the kind of virgin coconut oil that South Korea needs.
He added that MI Herbal had previously sent a product sample to Korea and it has passed the standard.
“There are different processes in the production of virgin coconut oil. There’s a long-chain (triglycerides) process and a medium-chain (triglycerides) process. Medium-chains process should not extract the natural nutrients from the coconut oil,” said Sangutan in vernacular, adding that the product’s expiration should be two years from date of manufacturing.
At present, South Korea has high demands for virgin coconut oil, the product being one of the major ingredients of their cosmetic items which they export to America and Europe.
The foreign investors presented two proposals to Sangutan. The first proposal is a joint venture with local farmers and the foreign investors, while the latter’s technology can help with the supervision of production to make sure quality products are produced.
Sangutan said he personally approves of Korean technology to be combined with existing Philippine technology. If such a proposal be pushed through, the new plant containing Korean technology will be put up in Carmen, Davao del Norte.
The second proposal that the local investors posed to Sangutan is a simple export-purchase of the virgin coconut oil products from Davao Region if the Korean standard is met.
Finality of the deal between the two parties is still being drafted but Sangutan is confident that the region can sustain to the foreign investor’s demand.
Published in the Sun.Star Davao newspaper on January 10, 2017.
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