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A new facility dedicated to producing edible coconut oil from locally sourced copra, or dried coconut flesh, has been officially launched in Misamis Occidental province, located in the Northern Mindanao region of the Philippines. The investment for this project is valued at PHP 2.4 million, or approximately $37.8 thousand. The facility is strategically designed to bolster domestic coconut oil production and enhance value addition within the nation's agricultural sector.
As one of the primary coconut-growing regions in the Philippines, Misamis Occidental boasts approximately 97.6 thousand hectares of plantations. The province generates an average annual copra output estimated at 41.1 thousand tons. By securing a steady supply of local raw materials, the new plant creates significant opportunities to scale up processing operations and decrease the reliance of local producers on selling raw, unprocessed commodities.
Inaugurated on October 8, 2026, in Tangub City, the facility operates under the government's Shared Service Facility (SSF) program. Following the opening ceremony, the Philippine Department of Trade and Industry (DTI) handed over management responsibilities to the local government and the Misamis Occidental Coconut Farmers and Processors Association (MOCOFPA). The SSF program is specifically tailored to provide micro, small, and medium-sized enterprises with the modern machinery necessary to foster the growth of local processing industries.
The technological setup of the new facility includes a comprehensive copra drying system, hammer mill, coconut oil expeller, settling tanks, pumping equipment, filter press, and a deodorizing system, alongside storage tanks for finished goods. This integrated equipment allows the critical stages of refining copra into edible oil to be completed entirely within the producing region.
This push for localized processing expansion aligns with a period of rising export performance for Philippine coconut products. Data from the Philippine Statistics Authority shows that export values reached $2.36 billion between January and August 2026, marking a 2.8% increase from the $2.3 billion recorded during the same period in the previous year. Increasing regional processing capacity is expected to empower farmers and local entrepreneurs to transition toward higher-value product manufacturing.
Source: UkrAgroConsult