By Perfecto T. Raymundo, Jr.
MAKATI CITY — Datuk Seri Lee Chyan, Chairman of MOMG, on Tuesday (June 3) said that 7 million metric tons (MT) of palm oil is produced in Malaysia and 1 million MT of palm oil is produced in the Philippines.
During the panel discussion on the first day of the Malaysian Palm Oil Forum Philippines 2025, Engr. Marco C. Reyes, Chairman of UCAP and Virgin Coconut Oil Philipines President, said that world imports of oil and fats from 2020-2024 has been flattening.
“It will grow in 2030 at US$38.58 Billion,” Reyes said.
“The increase in the demands did not go well with the supply,” he added.
Reyes stressed that the PCA is undertaking the massive tree planting and fertilization starting in 2024 upto 2028 for the 100 million coconut trees, but the yield will last until 2040.
From 2023-2024, El Nino drastically affected the coconut or palm growing demand for oil due to growing population.
Reyes said that the Philippine Coconut Authority (PCA) is undertaking massive planting and fertilization with a five-year coconut planting target.
100 million coconut seedlings to be planted from 2024-2028.
Fertilization of low-bearing coconut trees will also improve organic farming under Republic Act 10068.
RA 11985 to boost coconut production without deforestation.
“It’s not easy to expand your coconut plantation.
Dean Lao, Jr., President/CEO of Chemrez Technology, Inc., said “opportunities exist because the market is expanding.”
Lao noted that Australia has shunned away from palm.
“If you cut the existing plant, consider the vegetation and other factors. You can easily double your produce,” Lao said.
He cited the Silicon-free formulation for personal and home care and the natural preservatives in Palm Kernel Oil (PKO).
“Coconut ingredients are a safer alternative to synthetics. Although the demand is growing, but the supply is not catching up,” Lao said.
Coconut supply has been reduced by the drought in 2024.
For this, the Philippines saw extremely dry weather at the start of 2024, though by June, the drought had ended.
On the structural problems with the Lauric oil supply, Lauric oil supply is at best stagnating.
Lao added that the massive replanting is being undertaken with the high price and it’s changing mindset.
“Petrochemicals is a resource but it’s dwindling and it’s cheaper than oleochemicals. There is more research yet to be done. In pharmaceuticals, there is a lot more opportunities in oleochemicals. Biochemistry application is the high end application,” Lao said.
He noted that the industry has been looking for and searching for something that is sustainable but price-resistant.
Paul Bloemandal, CEO of PREB Priv. Ltd., who lived in India for 3 years, said “It’s more in the branding. It remains very volatile.”
“We need to shift away from prices. It’s gonna change the mindset both for oleochemicals and fatty alcohol,” Bloemandal added.
He noted that the fatty alcohol market will grow to 3 million MT to 4 million MT with a US$3-Billion expansion. ###
