MANILA, Philippines - The CIIF-Oil Mills Group is recommissioning tomorrow its P400-million copra-crushing plant in Arimbay, Legazpi City.
The recommissioning of the Arimbay plant is expected to bring in immediately $3.75 million in monthly foreign exchange earning from the export of coconut oil produced by the plant.
Jesus L. Arranza, CIIF-Oil Mills president and CEO, said President Arroyo will attend the recommissioning along with local coconut farmers, community leaders, Legaspi Oil Co. chairman Josefa Imperial Aquino, and other officials of the Oil Mills Group.
The Arimbay plant has not been in operation since 2007 after the coconut farms in the area were devastated by typhoons.
Arranza said the area has since recovered and it has become feasible to crush copra again.
To increase the earnings of the farming community in Arimbay, Arranza said the CIIF is finalizing a scheme to make the farmers not just suppliers of copra, but also owners as well of the finished product. This, he said, will be done through a tolling agreement.
Edgardo D. Santos, CIIF Oil Mills Group vice president for marketing, trading and operations, said the CIIF spent P2 million to refurbish the Arimbay plant which has a capacity of 400 tons per day.
With the recommissioning of the Arimbay plant, the CIIF Group’s current operating copra crushing capacity will increase by 25 percent.
Santos said the Arimbay plant would initially process 300 to 330 tons of copra per day until it reaches its rated capacity.
“We sell some of the output in Arimbay as crude and export them or for CME production locally, whichever has a higher price. If exported, the 330 tons per day will bring in $3.75 million in foreign exchange earnings per month,” he said.
CIIF exports mainly to the United States and Europe.
Once the Arimbay facility is on stream anew, Santos said farmers in the area would be able to command higher prices for their copra.