MANILA, Philippines - There is adequate supply of crude coconut oil to support the new policy direction of the Department of Energy that calls for an increase in the mandated minimum blend for biodiesel from five percent this year to 10 percent by 2015, 15 percent in 2020 and 20 percent in 2025.
This assurrance once was made yesterday by Jesus L. Arranza, president and chief executive officer (CEO) of the Coconut Industry Investment Fund (CIIF) Oil Mills Group.
According to Arranza, a five-percent blend requires 350,000 metric tons of crude coconut oil, or 23 percent of the current annual production of the country.
As for the 10-percent blend in 2015, Arranza said the CIIF and the Philippine Coconut Authority (PCA) are funding a replanting program that would ramp up production of crude coconut oil over the mid-term.
“We are giving financial support to farmers cooperatives in establishing their seed garden, and when they are ready, we provide them with free seed nuts that they can plant either in new areas or in places destroyed by typhoon, as well as replace senile trees,” Arranza said.
The trees have a gestation period of about five years, so they will be ready to support the higher demand for crude coconut oil once the biodiesel blend is increased to 10 percent in 2015.
Arranza said P1 billion has been allocated to the Coconut Farm Development Program which has helped 225 farmer cooperatives.
The replanting program involves the planting and replanting of 6.97 million coconut trees in 212 sites across the country.
The PCA and the CIIF are now conducting coconut pest management in 32 provinces to make sure there is no reduction in harvests from existing trees.