Project Location: SOUTH COTABATO, Philippines
Installation and Commission Time: 2015.7.18 ~ 2015.8.13
20TPD Coconut Oil Refinery Production Project Background
This edible oil refinery plant was purchased by one of our former client who brought a 10 tons per day small scale coconut oil refinery plant from us in 2012. When it went to normal operation, the refined coconut oil it produced was sold very well in the local market. There he was seeking to expand his oil refinery plant.
Since we provided him all the oil refinery equipment for his first coconut oil refinery line, we have the advantages of reconstruction his factory. Based on his requirements and cost investment, we offered him redesigned and improve oil refinery plant for his factory. The daily capacity of this coconut oil refinery plant is 20 tons. The main oil refining processes, degumming, deacidification and decolorizing, were still remained in batch type oil refining, while the deodorization process was improved into semi-continuous type. Such design ensure the quality of final refined coconut oil while minimizing the cost related to all the factors of oil refinery plant, especially the equipment and operation cost. Anyway, we has always been a customer perspective, through careful and rigorous analysis of market research and actual condition, to create accurate, highly commercial value of coconut oil refinery plant.
Onsite Installation and Commission Pictures
Coconut Oil Production in Philippines
The coconut oil production industry in the Philippines is one of the largest contributors to the country’s economy. The country is subject to the appropriate weather for the plantation of coconuts and the Philippines have taken full advantage. Philippines is one of the leading nations of the world from coconut oil production and exporting the excess. Over the years with growing knowledge of coconuts oil benefits, the demand has increase sharply and has strengthened Philippines leading position. Due to this, there has also been seen large investments in mills as well as technology to boost production.
Coconut oil is one of the primary products of coconuts and is the most used coconut product across the globe. In 2012, Philippines exported more than 1.5 million metric tons of oil which was around 1.5% more than its previous year. In 1989, Philippines was the highest and largest producer of coconut oil, but has now been surpassed by Indonesia. 3.6 km of the country’s cultivated land is devoted to coconuts, which means 25 percent of the country’s agriculture land is covered with coconut trees. It is also estimated that the nation’s 25-33% of population depend on the coconut trading for living. In history, the regions of Luzon and Eastern Visayas were concentrated with coconut oil production. However, over time Western and Southern Mindanao have both become important regions for the industry.
In response to world demand and simultaneously the devaluation of the Philippine currency, the country decided to invest more in the coconut industry, increasing the number of oil mills from 28 to 62 within 11 years. By early 1980s, it was reported that 80 percent of the country’s oilproduction mills were owned by the United Coconuts Oil Mills company.
On the other hand, a report compiled by World Trade Organization showed that the nation’s oil production has been constantly losing its share in the global market since 2007. Senior researchers have deduced that other vegetable oils, especially soybean oil, has a faster growth rate and as a result, has taken a bigger share of the world market. The coconut oil industry is not in danger with domestic production. Moreover, they expect to increase production over the years. However, the prices of the vegetable oil are expected to decrease. The world market price for the coconut oil is based on the local price, and when world market price goes down, so does the local one. If the prices are low, the farmers are discouraged to continue production and instead lean towards selling hesk nuts.
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