Govt reconsiders sale of Cocochem amid rising global demand

The Philippine government is reconsidering the sale of United Coconut Chemicals Inc. (Cocochem) due to increasing global demand for coconut-based products, particularly from Europe.

Agriculture Secretary Francisco Tiu Laurel Jr. mentioned the possibility of the state retaining ownership of Cocochem, stating that the government is studying whether holding on to its stake will result in greater value to the coconut industry.

The government, via Land Bank of the Philippines, had planned to raise at least P2.82 billion by selling 682 million common shares of Cocochem, with the auction originally set for June.

Selling Cocochem was also intended to allow private investors to potentially revive or repurpose the facility.

Established in 1981, Cocochem was once the largest producer of coconut chemicals and oleo fats in Southeast Asia, but its operations were disrupted in 2001 due to the non-implementation of a government order requiring the use of some Cocochem products in detergents.