WHEREAS, a
rationalization program for the coconut industry was mandated by LOI
926 in 1979 to save the coconut oil milling industry from financial
collapse whereby a cooperative endeavor was organized among coconut
farmers, oil millers and exporters of coconut products to pool and
coordinate their respective resources in the buying, milling and
marketing of copra and its by-products; chanroblesvirtualawlibrary
WHEREAS, a self-reliance energy program was instituted by the
Government whereby the energy requirements of the country would be
serviced from indigenous and renewable sources and thereby diminish its
dependence on imported energy;chanroblesvirtualawlibrary
WHEREAS, the Coco-Diesel Program was conceived and implemented as a
substantial element in the country's self-reliance energy program such
that coconut oil, one of the country's indigenous and renewable
sources, would be utilized as a diesel fuel extender and fuel blending
stock;chanroblesvirtualawlibrary
WHEREAS, to ensure a continuous supply of coconut oil for the
Coco-Diesel Program and at the same time strengthen the rationalization
program for the coconut industry, Presidential Directive dated 1
September 1982 was issued mandating that the coconut oil production of
intermittent exporters of coconut products and the excess production of
those primarily engaged in the domestic market be instead channeled
into the Coco-Diesel Program rather than into the world market, and
pursuant to which, the Philippine Coconut Authority ("PCA") issued
Administrative Order No. 002, Series of 1982 establishing Rules and
Regulations to implement the said Presidential Directive;chanroblesvirtualawlibrary
WHEREAS, the severe drought in 1982-83 caused a substantial reduction
in the copra production of the country and compelled the Government
thru PCA to adopt measures to meet Philippine and world market
requirements for coconut oil; to prevent cutthroat competition for
copra; and to forestall short term cycles of artificially high prices
of coconut products in the domestic and world market including the
issuance of PCA Administrative Order No. 002, Series of 1983;chanroblesvirtualawlibrary
WHEREAS, since the promulgation of the Presidential Directive and the
PCA Administrative Orders, copra production of the country has dropped
even further as a result of numerous typhoons in late 1983 and two (2)
super typhoons in 1984;chanroblesvirtualawlibrary
WHEREAS, in 1974, the Government launched a national hybrid coconut
replanting program with actual replanting commencing in 1979 as a
viable means of increasing copra production and thereby enhance the
country's competitiveness in the international market of fats and oils,
which was however suspended in 1982 in response to the public clamor
against the coconut levy which financed the replanting program;chanroblesvirtualawlibrary
WHEREAS, pending review of alternative schemes for financing the
replanting program, the Government ordered, as a result of the super
typhoons in 1984, the replanting of the devastated areas with
high-yielding hybrids with this limited replanting program not bearing
fruit until the 1990's; chanroblesvirtualawlibrary
WHEREAS, external forces beyond the control of the Government plunged
the country into a severe economic and financial crisis compelling the
Government to seek a standstill and a restructuring of its external
debts;chanroblesvirtualawlibrary
WHEREAS, to enable the country to restructure its external debts, the
Government has implemented a series of substantial economic policy
measures which include reforms in the production, pricing, marketing,
credit and institutional arrangements of the coconut industry;chanroblesvirtualawlibrary
WHEREAS, after a thorough review, it is deemed to be in the interest of
all that there be less Government intervention in the marketing of
coconut products and allow the private sector greater access to the
markets, and at the same time encourage and require the private sector
to establish and adopt appropriate measures to enhance the
competitiveness of coconut products in the world market.
NOW, THEREFORE, by virtue of the powers vested in me by the
Constitution and the laws, I, FERDINAND E. MARCOS, President of the
Philippines, do hereby decree and order the following:cralaw:red
Section 1. PCA Administrative Order No. 002, Series
of 1982, and PCA Administrative Order No. 002, Series of 1983, and all
other rules and regulations promulgated by various governmental
agencies in consonance with the aforesaid PCA Administrative Orders are
hereby repealed and all oil millers are hereafter permitted and
authorized to export their coconut products to the world market subject
only to such rules and regulations that the Ministry of Trade and
Industry, the Central Bank and PCA may prescribe to ensure that coconut
products are sold at competitive prices in relation to other fats and
oils and that the proceeds of such sales, less actual expenses, are
remitted to the country; Provided, however, that no rule or regulation
shall be promulgated which may delay or restrict the expeditious
exportation of coconut products to the world market.
Section 2. To help planters and processors organize
themselves into associations and/or cooperatives to give them greater
control in the marketing of their products, the coconut farmers, and/or
the copra buyers and/or millers/refiners and/or exporters of coconut
products are encouraged and authorized to form such cooperatives or
associations as may be appropriate to achieve economies of scale; avoid
the ruinous competition for copra which pushed the coconut oil milling
industry to the brink of financial collapse in late 1979; maximize
foreign exchange earnings; ensure that the coconut farmers receive a
fair share of the proceeds from export and/or domestic sales, and at
the same time continue to assure consuming countries an adequate and
continuous supply of coconut products at fair and reasonable prices;
provided however that the Government or any of its agencies or
instrumentalities including government owned or controlled
corporations, shall not, unless expressly permitted by law, or by the
President of the Philippines, directly or indirectly engage in the
marketing of different products in the world market.
Section 3. To ensure the survival of the coconut oil
milling/refining industry while there is an excess of copra
crushing/refining capacity and to encourage fresh equity to be invested
in existing coconut oil milling/refining capacities, no new copra
crushing/refining capacity shall be allowed without the respective
approvals of the Ministry of Trade and Industry, the Ministry of
Agriculture and Food and the PCA, all of which agencies are hereby
required to respectively promulgate the necessary rules and regulations
to enforce the foregoing. The Central Bank shall not authorize the
opening of letters of credit for the importation of capital equipment
without the respective prior approval by the said agencies. For this
purpose, the crushing/refining capacities fixed opposite each coconut
oil miller/refiner listed in Annex "A" hereof, shall be utilized in
determining whether there is basis for expanding existing
crushing/refining capacities and/or allowing new crushing/refining
capacities to be established. The governmental agencies concerned shall
accord priority to coconut oil millers/refiners listed in Annex "A" for
the establishment of new facilities, or, within their respective areas,
the expansion of their existing facilities, or the restart of mills
that have been mothballed by the cooperative endeavor. chanroblesvirtualawlibrary
Any person or entity who may be aggrieved by the accuracy of Annex "A"
hereof, may within thirty (30) days from the date of promulgation of
this Presidential Decree, submit its perceived grievances to the
Ministry of Trade and Industry, the Ministry of Agriculture and Food
and the PCA which shall respectively submit their recommendations for
the maintenance or modification of Annex "A", as the case may be, to
the President of the Philippines for final decision.
Section 4. To assure the coconut farmers a return on
their investment and to honor the commitments of the cooperative
endeavor and the country as well, in the domestic and international
markets, including the financial markets, all rights and obligations
acquired or incurred by the cooperative endeavor in implementation of
the rationalization program for the coconut industry mandated by LOI
926 and duly approved by appropriate governmental agencies such as the
Ministry of Trade and Industry, and/or the PCA, and/or the Central
Bank, must necessarily be assigned, transferred or sold, pro rata and
under reasonable terms and conditions to preserve the interests of the
creditors and the contractual commitments of the cooperative endeavor,
to the coconut oil millers/refiners who desire to service the world
market, including oil mills/refineries owned or controlled by the
coconut farmers of the Philippines as provided in Presidential Decrees
No. 961 and 1468, as amended.
Section 5. To encourage full and faithful compliance
with the structural economic adjustment program for the coconut
industry herein prescribed and the acquisition and the assumption of
the rights and the obligations of the cooperative endeavor as
prescribed in Section 4 hereof, all persons or entities, including the
cooperative endeavor and their respective stockholders who have
participated in the pooling and coordination of their respective
resources as required by LOI 926, as so certified by the cooperative
endeavor, are hereby exempt from any and all taxes, fees, imposts,
charges of whatever kind and nature, which any, some or all of them
may, or might have incurred as a consequence of, or arising out of, or
by reason of, or in connection with, such steps, measures and/or
procedures which they may adopt in compliance with or in obedience to
the structural economic adjustment program for the coconut industry
which they may deem necessary or useful or beneficial to them, and
their respective stockholders.
Section 6. Any violation of the provisions of this
Presidential Decree, and/or the rules and regulations herein authorized
to be issued by the governmental agencies concerned, shall be punished
and penalized in accordance with the respective enabling act or charter
of the governmental agency or instrumentality concerned.
Section 7. All laws, executive and administrative
orders, and/or rules and regulations respectively issued by the
governmental agencies concerned inconsistent herewith, are hereby
repealed, amended or modified accordingly. chanroblesvirtualawlibrary
Section 8. This Decree shall be effective immediately.
DONE in the City of Manila,
this 11th day of January in the year of our Lord nineteen hundred and
eighty five.
CRUSHING/REFINING CAPACITIES OF RP COCONUT OIL MILLS/REFINERIES
Plant Plant Site
Crushing Capacities Refined
Capacities
Daily Annual
Daily Annual
Metro Manila Area Copra MT (Copra
MT) Max. Refined Oil
1. Metroplex Muntinlupa, Metro
Commodities
Manila 320 99,000
2. Imperial Veg. Oil Co. Pandacan,
Manila 310 93,000
70 23,100
3. Int'l. Oil Factory San Juan,
Metro
Manila 288
86,400 150 48,500
4. Phil. Refining Co. Paco,
Manila 275 82,500
35 11,550
5. Procter & Gamble, Tondo,
Manila 250 75,000
150 59,400
PMC
6. Central Veg. Oil Co. Paco,
Manila 150 45,000
60 19,100
7. Liberty Oil Factory EDSA, Quezon
City 100 30,000
65 21,450
8. Royal Ind. Dev. Corp. Murphy,
Quezon City 50 16,500
9. Crystal Oil Milling Tandang
Sora, Q.C 35 11,550
10. Tayabas Oil (B) Taguig, Metro
Manila
11. Malabon Soap & Oil Malabon,
Metro Manila 120 39,600
12. Pacific Oil Products Malabon,
Metro Manila 60 19,800
13. Royal Oil Products Makati,
Metro Manila
106
34,930
Sub-Total 1,703
510,900 901
297,330
LAGUNA/QUEZON AREA
14. San Pablo Mfg. Corp. San Pablo
City 500 150,000
150 49,500
300 (C.O) 99,000
15. SMC-Lucena Oil Mill Lucena
City 381 114,300
85 28,050
16. Coco-Chemicals Phils.
Inc. Atimonan,
Quezon 268 80,400
50 16,500
17. Southern Luzon
Coconut Oil Mill Mulanay,
Quezon 213 63,900
18. RCY Oil Mfg. Corp. Sta. Cruz,
Laguna 165 49,500
19. Royal Mfg. Corp. (B) Lucena
City 150 45,000
20. New Sun Ripe Coco
Products Magdalena,
Laguna 55 16,5000
21. Red V Coco Products Lucena
City 50 15,000
22. Atson Coco, Inc. San Pablo
City 50 15,000
23. Unideco Consolidated
Mfg. Lucena City
50 15,000
24. Laguna Insular
Comm'l. Cabuyao,
Laguna 50 15,000
25. Licup Oil Mill Candelaria,
Quezon 50 15,000
26. Peter Paul Phils. Corp.
Candelaria, Quezon 40 12,000
27. Blue Car Coconut
Phils. Tiaong,
Quezon 27 8,100
28. Francklin Baker Co. San Pablo
City 27 8,100
29. Mina Oil Mills Cabuyao,
Laguna 25 7,500
30. People's Ind'l. &
Comm'l Corp. Cavite
City 25 7,500
100 33,00
31. Quezon Champion (B) Candelaria,
Quezon 25 7,500
32. Coco Resources (B) Pagbilao,
Quezon
33. Tantuco (B) Lucena
City 80 26,400
34. Banahaw (B) Sta. Cruz, Laguna
35. Po Man Hing (B) Cabuyao, Laguna
36. Apo Oil Mills (B) Candelaria,
Quezon
37. Countryside Millers,
Inc. San Pablo
City 350 115,500
Sub-Total
2,151 645,300
1,115 367,950
BICOL AREA
38. Legaspi Oil Co., Inc.
SMC-COMRO Arimbay, Legaspi
City 450 135,000
39. Coco Complex Phils. Camarines
Norte 250 75,000
40. Bicol Oil Mill Pasacao, Camarines
Sur 75
22,500
Sub Total
775 232,000
VISAYAS AREA
41. Lu Do & Lu Ym Corp. Cebu
City 600
180,000 35 11,550
100 (C.O) 33,550
42. NIDC Leyte Tanauan,
Leyte 125 37,500
43. West Visayas Coco
Dev. Iloilo City
100 30,000
44. Visayan Mfg. Co. Iloilo
City 50
15,000 30 9,900
45. Calixto Yongco Cebu
City 45 13,500
46. La Puerba Cebu City, Cebu
City 20 6,000
47. Nor Oil (B) Tayasan, Negros Or.
48. Samarland (B)
Sub Total 940
282,000 165 54,450
MINDANAO AREA
49. Granex Mfg. Corp. Iligan
City 1,000 300,000
50. Leg-Oil Davao Davao
City 800
240,000 150
(C.O) 49,500
51. SMC-Iligan Oil Mill Iligan
City 600 180,000
52. Interco Mfg. Zamboanga
City 600 180,000
53. Southern Islands
Oil Mills Roxas,
Zamboanga 605 181,000
del Norte
54. Indo Phil (OLA)
Oil Mills Gingoog
City 423 126,000
55. Cagayan De Oro
Co., Inc. Cagayan de Oro
City 385 115,500
56. Davao Gulf Oil
Co., Inc. Mati, Davao
City 300 90,000
57. Phil. Int'l. Dev. Corp.
Zamboanga City 280 84,000
58. Lim Ket Kai Cagayan de Oro
City 200 60,000
75 24,750
59. Pacific Oil Products
Inc. Davao City
125 37,500
60. NIDC-Davao Davao
City 125 37,500
61. NIDC-Jimenez Jimenez, Mis.
Occ. 125 37,500
62. South Davao Dev.
Co. Davao City
25 7,500
63. Ozamiz Coco Oil Mill Ozamiz
City 25 7,500
64. Bislig Coco Oil Mill Bislig,
Surigao del Sur 15 4,500
65. Phil.-Agro Edible Oil
Mill Zamboanga
City 350 105,000
66. IMBC (B) Kauswagan, Lanao
del Norte
67. Mincoco (B) Kauswagan, Lanao
del Norte
68. Eastern Davao Oil
Mill Maco, Davao del Norte
69. Sucodeco (B) Lipatas, Surigao
City
70. Countryside Millers,
Inc. Pres. Roxas,
Zambo 350 115,500
del Norte
(CO/LAO)
71. Countryside Millers,
Inc. Sta. Filomena,
Ilitan 350 (C.O) 11,500
Sub Total
5,983 1,794,900
925 305,250
GRAND TOTAL
11,552 3,465,600
3,106 1,024,980
NOTE:
1-Dessicator whole milling capacity is utilized mainly for production
of paring oil
B-UNICOM mothballed mills (B-mills)
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