ChanRobles Virtual law Library

A collection of Philippine laws, statutes and codes
not included or cited in the main indices
of the Chan Robles Virtual Law Library

Philippines | Worldwide | The Business Page




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.

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
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

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

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

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

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

1-Dessicator whole milling capacity is utilized mainly for production of paring oil
B-UNICOM mothballed mills (B-mills)

Back to Home   -  Back to Main

Since 19.07.98

ChanRobles Legal Resources:

ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review :

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line :