DAVAO CITY - The increasing demand for virgin coconut oil will now enable coco farmers to go into value adding for their products to improve their profits.

This is according to Lomito Orillaneda, Philippine Coconut Authority (PCA) manager for Region 11, who said coconut farmers here should be able to look into value adding due to the increase in the demand for coconut virgin oil, coco-diesel and coco coir.

"Value adding is the most profitable way," Orillaneda pointed out, stressing that "there is our incoming demand for these projects."

At present, he said his agency and the Department of Science and Technology (DOST) are looking for possible ways how farmers can go looking for possible ways how farmers can go into value adding.

Value adding is the way to go for coconut farmers in the Davao Region because traditional coconut oil is facing stiff competition with other oils, particularly palm oil and soybean oil, he pointed out.

The Department of Agriculture has noted the increasing demand for virgin coconut oil not just in the local market, but also abroad. However, there is only one processing plant for this oil.

Last year, PCA figures showed that export of virgin coconut oil reached $553,469 with a volume of 177 metric tons.

This was higher than the volume exported in 2003 which was just at 103 metric tons for $406, 580.

There was still no available data on coco-diesel and coir, said Orillaneda.

The PCA official also pointed out that production of virgin coconut oil is just a cottage industry at present because investment would be at P2 million.

On the other hand, Flying V, a Manila-based company is set to start operations for preblended diesel, a diesel product which has a one percent coco-diesel, or the coco ethyl ester.