Xylose sugar maker CJ Toyota Tsusho shuts down Davao del Sur factory

June 12, 2013

 

The Department of Agriculture is working to save what remains of earlier efforts by local and foreign investors to produce xylose sugar from coconut shell in Davao del Sur after the company called it quits two months ago.

 

CJ Toyota Tsusho Philippines Inc. padlocked its facilities in Davao del Sur, said Euclides Forbes, Philippine Coconut Authority administrator. "We are saddened of the closure, since it is the only company in the country that produces a natural sweetener from coconut shell," the official noted.

 

The company was operating at a loss, considering its production cost was so high that the product was  deemed not viable to compete in the world market, according to Agriculture officials. 

 

Coconut sugar D-Xylose is a raw material for xylitol, a major ingredient in chewing gum, sweeteners, confectioneries and toothpaste. Apart from coconut shell, it can also be extracted from berries, spinach, broccoli, pears and corncobs.

 

"This used to be a very good project not only for the company, but also for local farmers in the country. Instead of throwing out the coconut shell, farmers can earn an extra five pesos to six pesos for a kilo of coconut shell," Forbes said.

 

The CJ Toyota Tsusho processing plant, which has a production capacity of 15,000 metric tons a year, sits on a five-hectare property across the San Miguel Brewery plant in Daraong, Sta. Cruz, Davao del Sur.

 

The company originally intended to export the natural sweetener to Japan, Korea, and the European Union.

 

Agriculture Secretary Proceso J. Alcala said his department is sending a team to look into the closure of CJ Toyota Tsusho and see if it would be possible for the company to resume operations. "It was reported to us that xylose sugar export has not been viable because the production cost is quite high than the selling value," Alcala noted.

 

"I am not sure if anyone from the joint-venture will push through... but I am sure to send a group to look into the situation," the Agriculture chief added. 

 

According to food industry news provider FLEXNEWS, CJ Toyota Tsusho Philippines is made up of four partner companies including CJ Cheil Jedang Corporation, Toyota Tsusho Corporation, Binggrae Co. Ltd., and local Philippine partner Anflo Management and Investment Corporation. — VS, GMA News

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CJ Toyota Tsusho Phils.
breaks ground in Darong

CJ Toyota Tsusho Philippines, Inc. finally broke ground last week at the plant site in Darong, Sta. Cruz, Davao del Sur.

The newest project, with an estimated cost of USD 47.1 million, will operate a production of xylose, a natural sweetener derived from coconut shells. It is mainly produced as raw material of xylitol which is known to be one of the major functional sweeteners used in the production of gum.

The company has the capacity to produce 15,000 metric tons of xylose per year. This will be exported to various markets outside the Philippines. Majority of which are Japan, Korea, and the European Union States.
Dailymirror

 

there are a number of industries in davao region using coconut shells as raw materials. we have, to name a few, legaspi oil, asia pacific oil, davao central chemical corporation, philippine-japan activated carbon, franklin baker, coco davao, and now this.

although coconut shells are in demand, many coconut plantations have been converted to banana plantations. prices of coconut shells are going up as industries compete for the supply.

davao oriental is the largest producer of coconuts in the phil, so most liekly they'll get their supply there. but the coconut supply in general is dwindling in favor of increased banana supply. hope the davao region LGUs would protect the coconut industry.

some end-products of coconuts: food, lumber(construction, furniture), coco fiber, cooking oil, charcoal, activated carbon, virgin coconut oil, coco sugar, biodiesel, motor oil

 

 

 

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March 23, 2010 10:30 pm
http://balita.ph/2010/03/23/davao-su...ls/#more-37319

Meanwhile, the Coco Davao, Incorporated has a rated capacity of 15,000 metric tons of desiccated coconut per year. However, supply of husked coconuts right now is low.

Therese Capuno of Coco Davao, a producer of desiccated coconut, said their plant is running below full production capacity since they lack coconuts to process.
She said that the price increase of copra could be the main reason for the low supply of raw materials.

“With the increase in the price of copra, many farmers opt to have their coconuts processed into copra than selling those as fresh husked nuts,” she said.

Manuel Chu, manager of the Darong Agricultural Development Corporation said that the prevailing buying price of fresh husked coconuts is only pegged at P4.20 per kilogram while copra is already at P20.00 per kilogram.

But, they don’t process all of their produce into copra because they want to serve both the desiccated coconut exporters and coconut oil manufacturers