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PSE eyes 8 initial public offerings this year

By Arra B. Francia
Reporter
THE PHILIPPINE Stock Exchange, Inc. (PSE) is aiming to double the number of initial public offerings (IPO) it had in 2017 for this year, a top official said over the weekend.
PSE President and Chief Executive Officer Ramon S. Monzon said they target to have eight IPOs, even though no company has yet taken itself public so far this year.
“We targeted eight. Unfortunately up to May, there’s still zero,” Mr. Monzon told reporters after the company’s annual shareholders’ meeting in Mandaluyong City on Saturday.
The aggressive target comes amid the lackluster performance of the Philippine Stock Exchange index since February, which has so far retreated by 20% from its high of 9,058.62 last Jan. 29 to 7,546.19 on May 4’s close.
“There will still be appetite and it just depends on the pricing as the companies that will list in the PSE have good market positions and good future prospects,” BDO Capital and Investment Corp. President Eduardo V. Francisco said via text.
The 2018 target is the double the four companies that listed their shares for the first time at the stock exchange in 2017, including Wilcon Depot, Inc. (P7-billion IPO), Eagle Cement Corp. (P8.6 billion), Cebu Landmasters, Inc. (P2.9 billion), and Chelsea Logistics Corp. (P5.8 billion).
So far, only two firms have filed their IPO plans with the Securities and Exchange Commission.
Del Monte Philippines, Inc. (DMPI), the local unit of the Del Monte Pacific Limited (DMPL), said it seeks to raise P16.7 billion from the sale of 559.464 million shares to the public, priced at P29.88 apiece. This comprises about 20% of DMPI’s outstanding shares.
Net proceeds of the offer will be used to partially prepay or repay DMPL’s existing debt, as well as for general corporate purposes.
DMPI’s proposed IPO will make it the largest since Pilipinas Shell Petroleum Corp.’s $380.79-million IPO in October 2016, and will top Felda Global Ventures Holdings Bhd’s $3.27-billion IPO in 2012, the largest in Southeast Asia.
The company targets to conduct the IPO this month, pushing back its initial April schedule to give way for other share sales in the market, such as Metropolitan Bank & Trust Co. and Bank of the Philippine Islands. DMPI has tapped BDO Capital the offer’s issue manager, sole global coordinator, and sole book runner.
Meanwhile, property developer DM Wenceslao and Associates, Inc. also applied to take a fifth of its shares public by June. The company targets to raise P15.5 billion from the sale of 679.172 million shares, with an over-allotment option of up to 101.876 million shares, at P22.90 each.
The real estate firm, known for its development of the 204-hectare Aseana City in Parañaque City, plans to use the net proceeds of the offer for the further expansion of the estate. The company has allotted P7.46 billion for land acquisitions, P5.31 billion will be for the development of nine projects, while P500 million is for infrastructure development.
BPI Capital Corp. and Maybank Kim Eng Securities, Pte. Ltd. will serve as the joint global coordinators and book runners of the offer.

Estee Lauder CEO Freda apologizes for product testing fiasco

Estee Lauder Cos. Chief Executive Officer Fabrizio Freda apologized for false ad claims on certain cosmetics and said a comprehensive review is under way.
“We recently learned that some testing related to certain products advertising claims had been intentionally altered for some time by a small group of employees,” Freda said Wednesday on a conference call with analysts. “This clearly does not meet our standards.”
Freda didn’t disclose which products were affected by the manipulated tests, saying only that there were no safety issues and that some of the companies’ advertised claims will be changed — some minor and some “more significant.” The shares fell the most in almost three years.
“We are sorry this occurred and we take full responsibility for this matter,” Freda said.
The testing disclosure put a cloud over the company’s third-quarter financial report, which showed that revenue was powered by sales in Asia, e-commerce and skincare products. Estee Lauder, which owns dozens of makeup and skincare brands including Clinique and Mac, is benefiting from its strong lineup of higher-end labels, while budget brands — the kind found at pharmacies or discount retailers — are struggling to attract shoppers.
MILLENNIAL CONNECTIONS
The 72-year-old company has been aggressive in its efforts to connect with millennial customers through opportunistic acquisitions and the willingness to try out new digital tactics in e-commerce. Since 2015, Estee Lauder has been on a buying spree, scooping up such brands as Glamglow, Becca, Kilian, and Too Faced.
Standouts included Clinique skincare, Estee Lauder brand makeup and Jo Malone London fragrances. Each posted double-digit growth in most regions.
In Asia, the company saw gains across all its brands, especially in China, Hong Kong, Taiwan and the Philippines. Consumers in the region flocked to the highest-end products, such as La Mer and Tom Ford. — Bloomberg

Agriculture cooperatives hope to help farmers rise up the value chain

EXPECTED growth in the agricultural sector has highlighted the need for cooperatives to step into the gap when the government and banks fail to supply credit.
Asian Farmers’ Association (AFA) Cooperative Development Program Director Cresente C. Paez noted that some savings and credit cooperatives are starting to expand their services to farmers.
Mr. Paez said in the Philippines savings and credit cooperatives are the “strongest,” while agricultural cooperatives continue to lag.
“What (savings and credit cooperatives) did is to shift to the agriculture sector and at the same time, put up business enterprises. They went here because most of their members are from the rural areas,” he added.
“Cooperatives can provide services, especially credit. Before, borrowers used to borrow money from usurers, but now they go to the cooperative because the interest rates are low.”
According to AFA, around $1,000 to $4,000 per hectare is needed to invest in mixed or diversified farming while an average of $500,000 is needed for working capital and processing facilities.
“The problem is that we cannot rely on the government when it comes to extension services because extension services have political strings attachment,” Mr. Paez said.
“That’s our experience and we thought that what we need [to do is] to help cooperatives build up their own extension services. Perhaps with a research or agricultural institute, maybe they could be more independent.”
AFA program manager and Oro Integrated Cooperative Chairperson Jose Romeo B. Ebron said that the organization was purely a savings and credit cooperative four years ago.
Oro has since branched out to serve the agriculture sector through its subsidiary, Golden Grains Cooperative.
Mr. Ebron added that financing farmers is “the biggest challenge we have in the whole agri-enterprise: the farmers are not in control of the whole value chain. They’re only up to the production level.”
“We have members that we finance and then we connect them to the market. We [also] provide extension services for farmers who are engaged in cacao production, covering around 100 hectares,” he added.
“We provide extension services like quality control and drying facilities, then we help connect them into the market.”
Regionally, Mr. Paez believes that cooperatives can help reduce poverty among farmers not only through credit but as well as knowledge-sharing.
Mr. Paez said AFA plans to increase its reach even further from current membership of 13 million farmers and 18,000 farmers’ organizations in Asia since 2002.
“In the Philippines, it’s really not about numbers. It’s more on how strong the cooperatives are. We are looking at 1,000 cooperatives in the Philippines out of 24,000 [in the next three to five years],” he added.
Mr. Paez said farmers need to be more involved in the value chain to improve the quality if their lives.
“The key here is the organizer. Cooperatives should engage and every cooperative should have an organizer,” he added.
“If the farmer should only be a producer of raw materials, but someone else handles the value chain, the farmer will be on the losing end.” — Anna Gabriela A. Mogato

Maynilad allots P743M for pumping stations

MAYNILAD WATER Services, Inc. has set aside P743 million in 2018 to fund the construction of new pumping stations and reservoirs that will boost water pressure for thousands of its customers while connecting a million more to the west concessionaire’s network.
“We in Maynilad have made it our mission to improve the living conditions of our customers through better water access. Hence, we keep investing in the infrastructure enhancements needed to connect new customers and boost service levels for existing ones,” said Ramoncito S. Fernandez, Maynilad president and chief executive officer, in a statement.
The new facilities will be constructed in Valenzuela and Muntinlupa, and will have a combined water storage capacity of 75 million liters. They will allow the company to store more water for better supply management in the areas to be served. About 87,000 customers are expected to benefit from the improved water pressure.
The two pumping stations and reservoirs will be equipped with high-efficiency pumps that can raise water pressure to 16 pounds per square inch (psi) from the current 7 psi in the barangays Maysan and Gen. T. de Leon in Valenzuela, and Imus in Cavite.
They will also allow Maynilad to bring surface water to residents in the covered areas who either rely on deep wells for their supply or have limited-to-no-water access, Maynilad said.
The Valenzuela and Muntinlupa facilities are expected to be completed by the fourth quarter of 2019. Ahead of these, the new facilities that will start operating this year include those in Bacoor and Imus in Cavite province.
Maynilad is an agent and contractor of Metropolitan Waterworks and Sewerage System (MWSS) for the west zone of the greater Manila area. Its coverage spans certain areas in Manila, Quezon City and Makati City. It also covers Caloocan, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon.
Outside Metro Manila, the company covers the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario — all in Cavite province. — Victor V. Saulon

Kiehl’s reintroduces serum line for targeted skin concerns

Kiehl’s, the premium skincare brand known for its no-frills packaging and natural ingredients, is reintroducing its power serums line for people who may have just started creating their own, personalized skin care routines.
“In the Philippines, we built the brand around serums. Everyone knows Kiehl’s for either Midnight Recovery Concentrate or the Clearly Corrective Dark Spot Solution, these two are our best-selling serums,” Joan Hwang, Kiehl’s Philippines brand manager told the media on the sidelines of the April 25 event in Bonifacio Global City, Taguig.
She explained that while a considerable amount of the company’s sales come from its serums, many are not aware that the brand offers other serums with other benefits.
“Serums can work as targeted skincare treatments… you can use two serums at the same time,” she said.
Serums, unlike moisturizers and other face creams, are products that contain high concentrations of performance ingredients, making it an indispensable part of one’s skincare routine.
The Midnight Recovery Concentrate (P2,995 for 30 ml and P3,995 for 50ml), arguably the brand’s best-selling serum, is meant to give “heavy duty rejuvenation overnight” as it contains oils including evening primrose oil for skin repair and skin soothing and a cocktail of lavender, geranium, rosemary and rose essential oils to heal the skin.
Other serums from Kiehl’s include the Clearly Corrective Dark Spot Solution (P2,995 for 30ml and P3,995 for 50ml) focuses on diminishing dark spots and discolorations as it includes white birch and peony extracts; and the Powerful Strength Line Reducing Concentrate (P3,675 for 50ml) which contains 12.5% Vitamin C and hyaluronic acid for reducing fine lines and wrinkles while hydrating the skin.
Also included in the serums line are the Daily Reviving Concentrate (P2,895 for 30ml) which contains a blend of ginger root oil, sunflower seed oil and tamanu oil to reduce skin inflammation, reduce the appearance of redness and moisturize the skin; the Hydroplumping Re-texturizing Serum Concentrate (P2,730 for 50ml) which has plant-based glycerin and shiso leaf extract to plump the skin and smooth the appearance of fine lines and wrinkles; and finally, the Nightly Refining Micro-Peel Concentrate (P3,185 for 30ml) formulated with quinoa husks extract and phytic acid which helps exfoliate the skin overnight to accelerate skin cell turnover.
Ms. Hwang said the company is expecting 2018 to be one of its fastest growing year due to their focus on promoting skin care routines and their serums via skin consultations.
Kiehl’s serums are available in Kiehl’s boutiques nationwide. — ZBC

T-bills, T-bonds may fetch higher rates

GOVERNMENT SECURITIES on offer this week will likely fetch higher yields as investors await the monetary policy meeting of the Bangko Sentral ng Pilipinas (BSP).
The Bureau of the Treasury is offering today P15 billion worth of Treasury bills (T-bills), broken down into P5 billion and P4 billion in three- and six-month papers, respectively, and another P6 billion in one-year bills.
Tomorrow, the Treasury will also offer P10 billion worth of reissued three-year Treasury bonds (T-bonds) with a remaining life of two years and eight months.
A trader said on Friday that the T-bills auction could end mixed as yields on the shortest tenor may slip.
“For the bills, we expect yields of the 91-day papers [to move] sideways or lower by five basis points from the previous auction,” the trader said in a phone interview, adding that yields on the 182- and 364-day papers will likely move up by around five basis points.
“For the T-bonds, we’re expecting [the yield] to rise by five basis points from the previous auction,” the trader noted.
Meanwhile, another bond trader sees Tuesday’s T-bonds being awarded at a rate between 4.625% and 4.85%.
During last week’s T-bills auction, rates of the three-month papers dropped to 3.485% from 3.597% in the previous auction, while the six-month and one-year papers fetched higher yields of 4.019% and 4.263%, respectively.
Meanwhile, the government raised P10 billion from the three-year bonds auctioned on April 3 with an average rate of 4.632%, higher than the 4.25% coupon rate.
At the secondary market on Friday, the 91-day, 182-day and 364-day papers fetched yields of 3.4068%, 3.8478% and 3.9159%, respectively, while the three-year bond was quoted at 4.5804%.
Decent demand is expected at the three-year bonds auction, “reflecting investors’ preference,” ANZ Research said in a report released last week.
BSP MEETING
Sought for comment, traders said the market will await the meeting of the BSP’s Monetary Board, which is seen to tighten monetary policy settings.
“The market will wait for the Monetary Board meeting. There is a possibility of a rate hike given the higher inflation,” the first trader said.
Inflation reached a five-year high of 4.5% in April, preliminary data from the Philippine Statistics Authority showed.
This was higher than the 4.3% inflation logged the previous month while matching the median estimate in a BusinessWorld poll of 11 economists.
“We believe that this pace of inflation, coupled with strong imports and credit growth, warrants a rate hike,” ANZ Research said. “However, as the BSP did not indicate any inclination to raise rates, our base case is that the overnight reverse [repurchase] policy rate would be maintained at 3%.”
ANZ Research added that the “situation somewhat changed” when the monetary authority indicated recently that it is “ready to make measures to protect price and financial stability.”
“This view of the central bank has raised the odds for a rate hike next week,” ANZ Research noted.
Last week, BSP Governor Nestor A. Espenilla, Jr. said latest observations bared that inflation is becoming broader than initially expected.
“What we react to is whether it’s spreading and it is affecting expectations. And our reading, based on the latest data, it seems to have spread somewhat,” Mr. Espenilla said.
BSP Deputy Governor Diwa C. Guinigundo said separately that the Federal Reserve’s decision to remain on hold last week demonstrates the “gradual” pace of policy tightening in the US, which he noted will be a “very important input” to the BSP’s own policy meeting.
Domestic inflation remains a bigger concern, the central bank official added.
The Treasury is holding two auctions per week this quarter — one for T-bonds and another for T-bills — to reflect increased borrowing requirements.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product.

Trade tensions crimp US soybean sales to China

US SOYBEAN SALES to China ground to a halt after Beijing threatened tariffs on imports, the CEO of agricultural trader Bunge Ltd. said on Wednesday, the latest sign of mounting trade tensions upsetting the global flow of commodities.
Countries such as Brazil and Canada are increasing soybean sales to China following Beijing’s threat last month to impose a 25% tariff on imports of US soybeans, Chief Executive Soren Schroder said in an interview. US farmers rely on China as the top buyer of soybeans, but at a current price of about $420 per ton, that translates to a potential tax of more than $100 per ton on shipments.
“Nobody’s willing to take the risk of committing to US soybeans to China in the current context, knowing that there could be a $100 penalty from one day to the other, and no way of managing that risk,” Schroder said after the company reported a quarterly loss.
Soybeans were the United States’ most valuable agricultural export last year to China, which bought $12 billion of the crop.
Freshly harvested South American soybeans typically dominate the world trade in the first half of the calendar year, followed by the United States from September onwards.
But US soybean sales to China over the last four weeks are down 10% from this time a year ago, according to US trade figures — a blow to US farm country, which helped propel US President Donald Trump into office in the 2016 election.
Growing trade disputes are disrupting the agricultural supply chain worldwide and causing US farmers and manufacturers to back away from expansion plans due to steel and aluminum tariffs.
“The trade stuff has been another layer of uncertainty that nobody really knows how to price yet,” Schroder said.
Separately, Beijing slapped hefty anti-dumping deposits on US imports of a livestock feed known as sorghum.
Bunge’s rival, Archer Daniels Midland, said on Tuesday it would take a $30-million hit in the second quarter due to the sorghum dispute.
ADM is closely monitoring US trade developments regarding China and the North American Free Trade Agreement (NAFTA), CEO Juan Luciano said.
Bunge has seen trade flows shift amid NAFTA renegotiations as well. In one example, Bunge milled wheat that had been imported to Mexico from Argentina as a test, Schroder said.
Mexican buyers imported 10 times more corn from Brazil last year due to concerns that NAFTA renegotiations could disrupt their US supplies.
The shift in China’s soybean business is not a net negative for Bunge because it has operations globally, Schroder said.
“If there is a problem in one part of the world, we can solve it in another,” he said.
Bunge reported a net loss of 20 cents per share in the quarter ended March 31, down from a profit of 31 cents a share a year ago. The loss included a $120-million charge due to forward oilseeds crushing contracts, which Bunge said it would recover.
Improved margins for soybean crushing should boost earnings significantly this year, executives said, after a severe drought reduced harvests in Argentina, the world’s top exporter of soy products.
The higher margins prompted Bunge to raise its agribusiness unit’s full-year earnings outlook to a range of $800 million to $1 billion from $550 million to $700 million.
Shares gained 2.3% to $73.29.
Bunge’s projection for stronger performance was a turnaround after years of bumper harvests reduced price volatility and margins for the company and its rivals, making it tough to turn a profit on their core business: buying, processing and selling corn, soy and wheat.
A string of weak results over the past year left Bunge’s management fending off takeover approaches from traders Glencore PLC and ADM. — Reuters

Pilipinas Shell to export bitumen

PILIPINAS SHELL Petroleum Corp. (PSPC) targets to export the bitumen coming from its Tabangao refinery in Batangas City as the company shifts to producing the road construction material to offset the declining demand for fuel from power plants.
“Southeast Asia as a whole is short on bitumen, including probably China. So those are the countries that need bitumen,” Cesar G. Romero, PSPC president and chief executive officer, told reporters. “Of course, we will also be looking at domestic sales.”
PSPC’s bitumen production facility is inside its Tabangao refinery. It will cater to road contractors and enable the company to be the provider of locally made bitumen.
“The facility is big enough to both be an export facility and a domestic facility, so we will balance both,” Mr. Romero said.
Bitumen is among PSPC’s commercial business segment, which Mr. Romero described as a “come-from-behind” story for the company, a contrast to its “steady growth” retailing business.
“We started the year with about being down 34% in the commercial sector,” he said. “The coal plants started coming in, mining was severely hit, some of our competitors started buying shipping companies so we’ve lost those accounts.”
Bunker fuel is the raw material used to produce bitumen. It is also used to fuel a number of the country’s power plants. With new coal-fired power generation facilities coming online, the share of bunker fuel as energy source has declined.
Mr. Romero said despite starting 2017 with “huge losses,” the commercial segment closed the year with a growth of about 1%.
The company posted a 39% increase in net income to P10.4 billion in 2017 on the back of the strong growth in retail volume and regional refining margins as well as gains in inventory holdings.
Mr. Romero said the P730-million bitumen and asphalt production facility would allow the company to produce bitumen to support the government’s infrastructure program.
The bitumen facility is being developed along with the expansion of the refinery’s supply and logistics facilities. The project is expected to cost around P260 million and will reduce gate-to-gate time of delivery trucks by half, contributing to cost efficiency, he said. It is targeted to be completed by the fourth quarter this year.
PSPC has earmarked P4.289 billion as capital expenditure for 2018 to cover the year’s outlay for its retail as well as its manufacturing and supply businesses. — Victor V. Saulon

Spring for Debenhams: Florals and whimsy

Riotous florals, soft pastels, and bright shades of lemon yellow, bright pink, and bright orange announce the joys of summer with the Spring/Summer Collection of British retailer Debenhams.
I know what you’re thinking: “Florals? In Spring? Groundbreaking,” says everyone’s inner Miranda Priestley with a touch of sarcasm.
But then, we don’t think the century-old British brand aims to shake up the system.
“Our core market is between 30-50, I’d say. But even those customers, I think, like having a nod to trends. But they’re not comfortable with being totally showy, about being all-out fashionista,” said Lou Rulloda, Head of Merchandising and Marketing for Debenhams in the Philippines.
The retailer was founded in the 1700s in London. While it has changed focus several times (it once sold mourning goods), there’s still a connection with the goods today with the items of yesteryear: “There’s something inherently British about the clothes. I think it’s a bit more whimsical. There’s more quirkiness to it,” said Ms. Rulloda.
It was announced in The Telegraph in 2016 that the brand would focus less on clothing and more on beauty, gifts and accessories.
This should probably explain why lamps and picture frames, among other home accessories, were featured in the launch last week in Makati City.
According to Ms. Rulloda, we haven’t heard so much about these lovely animal-shaped lamps and other baubles because they’re only available in their Glorietta store. And can you imagine: some of the designers present in Debenhams’ Spring/Summer 2018 collection include Jasper Conran (who designed some accessories and home goods for the retailer), building on a strategy of tapping high-end designers for items priced at High Street rates.
A statement from Debehnams in 2013 said that it plans to open 150 stores within five years, meaning that the deadline is this year. In 2017, however, it was announced in the Financial Times that the retailer planned to close 10 stores within the UK and to leave some international markets. Don’t worry, avid Debenhams shoppers, the Philippine arm is safe.
“We just renewed the contract with them last year,” said Ms. Rulloda. — Joseph L. Garcia

Digital payments to plug inclusion gap

By Melissa Luz T. Lopez
Senior Reporter
SHIFTING TO digital payments will plug the gap in financial inclusion, as going online would eliminate issues on distance and would provide a substantial push for two-thirds of the population to get their own formal accounts, the World Bank said.
More Filipinos owned bank accounts as of 2017 but spelled a “modest” progress. According to results of the 2017 Global Findex report, 34.5% of Filipino adults held bank accounts, higher than the 31.3% captured during the 2014 survey but remained the minority.
Around 41% of adults cited distance to financial institutions as the main barrier to owning formal accounts. The hope lies in knowing that 71% own mobile phones.
“Many unbanked adults receiving government payments in cash — whether government transfers or public sector wages or pensions — have the basic technology needed to receive these payments in digital form,” the report said, as commissioned by the Bill & Melinda Gates Foundation.
“In the Philippines, digitizing government payments could reduce the share of unbanked adults by up to 16% and the share of unbanked women by up to 20%.”
The same route may be taken by private firms in disbursing workers’ salaries towards boosting account ownership, with the World Bank saying that digitizing wage payments could raise the banked segment by “almost a third.”
The focus also needs to shift towards prodding residents to use their bank accounts for more ways other than storing funds. The global lender said that accounts may be tapped more than as the means to receive salaries. Rather, these can also be used to settle utility bills, domestic remittances, savings, and retail transactions.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said prospects are “bright” for wider use of electronic payments given a government-wide push towards digitization.
The BSP targets to lift the share of digital payments to 20% of total transactions by 2020 from a measly 1% recorded in 2013 through its National Retail Payment System project. Two clearing houses have been set up to accept digital fund transfers across banks and electronic wallets, which they expect to help broaden access to financial services and spur increased economic activity.
“The government is also setting the foundation of a digital ecosystem through legislative measures such as the biometric national ID bill and Payment Systems Act,” the central bank said, noting that these reforms are expected to boost the on-boarding of Filipinos who lack the paperwork required for account opening.
The BSP also said they are looking to boost lending to farmers and small-scale firms through value chains, moving away from imposing credit quotas on banks just to force them to extend financing lines to these so-called risky segments.
Studies showed that gross domestic product could increase by more than 14% if the financial inclusion gap was closed in the Philippines.

Headline Inflation Rates in the Philippines

Inflation

PCA wants to increase of coconut content in biofuels to boost prices

THE Philippine Coconut Authority (PCA) has requested the National Biofuel Board (NBB) to increase the proportion of Coco Methyl Ester (CME) in biodiesel to 5% from the current 2% to support the price of coconut oil (CNO).
PCA Administrator Romulo J. de la Rosa said that increasing the content of CME in biodiesel in a staggered basis can “effectively support” coconut farmers currently threatened by the declining world market price for CNO.
“The first increase can be from 2% to 3% starting August this year. This means that the biodiesel blend to be sold on the domestic market should have 3% CME and 97% regular diesel starting Aug. 1,” he added.
According to PCA, the price for CNO dropped by 40% to $1,100, a 16-month low for the commodity, due to a surplus of other vegetable oils in the world market.
The move to increase CME content in biodiesel can put the Philippines on the same level as Malaysia and Thailand, which have at least 7% CME in their biodiesel mix.
The PCA proposal also aligns with the Philippine Energy Plan 2012-2030 which calls for CME content of biodiesel to rise to at least 5%.
The August timeline gives the oil industry ample time to adjust to the new formula. The PCA hopes the NBB will decide by December on the increase to 5%.
“The higher CME content in our biodiesel could significantly increase demand for copra and CNO, making their prices more buoyant,” Mr. De la Rosa said.
Citing data from the National Anti-Poverty Commission (NAPC), the PCA said that there are around 3.5 million coconut farmers and farmworkers, who are among the country’s poorest.
The NAPC also estimates that 25 million Filipinos depend on the coconut industry. — Anna Gabriela A. Mogato

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