Ares Merchants Philippines Inc. (AMPI), a leading supplier of vegetable oils in the Philippines, is pioneering transformations in the coconut oil export sector through innovative collaborations with Micro, Small, and Medium Enterprises (MSMEs), aiming to redefine industry dynamics for all stakeholders involved.
In support of the MSMEs, Jose Leonardo Tañada, AMPI’s managing director, recently attended the 2024 Presidential Awards for Outstanding MSMEs and Presidential Recognition for Outstanding Development Partners at Malacañang last July 10, 2024. President Ferdinand Marcos Jr. honored MSMEs for their achievements in revenue generation, sustainability, social justice, and ecological awareness. Tañada’s presence underscored AMPI’s commitment to empowering coconut farmers and MSMEs, highlighting the company’s ongoing initiatives to drive growth and innovation in the coconut oil export sector.
AMPI is positioned to transform the coconut oil supply chain. With a significant presence in Europe, particularly in the Netherlands, AMPI is set to operate its own refinery in the EU by 2025. This strategic initiative will provide direct access to end-users among MSMEs, challenging conventional industry practices and maximizing the sale of coconut oil as a value-added commodity.
“Traditionally, major buyers and refineries, established by the US and Europeans, have benefited from adding value to crude coconut oil. To change this, AMPI plans to refine the coconut oil in the first Philippine owned refinery in Europe and sell it directly to end-users starting in the EU market,” explained Tañada. “This shift will empower our local farmers and MSMEs, ensuring that they benefit directly from the value-added process.” Tanada added that they are collaborating with cooperatives handpicked by the Philippine Coconut Authority (PCA) to participate in the said project. “By selling coconut oil in the EU, these cooperatives can benefit from a financial premium, generating more than $2 million annually. This collaboration not only enhances the income of local farmers but also strengthens the overall coconut industry in the Philippines,” shared Tañada.
AMPI aims to export approximately $2.768 billion worth of coconut oil from 2025 to 2035, a goal that supports the Philippines’ broader objective of strengthening its coconut industry. With the backing of President Marcos and the PCA, the country is on track to reclaim its top spot in global coconut production and establish itself as the world’s leading coconut exporter.
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