05/05/03 - The oleochemical sector in the Philippines may face a crisis inthe future as the supply of coconut oil feedstocks declines. The countryis currently on of the world's largest producers of coconut oil, butproduction is under threat from urbanisation and oleochemical producersface growing competition from other applications.

The Philippines produces 328,621 tonnes/y of coconut oil and totalconsumption in the production of oleochemicals, including glycerine, fattyacids and alcohols, is 32,000 tonnes/y. The Philippines' fatty acidproduction capacity is put at 130,000 tonnes/y. The oleochemical sectorexpects increasing amounts of coconut oil to be used by the food industry,where demand has been steadily growing. There have been calls for thecountry to develop production of palm oil for food uses, to free upcoconut oil for oleochemicals. A table gives details of major oleochemicalcompanies in the Philippines.