Presidential Decree No. 1960






WHEREAS, a rationalization program for the coconut industry was mandated by LOI 926 in 1979 to save the coconut oil milling industry from financial collapse whereby a cooperative endeavor was organized among coconut farmers, oil millers and exporters of coconut products to pool and coordinate their respective resources in the buying, milling and marketing of copra and its by-products;

WHEREAS, a self-reliance energy program was instituted by the Government whereby the energy requirements of the country would be serviced from indigenous and renewable sources and thereby diminish its dependence on imported energy;

WHEREAS, the Coco-Diesel Program was conceived and implemented as a substantial element in the country's self-reliance energy program such that coconut oil, one of the country's indigenous and renewable sources, would be utilized as a diesel fuel extender and fuel blending stock;

WHEREAS, to ensure a continuous supply of coconut oil for the Coco-Diesel Program and at the same time strengthen the rationalization program for the coconut industry, Presidential Directive dated 1 September 1982 was issued mandating that the coconut oil production of intermittent exporters of coconut products and the excess production of those primarily engaged in the domestic market be instead channeled into the Coco-Diesel Program rather than into the world market, and pursuant to which, the Philippine Coconut Authority ("PCA") issued Administrative Order No. 002, Series of 1982 establishing Rules and Regulations to implement the said Presidential Directive;

WHEREAS, the severe drought in 1982-83 caused a substantial reduction in the copra production of the country and compelled the Government thru PCA to adopt measures to meet Philippine and world market requirements for coconut oil; to prevent cutthroat competition for copra; and to forestall short term cycles of artificially high prices of coconut products in the domestic and world market including the issuance of PCA Administrative Order No. 002, Series of 1983;

WHEREAS, since the promulgation of the Presidential Directive and the PCA Administrative Orders, copra production of the country has dropped even further as a result of numerous typhoons in late 1983 and two (2) super typhoons in 1984;

WHEREAS, in 1974, the Government launched a national hybrid coconut replanting program with actual replanting commencing in 1979 as a viable means of increasing copra production and thereby enhance the country's competitiveness in the international market of fats and oils, which was however suspended in 1982 in response to the public clamor against the coconut levy which financed the replanting program;

WHEREAS, pending review of alternative schemes for financing the replanting program, the Government ordered, as a result of the super typhoons in 1984, the replanting of the devastated areas with high-yielding hybrids with this limited replanting program not bearing fruit until the 1990's;

WHEREAS, external forces beyond the control of the Government plunged the country into a severe economic and financial crisis compelling the Government to seek a standstill and a restructuring of its external debts;

WHEREAS, to enable the country to restructure its external debts, the Government has implemented a series of substantial economic policy measures which include reforms in the production, pricing, marketing, credit and institutional arrangements of the coconut industry;

WHEREAS, after a thorough review, it is deemed to be in the interest of all that there be less Government intervention in the marketing of coconut products and allow the private sector greater access to the markets, and at the same time encourage and require the private sector to establish and adopt appropriate measures to enhance the competitiveness of coconut products in the world market.

NOW, THEREFORE, by virtue of the powers vested in me by the Constitution and the laws, I, FERDINAND E. MARCOS, President of the Philippines, do hereby decree and order the following:

Section 1.chanroblesnad PCA Administrative Order No. 002, Series of 1982, and PCA Administrative Order No. 002, Series of 1983, and all other rules and regulations promulgated by various governmental agencies in consonance with the aforesaid PCA Administrative Orders are hereby repealed and all oil millers are hereafter permitted and authorized to export their coconut products to the world market subject only to such rules and regulations that the Ministry of Trade and Industry, the Central Bank and PCA may prescribe to ensure that coconut products are sold at competitive prices in relation to other fats and oils and that the proceeds of such sales, less actual expenses, are remitted to the country; Provided, however, that no rule or regulation shall be promulgated which may delay or restrict the expeditious exportation of coconut products to the world market.

Sec. 2.chanroblesnad To help planters and processors organize themselves into associations and/or cooperatives to give them greater control in the marketing of their products, the coconut farmers, and/or the copra buyers and/or millers/refiners and/or exporters of coconut products are encouraged and authorized to form such cooperatives or associations as may be appropriate to achieve economies of scale; avoid the ruinous competition for copra which pushed the coconut oil milling industry to the brink of financial collapse in late 1979; maximize foreign exchange earnings; ensure that the coconut farmers receive a fair share of the proceeds from export and/or domestic sales, and at the same time continue to assure consuming countries an adequate and continuous supply of coconut products at fair and reasonable prices; provided however that the Government or any of its agencies or instrumentalities including government owned or controlled corporations, shall not, unless expressly permitted by law, or by the President of the Philippines, directly or indirectly engage in the marketing of different products in the world market.

Sec. 3.chanroblesnad To ensure the survival of the coconut oil milling/refining industry while there is an excess of copra crushing/refining capacity and to encourage fresh equity to be invested in existing coconut oil milling/refining capacities, no new copra crushing/refining capacity shall be allowed without the respective approvals of the Ministry of Trade and Industry, the Ministry of Agriculture and Food and the PCA, all of which agencies are hereby required to respectively promulgate the necessary rules and regulations to enforce the foregoing. The Central Bank shall not authorize the opening of letters of credit for the importation of capital equipment without the respective prior approval by the said agencies. For this purpose, the crushing/refining capacities fixed opposite each coconut oil miller/refiner listed in Annex "A" hereof, shall be utilized in determining whether there is basis for expanding existing crushing/refining capacities and/or allowing new crushing/refining capacities to be established. The governmental agencies concerned shall accord priority to coconut oil millers/refiners listed in Annex "A" for the establishment of new facilities, or, within their respective areas, the expansion of their existing facilities, or the restart of mills that have been mothballed by the cooperative endeavor.

Any person or entity who may be aggrieved by the accuracy of Annex "A" hereof, may within thirty (30) days from the date of promulgation of this Presidential Decree, submit its perceived grievances to the Ministry of Trade and Industry, the Ministry of Agriculture and Food and the PCA which shall respectively submit their recommendations for the maintenance or modification of Annex "A", as the case may be, to the President of the Philippines for final decision.

Sec. 4.chanroblesnad To assure the coconut farmers a return on their investment and to honor the commitments of the cooperative endeavor and the country as well, in the domestic and international markets, including the financial markets, all rights and obligations acquired or incurred by the cooperative endeavor in implementation of the rationalization program for the coconut industry mandated by LOI 926 and duly approved by appropriate governmental agencies such as the Ministry of Trade and Industry, and/or the PCA, and/or the Central Bank, must necessarily be assigned, transferred or sold, pro rata and under reasonable terms and conditions to preserve the interests of the creditors and the contractual commitments of the cooperative endeavor, to the coconut oil millers/refiners who desire to service the world market, including oil mills/refineries owned or controlled by the coconut farmers of the Philippines as provided in Presidential Decrees No. 961 and 1468, as amended.

Sec. 5.chanroblesnad To encourage full and faithful compliance with the structural economic adjustment program for the coconut industry herein prescribed and the acquisition and the assumption of the rights and the obligations of the cooperative endeavor as prescribed in Sec. 4 hereof, all persons or entities, including the cooperative endeavor and their respective stockholders who have participated in the pooling and coordination of their respective resources as required by LOI 926, as so certified by the cooperative endeavor, are hereby exempt from any and all taxes, fees, imposts, charges of whatever kind and nature, which any, some or all of them may, or might have incurred as a consequence of, or arising out of, or by reason of, or in connection with, such steps, measures and/or procedures which they may adopt in compliance with or in obedience to the structural economic adjustment program for the coconut industry which they may deem necessary or useful or beneficial to them, and their respective stockholders.

Sec. 6.chanroblesnad Any violation of the provisions of this Presidential Decree, and/or the rules and regulations herein authorized to be issued by the governmental agencies concerned, shall be punished and penalized in accordance with the respective enabling act or charter of the governmental agency or instrumentality concerned.

Sec. 7.chanroblesnad All laws, executive and administrative orders, and/or rules and regulations respectively issued by the governmental agencies concerned inconsistent herewith, are hereby repealed, amended or modified accordingly.

Sec. 8.chanroblesnad This Decree shall be effective immediately.

DONE in the City of Manila, this 11th day of January in the year of our Lord nineteen hundred and eighty five.

Plantchanroblesnad Plant Sitechanroblesnad Crushingchanroblesnad Capacitieschanroblesnad Refined Capacities
chanroblesnad Daily chanroblesnad Annualchanroblesnad Dailychanroblesnad Annual

Metro Manila Areachanroblesnad Copra MTchanroblesnad (Copra MT)chanroblesnad Max. Refined Oil
1.chanroblesnad Metroplex chanroblesnad Muntinlupa, Metro
chanroblesnad Commoditieschanroblesnad Manilachanroblesnad 320chanroblesnad 99,000
2.chanroblesnad Imperial Veg. Oil Co.chanroblesnad Pandacan, Manilachanroblesnad 310chanroblesnad 93,000chanroblesnad 70chanroblesnad 23,100
3.chanroblesnad Int'l. Oil Factorychanroblesnad San Juan, Metro
chanroblesnad Manilachanroblesnad 288chanroblesnad 86,400chanroblesnad 150chanroblesnad 48,500
4.chanroblesnad Phil. Refining Co.chanroblesnad Paco, Manilachanroblesnad 275chanroblesnad 82,500chanroblesnad 35chanroblesnad 11,550
5.chanroblesnad Procter & Gamble, chanroblesnad Tondo, Manilachanroblesnad 250chanroblesnad 75,000chanroblesnad 150chanroblesnad 59,400
chanroblesnad PMC
6.chanroblesnad Central Veg. Oil Co.chanroblesnad Paco, Manilachanroblesnad 150chanroblesnad 45,000chanroblesnad 60chanroblesnad 19,100
7.chanroblesnad Liberty Oil Factorychanroblesnad EDSA, Quezon Citychanroblesnad 100chanroblesnad 30,000chanroblesnad 65chanroblesnad 21,450
8.chanroblesnad Royal Ind. Dev. Corp.chanroblesnad Murphy, Quezon Citychanroblesnad 50chanroblesnad 16,500
9.chanroblesnad Crystal Oil Millingchanroblesnad Tandang Sora, Q.Cchanroblesnad 35chanroblesnad 11,550
10.chanroblesnad Tayabas Oil (B)chanroblesnad Taguig, Metro Manila
11.chanroblesnad Malabon Soap & Oilchanroblesnad Malabon, Metro Manilachanroblesnad 120chanroblesnad 39,600
12.chanroblesnad Pacific Oil Productschanroblesnad Malabon, Metro Manilachanroblesnad 60chanroblesnad 19,800
13.chanroblesnad Royal Oil Productschanroblesnad Makati, Metro Manilachanroblesnad chanroblesnadchanroblesnad chanroblesnad chanroblesnadchanroblesnadchanroblesnad chanroblesnad 106chanroblesnadchanroblesnad 34,930
chanroblesnad Sub-Totalchanroblesnad 1,703chanroblesnad 510,900 chanroblesnad 901 chanroblesnad 297,330

14.chanroblesnad San Pablo Mfg. Corp.chanroblesnad San Pablo Citychanroblesnad 500chanroblesnad 150,000chanroblesnad 150chanroblesnad 49,500
chanroblesnad chanroblesnad chanroblesnad chanroblesnad 300chanroblesnad (C.O)chanroblesnad 99,000
15.chanroblesnad SMC-Lucena Oil Millchanroblesnad Lucena Citychanroblesnad 381chanroblesnad 114,300chanroblesnad 85chanroblesnad 28,050
16.chanroblesnad Coco-Chemicals Phils.
chanroblesnad Inc.chanroblesnad Atimonan, Quezonchanroblesnad 268chanroblesnad 80,400chanroblesnad 50chanroblesnad 16,500
17.chanroblesnad Southern Luzon
chanroblesnad Coconut Oil Millchanroblesnad Mulanay, Quezonchanroblesnad 213 chanroblesnad 63,900
18.chanroblesnad RCY Oil Mfg. Corp.chanroblesnad Sta. Cruz, Lagunachanroblesnad 165 chanroblesnad 49,500
19.chanroblesnad Royal Mfg. Corp. (B)chanroblesnad Lucena Citychanroblesnad 150 chanroblesnad 45,000
20.chanroblesnad New Sun Ripe Coco
chanroblesnad Productschanroblesnad Magdalena, Lagunachanroblesnad 55 chanroblesnad 16,5000
21.chanroblesnad Red V Coco Productschanroblesnad Lucena Citychanroblesnad 50 chanroblesnad 15,000
22.chanroblesnad Atson Coco, Inc.chanroblesnad San Pablo Citychanroblesnad 50 chanroblesnad 15,000
23.chanroblesnad Unideco Consolidated
chanroblesnad Mfg.chanroblesnad Lucena Citychanroblesnad 50chanroblesnad 15,000
24.chanroblesnad Laguna Insular
chanroblesnad Comm'l.chanroblesnad Cabuyao, Lagunachanroblesnad 50 chanroblesnad 15,000
25.chanroblesnad Licup Oil Millchanroblesnad Candelaria, Quezonchanroblesnad 50 chanroblesnad 15,000
26.chanroblesnad Peter Paul Phils. Corp.chanroblesnad Candelaria, Quezonchanroblesnad 40 chanroblesnad 12,000
27.chanroblesnad Blue Car Coconut
chanroblesnad Phils.chanroblesnad Tiaong, Quezonchanroblesnad 27 chanroblesnad 8,100
28.chanroblesnad Francklin Baker Co.chanroblesnad San Pablo Citychanroblesnad 27 chanroblesnad 8,100
29.chanroblesnad Mina Oil Millschanroblesnad Cabuyao, Lagunachanroblesnad 25 chanroblesnad 7,500
30.chanroblesnad People's Ind'l. &
chanroblesnad Comm'l Corp.chanroblesnad Cavite Citychanroblesnad 25 chanroblesnad 7,500chanroblesnad 100chanroblesnad 33,00
31.chanroblesnad Quezon Champion (B)chanroblesnad Candelaria, Quezonchanroblesnad 25 chanroblesnad 7,500
32.chanroblesnad Coco Resources (B)chanroblesnad Pagbilao, Quezon
33.chanroblesnad Tantuco (B)chanroblesnad Lucena Citychanroblesnad 80chanroblesnad 26,400
34.chanroblesnad Banahaw (B)chanroblesnad Sta. Cruz, Laguna
35.chanroblesnad Po Man Hing (B)chanroblesnad Cabuyao, Laguna
36.chanroblesnad Apo Oil Mills (B)chanroblesnad Candelaria, Quezon
37.chanroblesnad Countryside Millers,
chanroblesnad Inc.chanroblesnad San Pablo Citychanroblesnad 350 chanroblesnad 115,500
chanroblesnad chanroblesnad Sub-Totalchanroblesnad 2,151 chanroblesnad 645,300 chanroblesnad 1,115 chanroblesnad 367,950

38.chanroblesnad Legaspi Oil Co., Inc.
chanroblesnad SMC-COMROchanroblesnad Arimbay, Legaspi Citychanroblesnad 450 chanroblesnad 135,000
39.chanroblesnad Coco Complex Phils.chanroblesnad Camarines Nortechanroblesnad 250 chanroblesnad 75,000
40. Bicol Oil Millchanroblesnad Pasacao, Camarines Surchanroblesnad chanroblesnad 75 chanroblesnad 22,500
chanroblesnad chanroblesnad Sub Totalchanroblesnad 775chanroblesnad 232,000

41.chanroblesnad Lu Do & Lu Ym Corp.chanroblesnad Cebu Citychanroblesnad 600chanroblesnad 180,000chanroblesnad 35chanroblesnad 11,550
chanroblesnad 100chanroblesnad (C.O)chanroblesnad 33,550
42.chanroblesnad NIDC Leytechanroblesnad Tanauan, Leytechanroblesnad 125chanroblesnad 37,500
43.chanroblesnad West Visayas Coco
chanroblesnad Dev.chanroblesnad Iloilo Citychanroblesnad 100 chanroblesnad 30,000
44.chanroblesnad Visayan Mfg. Co.chanroblesnad Iloilo Citychanroblesnad 50 chanroblesnad 15,000chanroblesnad 30chanroblesnad 9,900
45.chanroblesnad Calixto Yongcochanroblesnad Cebu Citychanroblesnad 45 chanroblesnad 13,500
46.chanroblesnad La Puerbachanroblesnad Cebu City, Cebu Citychanroblesnad 20chanroblesnad 6,000
47.chanroblesnad Nor Oil (B)chanroblesnad Tayasan, Negros Or.
48.chanroblesnad Samarland (B)
chanroblesnad Sub Totalchanroblesnad 940chanroblesnad 282,000chanroblesnad 165chanroblesnad 54,450

49.chanroblesnad Granex Mfg. Corp.chanroblesnad Iligan Citychanroblesnad 1,000chanroblesnad 300,000
50.chanroblesnad Leg-Oil Davaochanroblesnad Davao Citychanroblesnad 800chanroblesnad 240,000chanroblesnad 150chanroblesnad (C.O)chanroblesnad 49,500
51.chanroblesnad SMC-Iligan Oil Millchanroblesnad Iligan Citychanroblesnad 600chanroblesnad 180,000
52.chanroblesnad Interco Mfg.chanroblesnad Zamboanga Citychanroblesnad 600chanroblesnad 180,000
53.chanroblesnad Southern Islands
chanroblesnad Oil Millschanroblesnad Roxas, Zamboangachanroblesnad 605chanroblesnad 181,000
chanroblesnad chanroblesnad del Norte
54.chanroblesnad Indo Phil (OLA)
chanroblesnad Oil Millschanroblesnad Gingoog Citychanroblesnad 423chanroblesnad 126,000
55.chanroblesnad Cagayan De Oro
chanroblesnad Co., Inc.chanroblesnad Cagayan de Oro Citychanroblesnad 385chanroblesnad 115,500
56.chanroblesnad Davao Gulf Oil
chanroblesnad Co., Inc.chanroblesnad Mati, Davao Citychanroblesnad 300chanroblesnad 90,000
57.chanroblesnad Phil. Int'l. Dev. Corp.chanroblesnad Zamboanga Citychanroblesnad 280chanroblesnad 84,000
58.chanroblesnad Lim Ket Kaichanroblesnad Cagayan de Oro Citychanroblesnad 200chanroblesnad 60,000chanroblesnad 75chanroblesnad 24,750
59.chanroblesnad Pacific Oil Products
chanroblesnad Inc.chanroblesnad Davao Citychanroblesnad 125chanroblesnad 37,500
60.chanroblesnad NIDC-Davaochanroblesnad Davao Citychanroblesnad 125chanroblesnad 37,500
61.chanroblesnad NIDC-Jimenezchanroblesnad Jimenez, Mis. Occ.chanroblesnad 125chanroblesnad 37,500
62.chanroblesnad South Davao Dev.
chanroblesnad Co.chanroblesnad Davao Citychanroblesnad 25chanroblesnad 7,500
63.chanroblesnad Ozamiz Coco Oil Millchanroblesnad Ozamiz Citychanroblesnad 25chanroblesnad 7,500
64.chanroblesnad Bislig Coco Oil Millchanroblesnad Bislig, Surigao del Surchanroblesnad 15chanroblesnad 4,500
65.chanroblesnad Phil.-Agro Edible Oil
chanroblesnad Millchanroblesnad Zamboanga Citychanroblesnad 350chanroblesnad 105,000
66.chanroblesnad IMBC (B)chanroblesnad Kauswagan, Lanao
chanroblesnad chanroblesnad del Norte
67.chanroblesnad Mincoco (B)chanroblesnad Kauswagan, Lanao
chanroblesnad chanroblesnad del Norte
68.chanroblesnad Eastern Davao Oil
chanroblesnad Millchanroblesnad Maco, Davao del Norte
69.chanroblesnad Sucodeco (B)chanroblesnad Lipatas, Surigao City
70.chanroblesnad Countryside Millers,
chanroblesnad Inc.chanroblesnad Pres. Roxas, Zambochanroblesnad 350chanroblesnad 115,500
chanroblesnad chanroblesnad del Norte chanroblesnad (CO/LAO)
71.chanroblesnad Countryside Millers,
chanroblesnad Inc.chanroblesnad Sta. Filomena, Ilitanchanroblesnad 350 (C.O)chanroblesnad 11,500
chanroblesnad chanroblesnad Sub Totalchanroblesnad 5,983chanroblesnad 1,794,900chanroblesnad 925chanroblesnad chanroblesnad 305,250

chanroblesnad chanroblesnad GRAND TOTALchanroblesnad 11,552chanroblesnad 3,465,600chanroblesnad 3,106chanroblesnad 1,024,980

1-Dessicator whole milling capacity is utilized mainly for production of paring oil
B-UNICOM mothballed mills (B-mills)

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