Quezon City – The Philippine Coconut Authority (PCA) and Swiss firm Naturloop AG are exploring the establishment of a coconut husk-based medium-density fiberboard (MDF) production facility in the Philippines. PCA Administrator and CEO Dr. Dexter R. Buted met with Naturloop CEO Daniel Dinizo to discuss the project.

Naturloop manufactures Cocoboard, a 100% bio-based MDF made from coconut husks, an abundant byproduct of the Philippine coconut industry. The company currently sources husks from the Philippines and is working with local cooperatives and businesses to strengthen its supply chain. The meeting focused on the potential for local production to reduce costs and improve supply chain efficiency.

Cocoboard is marketed as termite-resistant, formaldehyde-free, and moisture-resistant, offering a cost-competitive alternative to traditional wood-based panels. With the Philippines requiring an estimated 800,000 cubic meters of board panels annually, and local production only meeting 150,000 cubic meters, the market opportunity is substantial (Coco Board Manufacturing Project Briefer).

Naturloop has been working to establish a stable husk supply chain in the Philippines since a 2020 study in Quezon province. While a previous attempt to establish a shared processing facility faced logistical hurdles, the company continues to work with local suppliers like Prosource Manufacturing Inc. and the Quezon Federation and Union of Cooperatives.

The PCA has long advocated for initiatives that add value to the coconut supply chain, including featuring the Cocoboard project at its 2021 Coconut Investment Forum. The agency has also facilitated discussions between private investors and government agencies, such as the Department of Agriculture’s Public-Private Partnership Unit and the Philippine Rural Development Program (PRDP), to explore funding options.

As global demand for sustainable building materials increases, the said manufacturing plant could offer significant economic, employment, and environmental benefits. The PCA and Naturloop will continue discussions regarding investment incentives, infrastructure support, and the long-term feasibility of local production. Further meetings with stakeholders are expected in the coming months.