Xylose sugar maker CJ Toyota Tsusho shuts down Davao del Sur factory

The Department of Agriculture is working to save what remains of earlier efforts by local and foreign investors to produce xylose sugar from coconut shell in Davao del Sur after the company called it quits two months ago.

 

CJ Toyota Tsusho Philippines Inc. padlocked its facilities in Davao del Sur, said Euclides Forbes, Philippine Coconut Authority administrator. "We are saddened of the closure, since it is the only company in the country that produces a natural sweetener from coconut shell," the official noted.

 

The company was operating at a loss, considering its production cost was so high that the product was  deemed not viable to compete in the world market, according to Agriculture officials. 

 

Coconut sugar D-Xylose is a raw material for xylitol, a major ingredient in chewing gum, sweeteners, confectioneries and toothpaste. Apart from coconut shell, it can also be extracted from berries, spinach, broccoli, pears and corncobs.

 

"This used to be a very good project not only for the company, but also for local farmers in the country. Instead of throwing out the coconut shell, farmers can earn an extra five pesos to six pesos for a kilo of coconut shell," Forbes said.

 

The CJ Toyota Tsusho processing plant, which has a production capacity of 15,000 metric tons a year, sits on a five-hectare property across the San Miguel Brewery plant in Daraong, Sta. Cruz, Davao del Sur.

 

The company originally intended to export the natural sweetener to Japan, Korea, and the European Union.

 

Agriculture Secretary Proceso J. Alcala said his department is sending a team to look into the closure of CJ Toyota Tsusho and see if it would be possible for the company to resume operations. "It was reported to us that xylose sugar export has not been viable because the production cost is quite high than the selling value," Alcala noted.

 

"I am not sure if anyone from the joint-venture will push through... but I am sure to send a group to look into the situation," the Agriculture chief added. 

 

According to food industry news provider FLEXNEWS, CJ Toyota Tsusho Philippines is made up of four partner companies including CJ Cheil Jedang Corporation, Toyota Tsusho Corporation, Binggrae Co. Ltd., and local Philippine partner Anflo Management and Investment Corporation. — VS, GMA News