Korean firm Daesang Philippines, Inc. is said to be investing PHP756.24 million in a project that would assist local cassava growers, according to the Board of Investments (BOI).
Daesang is constructing a tapioca starch production facility in Tagoloan, Misamis Oriental, that is expected to open in January 2023. It will employ 492 people. In a year, the factory will produce 33,000 tons of tapioca starch and 4,446 tons of tapioca residue.
Tapioca is a root extract made from cassava. The food and beverage sector uses tapioca starch and modified starch as raw ingredients. Polylactic acid, which is extensively used for biodegradable plastic films, bottles, and medical devices, is another growing substance for many industrial uses.
Animal feeds are made from tapioca leftovers, a by-product of cassava starch production.
Daesang chose Northern Mindanao, the country’s second-largest cassava-producing region, since the production factory will require 500 tons of fresh cassava each day.
This provides a chance for local cassava producers to meet Daesang’s needs.
The new initiative, according to Trade Secretary and BOI Chairman Ramon Lopez, is “making steps in modernizing our country’s agriculture industry.”
The Trade Secretary said that Daesang’s investment in the Philippines is a result of stronger economic connections between Manila and Seoul, who are negotiating on a bilateral free trade deal (FTA).