PH coco industry needs improvement

THE Philippine coconut industry is yet to reach its maximum potential, particularly when it comes to coconut oil production and value adding, the United Coconut Associations of the Philippines (UCAP) said recently.

UCAP said the billion- dollar industry lags behind those of India and Indonesia, despite the Philippines remaining the world’s top exporter of the commodity.

Data from UCAP showed that the country’s coconut oil (CNO) exports in 2017 reached $1.461 billion for a 30-percent increase from the $1.050 billion generated the prior year.

“It is the biggest agricultural export, yet there is way more we can do specially in higher value product exports”, UCAP Chairman Dean Lao Jr. said.

“Local demand for coconut oil can also be bolstered to help augment revenues lost for farmers due to external market forces,” he added.

Philippine Statistics Authority data from 2016 showed there are about 3.6 million hectares of land planted to about 338.7 million fruit-bearing coconut trees, accounting for 26 percent of total agricultural land in the country.

Average coconut yield is 4,000 nuts per hectare annually, which is lower compared to world leader India that has an average of 10,000 nuts per hectare every year.

Lao said the coconut industry can do better as CNO has potentials that can contribute to the improvement of the country’s total agriculture output.

“Coconut oil can be used to produce countless products—from cooking oil to food ingredients, medicines, and natural consumer goods like soaps and detergents,” he added.

Earlier this month, the Philippine Coconut Authority (PCA) requested the National Biofuels Board to raise cocobiodiesel blend in automotive diesel from the current 2 percent to 5 percent to boost the price of CNO.

PCA Administrator Romulo de la Rosa said the move to increase the coco-biodiesel blend “could effectively support coconut farmers and farm workers” who are threatened by the declining prices of CNO in the international market.

UCAP also said the advocacy will create new demand for coconut oil and bolster coconut farmers’ revenue.

“More importantly, the inclusive benefits to the country include less dependence on oil importation, less forex outflow, and mileage improvement for motorists,” it added.

For 2018, PCA projected CNO exports could decline by at least a fifth to $1.2 billion from lower international prices.