Coco exports may triple to $6 B

The country’s coconut exports may triple to $6 billion if the government intensifies its hybridization program and develop other value-added products that will boost farmers’ income.

Former agriculture secretary William Dar said the Philippines has the potential to earn more from coconut by increasing the productivity of coconut trees to 150 nuts per year using dwarf hybrids developed by the Philippine Coconut Authority.

The country’s current yield is only at 46 nuts per tree compared with other coconut-producing countries like India, Brazil and Mexico which ranges from 250 to 400 nuts.

“Through the years, we were content on meager yields due to poor genetics, nil fertilization, and limited replanting of tree stocks. Twenty percent of our coconut trees are senile, while most are planted in marginal lands that produce low yields,” Dar said.

He added that better yield could be achieved in well-managed plantations by augmenting hybrid technology as hybrids start bearing fruits in just a span of three to four years compared to the traditional varieties which would take up to seven years.

Last year, the Philippines earned $2 billion from exports of coconut products, more than half of which came from sales of coconut oil.

Dar is urging the government to focus on propping up the industry’s efficiency and competitiveness.

“The country’s coconut industry supply chain is largely made up of unorganized, small, marginal farmers who are inefficient and thus skew economies of scale regarding input supply, primary processing, marketing, and transport,” he said.

He also called for the neutralization of market threats from tariff and non-tariff barriers such as minimum residue levels and labelling regulations.

“We need science-based solutions to address low productivity, control pests and diseases, reduce post-harvest losses, create more value-added products, and integrate coconut farming with crops and livestock raising,” Dar said.

Dar said the government should also prioritize the establishment of coconut processing centers and post-harvest facilities, farm-to-market roads, irrigation systems, and extension service particularly credit and crop insurance.