As output falls short, farmers chart options
DAVAO CITY — Coco farmers and the industry’s regulator meet here next month for a three-day conference in a bid to address low productivity ahead of a 2025 target to boost output by a third to 3.330 million metric tons (MT).
The conference, dubbed as the “Cocolink: Bridging Industries Sustainability,” takes place on July 27-29.
“Low productivity is still the top problem of the coconut industry in the Philippines,” said Reynaldo Go, chair of the Davao Region Coconut Industry Cluster, Inc. (DRCIC).
He said the annual 67-nuts-per-tree yield of coconuts in the Davao Region — while better than the 47-nuts-per-tree yield nationwide — is still not as productive compared to those of other countries which can reach up to 80 nuts per tree per year.
Aside from lack of productivity, the coconut industry is also faced with lack of access to direct credit, lack of high-yielding seed varieties, existence of low-income farms and rehabilitation of farms.
“One of the primary purpose of the conference is to promote intercropping of coconut since it has been proven to improve income,” Mr. Go said. It also aims to encourage coconut farmers to go for value-added and look for other viable coconut products aside from copra.
Mr. Go said coconut farmers should consider the potential of producing coco coir fiber and twines for geonets. Geonets, which are used by the Department of Public Works and Highways to prevent soil erosion and flood control in road construction, are viable for export to other Asian countries.
He said Filipino farmers should learn how to efficiently produce coconut twines to keep up with their Indian counterparts who produce a variety of products from coconut coir including carpets and rugs. Instead of just throwing coconut husks after the copra meat is scooped out, farmers should use it to make coco coir.
2025 ROAD MAP
Greater productivity is important if the sector is to achieve goals under its 2011-2025 road map, which aims to increase coconut production to 3.330 million MT from 2.523 million MT.
Realizing the income-earning potential of this agricultural product, incoming Agriculture Secretary Emmanuel Piñol has recommended the implementation of the Coconut Productivity and Rehabilitation Agenda (COPRA) Program under the new administration.
With the aim of improving coconut productivity and rehabilitating coconut farms, the COPRA Program covers at least 600,000 hectares of land to be planted or replanted with coconut under a plant now, pay later scheme in the next six years.
Mr. Piñol said farmers should be encouraged to farm fields with cacao, coffee, abaca, black pepper and other crops which will not only add to their income but will also help boost coconut production. “We used to be the number one in coconut production but where are we now?” he added.
Philippine Coconut Authority (PCA) Davao Region Manager Rex B. Buac earlier said coconut farmers can get a bigger share of profit if they add value to their coconut products instead of being a mere producer of copra.
Mr. Buac said the advent of the high value niche market for emerging coconut products such as virgin coconut oil ( VCO), coco water and coir fiber and the fast developing market of these products offer a good prospect for Mindanao’s export industry.
“Mindanao has 53% of the total coconut production area in the country and 65% of the total volume of coconut water in the country but ironically only 0.36% of this is being processed and exported,” he said.
He said up to 90% of the total production of coconut in the Philippines is devoted to copra and coconut oil which utilizes only 35% of the whole nut.
There are also 30 non-traditional export products that contribute to the industry’s earnings. Five of these are considered as potential export winners namely VCO, coco sap sugar, coconut water, coconut flour and coco coir. Coconut flour is the food-grade product that is obtained after the coconut is dried, expelled and extracted, while the VCO is the natural oil obtained from fresh coconut after extraction.
The export of VCO from 2011 to 2013 has increased at an average rate of 40%. Among the major export destinations of VCO are the United States, Canada, Japan, United Kingdom, New Zealand, Australia, Russia, Finland, Lithuania and Turkey. However, the largest bulk of Mindanao’s exports went to the US, its largest export market.
Mr. Buac said the world needs 700,000 tons of coco fiber per year, but the country can only supply an estimated 500,000 tons of coco fiber. “About four million metric tons of coco husk or 64% of the total volume in the country is also here in Mindanao,” he said.
“Coconut water could potentially earn the country $450 million a year considering that the country produces 15 billion nuts annually,” he said. Mr. Buac said the export of coconut water has increased tremendously due to its high nutritional benefits. Among the major importing countries of coconut water are the US, Japan, Brazil, Australia, Netherlands, Canada and Germany.