In celebration of the 50th anniversary of the Philippine Coconut Authority (PCA), it is opportune to highlight three important initiatives that will uplift the coconut industry and support our farmers. As the top coconut exporter globally, with 3.5 million farmers and farm workers contributing to the industry’s success, we face challenges from global competitors and the industry remains the poorest in our country. The recent availability of the P130 billion coconut levy fund provides an opportunity to address this critical situation. Additionally, we must heed the call for unity from our president, which involves improving communication and cooperation between government and the private sector, as well as between the Department of Agriculture (DA) and the Department of Trade and Industry (DTI), and between farmers and agribusinesses in the private sector. Within this context, three recommended coconut initiatives are as follows:
1. Coconut Methyl Ester or CME: The 2003 Biofuels Act stipulates that CME should make up 5 percent of diesel by 2020. Currently, the CME level is only at 2 percent. Some argue that increasing the mix will raise fuel prices. However, research from the Asian Institute of Petroleum Studies demonstrates that the savings obtained from increased mileage using CME far outweigh the costs, resulting in a 500-percent return on investment. This economic advantage, along with the benefits of increased farmer incomes and reduced carbon footprint, makes it imperative to increase our CME biofuel usage to 5 percent. While an undersecretary from the Department of Energy previously expressed concerns about the distribution of increased coconut revenues, this kind of reasoning contradicts the unity approach. Increasing the CME mix to 5 percent would benefit everyone, with an additional income of P12.8 billion.
2. Intercropping: Currently, two million out of our three million coconut hectares do not undergo intercropping, resulting in the underutilization of our lands. Intercropping with crops such as cacao, banana, and coffee can substantially increase coconut farmers’ income. For instance, the Philippine Statistics Authority reveals that we import 80 to 85 percent of our coffee, presenting an opportunity to surpass imports while generating more jobs and increasing farmers’ incomes. The Rainforest Alliance has shown that through the PCA’s public-private coconut-coffee program, coffee yield can increase significantly, resulting in improved livelihoods for farmers.
3. Coconut Products: Encouraging the development of related industries can diversify the coconut industry beyond copra and create more employment opportunities. Producing desiccated coconut, coconut oil, coconut water, oleochemicals, activated carbon, and other downstream products can unlock the full potential of each harvested coconut. Dean Lao Jr., chair of the United Coconut Association of the Philippines, highlights the importance of government support in expanding exports and creating more jobs. Collaboration with establishments such as Target in the United States, Coles in Australia, and Aldi in Germany can help promote and sell our coconut-based export products in the global market. By focusing on high-value products catering to the growing high-end, health-conscious consumer market, we can achieve higher incomes compared to traditional copra.
Through these three initiatives, the PCA can play a transformative role in revitalizing our neglected coconut industry and improving the lives of our coconut farmers.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
