FRESH VIEWPOINTS: A NEW PERSPECTIVE

By Brian James Lu

Revitalizing the Philippine coconut industry

November 24, 2023, 10:00 am

Over the years, the Philippine coconut industry has been in the doldrums. Despite our place in history as the world’s leading coconut producer, the Philippines now ranks second, next to Indonesia. India is fast catching up, and perhaps in a few years, we may become laggards in coconut production. Our position in the international market is now threatened unless the government acts fast to arrest the declining situation of the Philippine coconut industry.

President Ferdinand R. Marcos Jr. has heeded the call of coconut farmers to revitalize the coconut industry to claim the country’s position as the leading coconut producer in the world. Under his administration, the Department of Agriculture (DA) and the Philippine Coconut Authority (PCA) plan to plant 100 million coconut seedlings all over the archipelago. This is an ambitious project that only a determined presidency can accomplish. Thanks to the president’s awareness of the need to accomplish a feat never seen by coconut farmers.

The coconut, often hailed as the "tree of life," has been a fundamental pillar of the Philippine agricultural landscape for centuries. It sustains livelihoods, provides versatile products, and contributes significantly to the country's economy. However, despite its cultural and economic significance, the coconut industry faces multifaceted challenges, impacting production and the lives of coconut farmers.

Among foreign traders and conquistadores, it was Pigafetta, the chronicler of Ferdinand Magellan, who historically jotted down the significance of the coconut trees. He said that all parts of the coconuts are used by the “inhabitants” to sustain their lives. It supplies them with their houses, food, and medicine, among others. And the wonder of it all is that it just grew in appropriate locations all over the archipelago.

Indeed, when the world discovered the coconut, the Philippines immediately stood as the world's leading coconut producer, with vast coconut plantations spread across the archipelago. These plantations yield copra (dried coconut kernel) used to extract coconut oil, which is a key export commodity. The industry supports millions of farmers and their families, offering them a source of income and sustenance. However, the productivity of these plantations has been declining due to various factors. Aging trees, low farm productivity, susceptibility to diseases like coconut scale insects and lethal yellowing disease, and adverse weather conditions have contributed to decreased yields.

In 2013, Typhoon Yolanda alone damaged an estimated 2.5 million coconut trees. The decline in productivity has placed immense strain on the livelihoods of coconut farmers. There are approximately 347 million coconut trees in the Philippines, planted on 3.6 million hectares. Approximately 20 percent of the trees are senile, meaning their yields are low and need to be replaced.

Coconut farmers are often smallholders with limited resources. Many of them are tenants or farm caretakers, and they face an array of challenges. Firstly, the aging coconut trees result in lower yields over time. Secondly, the prevalence of pests and diseases not only decreases productivity but also requires costly interventions that impact the already slim profit margins of these farmers. The coconut farmers are also affected by the fluctuating global market prices for coconut-based products, which create uncertainty and vulnerability.

There is also the issue of land tenure and lack of access to modern farming techniques, credit, and markets, which exacerbate the difficulties faced by coconut farmers. Coconut farmers are said to be “not bankable” since they are poor and lack the requirements to secure loans, even from government institutions. The absence of diversified income sources leaves them heavily reliant on the success of their coconut harvest, making them particularly susceptible to market volatility and environmental factors.

It is, thus, timely for the PBBM administration to embark on a strategic plan to utilize the Coconut Levy Fund, which has long been aspired to by the coconut farmers. The Coconut Levy Fund, collected from coconut farmers during the Marcos Sr. era, aims to support the development of the coconut industry. Recently, efforts have been directed towards replanting and rehabilitating coconut farms.

The government's plan involves the distribution of high-yielding coconut seedlings to farmers, promoting intercropping techniques to diversify income, providing technical assistance and training, and implementing disease control measures. These initiatives are geared towards increasing productivity, improving the quality of coconut produce, and ensuring sustainable farming practices.

The Mindanao area is a principal focus for the planting and replanting of coconuts since there are more open areas. It is a policy of the PCA to not allow the cutting of trees in favor of another variety, such as the coconut. The Davao Region remains the top producer of coconut. To strengthen the coconut industry in the area, the PCA is focusing on coconut hybridization. Hybrid coconut is said to be more resilient to water stress, diseases, and pests. According to the PCA, the hybridization program is an innovation of the Department of Science and Technology—Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (DOST—PCAARRD). It involves a process of combining the best coconut varieties to produce superior hybrids that grow faster, produce more fruits, and are resilient to diseases and pests.

Frankly, I am happy that our scientists are doing their best to help in the revitalization of the coconut industry by using science as the key. Rather than looking for imported materials, our local scientists from the government are more knowledgeable about producing varieties that reflect the aspirations of Filipino farmers.

The government has also prioritized infrastructure development in coconut-producing regions, such as irrigation systems and roads, to enhance accessibility and efficiency in transporting coconut products to markets. Additionally, programs offering financial aid, access to credit, and market linkages aim to alleviate the financial burden on coconut farmers and empower them to invest in their farms.

There are groups that are demanding that the Coconut Levy Fund be equally distributed to coconut farmers. This is not practical since most of the members have already died, and there is no list of official members who contributed to the fund. It is more practical to use the fund to revitalize and develop the coconut industry for the benefit of all coconut farmers and the economy in general.

The Philippine coconut industry, while facing numerous challenges, holds immense potential for growth and revitalization. The Marcos government's initiatives signify a step towards rejuvenating coconut farming, improving farmers' livelihoods, and enhancing the industry's competitiveness in the global market.

Sustainable practices, technological advancements, and holistic support systems are essential to ensuring the long-term viability and prosperity of the coconut industry. By addressing the concerns of coconut farmers, implementing efficient farming methods, and fostering a conducive environment for the industry's development, the Philippines can again strengthen its position as the number 1 coconut producer in the world.

Editor’s note: The opinions expressed in the foregoing article are solely the author’s and do not reflect the opinions and beliefs of the Philippine News Agency (PNA) or any other office under the Presidential Communications Office.

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About the Columnist

Image of Brian James Lu

BRIAN JAMES J. LU, MMgt, is an entrepreneur, business adviser, government consultant, and is deeply involve in civil society organizations. He advocates good governance, ethical business practices, and social responsibilities. He is the President of the National Economic Protectionism Association (NEPA) and Chairman of the Foundation for National Development (Fonad). His broad experiences in the private and public sectors give him a unique perspective to advance his advocacies.