Coco farmers urged to produce high-value products

MANILA, Philippines - Agriculture Secretary Proceso Alcala has urged coconut farmers to step up the production of high-value products to reduce reliance on coconut oil exports.

Coconut oil remains the agriculture sector’s top dollar earner but it is prone to price swings in the international market and is easily substituted by cheaper plant oils.

During the recently-held 2nd National Coconut Farmers’ Conference held at the Bureau of Soils and Water Management, Alcala urged farmers to form village-level processing hubs that use newer technologies in processing high-value products from coconut such as virgin coconut oil and coconut skimmed milk which are also exported.

Traditional coconut exports include copra meal, copra oil, activated carbon, virgin coconut oil, coconut water, coco sap sugar, coco coir and desiccated coconut.

The United States, Japan, Germany, the Netherlands and China remain the top destinations for the country’s coconut products.

Such village-level production centers can obtain assistance from DA-accredited non-government organizations and local government units that can provide technical assistance in the establishment and operation of processing plants.

These village-type processing centers, Alcala said, can complement the planned coconut processing industrial estates that would be put up to serve the needs of larger investors.

During the conference, the government and the coconut industry maintained that the coco levy funds recovered by the government should be put in a trust fund and only the interest would be spent for projects that can have immediate impact on small coconut farmers.