MANILA, Philippines — The Department of Agriculture, through the Philippine Coconut Authority (PCA), is pushing for the increase in coco methyl ester (CME) content of biodiesel from two percent (B2) to five percent (B5), in a bid to create more demand and jobs for the coconut industry.
“To increase the demand for coconut and sustain the livelihood of farmers, the DA-PCA — in coordination with the Department of Energy (DOE) and other members of the National Biofuel Boards (NBB) — continuously exerts efforts to implement the mandated increase in the use of (CME) biofuel blend,” the DA said in a statement.
The PCA has presented to the NBB the projected production data for the next five years (2022-2026) to guarantee that there is a sufficient feedstock requirement for B5.
It also proposed policies and regulations to ensure that farmers will directly benefit from the B5 policy.
CME is a biofuel made from coconut oil that is converted to a diesel-substitute while exhibiting combustion-improving properties to lower harmful emissions and improve mileage.
The Biofuels Act of 2006 or RA 9367, enacted in January 2007, directs the use of biofuels and the increase in the contribution of biofuels in the country’s energy mix to reduce dependence on imported fuels, enhance the quality of the environment, and create opportunities for livelihood.
PCA administrator Benjamin Madrigal earlier said that aside from its positive effect on the environment, health and fuel efficiency, one of the benefits of hiking the biodiesel blend to B5 is the increased domestic utilization of crude coconut oil (CNO).
This would lessen the country’s dependence on the unstable world market price for copra, CNO and other coconut-based products, he said.
“The increase in the domestic demand for coconut oil through the full implementation of B5 will definitely improve the copra farm gate price and will eventually redound to the benefits of our farmers,” Madrigal said.
Other direct impacts of B5 implementation include the restoration of engine efficacy due to clean combustion with more power and mileage efficiency, reduction of greenhouse gas emissions, and foreign exchange savings on fuel import which amount to about P13.6 billion per year.
Agriculture Secretary William Dar said the crafting and implementation of the Coconut Farmers and Industry Trust Fund Act (RA 11524) will also increase the productivity and incomes of millions of marginal coconut farmers and their families as it would modernize and industrialize the coconut sector.
RA 11524, which was signed by President Duterte in February 2021, will make use of an initial P75-billion coconut levy to implement a Coconut Farmers and Industry Development Plan (CFIDP) in the next five years.
Under the law, the DA-PCA will pursue a number of programs such as hybridization; farm improvement through intercropping systems; animal integration; and the establishment of shared facilities for rural processing ventures.
Other programs also include the provision of social protection; empowerment of coconut farmers’ organizations/cooperatives on entrepreneurship; provision of credit and market support services; infrastructure development; and the conducting of innovative research and policy studies.
“These programs will be implemented by respective agencies, each pursuing a plan, strategies, criteria in selecting beneficiaries, and allocation as approved by the CFIDP-Trust Fund Management Committee (TFMC) to ensure proper fund utilization,” Madrigal said.
“It is noteworthy that in anticipation of the passage of RA 11524, we crafted a Coconut Farmers and Industry Roadmap CocoFIRM to assess the current state of the industry and determine its competencies and strategic direction. It also served as the blueprint and basis in determining the programs and projects identified in the CFIDP,” Madrigal said.