Tree of life

The Philippines is no longer the world’s biggest exporter of coconuts.

The country has already yielded its crown, which it has held before, to Indonesia which is now the world’s top coconut exporter with exports valued at $2.5 billion this year.

According to one report, coconut oil comprises over 60 percent of Indonesia’s coconut exports, with the country accounting for over 55 percent of global supply of coconut oil. It is said that its large-scale production and low labor costs have given Indonesia a competitive advantage.

The Philippines is now second, with coconut exports worth only $1.3 billion, which are already 12 percent higher compared to the previous year. Coconut oil, copra and fresh coconuts are its major export commodities, with the country also emerging as a leading exporter of desiccated coconut and coconut water in recent years due to increasing processing capacity.

Coming in at a close third is India, with exports valued at $1 billion. It is said that the country’s export promotion policies have accelerated growth of processed coconut product exports, with exports of coconut water and milk powder rising substantially.

Then there’s Vietnam at fourth spot, with exports valued at $650 million, desiccated coconuts comprising 85 percent. It is said that Vietnam has rapidly increased its coconut exports over the past decade.

Others in the top 10 are Sri Lanka at fifth ($600 million), followed by Mexico ($400 million), Thailand ($380 million), Papua New Guinea ($240 million) and Dominican Republic and Ghana at ninth and 10th spot. The top 10 countries accounted for around 80 percent of total global coconut exports this year.

One top report noted that the Philippines tends to concentrate on producing the more traditional products such as coconut oil, water and desiccated coconuts while Indonesia is very strong at producing sap-based products such as coconut sugar, nectar and coconut aminos.

The Philippines is also the third biggest coconut producer next to India and Indonesia.

Coconuts are still the country’s biggest agricultural export, with coconut oil accounting for the largest shares.

And the wonder nut continues to amaze, with more than 60 products now being derived from coconut, the reason why it is called a tree of life, according to the Philippine Coconut Authority. Any part of the coconut, from the trunk to its fiber, from the shell to the water, can be used to develop high-value products, the United Coconut Associations of the Philippines said.

But make no mistake. Nothing much has really been done to improve our coconut production, which is produced by small farmers whose farm sizes lack the necessary economies of scale. According to one report, coconut farmers are often smallholders with limited resources, many of them being tenants or farm caretakers who lack access to modern farming techniques, credit, and markets. Coconut farmers, it noted, are not bankable and lack the requirements to secure loans. They remain poor because they are heavily reliant on the success of their coconut harvest and do not have diversified income sources.

One report revealed that while there are 347 million coconut trees in the country planted on 3.6 million hectares, around 20 percent are already senile meaning their yields are low and need to be replaced.

For the past years, the country’s coconut output has remained flat at 14 million metric tons, with an average yield of 44 nuts per tree which is considered very low compared to hybrids which yield 80 to 100 nuts.

It is just a matter time before other countries catch up, with the Philippines’ position in the international market constantly being threatened, especially with our coconut production stagnant.

The President has recently heeded the call of coconut farmers to revitalize the coconut industry to reclaim the country’s position as the leading coconut producer in the world when he announced plans to plant 100 million coconut seedlings all over the archipelago.

We now have the P75-billion coconut levy fund which is being held by the government in trust for the coconut sector.

After more than four decades of awaiting the recovery of the controversial coconut levy fund, in 2021, former President Duterte signed Republic Act 11524 or the Coconut Farmers and Industry Trust Fund, which will set in motion reforms in the coconut industry and provide efficient utilization of the trust fund in accordance with the Coconut Farmers and Industry Development Plan (CFIDP) or the benefit of 2.5 million coconut farmers and their families and the coconut industry in general.

From 1971 to 1982, the government collected money from coconut farmers by imposing levies, taxes, charges, and fees for selling copra. The collections were supposed to go to a fund to finance coconut research, extension, credit services and other programs and projects to benefit the coconut industry in general. However, subsequent lawsuits filed by coconut farmers with the help of the PCGG after former president Ferdinand Marcos Sr. fled the country in 1986 alleged that cronies of the Marcos administration diverted the funds to finance their own business interests.

The High Court however in 2012 settled the ownership of the coco levy funds and declared the money as being owned by the government.

The trust fund now being held by the government is supposed to be released in accordance with the CFIDP. Immediately upon the enactment of the law, P10 billion should have been released to the trust fund, and then P10 billion in the second year, P15 billion on the third year, P15 billion on the fourth year, and P25 billion on the fifth year.

Our coconut farmers, however, have been complaining about the slow rollout of programs that would benefit them and the industry.

Many of the original contributors to the coco levy funds are already long gone but it is never too late for the succeeding generation of coconut farmers to reap the benefits. The coconut tree will continue to be the tree of life and we have hardly tapped its huge potential. But our government has to act fast lest we lose our markets which we may never be able to recover. We have to diversify our coconut products into higher value ones. We have to start planting more higher yielding coconut seedlings and help farmers produce and market more efficiently. Time is of the essence.

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