DA in talks with foreign investors to establish coconut industrial estates

The Department of Agriculture plans to establish coconut industrial estates as part of efforts to promote the downstream industry for coconut products.

According to Agriculture Secretary Proceso Alcala, the department is in talks with foreign investors for the construction of five small agri-industrial facilities and two large agri-inudstrial estates.

On a billion-peso industrial estate, said Alcala, "it will not stop with crude coconut oil production; on that estate you can produce coconut oil, oil chemicals, and all other byproducts that can be produced by coconuts. Hopefully, coconut water can be finished there too."

If the DA's investment plan pushes through, the world may soon be awash in coconut water, virgin coconut oil and other coconut byproducts, including chips, jam, vinegar, frozen coco meat, liquid coco milk, coconut milk powder, macapuno, coco liquor, coco coir and coconut handicraft.

"The five small [facilities] will be built this year, which can be close to the farmers. And afterwards we will focus on making the big ones that could aggregate for exports," said Alcala.

He said that the department is eyeing islands such as Panay as pilot areas.

The first phase of construction for the five small agri-industrial facilities will begin this year, with the facilities scheduled to open next year.

"For [a] plant to run, its capacity should be at least 5,000 nuts a day," said Alcala.

Philippine Coconut Authority administrator Euclides Forbes also cited records indicating that 30 coconut products and byproducts were among the country’s leading agricultural exports, with export earnings totaling $1.5 billion last year.

"Instead of us exporting raw materials, we should establish more infrastructures to provide value-adding in our coconut products," he said.

The total value of the country’s coconut exports grew 23.17 percent in the first three months of the year to $2.922 million.

Forbes attributed the increase in export volume to favorable weather conditions and the effectivity of the department's fertilization programs.

Data provided by PCA showed that from January to March this year, coconut volume increased to 3.912 million metric tons versus last year's 1.987 million metric tons.

Of the total export value, coconut oil remained the top dollar earner for the industry, contributing $202.6 million, followed by desiccated coconut ($29.2 million) and copra meal ($25.2 million).
 
The United States, Japan, Germany, the Netherlands, and China remained the top destination for the country’s coconut products.
 
For coconut oil, Forbes said that exports are expected to reach 925,000 MT this year.
 
“This year, we expect better performance in CNO exports as our markets recover from last year’s economic slowdown. Also, prices have started to recover, which is very encouraging for us,” he said.
 
Exports of coconut water fell 41 percent to $26.1 million in the first quarter $44.9 million the same period a year ago. The volume is also down to 2.721 million liters versus 4.783 million liters last year.
 
"Coco water is still an emerging product and the sales of that one is around $24 million per year only, unlike other traditional products. As a matter of fact, if you notice, [copra sales are in] the hundreds of million dollars," said Forbes.

Forbes said that the the PCA is implementing an accelerated coconut planting and replanting program, and that it has already accomplished about 97 percent of its seedling distribution target.
 
This year, the PCA aims to plant 17.5 million coconut seedlings nationwide to establish a new record in the number of seedlings planted by an administration.
 
The Aquino government, through the PCA and the Department of Agriculture, has already planted 238.125 million coconut trees from July 2010 to December 2012.
 
“If we achieve our target for this year’s program, we shall surpass the 294 million seedlings planted by the Arroyo administration,” Forbes said.
 
The PCA has implemented the planting and replanting scheme through a participatory coconut planting program (PCPP) – a cash-for-work program that pays each farmer-participant P20 per seedling sown in his nursery and another P20 after it is planted and grown in the farm.
 
Forbes also said the PCA aims to duplicate last year’s record of 20 million coconut trees fertilized. The agency's project funds have grown by three times from P500 million in 2011 to P1.7 billion in 2012. — BM, GMA News