GOVT MUST SAVE
THE ‘TREE OF LIFE’
COCONUT oil is king of Philippine farm exports for many years, and for good reason.
Revenues from shipments of coconut oil have already breached the $1-billion mark, according to data from the Philippine Statistics authority (PSA).
In 2018, coconut oil exports were valued at $1.112 billion. But what concerns many, including the government, is that the figure is 31.1 percent lower than the $1.61 billion recorded in 2017.
The downtrend in coconut oil shipments has continued, based on the latest data from the PSA. From $196.78 million in the first two months of 2018, the PSA reported that coconut oil exports in January and February of 2019 fell by 42.1 percent to $114.036 million.
These figures bolster the apprehension of many stakeholders in the coconut sector that the entry of more palm oil into the Philippines and the possibility of a palm oil glut would further pull down demand for the king of Philippine farm exports.
The steep decline in shipments has now taken a toll on coconut planters as the farm-gate price of copra fell to as low as P15 per kilogram last year, from P40 per kg just a few years ago.
The situation became so alarming that the chief of the Department of Agriculture had to appeal to copra traders to peg their buying price at P25 per kg.
Unfortunately, it’s the market that dictates prices and if there are no copra buyers due to low demand, traders will not throw money away in the name of pakikisama.
Currently, there’s no indication that the situation will improve, particularly since major buyers of palm oil in the West are now turning away from it.
For one, the European Union is phasing out the use of palm oil, citing deforestation as reason. EU member-countries have started to cut their purchase of palm oil, forcing top producers in Southeast Asia to find other markets.
This development is particularly worrisome for the Philippines as palm oil accounts for more than a third of vegetable oils being traded worldwide, so it can influence the movement of international prices.
A palm oil glut would mean lower coconut oil prices and, consequently, lower demand for copra. With low demand, the farm-gate price of copra could decline further, adversely affecting the income of planters.
The only way for the Philippines to stop being hostage to price fluctuations in the international market is for the government to sell coconut products to a largely untapped domestic market.
The recent decision of the Department of Agriculture to position coconut water as the official “energy drink” of the Palarong Pambansa slated in the last week of April is a good start. (See, “Duterte urged to lift ban on export of coconuts,” in the BusinessMirror, April 15, 2019).
The government must continue promoting the health benefits of drinking coconut water so the youth will be enticed to consume it instead of buying sugar-laden drinks.
The government must also spend for research and development to create other consumer products from the tree of life. If there are no funds for R&D, perhaps the government can consider offering special incentives to manufacturers who will develop other coconut-based products.
The state must take the lead in creating an environment that is conducive for investments in the sector and act fast to save a threatened coconut sector.
(Photos attached to the Business Mirror Editorial showing the “Tree of Life” and its many uses were downloaded from public websites or taken by photographers of the Department of Agriculture.)
More Stories
Cotabato Agri Modernization Starts With Soil Study, Tests
Big Feed Mill Company Ready To Buy Corn, Sorghum, Soybeans From North Cotabato Farmers
Beauty Of Farm Life