First step

OIL MILLS TO BUY DIRECT

FROM COCONUT FARMERS

By Manny Piñol

At least 12 Coconut Oil Mills, including processors of high value Coconut products, have agreed to buy their supplies directly from organized farmers’ groups instead of middlemen and traders.

The direct marketing arrangement was reached today during the Coconut Industry stakeholders caucus convened by the Department of Agriculture in Quezon City.

Oil Millers said they buy their copra supplies to produce Coconut Oil from middlemen and traders at the current mill gate price of P22 to P24 per kilo.

This is almost double the buying price of Copra at farm gate which is between P8 to P12 per kilo.

Under the direct marketing arrangement, the DA through the Agricultural Credit Policy Council (ACPC) will provide organized Coconut farmers groups with working capital to buy the Copra Production of members.

This will be delivered directly to the Oil Mills who will pay the farmers at the price the traders are getting.

The DA will also provide the farmers groups funds for the purchase of hauling trucks and dryers.

The direct marketing arrangement will be implemented before the end of November.

Other measures to improve the earnings of Coconut farmers were also discussed, including:

– Implementation of Quantitative Restrictions to safeguard the industry from excessive Palm Oil importation;

– Increase of the Biofuel mix from B2 Coconut Oil to B5 mainly for government fuel supplies;

– Establishment of village-level processing facilities to be owned and operated by the farmers;

– Promotions advocacy by the DA on the benefits of Coconut Oil and other products;

– Insurance coverage for Coconut farmers whose farms were affected by pests.

The Coconut Industry stakeholders will meet again next week to ensure the implementation of the measures.

#OneProblemAtATime!

#KungGustoMaramingParaan!

#Changeishere!

(Photos taken during the Coconut Industry Stakeholders caucus in the DA Central Office today)