Exports of the country’s agro-based products jumped by more than a third in January to June to $3.25 billion, from last year’s $2.37 billion, according to the latest data from the Philippine Statistics Authority (PSA). Of the total agro-based products exported during the period, shipments of coconut products accounted for a chunk of export earnings, led by coconut oil. Coconut oil alone accounted for more than $1.26 billion of the export receipts in the first half.
PSA data indicated that shipments of all coconut products recorded increases during the period. Coconut oil, the top farm export, more than doubled, while desiccated coconut shipments surged by nearly 32 percent. Export earnings from other coconut products more than tripled, the PSA said.
The jump in shipments of the country’s top farm export was largely due to the surge in demand for products that make use of coconut oil. The recovery of major economies and the loosening of Covid-related restrictions have boosted demand for soaps, detergents, as well as bread products. Coconut can also be used in manufacturing edible fats and vegetable shortenings.
The easing of quarantine restrictions not only in the Philippines but also in many parts of the world has likewise resulted in an increase in the consumption of products that make use of desiccated coconut. The reopening of restaurants pushed up the demand for meat products, such as pork and beef. The revival of the food and beverage industry resulted in an increase in the uptake of copra meal, which is used for manufacturing animal feeds.
Even before the pandemic, the coconut sector has already been contributing significantly to the country’s overall export receipts. Despite the numerous challenges it faced, such as aging coconut trees and threat of pests, the sector has never failed to prop up farm exports. In fact, the sector has even managed to surpass the export earnings of fruits and vegetables, including bananas, mangoes and canned pineapple in January to June.
The latest PSA data illustrate the importance and the potential of the sector to generate more export dollars for the Philippines. Key to enabling the sector to increase its contribution to export receipts is boosting its productivity. More productive coconut trees and diversification would mean more income for millions of coconut farmers.
The government has already rolled out the Coconut Farmers and Industry Development Plan, which will be funded by the Coconut Farmers and Industry Trust Fund pursuant to Republic Act 11524 (See, “DA launches CFIDP to boost Philippine coconut industry,” in the BusinessMirror, June 27, 2022). One of the goals of the CFIDP is to boost the country’s average annual coconut production to 150 nuts per tree from the current 45 nuts. The CFIDP also has other programs including health and medical, crop insurance, scholarships, training and farm schools, organization of cooperatives and associations, and hybridization operations.
Increasing the income of coconut farmers is also one of the primary goals of CFIDP. This is an important goal given the crucial role of planters in ensuring the country’s food security. We hope that the money allocated for the plan will eventually allow the Philippines to further boost its export receipts from coconut, which will help Filipino coconut farmers increase their income.
Image credits: Dreamstime.com