Funding gaps hinder coconut development plan

MANILA, Philippines — The country’s coconut development plan continues to face funding gaps due to limited operational budgets and underutilized allocations, which have limited implementation, according to the Philippine Coconut Authority (PCA).

In its terminal report of the Coconut Farmers and Industry Development Plan (CFIDP), the PCA said that despite adequate funding for the program, proponents have reported delays and limited operational budget in its implementation.

At the same time, market linkages and enterprise development for coconut farmers continue to be the weakest component of the development plan.

The agency said there has been a recurring delay in procurement and low utilization of funds, despite the availability of substantial program funds.

Citing focus group discussions, the agency said that government procurement procedures had substantially prolonged the acquisition of livestock, machinery, planting materials, feeds, veterinary supplies and other production inputs.

Implementing agencies also said that fund releases were slowed down by mismatched timelines, delayed inter-agency funding and long procurement procedures.

Implementing agencies of the CFIDP include the PCA, the Philippine Center for Postharvest Development and Mechanization, Technical Education and Skills Development Authority and the Department of Trade and Industry.

The report urged the government to strengthen procurement planning, conduct earlier procurement preparation and implement more efficient administrative procedures.

Implementing agencies have also reported that operational funds remain inadequate relative to the geographical scope of implementation and the increasing number of beneficiaries.

Among the reported lack in budget are for field monitoring, technical assistance, extension services, beneficiary validation, supervision and travel.

“This gap resulted primarily from the high operational requirements associated with implementing nationwide agricultural programs,” the report noted.

It added that implementing agencies had to reach far-flung coconut-producing areas, requiring extensive field travel, regular farm monitoring, beneficiary consultations and continuous technical supervision.

The PCA noted that available operating expenses were often insufficient to support these activities.

“The implication is that while project appropriations adequately finance program components, insufficient operational funding limits agencies’ ability to sustain quality implementation and provide continuous field-level support,” it added.

The agency said that future budget planning should align program investments with adequate funding to secure effective oversight and sustain the program.

Meanwhile, the report stated that market linkage and enterprise development have remained the weakest component of the CFIDP.

This was mainly due to marketing challenges, unstable prices, limited processing facilities, inadequate value addition and insufficient enterprise development services, despite the delivery of production support.

“This occurred because implementation efforts focused primarily on increasing production during the early years of the CFIDP, while downstream interventions such as agribusiness development, processing, marketing and value-chain integration received comparatively less emphasis,” the report said.

Agencies also noted that improved production alone was not enough to raise farmer incomes without sustained market access and enterprise support.

It added that there is a need to strengthen value-chain development, agribusiness promotion, cooperative marketing and post-harvest support.

The CFIDP is a program designed to modernize the country’s aging coconut sector and improve the income of about 2.5 million coconut farmers. It is funded by the P75-billion coco levy fund.