Indonesia dislodges RP as top coconut producer in

LOS BAÑOS, Laguna – The Philippines is no longer the world’s top coconut producer.

It has been dislodged by Indonesia, the world‘s largest archipelago with 13,667 tropical islands.

Over the past four decades, the Philippines share in the global production of coconut consistently downglided – from 33.32 percent in the 1960s to 30.83 in the 1970s, 27.94 in the 1980s, and 24.42 percent in the 1990s.

On the other hand, Indonesia’s share increased consistently from 15.33 percent in the 1970s, to 24.50 percent in the 1980s, and to 27.12 percent in the 1990s.

Area-wise, Indonesia has similarly consistently increased her coconut hectarage over the past four decades. From 1.68 million hectares in the 1960s, it increased to 2.18 million ha in the 1970s, 3.12 million ha in the 1980s, and 3.63 million ha in the 1990s.

On the other hand, the Philippines’ hectare dwindled from a high of 3.3 million ha in 1985 to the current 3.03 million ha.

Norberto Boceta, executive director of the Jakarta, Indonesia-based Asia and Pacific Coconut Community (APCC), attributed the decline of the Philippines’ area to nonremunerativeness of coconut farming as a monocrop, increasing urbanization that gives way to land conversion, attempt to evade land reform, and rampant cutting of coconut trees owing to attractive prices of coconut lumber.

In a report entitled "The Race for Global Supremacy in Vegetable Oils Trade," Boceta noted that coconut oil has remained a minor player.

Soybean and palm oil are the frontliners. Palm oil is the undisputed leader, cornering 43.40 percent of the market, which is double that of soybean oil.

The two other oils whose share in production and export exceeds 10 percent are rapeseed and sunflower. The other minor players are groundnut (peanut), cotton, coconut, olive, palm kernel, corn, linseed, sesame, and castor oils.

Coconut oil is right in the middle of the 13 vegetable oils.

Since the 1980s, it has been clinging to its No. 1 position. That it slid down to No. 7 from No. 5 in the 1960s explains the structural changes occurring in the global oilseed market, Boceta emphasized.

Coconut oil’s share in the export market has been going down – from No. 3 exported oil in the 1970s to No. 4 in the 1980s, and finally to No. 5 in the 1990s.

The decline is explained by the stagnant coconut hectarage, senility of existing coconut stands, absence of an appreciable replanting program, on the one hand; and vigorously and consistently increasing production of major and other vegetable oils, on the other hand.

With the thinning market for coconut oil in its traditional uses, the challenge is for research and development efforts to be concentrated in the production and utilization of olea-chemicals and nutriceutical products, Boceta emphasized.

"The revitalization of the Philippine coconut industry deserves serious attention and action," he stressed. "The government should provide the policy environment for the private sector to undertake bold steps to produce and market high-value products which have niche markets locally and abroad."

The PCA, as the sole government agency mandated to oversee the rapid growth and development of the industry in all its aspects, should be at the forefront of all development efforts, he added.

Boceta averred that this thrust is indispensable considering that with the globalization trade, competition among vegetable oils is expected to intensify.

He stressed: "Competition will heighten not just in the foreign markets where these oils are traded, shipped out, and consumed. Intense competition is bound to happen in the local market as producer-exporters of these oils compete with the inflow of competitively priced substitute oils and meals. In the crucible of modernizing competition, only the fittest (best quality and competitively priced) will remain in the market. Others will inevitably fall on the wayside."