Coconut producers seek government help

CEBU, Philippines — The United Coconut Associations of the Philippines (UCAP) is seeking for government help for coconut producers in the country to maximize its market potential in both local and global markets.

UCAP chairman Dean Lao Jr., said PCA is asking the National Biofuels Board (NBB) to fully implement Republic Act 9367 or the Biofuels Act of 2006, which requires a 5-percent blend of coco methyl ester in local biodiesel.

According to Lao the implementation of this legislation will instantly strengthen the local coconut industry.

This and other issues faced by the coconut producers in the Philippines will be discussed on the upcoming 2nd World Coconut Congress Conference and Exhibition to be held from August 27 to 29, 2019 at the SMX Convention Center in Pasay City.

The conference will also tackle important industry issues like supply and value chain management, best practices in coconut farming, oleochemicals situation and outlook, coconut marketing dynamics, and health and wellness.

Lao reiterated that the demand for coconut oil should be bolstered to help augment revenues lost for farmers due to external market force.

Based on the latest information released by the Philippine Statistics Authority (PSA), the country’s coconut product exports jumped to 43.6 percent in December 2018 compared to the figure in December 2018.

However, gross export income dropped 9.9 percent in the same period to $139.9 million (P7.3 billion) from $155.21 million (P8.07 billion).

The culprit to this decline that has been affecting the industry for some time according to the report is, the low coconut oil prices in the market. This price fluctuation is influenced by the supply and demand in the global market of other leading vegetable oils (particularly, soybean, palm, corn, and rapeseed).

  Likewise, one of the identified ways to boost local demand is to increase the coconut oil component in locally produced biodiesel to 5 percent (B5) from the current 2 percent (B2). For quite some time now, local industry stakeholders have been pushing for this move—which they claim will not only boost revenue of farmers but will also do well for the environment.