Marcos OKs add'l P3.5-B funding for coconut industry

Malacañang on Wednesday announced that President Ferdinand R. Marcos has approved the additional funding of P3.5 billion for the improvement of the country's coconut industry.

Presidential Communications Secretary Cheloy Garafil said Marcos approved the implementation of massive coconut planting/replanting and fertilization programs amounting to P1 billion and P2.5 billion, respectively, under fiscal year (FY) 2025.

Under the government’s Philippine Coconut Industry Development Plan 2024-2034 (PCIDP 2024-2034), the Philippine Coconut Industry aims to plant 100 million coconut trees by 2028. 

To fully implement the project, Marcos also approved the PCA’s proposal to increase the fertilization program funding to P2.5 billion under the 2025 coconut planting project.

Garafil said Marcos approved the additional budget during Tuesday's sectoral meeting in Malacañang. 

She noted that the latest development in the coconut industry is in response to the President’s directive in October last year, where he asked the PCA to present “a detailed plan to develop the coconut industry in all areas of the value chain, together with the necessary funding and the timeline to accomplish its targets.”

“So that’s why I’m focusing on the production side and that’s what we have to increase. The critical part of that is the replanting,” Marcos said. 

The PCA plans to plant or replant a total of 100 million coconut seedlings on 700,000 hectares of land by 2028 nationwide “to increase coconut production by 4.7 billion valued at P33.1 billion by 2034.”

Marcos emphasized the push for a replanting program is an important project for the country to boost its coconut industry’s huge market potential. 

“That’s why we still maintain our very high position in terms of coconut products exports because despite the fact that we have neglected the coconut industry over so many years, we still, I think we’re number one pa rin,” Marcos said.

“And despite the fact that we are really working with very limited raw material because nga hindi nag-replant puro matanda na ‘yung mga trees natin. That’s why this replanting is important,” he added.

In support, the Department of Agriculture (DA) will also implement intercropping programs, while farmers wait for the growing coconut trees.

Among the crops that will be planted include coffee, cacao, and bananas. 

Meanwhile, Marcos ordered PCA  to work closely with the Cooperative Development Authority in consolidating farmers’ groups and associations so they can smoothly implement the massive planting/replanting program. 

The 10-year PCIDP plan was developed to address the critical constraints of the low growth rate of the coconut industry in terms of production, low nut yield due to the aging coconut tree population, natural calamities, pests and diseases, poor farming, and insufficient budget allocation. 

The PCA earlier proposed a P102.02 billion budget to be utilized within 10 years—covering the implementation, monitoring, and evaluation of the PPAs. 

Garafil said the government also took note of the coconut farmers’ meager incomes due to their very limited participation in the coconut value chain and inability to diversify to other coconut products aside from copra. 

Among the government’s ongoing projects include the development of hybrid coconut seed farms, a nursery for planting and replanting, and research; training of farmers and their families, research, marketing, promotion; crop insurance; credit programs; infrastructure development; scholarship programs; as well as health and medical program. 

The government also pushed farm improvements through diversification and/or intercropping, shared facilities for processing; as well as empowerment of coconut farmers’ organization and their cooperatives.

The Philippine coconut industry contributed US$3.22 billion to the country’s export earnings in 2022, equivalent to 43 percent of total agricultural exports.