Mindanao is the capital of export agriculture and agro-processing. Through the ports in Davao and Cagayan de Oro flow the pineapples, cavendish bananas, and coconut products destined for the world. If in last week's column I wrote about other industries that can boost Mindanao’s economic growth, I would like to feature in this week's edition some major industries in Mindanao’s agribusiness sector that are worth looking into, given recent developments, and how these can help us imagine Mindanao as an industrial power- the agro-industrial value chain.

Among these are the recent acquisition of the Metro Pacific Group of Franklin Baker’s coconut business and the consolidation by Century Pacific of coconut operations in South Cotabato, General Santos and Misamis Oriental. The Oct. 16, 2025 Manila Bulletin article by James Loyola cites a $45 million investment by Century Pacific in the third facility in Mindanao, this time in Tupi, South Cotabato, boosting production and employment to 800. These developments suggest the long-term viability of the coconut industry on the island, which now is the source of about 61 percent of total Philippine coconut production.

For reference, the Philippines competes with India to be the second or third largest producer of coconuts in the world, producing around 14 million metric tons per year. Coconut lands account for 26 percent of the total agricultural production area.

This corporate consolidation and expansion has the potential to boost production and employment further to keep us among the world’s top producers. The salient fact we should note is that these are industrial-level coconut processing facilities producing a wider variety of products such as coconut water, dessicated coconut, milk, and other items, attesting to a further diversification of the industry and products beyond traditional coconut oil.

The value it adds to the local economy will be higher since the demand for various types of packaging products, specialized logistics, and warehousing services for these finished goods is likely to create demand from local suppliers and add to their own volumes of business. Chances are, the coconut products your relatives abroad use to make homegrown recipes will be Philippine-made, even if they are branded differently.

Last September, the Davao Investment Conference highlighted how Mindanao’s rubber sector has attracted investments that have built a substantial value chain around it. Rubber from North Cotabato and adjacent areas is now made into tennis balls in Davao del Norte by Austrian-owned Head, a global brand in tennis. Again, this is an agro-industrial value chain being built, as sustained local demand will add local value to the otherwise raw rubber material. These tennis balls will find themselves in courts around the world.

Often, the question is asked if local farms can produce enough raw materials for the global demand. This is where the government must come in to help farms boost production to meet the growing demand. Local governments and regional offices of relevant agencies must come together to help the farms sustain higher levels of production. The benefit of such efforts means better local incomes that benefit the larger community.

These developments in coconut and rubber show that more robust agribusiness value chains in Mindanao have the potential to not only create employment opportunities at the factory level, but also boost demand at the farm level as well. Mindanao’s potential as an industrial power can be seen in such examples, and I believe there can be more.

In next week’s column, I will look into other areas where we can imagine Mindanao as an industrial power.