#MINDANAO

The popularity of online cooking shows has brought the world greater appreciation for Asian food. A good portion of these dishes are made with coconut. As the world’s second-largest producer of coconuts after neighboring Indonesia, the Philippines can supply this growing need for coconut ingredients, and may yet emerge as an attractive destination for investors seeking to produce value-added products from the proverbial tree of life.
Thai Coconut Public Company is building a manufacturing facility at the Anflo Industrial Estate in Panabo City in Davao del Norte, wisely positioning its plant in the country’s largest coconut-producing region, near deep water ports that can bring its products to a wide world of buyers.

This investment complements the other large coconut processors such as the various CIIF Oil Mills, Century Manufacturing, Axelum Resources,  and the Franklin Baker company, as well as various coconut and activated carbon manufacturing companies all with major plants in Mindanao. This and other news in the coconut sector reveal how corporate interest is growing in our coconut sector, making coconut production and processing a viable investment. Manufacturing can be boosted beyond the usual downstream products such as desiccated coconut and coconut oil.

A key policy measure of the Philippine government for the coconut industry is the passage of Republic Act (RA) 11524 in 2021 under the Duterte administration, which established the Coconut Farmers and Industry Trust Fund (CFITF) that will finance plans to revitalize the industry.

Another is the increase of the Coconut Methyl Ester (CME) content of our diesel fuels from two percent to three percent as mandated under Department of Energy Department Circular No. 2024-05-0014. This CME blend percentage is expected to increase in the coming years. In a Nov. 8, 2024 Manila Bulletin article by Gabrielle Christel Galang, the measure is expected to require 900 million coconuts, producing 100-200 million liters of CME by local biofuel manufacturers. As the blend increases, so does the demand for coconuts to fill this local need. More jobs in this industry are expected.
There may also be a growing interest in the broader manufacture of construction materials from coconut coir. These being manufacturing investments mean that the creation of other related jobs is expected, such as machine shop services, renewable energy production, transport, janitorial, canteen, and security services that create even more jobs.

These policy developments and investments in coconut processing can increase demand. The country’s coconut farms is the single biggest agricultural sector by employment at about 2.5 million farmers. It would be a good idea to monitor developments in the implementation of these measures and the growth of such investments. What else can be done to boost the coconut sector? Apart from boosting demand for coconuts, the Philippine Coconut Authority, the Department of Agriculture, and selected local governments can encourage the establishment of robusta coffee supply chains among its farmer beneficiaries. Lowland robusta coffee varieties grow well between coconut trees. With the increase in coffee shops nationwide, demand for locally grown robusta coffee beans is expected to increase, if it has not already gone up. Growing more of these means added income for coconut farmers.
The growth of the coconut sector in the country is one of the keys to our manufacturing future, and will create jobs for the next generation.