Use your coconut

“Use your coconut.” This is what teachers used to say to students who answer questions without thinking things through.

Globally oriented businessmen can say the same thing to some government officials who are missing the opportunity to propel our coconut industry into its rightful global leadership position.

Two interviews

Last November 2, after attending the burial of Father Guido Arguelles – who together with Father Jose Blanco inspired many activists to use their hearts in fighting for social justice – some colleagues and I were motivated to visit the Philippine Coconut Authority (PCA), an attached agency of the Department of Agriculture (DA).

The use of the heart in fighting corruption is being done admirably by Agriculture Secretary Proceso Alcala at the DA and Administrator Euclides Forbes at the PCA.

However, two aspects of “using your coconut” came up in our post-burial discussions. First, are we in fact making the most of our coconut products, given their great revenue potential? Second, are we “using our coconut (brain)” in formulating the best plan to accelerate our agricultural growth and increase farmer incomes?

We were later able to discuss both questions with PCA Administrator Euclides Forbes and Deputy Administrator Carlos Carpio.

Administrator Forbes

Forbes has been fighting for the welfare of the disadvantaged all his life. He has now shifted his battlefield from human rights to economic development. He lamented that there was initially little budget support for PCA. Whereas more than P30 billion in the 2012 budget had been earmarked for rice farmers, less than P1 billion had been allocated for coconut farmers in the budget submission to Congress.

There are not only more coconut farmers than rice farmers; they are also poorer. Also, coconut farmers have been deprived of the benefits of the coconut levy, which they themselves contributed to for many years.

There are 3.3 million coconut farmers covering 3.4 million hectares in 68 out of our 79 provinces. Though 25 million farmers depend on this industry, support has been woefully inadequate. Father Guido often emphasized this fact.

Forbes said that last year, budget support for the coconut industry amounted to only P504 million. It was increased to P549 million this year and P693 million next year. This is a pittance compared to the more than P30 billion for rice.

Fortunately, the House of Representatives has increased this with an additional P500 million, while the Senate is contemplating a supplemental P500 million.

But how will this money be spent? The past years saw the crafting of road maps that unfortunately do not have the breadth, depth, and thorough research that characterize a good master plan. Even the most recent coconut master plan, completed more than nine years ago in August 2002, does not meet a master plan’s minimum requirements.

For example, there is no global environmental scanning, no analysis of market trends, and no assessment of competitor countries’ strengths and weaknesses. We badly need a complete and updated coconut master plan.

Deputy Administrator Carpio

In a follow-up interview, Carpio gave a dismal picture for the coconut industry. For our 3.4 million hectares of coconut land, three key areas have to be addressed.

First, one-third of this land has senile and unproductive trees. Tree-planting should take place immediately.

Second, two-thirds of the land does not benefit from even the most basic fertilization. According to Rolando Dy, AF 2025 Commercial Crops Coordinator, investing P2,000 in basic salt fertilization will yield an additional P10,000 for the first year and P20,000 for succeeding years. Using better fertilizer nutrients, this yield can be multiplied five-fold.

Third, only one-third of the land benefits from intercropping. Products like coffee and cacao can be planted between the coconut trees and yield an internal rate of return of 30 percent or more. But this has not been done due to lack of good business plans and accessible financial packages.

Recommendation

Involvement in the coconut industry should not be regarded as social work, but as business. Business creates jobs and increases incomes. Doing good business, which encourages sustainable self-reliance and dignity, may well be the best social work.

Intentions using the heart are good, but results achieved by also “using the coconut (brain)” are even better. We recommend full support for Forbes and Carpio as they introduce strategic thinking, economic savvy, solid business plans, accessible financial packages (especially from the coconut levy), and a credible coconut industry master plan. This way, we can claim we are finally “using our coconuts” for the coconut industry.

The author is chairman of Agriwatch, former secretary for presidential flagship programs and projects, and former undersecretary for Agriculture, and Trade and Industry. For inquiries and suggestions, e-mail [email protected].