*HOW COCONUT FARMERS CAN BECOME RICH*

AGRIMAG

_The prevailing impression is that coconut farmers are the poorest farmers in the country. But
that should not be so, if only the practical ideas of the speakers at the recent National Coconut
Investment Summit are adopted._

By Zac B. Sarian

The summit was held at the Asian Institute of Management in Makati last February 26. It is really
true that most coconut farmers are living a hand-to-mouth existence because they rely too much
on the nuts they harvest for making copra. Farmers should be taught to look beyond copra
making, according to the speakers at the summit.

One of the speakers who shared his experience was Mayor Leonardo Javier of Javier town in
Leyte. He is the fellow who put up Andok’s Lechon Manok, which has become a nationwide
chain of roast chicken.

Javier town was one of the hardest-hit coconut-growing towns in Leyte by Super Typhoon
Yolanda. Many of the tops of the trees were blown off by the strong winds.
Mayor Javier thinks, however, that Typhoon Yolanda was a blessing in disguise for the farmers
in Javier town. The destruction was the perfect occasion for

Mayor Javier to tell his people not to look up to the bunches of coconuts above; rather, he told
his constituents that the wealth of their coconut plantations can be found down below.

*Intercrop*

What he did was to invite vegetable growing experts from seed companies to train the farmers
on improved vegetable production, using the latest varieties and other technologies.

They cultivated the spaces between the coconut trees so they could plant high-value vegetables
like tomatoes, eggplant, process, the land was enriched because of the inputs of organic
fertilizers. This did not only improve the harvest of the vegetables but also the yield of the
coconuts.

Today, Mayor Javier said, it is not uncommon for farmers in Javier to be selling Php5,000 to
Php15,000 worth of their harvests every week.

Aside from growing vegetables, the women were also trained to process various products from
coconut like virgin coconut oil (VCO), syrup, vinegar, vino de
coco or wine, and even tufted carpets.
*From Agusan*

Maximo Robles Jr., general manager of the KAAGAP Multi-Purpose Cooperative from San
Francisco, Agusan del Sur, had another inspiring story to tell at the summit. Robles and his
co-op members proved that even with very small starting capital, one’s enterprise can grow big
and profitable if one is industrious and well focused.

He said that they started their cooperative in 2002 with just 16 members and capital of just
Php8,500. Through their industry, their co-op now has assets in the millions of pesos and 542
members. At first, they started on hog raising as their project. But soon they decided to shift
their activities to the processing of coconut products. These include coco coir, vinegar, virgin
coconut oil, and coco syrup.

The co-op’s main product is geonet. This is made of coconut fiber that is made into rope and
then woven into geonet which is used in erosion control and to stabilize the soil. The co-op
produces 500 rolls of geonet worth R1.5 million a year. The geonet is one meter wide and 50
meters long. One roll is sold at Php3,000, mostly to the Department of Public Works and
Highways and other customers.

*From Bansalan*

Ben Lao had another story to tell. He related how he and the farmers in Bansalan, Davao del
Sur, have converted marginal grasslands into productive land. He is the president and CEO of
Lao Integrated Farms, Inc. Adopting the organic farming technique in underutilized rocky and
grassland areas, Ben Lao, a Magsasakang Siyentista, employed science-based technology to
transform once unproductive land in Bansalan.

The main crop is coconut and the major product is coconut sugar. To increase the production of
sap for coco sugar production, Lao encouraged neighboring farmers to apply vermicast and salt
to their coconut trees. The result was increased production of coconut sap, from four to six liters
of sap per tree a day.

Because of the excellent result of his intervention, he was motivated to mentor the neighboring
farmers to adopt his technique. This led to bigger volumes of sap for commercial coco sugar
production. The next step was to produce quality coco sugar so that it would meet export quality
standards. Lao worked on the certification of his coco sugar and enhanced packaging. He also
intensified the promotion of coco sugar (and other products of his group) locally and abroad
through his website, trade missions, and trade expos.

Lao related that he started with just three coco sap gatherers. Today, there are 132 gatherers,
which means that he has created new jobs for his fellow farmers in Bansalan. He said that when
one coconut tree is used for the production of coco sugar, the profit is almost three times
compared to when the tree is used for making copra. One coconut tree can produce 25 nuts in a
period of three months. Usually, 5 nuts make one kilo of copra. If the copra is sold at Php35 per
kilo, the gross sales amounts to Php175. Deduct the expenses amounting to Php80, and you
get a net income of R95 from one tree.

On the other hand, you can rent a tree for three months at Php90. The net income from each
tree is Php270 if you tap it for toddy and make that into coco sugar. It makes more sense to
produce coco sugar instead of copra.

*VCO Gone to the Dogs*

Yes, really. Virgin coconut oil (VCO) has gone to the dogs. But that is good news to the
producers and exporters of the healthful coconut product. At the recent national investment
summit, Rico Numano, president of U-Ene Philippines, said that one promising market for VCO
in Japan is the pet market, particularly dogs.

Numano’s company buys VCO from the Philippines for shipment to Tokyo. Aside from being
healthful for the dogs, VCO is said to keep the dogs calm. They don’t howl during nighttime if
they are regularly taking VCO. Howling at night could disturb the neighborhood.

Dogs are a favorite pet of the Japanese, according to Numano. In some families, there are more
dogs than children. And sometimes, dogs are treated better than children. They are even given
special food and also enjoy snacks.

Actually, Numano is targeting two other big markets for VCO in Japan. One is the dementia and
Alzheimers (D&A) market. He points out that VCO can improve the condition of dementia and
Alzheimers patients. The market is big because there are 4.6 million Japanese who are
suffering from D&A. On top of that, there are four million D&A candidates. He added that there
are 6,000 elderly facilities in Japan and these are all good markets to tap for VCO.

The third target market is the people who take food supplements, including VCO, as functional
food. The total value of food supplements in Japan was placed at US$ 16.9 billion in 2015, and
will increase to US$ 18.2 billion in 2017.

Numano’s company will closely collaborate with coconut farmers’ cooperatives in the Philippines
so they can increase production of VCO for the Japan market. They are ready to allocate Php10
million for the program. The funds can be loaned to the cooperatives for their operational
expenses and for the rehabilitation of undernourished coconut trees.

*Coco Industry Roadmap*

Meanwhile, Prof. Edel Guiza, undersecretary for operations of the Office of the President for
Food Security and Agricultural Modernization (OPFSAM), disclosed the roadmap for the
Philippine coconut industry in very simple terms. The target is to increase the profit of coconut
farmers by planting more coconut trees and enhancing yield through adequate fertilization. The
other strategy is to increase sources of income through intercropping with high value crops such
as coffee, cacao, and even high-value vegetables, and integration of livestock. Value adding is
another strategy so that high-value byproducts are produced rather than just the traditional
copra.

Another thrust is the development of science-based enterprises in the countryside. The

expected release of the Php70 billion coco levy fund will go a long way in helping achieve the
goals of developing a resilient and competitive coconut industry that is mindful of, while at the
same time protecting, the environment. The roadmap hopes to bring about inclusive growth that
will benefit all sectors, including small scale coconut planters.

Now, you see, the coconut industry is not hopeless after all.

This appeared in Agriculture Monthly’s April 2015 issue.

http://agriculture.com.ph/2018/04/14/how-coconut-farmers-can-become-rich/

******

*How profitable is coconut farming?*

Let's take the case of our farm in Sri Lanka,

The below method is based on a farm with drip irrigation lines installed. Both irrigation and
feryigation being done accordingly.

Tree spacing - 5m x 8m = 40sqm

Sqm per acre - 4046sqm

Trees per acre - 4046/40 = 101trees/acre

Nut selling price - $0.5/nut

Each tree produces an average 150 nuts per year.

Revenue/acre/year - 150 x $0.5 x 101 = $7575

Statistically, cost is recorded to be at around 54%. This includes irrigation, Fertigation, weeding,
plucking and dehusking.

Profit/acre/year - $7575 x 46% = $3484

The above would vary based on the local selling price of nuts along with labour costs as per
area.

Hemanth Loganathan,

************

*Approach To Make Coconut Farming Profitable*

January 8, 2015

The Philippine Coconut Authority (PCA) is taking a two-pronged approach to increase coconut
farmers’ income and to make coconut farming sustainable.

This was learned in an exclusive interview with Sec. Francis Pangilinan of the Department of
Agriculture who serves as the Presidential Assistant for Food Security and Agricultural
Modernization. He has been tasked to oversee four important agencies that include PCA,
National Irrigation Administration, Fertilizer and Pesticide Authority and the National Food
Authority (NFA).

*INCREASED PRODUCTIVITY* – One approach, according to Pangilinan, is to increase

productivity so the farmers will make higher incomes. And this can be achieved through proper
fertilization, replanting and intercropping.

The farmers should not only depend on coconut for their source of income. They can increase
revenues by planting in between the coconut trees high value crops like cacao, coffee, banana
and in some places abaca.

A diversified source of income will make the farmer gainfully occupied throughout the year. His
cash flow could be well distributed all throughout so that he does not experience any lean
season.

As part of the diversification strategy, farmers will be linked to companies or organizations that
can help them in terms of technology as well as in marketing. For example, Nestle which is in
the coffee business can make an agreement with a cluster of coconut farmers who will grow
coffee in between their coconut trees. Nestle can provide them with the right planting materials
as well as the technology to grow the coffee trees. Then Nestle will buy all the harvest of the
farmers that will meet the quality standards of the company.

To meet the quality standards, Nestle will have to teach the farmers good agricultural practices
in coffee production. Also, the farmers could also be taught how to manage their finances so
that they can invest some of their earnings in projects that will give them additional income.

*ENTERPRISE DEVELOPMENT* – The second approach, according to the food czar, is

enterprise development in the countryside. This means encouraging investors to develop
processing hubs that will undertake value-adding of coconut byproducts.

Pangilinan cites as example the commercial production of coconut coir, coco peat, coconut
water, coconut sugar and others. The Secretary would like to see an active role of the private
sector to come up with processing facilities in strategic areas that will convert the traditional
waste products into products of value. Processing the coconut husk into coconut coir and coco
peat, for instance, could provide job opportunities in the countryside. The coconut fiber which
could be made into coconet for erosion control has ready market in the Department of Public
Works and Highways as well as in the National Irrigation Administration. Not to mention the
export market.

In this connection, the PCA will conduct a coconut industry summit sometime in February where
businessmen, cooperatives, local government units, NGOs and other groups will participate in
coming up with a road map for the industry.

Pangilinan is very hopeful that with the release of the over P70 billion Coco Levy Fund, new
initiatives could be undertaken to jumpstart sustained development of the coconut industry. The
Supreme Court, he said, has already decreed that the Coco Levy Fund is a tax and therefore it
belongs to the government. The condition is that the Fund will have to be used only for the
benefit of the coconut farmers and the coconut industry.

The big amount, according to Pangilinan, could go a long way in boosting the farmers’ income
and in making coconut farming sustainable.

Pangilinan envisions clusters of coconut farmers producing the raw materials for processing in
facilities put up by private investors or by farmers’ cooperatives themselves. Pangilinan cites a
community that he visited in Thailand. There, a cluster of 32 farm families are producing the
requirements of five exporters of crops like basil, asparagus, kangkong and others.

The same idea could be adopted in the coconut producing areas. A cluster of coconut farmers
could produce the raw materials for processing such products as coco coir, coco peat, virgin
coconut oil and so on. Pangilinan said that a well known foundation in Quezon City is willing to
buy virgin coconut oil and coco sugar which it can sell to a big supermarket chain in the United
States.

Cooperatives will also be encouraged to undertake value-adding activities. That could create
new employment among family members of the cooperative. With employment opportunities
available in the countryside, there will be less people flocking to Metro Manila in search of
greener pasture.
Oh yes, there are benefits not only for the coconut farmers themselves but for the country as a
whole if only the coconut farmers are given a chance to increase their farm incomes. There will
be less migration to the crowded cities, for one.

https://www.zacsarian.com/two-pronged-approach-to-make-coconut-farming-profitable/