2013

OUTLOOK FOR THE

COCONUT INDUSTRY
PHILIPPINE COCONUT AUTHORITY
Bangko Sentral ng Pilipinas
6 March, 2013

Luzon
Visayas
Mindanao
I. A Glimpse of the Philippine Coconut Industry Performance
(2007-2011)
a. Production
Cocal Area
3.56 mln has. About 25% of
the agricultural lands.

68 out of 79 provinces are
coconut areas.

Coconut Trees
340 mln bearing


Nut Production
15.31 billion nuts/year (ave.
2007-2011)

Mindanao accounts for 59.81%
of total nut production.


1.13-M has
.67 M has
1.76 M has
99.30-M trees
68.59-M trees
171.96-M trees
3.61-B nuts
2.67-B nuts
8.92-B nuts
1. Hectarage & Bearing Trees
2008-2010 production years
showed significant growth
largely attributable to good
rainfall and the plantation
rehabilitation program of the
government.

2010 production at 2.92-M
MT breached the 2001 record
level at 2.83 mln MT.

Production declined in 2011 due to:

*Below normal rainfall due to El Nio phenomenon.

*Biological stress of trees after 3 consecutive years of heavy fruiting.
2. RP Coconut Production
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2008 2009 2010 2011 2012
I
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a

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b. UTILIZATION

The Philippine Coconut Industry is export-oriented. The international markets absorb about
70% of total production in the form of value-added coconut products.


0
0.5
1
1.5
2
2.5
2008 2009 2010 2011 2012
1.634
1.515
2.332
1.505
1.531
0.825
0.957
0.922
0.740
0.900
I
n

M
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s

EXPORT DOMESTIC CONSUMPTION
c. EXPORT EARNINGS

Export earnings from the coconut industry consistently registered the highest among that of all
other agricultural commodities.

AGRICULTURAL EXPORTS ( 2009-2011 Annual Average)
$1290-M, 30%
$402-M, 9%
$336-M, 8%
$282-M, 7%
$157-M, 4%
$1586-M, 38%
CNO & DCN Bananas
Tuna Pineapple
Tobacco Manufactured Seeweed & Carageenan
Others
3. Major Export Commodities

a. COCONUT OIL (CNO)
The Philippines leads all other major coconut oil producing countries in the
export of coconut oil.
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2008 2009 2010
847,626
826,237
1,342,511
649,255
570,311
692,500
596,821
401,001
511,592
I
n

M
T

PHILIPPINES INDONESIA OTHERS
b. RP Volume of export
In the last five years (2008-2012) volume of CNO export registered 6.22% GR pa.
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2008 2009 2010 2011 2012
I
N

M
T

CNO remained the biggest earner among all coconut products despite the volatility in
prices. It moved in harmony with the interplay of 17 fats & oils in the international
market.
1,219
712
936
1,715
1,164
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2008 2009 2010 2011 2012
I
N

U
S
$
/
M
T

b. DESICCATED COCONUT (DCN)
The Philippines likewise dominates the export of DCN
Average Annual Export Volume (2008-2010)
- 20 40 60 80 100 120 140
OTHERS
SRI LANKA
INDONESIA
PHILIPPINES
129
41
50
129
In Thousand MT
The DCN sector is a pillar of the export industry, second only to CNO in terms of
earnings. The last five years showed a growth of 5.74%
-
50
100
150
200
250
300
2008 2009 2010 2011 2012
240
146
153
287
200
I
N

M
I
L
L
I
O
N

U
S
$
,

F
O
B

c. COPRA MEAL

Copra meal immediately found a lucrative replacement to the European market. Korea surfaced a
strong market and was soon followed by Vietnam.
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2008 2009 2010 2011 2012
309,282
232,927
383,497
199,752
340,333
I
N

M
T

KOREA VIETNAM OTHERS
d. Some 30 non-traditional export products contribute to the industrys earnings.
Among them, five are seen as potential export winners.
EXPORT IN MT

2010 2011 2012
Virgin Coconut Oil 2,737 4,914 6,002
Coco Sap Sugar 36 70 220
Coconut Water *

1,807,583 16,685,350

17,935,952
Coconut Flour 494 742 564
Coir 4,223 6,026 6,174
* In Liters
II. PCA Intervention

A. MAJOR PROGRAMS

1. Planting/Replanting

a. Objectives

To ensure the long- term reliability of supply of coconut in the country to cope with
the increasing demand in the domestic and international markets;

Intensify coconut planting and replanting in areas identified as highly suitable that
gives high economic returns in the long term; and

Improve the current coconut populations through the use of PCA recommended
promising local cultivars and farmers identified best variety available in the locality.




b. Features

b.1. Participatory Coconut Planting

b.1.1.Participatory
Farmers sourced their own seednuts, sow and propagate in their own nursery to
produce good seedlings.

b.1.2. Incentive-based
Farmers shall be entitled to a monetary incentive of Php 40.00 per tree planted or
Php 4,000 per hectare

b.2. Agrikulturang Pantawid Pamilyang Pilipino Program (A4Ps) Coconut
Planting Program
A collaborative undertaking among DA, DSWD and the PCA.

PCA shall provide the seedlings sourced from the nursery established solely for
this purpose to the farmer-participants previously identified by the DSWD field
offices.

DSWD shall pay the farmers the amount of Php225.00 per day for a maximum
of 11 days covering the period spent for land preparation, holing and staking,
transplanting and initial care and maintenance activities.


C. Implementation

C.1. Planting

Suitable idle open areas are tapped using open pollinated varieties

Coverage: Nationwide

Priority areas are those suitable for coconut growing; predominance of
farm holdings of ten (10) hectares and below; contiguity of farms within one
barangay or municipality; and accessibility for easy monitoring and evaluation.

C.2. Replanting
Senile and unproductive trees cut in accordance with RA 8048
C.3. Establishment of Nurseries and Maintenance of PCA Seedgardens

2,107 nurseries will ne established to support the planting and replanting
project

The seednuts produced in the existing PCA seedgardens are used in the coco
planting project. These seedgardens are the PCA-ZRC in San Ramon,
Zamboanga; NCSPC in Aroman, North Cotabato; PCA-RC in Bago-Oshiro,
Davao; CVCSPC in Ubay, Bohol and PCA-ARC in Guinobotan, Albay.
2. Rehabilitation Through Fertilization
a. Objective:

* To improve the nutritional status of the soil in order to increase coconut
production

b. Features:
* Application of agricultural-grade salt or sodium chloride as form of
fertilizer to fruit-bearing trees.

* Advantage of using salt: cheapest coconut fertilizer; easy to apply;
increases the number of nuts produced and the thickness of the meat;
and enhance the coconuts resistance to pests and diseases, as well as
long dry spell.

c. Expected results
* 25% increase in production after a year of application
* 50% increase in production after the 2
nd
year of application

3. KAANIB Enterprise Development Project
a. Objective:

* To improve coconut farm productivity, increase income of the farmers
and generate additional jobs

b. Features:
* Establishment of KAANIB sites in partnership with Community-Based
Organization.

* Development of livelihood projects such as intercropping, livestock
raising, and processing /value adding

c. Expected results
* Increased farmers income from PhP 20,000 to PhP 100,000
* Increased farm productivity
* Generate additional jobs.

d. Impact to National Production

d.1. Planting and Replanting
a. Target area for 2013 - 175,000 has
b. Expected Output in terms
of nut production - 700 M nuts

d.2. Fertilization
a. Target area for 2013 - 200, 000 has
b. Expected Output in terms
of nut production

1
st
year - 1.0B nuts
2
nd
year - 1.2B nuts

d.3 KAANIB Enterprise Development Project
a. Target for 2013 - 414 KAANIB Sites
b. Expected increase in terms of
farm income - 400%
c. Jobs Generated - 62,100
Projects in Support of Food and
Agri-Based Industry in Coconut
Completed Projects
1. Effect of Virgin Coconut Oil in Humans with
Emphasis on Cholesterol

PCA funded the study amounting to P4.5M

Study conducted by UST-RCNAS

Study design:
- 1 tablespoon (15 mL)
- 3 times a day (one after breakfast,
after lunch and after dinner
- 189 respondents
- 4 months oral administration

Results:
VCO intake
Significantly increases the High Density
Lipoprotein (HDL or good cholesterol)

Reduces Triglycerides and Very Low Density
Lipoprotein (VLDL or bad cholesterol)

Improves Cholesterol/HDL ratio which can be
translated to making the individual less prone to
heart attack or stroke.


SOURCE OF VCO & PLACEBO
ORIENTATION OF VOLUNTEERS
Completed Projects
2. Development of High Electrolyte Low Glycemic Index
Ready-to-Drink Coconut Water

PCIERD-DOST funded

PCA-ADMU collaborative project

Study design:
Study 1 Biochemical profile at varying ages
and variety
Study 2 Development of coco water drink
Results:
Coconut water is a natural source of
electrolytes containing potassium,
sodium, magnesium, chloride, calcium;
the levels of which depend on maturity
and age.

Young coconut water has low glycemic
index which is good for diabetics.
Coconut Water Profile
VARIETY
FRUIT
MATURITY
(MONTHS)
SAMPLE
SIZE
ELECTROLYTE CONTENT (mmol L
-1
)
GLUCOSE
(g L
-1
)
PROTEIN
(mg mL
-1
)
pH TSS (Brix)
SPECIFIC
GRAVITY
SODIUM POTASSIUM MAGNESIUM CALCIUM CHLORIDE
AROMATIC
DWARF
(AROD)
n=40
5 5 2.09 0.57 42.05 14.58 1.97 0.79 2.99 1.21 30.29 12.23 30.50 3.30 7.53 2.53 4.95 0.12 5.72 1.08
1.0301
0.0017
6 5 2.96 0.71 49.11 11.23 2.55 1.63 3.09 1.04 30.74 9.70 32.88 1.83 8.81 2.35 5.64 0.33 6.21 0.64 1.0329 0.0012
7 5 2.96 0.94 49.11 20.72 2.22 1.03 2.69 1.18 30.01 10.31 27.88 7.53 7.40 2.16 5.84 0.33 5.72 0.63 1.0318 0.0032
8 5 5.31 0.84 59.03 3.23 2.22 0.37 3.19 0.84 38.53 3.62 19.23 2.93 8.49 1.40 5.57 0.28 5.40 0.46 1.0303 0.0027
9 8 6.96 1.32 57.90 3.99 1.65 0.58 3.12 0.61 38.68 7.28 7.02 3.17 7.60 1.94 5.76 0.36 4.61 0.54 1.0258 0.0015
10 4 7.72 0.55 58.31 1.55 2.16 0.70 3.62 0.59 45.55 7.32 6.09 3.81 11.42 1.49 5.41 0.25 4.43 0.76 1.0237 0.0015
11 5 7.48 0.71 59.49 1.74 1.73 0.68 3.24 0.93 47.44 7.52 2.77 1.73 11.20 1.01 5.80 0.31 4.79 0.56 1.0261 0.0022
12 3 6.38 0.25 51.58 1.41 1.10 0.24 3.24 0.25 36.76 1.92 1.42 0.19 9.52 0.36 6.05 0.06 4.98 0.45 1.0269 0.0015
CATIGAN
DWARF
(CATD)
n=39
5 5 2.61 0.69 48.19 5.56 3.21 0.98 4.89 0.45 34.36 5.51 24.85 1.50 5.28 3.02 5.03 0.33 5.30 0.43 1.0259 0.0030
6 5 3.65 0.24 56.98 5.81 2.80 1.10 5.64 0.55 33.68 2.80 21.48 4.22 7.66 2.08 5.83 0.15 5.52 0.56 1.0261 0.0010
7 5 5.05 0.39 47.11 5.28 3.29 0.50 4.74 0.50 32.04 1.10 15.91 2.73 7.47 2.15 5.50 0.11 5.01 0.52 1.0260 0.0036
8 4 4.78 0.62 43.22 7.22 3.50 0.71 4.30 0.47 32.01 3.97 2.42 0.53 7.10 1.06 5.33 0.10 3.70 0.50 1.0225 0.0015
9 5 4.44 0.94 46.55 2.31 3.62 0.54 6.79 0.65 31.48 3.81 4.16 3.20 9.82 2.27 5.21 0.09 4.43 0.32 1.0233 0.0017
10 5 4.87 0.65 45.83 2.04 3.95 0.62 5.99 0.35 33.23 2.84 1.82 1.04 7.44 1.31 5.37 0.17 3.95 0.62 1.0219 0.0051
11 5 4.70 1.21 39.59 5.68 3.29 0.41 4.94 0.80 28.60 5.66 1.29 0.14 10.11 2.58 5.71 0.09 3.33 0.50 1.0185 0.0021
12 5 4.52 0.66 36.93 3.87 3.46 0.75 5.09 0.91 27.92 6.52 2.32 3.33 11.89 1.24 5.76 0.17 3.91 0.59 1.0207 0.0022
LAGUNA
TALL
(LAGT)
n=40
5 5 2.52 0.57 52.07 14.17 2.72 0.99 6.24 2.20 41.91 12.08 16.20 1.60 4.88 0.96 4.92 0.07 3.50 0.20 1.0198 0.0016
6 5 2.52 0.19 58.83 5.91 2.22 0.23 5.04 0.97 41.18 2.30 22.79 3.29 5.91 1.38 4.74 0.05 3.55 0.88 1.0209 0.0019
7 5 1.91 0.39 44.20 8.59 2.14 0.94 3.34 1.04 28.38 8.30 25.14 2.74 8.01 2.42 4.98 0.13 3.06 0.87 1.0256 0.0025
8 5 2.35 0.50 51.61 3.24 1.97 0.54 3.04 0.37 31.37 0.83 27.28 3.31 6.53 2.48 5.06 0.11 3.40 1.15 1.0269 0.0011
9 5 2.78 0.58 65.07 2.97 1.89 0.55 3.74 1.09 34.13 3.88 25.54 2.12 5.33 1.32 5.49 0.44 4.03 0.56 1.0267 0.0021
10 5 3.13 0.89 59.44 3.21 2.30 0.37 4.49 0.00 36.61 2.59 18.45 5.24 5.5 2.13 5.34 0.15 3.29 1.16 1.0261 0.0025
11 5 4.78 1.63 63.48 8.11 2.22 0.47 3.74 0.81 32.78 5.60 18.10 8.18 5.51 1.69 5.68 0.17 3.56 0.74 1.0254 0.0021
12 5 4.00 1.21 62.41 10.19 2.22 0.37 4.19 0.62 35.71 3.60 13.52 8.39 4.87 1.49 5.61 0.22 3.30 0.96 1.0251 0.0042
Generally, the biochemical and physico-chemical properties of coconut water are
dependent on the variety and maturity of the fruit. The levels of Magnesium and
Chloride were not significantly different with the maturity of the fruit, but differs
significantly with variety.




ELECTROLYTES
Formulated
Coco water
drink
(mg/100 ml)
Commercial
Sports Drink
(mg/100 ml)
Oral rehydration
solution (WHO,
2001)
(mg/100 ml)
Potassium 196 11.7 78.20
Sodium 14 41 172.42
Chloride 76 39 230.44
Magnesium 6 7 None
Electrolyte Level of Formulated Coco Water Drink,
Commercial Sports Drink and ORS
Glycemic Index of selected coconut products
Coconut Product
Serving size
(g or ml)
Available
CHO
GI Classification
Coconut sap 160 25 682 Medium
Coconut syrup 33 25 394 Low
Coconut sap sugar 25 50 354 Low
Coconut water 100 4.8 464 Low
Formulated
Coconut water
100 4.7 544 Low
High-Electrolyte, Low-Glycemic and Ready-to-Drink
Coconut Water Beverage
Completed Projects
3. Production and Nutritional Studies of Coconut Flour
PCA funded

PCA-FNRI collaborative project

Study design
Study 1- Production, utilization and
marketing of coconut flour
Study 2- Nutritional and health benefits of
coconut flour


Results:
Coconut flour produced from coconut
residue contains high content of dietary
fiber.

Coconut dietary fiber can help in the
proper management of cardiovascular
disease and diabetes.



FOOD PRODUCT GI VALUE CLASSIFICATION
Pan de sal (5%) 87 + 6 High
Granola bar 65 + 5 Medium
Cinnamon bread 63 + 4 Medium
Macaroons 46 + 3 Low
Choco chips cookies 61 + 5 Medium
Carrot cake 52 + 3 Low
Source: PCA, FNRI
I. Research Updates
Glycemic Index of Some Coconut Products
SWEET COCO
PAN DE SAL
PAN AMERICANO
Other Product Development Activities
Analysis of coco sugar has shown that the glycemic index is
low which is good for normal and diabetics.

Packaging and shelf-life studies on good quality coco sugar
and coco syrup proved that the shelf-life is one year using
PE bag or more using aluminium PE bag under room
temperature conditions.

Development of Philippine National Standards of Coconut
Sugar, VCO and Coco Flour has been used as quality
requirements in the export of coconut products.



Coconut Sugar in PE and Laminated
Plastic Bags







III. PROSPECTS


a. Production in 2013 is forecast to recover by 4.22% and reach 2.618 million MT (copra
equivalent). This forecast is anchored on favourable weather, adequate rainfall, and
the governments productivity enhancement program.

b. Coconut oil exports will continue to scale higher as global demand for alternative fuel
rises and the need for edible oils from emerging economically progressive populous
countries such as China, India and Russia continues to grow at a fast pace.

c. Coconut very well responds to the global need for naturally healthy great tasting
foods. Our coconut is non-GMO and organically farmed. Coconut oil is trans fat-free
and has no cholesterol.

d. New coconut food products are being developed. These products are marketed on a
platform of nutrition. Additionally, they cater to the health needs of the physically
infirm.
e. Coconut products do not destroy the environment.

Non-food coco products will remain strong in the industrial markets. The
markets for soaps, detergents and other cleaning agents and personal care
products which used oleochemicals is almost unlimited.

The unlimited market for coir products is vast.

Coir products help restore Mother Natures beauty and vigor by
rehabilitating agricultural lands and preventing erosion of top soil.

Air is kept clean through the use of biofuel.

THANK YOU


EUCLIDES G. FORBES
Administrator
Philippine Coconut Authority
Diliman, Quezon City
Tel. No.: 928-45-01 loc 201 to 206
Email: pca_ofad@yahoo.com