The Coconut Industry
The Philippines is the world’s second largest producer of coconut products, after Indonesia, and accounts for 59 percent share in world coconut exports.
The coconut industry is a dominant sector of Philippine agriculture: Of
the 12 million hectares of farmlands, 3.25 million hectares are devoted to
coconut. 25 million Filipinos are directly or indirectly dependent on the
industry, resulting in annual average of 6.0 percent contribution to GVA and
1.1 percent to GNP.
Forty-eight percent of all coconut is planted in Mindanao but it produces 56 percent of the total production. Davao region is the top producer in the island.
In terms of Gross Value of Production, the crude oil processing is the
major sector in the coconut industry. Coconut oil accounts for 85 to 95 percent
of the total coconut exports by volume and 80 percent by value. The far second
major sector is the activated carbon production. The industry is also finding
new products and uses this “Tree of Life”.
These sectors like the coconut water processing, coir fiber production, virgin coconut oil, etc. contributes a minimal gross value to the industry.
The major players in the coconut industry cluster are:
- Oil mill companies,
- Thousands of coconut farmers
- Copra/coco-shell charcoal traders
- Activated carbon processors
In Davao Region, through the Davao Industry Cluster Capacity Enhancement Project (DICCEP), the predecessor of NICCEP, stakeholders have come together to produce various new products in developing the coconut industry. In coming up with new products, the so-called waste from the production of virgin coconut oil are being utilized. The juice is processed into vinegar while the shells are transformed into export quality accessories to bags and some other gifts, decors, and houseware (GDH) products.
With DICCEP, new income sources for the coconut farmers and SMEs in coco processing have been developed.
Generally, the Coconut Industry Cluster aims to strengthen the regions’ position as the top coconut
producer in the country. It involves the diversification of coconut products to
include food and non-food downstream industries.
With Davao as the pilot, Coconut Cluster is promoted in Regions 2, 3, 4A, 5, 9, 10, 12 and 13.