2013

OUTLOOK FOR THE

COCONUT INDUSTRY
PHILIPPINE COCONUT AUTHORITY

Bangko Sentral ng Pilipinas

6 March, 2013
I. A Glimpse of the Philippine Coconut Industry Performance
(2007-2011)
a. Production

1. Hectarage & Bearing Trees

Cocal Area
Luzon  3.56 mln has. About 25% of
the agricultural lands.
1.13-M has
99.30-M trees  68 out of 79 provinces are
3.61-B nuts coconut areas.

Visayas Coconut Trees

 340 mln bearing
.67 M has
68.59-M trees
2.67-B nuts Nut Production
 15.31 billion nuts/year (ave.
2007-2011)

Mindanao  Mindanao accounts for 59.81%

1.76 M has of total nut production.
171.96-M trees
8.92-B nuts
2. RP Coconut Production

2008-2010 production years

showed significant growth
3.00
largely attributable to good
2.50
rainfall and the plantation
rehabilitation program of the
In Million MT, Copra Terms

2.00 government.

1.50
2010 production at 2.92-M
1.00
MT breached the 2001 record
level at 2.83 mln MT.
0.50

0.00
2008 2009 2010 2011 2012

Production declined in 2011 due to:

*Below normal rainfall due to El Niño phenomenon.
*Biological stress of trees after 3 consecutive years of heavy fruiting.
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.

EXPORT DOMESTIC CONSUMPTION

2.5 2.332

1.634
In Million MT, Copra Terms

1.515 1.505 1.531

1.5

0.957 0.922 0.900

1 0.825
0.740

0.5

0
2008 2009 2010 2011 2012
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%
$1586-M, 38%

$157-M, 4% $402-M, 9%
$282-M, 7% $336-M, 8%

CNO & DCN Bananas

Tuna Pineapple
Tobacco Manufactured Seeweed & Carageenan
Others
3. Major Export Commodities
a. COCONUT OIL (CNO)

1,400,000
1,342,511

1,200,000

1,000,000
847,626 826,237
800,000 692,500
649,255
In MT

596,821 570,311
600,000 511,592
401,001
400,000

200,000

-
2008 2009 2010
PHILIPPINES INDONESIA OTHERS

The Philippines leads all other major coconut oil producing countries in the
export of coconut oil.
 b. RP Volume of export

1,400,000

1,200,000

1,000,000

800,000
IN MT

600,000

400,000

200,000

-
2008 2009 2010 2011 2012

In the last five years (2008-2012) volume of CNO export registered 6.22% GR pa.
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.

2,000

1,800 1,715

1,600

1,400
1,219
1,164
1,200
IN US$/MT

1,000 936

800 712

600

400

200

-
2008 2009 2010 2011 2012
b. DESICCATED COCONUT (DCN)

The Philippines likewise dominates the export of DCN

PHILIPPINES 129

INDONESIA 50

SRI LANKA 41

OTHERS 129

- 20 40 60 80 100 120 140

In Thousand MT

Average Annual Export Volume (2008-2010)

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%

287
300

240
250

200
200
IN MILLION US$, FOB

146 153
150

100

50

-
2008 2009 2010 2011 2012
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.

400,000 383,497

340,333
350,000
309,282
300,000

250,000 232,927
199,752
IN MT

200,000

150,000

100,000

50,000

-
2008 2009 2010 2011 2012

KOREA VIETNAM OTHERS

d. Some 30 non-traditional export products contribute to the industry’s 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 coconut’s 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 2nd 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
1st year - 1.0B nuts
2nd 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
FRUIT ELECTROLYTE CONTENT (mmol L-1)
SAMPLE GLUCOSE PROTEIN SPECIFIC
VARIETY MATURITY pH TSS (Brix)
SIZE SODIUM POTASSIUM MAGNESIUM CALCIUM CHLORIDE (g L-1) (mg mL-1) GRAVITY
(MONTHS)
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
AROMATIC 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
DWARF 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
(AROD) 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
n=40
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
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
CATIGAN 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
DWARF 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
(CATD) 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
n=39
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
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
LAGUNA 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
TALL 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
(LAGT) 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
n=40
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.
Electrolyte Level of Formulated Coco Water Drink,
Commercial Sports Drink and ORS
Formulated Oral rehydration
Commercial
Coco water solution (WHO,
ELECTROLYTES Sports Drink
drink 2001)
(mg/100 ml)
(mg/100 ml) (mg/100 ml)
Potassium 196 11.7 78.20
Sodium 14 41 172.42
Chloride 76 39 230.44
Magnesium 6 7 None
Glycemic Index of selected coconut products
Serving size Available
Coconut Product GI Classification
(g or ml) CHO
Coconut sap 160 25 68±2 Medium
Coconut syrup 33 25 39±4 Low
Coconut sap sugar 25 50 35±4 Low
Coconut water 100 4.8 46±4 Low

Formulated
100 4.7 54±4 Low
Coconut water
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.
I. Research Updates
Glycemic Index of Some Coconut Products
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
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 government’s 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 Nature’s 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