Republic of the Philippines

Department of Agriculture
PHILIPPINE COCONUT AUTHORITY
Diliman, Quezon City

A Briefing Guide on the Subject:

“Coconut Industry Production Status, Growing Zones,
Productivity and Potential to Increase Nut Supply in
Coconut Farms through Practical and Efficient
Farming Technologies (PEFT)**

1. INTRODUCTION

In 1993, a generalized map of the coconut growing zones with estimated hectarages
and tree population was prepared by the PCA to guide all concerned about the coconut
industry in the identification of key production areas (KPAs) for planning, monitoring&
evaluation, and management of development projects and action programs. As the extent
of coconut areas in the country is usually affected by the socio-economic conditions as a
result of land use conversion, allowed and unwanted tree cuttings for commercial and
business purposes, urbanization and housing, cropping shifts and environmental concerns,
is vital to understand the more recent status of coconut production status, productivity
(yield) indices and developments in yield and income enhancing farming technologies that
undergone intensive research and extensive field testing and validation.

Later in 1998, then in 2001, the map was revised (PCA-RDEB 2001), as a
generalized map of the Coconut Growing Zones and Production Suitability Levels,
mainly based on rainfall levels, and distribution, and growing altitude (Magat 2001).. This
was used extensively in the identification of Replanting and Fertilization project areas under
the Small Coconut farms Development Project (SCFDP, World Bank-Assisted, 1991-98)
and in the selection of pilot study sites in the farm validation and field refinements of
promising technologies in the country by the PCA’s Research and Extension Service, in
coastal and inland areas.

2. INDUSTRY PRODUCTION PERFORMANCE-STATUS

The Bureau of Agricultural Statistics (DA-BAS) collects and reports selected coconut
statistical survey indices of agricultural crops and commodities at the national and regional
levels covering all the 14 socio-political regions of the country. On coconut, the regional and
provincial coconut statistics basic field data gathered and reported by the DA-BAS are:
(1)area planted (ha); 2) number and yield of bearing trees; (3) volume and value of
production/harvested (nut terms in metric ton and PHP) . The PCA and the United Coconut
Association (UCAP) are among the significant agencies provided by the BAS of their
selected statistics on the coconut crop on an annual basis. The UCAP processed these
data and presents it in its Annual Coconut Statistics Book and the Coconut Industry Kit in
line with the needed data indices of its sectoral members, including the government through
the PCA, and the coconut farmer-growers. The PCA uses the BAS agricultural statistics
and the UCAP presentation for its planning, management and regulatory functions, as well
as in its R&D tasks, and extension and field services.

** Prepared by the Research, Development, and Extension Branch, PCA, Central Office,
Diliman, Quezon City. Email: sev_magat@yahoo.com and cbcarpio@yahoo.com.

1
2.1 Industry Supply- Value Chain

Figure 2.1 Flowchart of Supply and Value of Coconut and Coconut

Products in the Philippines

PRODUCTION COCONUT MACHINERY, PRIMARY VALUE-ADDED MARKET SALES

INPUTS PARTS EQUIPMENT for PRODUCT PRODUCTS INCOME
PROJECT

COOKING OIL
R&D, OILMILLS OIL SOAPS
PRODUCTION DETERGENTS
RESOURCES
MEAT
KERNEL

PROCESSING COPRA LIVESTOCK

MACHINERY MEAL FEEDS

Nursery/Seed
Gardens ROPES, GEOTEXTILES
BEATING MACHINE, FIBER DOORMATS, BASKETS
HUSK DECORTICATOR,
BALER, 1- & 2-PLY
ROPE TWINER,
DOORMAT
EQUIPMENT COIR DUST ORGANIC FERTILIZER
Farmers/ ROOTING MEDIA
HORTICULTURE POTS
Planting
DOMESTIC
JAGGERY, COCONECTAR AND EXPORT
TODDY COCOSUGAR, MARKETS
SAP LUMBANOG WINE,
Fertilization
VINEGAR
Pest
Management

COCONUT COCONUT JUICE, VINEGAR, NATA

WATER WATER DE COCO, WINE

ACTIVATED
CHARCOAL CHARCOAL
LATHE, CUTTER,
POLISHER,HANDI-
SHELL CRAFT
FASHION
HARVEST MACHINERY FORMED
PRODUCTS ACCESSORIES, BELTS,
BUTTONS
HANDICRAFTS

WOOD LATHE,
CARPENTRY WOOD, HANDICRAFTS,
TOOLS LUMBER FURNITURE

LEAVES, LEAF HATS,SLIPPERS,BASK

SHEATHS, ETS BAGS,
STIPULES HANDICRAFTS

FRUIT TRAYS,
PICTURE FRAMES,
INFLORE-
PLACE MATS,
SCENCE BLINDS,ARTIFICIAL
FLOWERS

Source: Coconut Industry Strategic Plan for Philippine Agriculture 2020

Key Points:
1) The chart (Figure 2.1) shows the supply chain, value adding and eventual domestic and
export markets of the coconut industry sectors, starting from the farms producing the
primary coconut products from the harvest of nuts;
2) From nuts, and other coconut parts, with the use of diverse machineries and
equipment, technologies, generate primary products such as: copra, oil, copra meal,
fiber, cocodust, sap, cocowater, charcoal and cocowood;

2
3) The above primary products are then converted to the final marketable high-value
coconut-based products, finally traded and marketed.
4) To improve and optimize the benefits by the farming and processing sectors, the
government provides research and extension services, including credit, farm input, and
market support/ assistance to small and medium scale farmers and product processors.

2.2 Philippine Coconut Situation – Annual 1998, 2004-2008

Key points:

1) Coconut hectarage increased by 240,000 ha for the period 1998-2008, but the hectarage
remained almost the same from 2004 (3.259 M ha) to 2008 (3.38 M ha);
2) Annual nut production (harvest) increased by 2.514 B nuts for the period 1998-2008, but
this remained almost the same from 2004 (14.825 B nuts) to 2007 (14.853 B nuts);
3) Total nut-bearing production trees increased by 38.27 M trees for the period 1998- 2008,
but this only slightly increased from 2004 (331.46 M trees) to 2006 (335.46 M trees).

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2.3 RP Hectarage by in Four Major Producing Regions, Annual 1998, 2004-2008

Key Points:

1) In the Southern Tagalog and Bicol Region (STBR) the coconut hectarage increased by
105,000 ha for the period 1998 to 2008, but remained almost static from 2004 to 2006;
while the rest of Luzon remained almost constant 1998 – 2008);
2) In the Visayas Region (VisR) which covers eastern, central and western), it increased by
only 38,000 ha for the same period. Its total hectarage was 848,000 ha in 1998 and
953,000 ha in 2008, slightly increasing in coconut plantings, annually;
3) The Mindanao Region (MndR), with 6 sub-regions which are mostly highly suitable for
coconut production increased by 123,000 ha from 1998 (1.624 M ha) to 2008 (1.747 M
ha). The modest growth trend in hectarage is apparently linear in the MndR.

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2.4 RP Production (Bearing) Trees in the Four Major Producing Regions,
Annual 1998, 2004-2008

Key Points:

1) In the Southern Tagalog and Bicol Region (STBR), the total bearing production trees
increased by 18.4 M trees for the period 1989 (80.54 M trees) to 2008 (92.97 M trees),
with the a very slight linear growth trend during the period 2004-208). While for the rest
of Luzon, it increased by only 0.90 M trees with a low 3.76 M trees in 1998, with
almost flat growth from 2004(4.66 M trees) to 2008 (4.66 M trees);
2) In the VisR, it increased by 9.49 M Trees from1998 (60.85 M trees) to 2008 (70.34M
trees), with the growth in number of bearing trees in the VisR almost nil from 1998
(69.49M trees to 2008 (70.34 M trees);
3) In contrast, in the MndR, the bearing production trees increased by 17.46 M trees for the
period 1998 (155.81M trees) to 2008 (171.34 M trees), with an almost slight linear
increase from 2004 (164.37 M trees) to 2008.

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2.5 Average Coconut Yield (nuts/tree in the Four Major Producing Regions,
Annual 1998, 2004-2008

Key Points:

1) Annual Coconut yield per tree (nut productivity) varied year to year with the MndR
having highest yield with the least variability (48-54 nuts/tree), hence a better
predictability of nut supply from 2004-2008 compared to the STBR and VisR).

2) The STBR and VisR regions, with second and third highest coconut hectarage and
number of bearing trees, respectively, both recorded annual nut yields lower than 40
nuts/tree per year, lower than the national annual average yields of 45 nuts/tree.

3) It is interesting to note that the average nut yields in the rest of Luzon coconut areas is
higher than the national average nut yield, and higher compared to the other the
traditional coconut regions.

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2.6 RP Coconut Harvest in Four Major Producing Regions, Annual 1998, 2004-2008.

Key Points:

1) In the past year of 1998 and recent production period 2004-2008, the MndR (6
subregions) had consistently produced the highest annual coconut nut harvest (7.48 –
9.31 B nuts), with a linear growth trend indicated by the total performance of the MndR.

2) In all past years, The performance of the MndR is followed by the production of the
STBR ( 2.77- 3.34B nuts), and then by the VisR ( 2.19- 2.68 B nuts;

3) In 2008, the contribution of the different major coconut regions (MCRs) to the country’s
national coconut harvest output follows:

• MndR - 68.3% (15.820 B nuts)

• STBR - 20.3% ( 3.103 B nuts)
• VisR - 17.5% (2.682 B Nuts)

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3. COCONUT GROWING ZONES AND PRODUCTION SUITABILITY, AND REGIONAL
PRODUCTVITY LEVELS

3.1 Reference-Guide Map of Growing Zones

Figure 3.1 Coconut Growing Zones and Production Suitability of the Crop.

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 PRIORITY I – IDENTIFIED COCONUT PROVINCES CLASSIFIED UNDER THE
HIGHLY SUITABLE AREAS

The Wet Growing Zone (WGZ) has highly adequate supply of rainfall year-round,
with not more than 3 dry months, annually. The expected productivity of bearing trees:
Average Annual Yield > 2.5 t copra/hectare.

Table 3.1.1. Provinces (29) considered Highly Suitable for Coconut Production (with
annual yield = to 2.5 t copra or higher (in nut terms = or higher than
11,250 nuts/ha). Source: PCA Regional Reports (1997).
Province Region Estimated Area Estimated Bearing
(ha) Trees (no)
1) Quezon II 4-A (Southern Tagalog) 178,180 23,329,000
2) Davao Norte 11 (Southern Mindanao) 121,100 13,726,520
3) Northern Samar 8 (Eastern Visayas) 102,800 10,789,020
4) Eastern Samar 8 (Eastern Visayas) 102,840 10,625,710
5) Zamboanga Sur 9 (Western Mindanao) 111,450 8,534,380
6) Surigao Norte 14 (CARAGA) 91,690 8,201,260
7) Misamis Oriental 10 (Northern Mindanao) 81,740 8,000,130
8) Misamis Occidental 10 (Northern Mindanao) 96,520 7,742,260
9) Albay 5 (Bicol) 79,150 7,474,300
10) Leyte I 8 (Eastern Visayas) 79,800 7,434,310
11) Surigao Sur 14 (CARAGA) 71,800 7,166,640
12) Lanao Norte 10 (Northern Mindanao) 59,770 6,170,590
13) Camarines Norte 5 (Bicol) 78,530 6,049,920
14) Sorsogon 5 (Bicol) 74,690 5,899,650
15) Samar 8 (Eastern Visayas) 80,150 5,786,650
16) Basilan 9 (Western Mindanao) 53,600 5,446,350
17) Sulu 13 (ARMM) 52,860 4,997,010
18) Lanao Sur 13 (ARMM) 53,840 4,653,430
19) Southern Leyte 8 (Eastern Visayas) 46,730 3,821,930
20) Agusan Norte 14 (CARAGA) 39,150 2,939,230
21) Davao City 11 (Southern Mindanao) 29,100 2,768,920
22) Aklan 6 (Western Visayas) 26,860 1,664,980
23) Biliran 8 (Eastern Visayas) 16,930 1,510,920
24) Camiguin 10 (Northern Mindanao) 12,920 1,500,290
25) Sultan Kudarat 13 (ARMM) 13,650 1,483,560
26) Agusan Sur 14 (CARAGA) 23,070 1,463,460
27) Capiz 6 (Western Visayas) 10,770 1,199,750
28) Cantanduanes 5 (Bicol) 14,930 681,250
29) Aurora 4-B (Luzon) 18,290 86,450

Key Points:

1) Based on figure 3.1, a total of 29 provinces are situated in the wet growing zone
(WGZ) that is highly suitable for rainfed coconut production year-round, with average
achievable annual yields of at least 2.5 tons copra or 11,250 nuts per ha.
2) 42% of the total provinces fall under the WGZ, most of these provinces are located in
the eastern parts of Mindanao and the Visayas which has the main advantage of having
a highly adequate and well–distributed supply of rainfall year-round required for a
sustained supply of nuts for various coconut processing and marketing sectors. Most of
the large oil mills/ refineries and other product processing plants are located close or
within to the WGZ for their economic and operational advantage.

9
 PRIORITY II – IDENTIFIED COCONUT PROVINCES CLASSIFIED UNDER THE
SUITABLE AREAS
These are those areas in the Intermediate Growing Zone (IGZ), with adequate rainfall year-
round, only 3-4.5 dry months). Expected Productivity of bearing trees: Average Annual Yield = 1.5 -
2.5 t copra/ha (= to 6,750 -11,250 nuts/ha).

Table 3.1.2 Provinces considered as suitable areas for coconut production (with
annual yield of 1.5 – 2.5 t copra or in nut term 6,750 – 11,250 nuts/ha).
Source: PCA Regional Reports (1997)
Province Region Estimated Area Estimated Bearing
(ha) Trees (no)
1) Quezon I 4-A (Southern Tagalog) 129,010 18,540,730
2) Zamboanga Norte 9 (Western Mindanao) 182,680 13,109,610
3) Masbate 5 (Bicol) 128,560 12,766,460
4) Camarines Sur II 5 (Bicol) 107,420 10,351,340
5) Laguna 4-A (Southern Tagalog) 68,620 9,311,990
6) Davao Sur 11 (Southern Mindanao) 76,060 7,199,670
7) Leyte II 8 (Eastern Visayas) 79,690 6,919,180
8) Maguidanao 13 (ARMM) 76,720 6,845,860
9) Camarines Sur I 5 (Bicol) 64,100 6,006,910
10) Davao Oriental 11 (Southern Mindanao) 61,270 5,891,370
11) Sarangani 12 (Central Mindanao) 60,860 5,429,030
12) Romblon 1-4B (Luzon) 44,830 5,273,320
13) Negros Oriental 7 (Western Visayas) 50,160 4,775,910
14) Batangas 4-A (Southern Tagalog) 37,130 4,746,500
15) Cebu 7 (Western Visayas) 42,290 4,094,330
16) Palawan 1-4B (Luzon) 39,930 3,793,440
17) Bohol 7 (Western Visayas) 42,640 3,621,330
18) Mindoro Oriental 1-4B (Luzon) 37,120 3,188,430
19) Marinduque 1-4B (Luzon) 28,230 2,733,530
20) Zamboanga City 9 (Western Mindanao) 26,710 2,365,200
21) Tawi-Tawi 13 (ARMM) 23,980 2,296,970
22) South Cotabato 12 (Central Mindanao) 23,660 1,964,840
23) Negros Occidental 6 (Central Visayas) 28,000 1,861,520
24) North Cotabato 12 (Central Mindanao) 20,350 1,782,090
25) Antique 6 (Central Visayas) 14,360 1,359,860
26) Iloilo 6 (Central Visayas) 13,970 1,119,460
27) Cavite 4-A (Southern Tagalog) 11,840 694,700
28) Siquijor 7 (Western Visayas) 6,800 549,440
29) Guimaras 6 (Central Visayas) 5,680 534,310
30) Bukidnon 10 (Northern Mindanao) 5,520 480,830
31) Cagayan 1-4B (Luzon) 17,830 267,450
32) Isabela 1-4B (Luzon) 1,380 109,640
33) Quirino 1-4B (Luzon) 680 35,380
Key Points:
1) Reference to Figure 3.1, a total of 33 provinces is under the intermediate growing zone (IGZ)
located through the country from Luzon, mostly areas in the eastern part, facing the Pacific
Ocean, and in the southern Tagalog provinces, to the regions of Visayas and Mindanao situated
in mostly in eastern part of the country.
2) About 48 % of the country’s coconut producing areas falls under the IDZ, thus suitable for
coconut production, despite rainfall-dependent for crop’s water requirement year-round.
3) The supply of nuts for food uses , copra, coconut oil, and other derived coconut products in these
growing zone is sustained year-round, due to capability to produce good annual yields ranging
1.5 -2.5 t copra /ha or 6.750- 11,250 nuts/ha.
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 PRIORITY III – IDENTIFIED COCONUT PROVINCES CLASSIFIED UNDER THE
FAIRLY SUITABLE AREAS

These are situated in the Dry Growing Zone (DGZ), with rainfall not well distributed,
not less than 6 dry months). Expected productivity of bearing trees: Average Annual Yield
= 0.75 - 1.75 t copra/hectare.

Table 3.1.3. Provinces considered as fairly suitable for coconut production (with
average annual yields of 0.75-1.25 t copra/ha or in nut terms 3,370-5,600
nuts/ha). Source: PCA Regional Reports (1997).

Province Region Estimated Area Estimated Bearing

(ha) trees (no)
1) Pangasinan 1-4B (Luzon) 8,930 664,660
2) Bataan 1-4B (Luzon) 2,770 249,500
3) Mindoro Occidental 1-4B (Luzon) 2,450 206,000
4) Ilocos Norte 1-4B (Luzon) 2,750 163,060
5) Zambales 1-4B (Luzon) 930 58,810
6) La Union 1-4B (Luzon) 2,300 50,800
7) Ilocos Sur 1-4B (Luzon) 440 36,600

Key Points:

1) Only 7 provinces under this dry growing zone, 6 provinces in region 1-4B, extensively
situated in the western part of Luzon, facing or adjacent to the China Sea and one
province in the drier region (Occidental) of the Mindoro Island, south of Southern
Tagalog region (Figure 3.1).
2) Because of the usually long dry season, not less than 6 long dry months during the year,
the achievable annual yield is not more than 1.25 t copra/ha (5,600 nuts/ha), the yield
mainly limited by the high annual water deficit of 600-800 mm rainfall.

3.3 Indicative Variability in Annual Coconut Productivity in twelve coconut regions in

of the country in production year 2005.

Table 3.2 Annual Productivity Levels of Coconuts in the Country by Region,

Philippines 2005 (estimated from provincial sample farms in Sept 2004)
Coconut Bearing Trees Nuts/tree Copra/tree Nuts/ha Copra/ha
Region (12) Area (ha) (no) (per year) (per year) (per year) (ton per year)
A B C D E F
1. MIMAROPA and
231,532 20,190,789 52.0 11.60 5,200 1.16
Rest of Luzon
2. Southern Tagalog 430,304 46,554,662 74.0 14.44 7,400 1.44

3. Bicol 550,363 50,816,808 41.2 10.80 4,120 1.08

4. Western Visayas 49,073 3,238,135 42.4 9.88 4,240 0.98

5. Central Visayas 119,689 11,856,190 42.0 8.68 4,200 0.86

6. Eastern Visayas 560,303 44,709,660 45.6 9.84 4,560 0.98

7. Western Mindanao 323,792 27,502,848 58.2 14.16 5,820 1.41

8. Northern Mindanao 297,888 30,344,300 47.2 10.04 4,720 1.00

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 Coconut Bearing Trees Nuts/tree Copra/tree Nuts/ha Copra/ha
Region (12) Area (ha) (no) (per year) (per year) (per year) (ton per year)
A B C D E F
1.40
9. Southern Mindanao 311,827 34,757,979 54.0 14.00 5,400

10. Central Mindanao 137,268 12,017,456 58.8 12.52 5,880 1.25

11. CARAGA 231,251 17,829,473 41.2 9.80 4,120 0.98

12. ARMM 286,566 25,731,234 58.8 14.56 5,880 1.45

AVERAGE - - 51.2 11.69 5,120 1.169

AVERAGE under
- - 91 30.10 9,100 3.01
fertilized conditions

Formula:
(A) and (B) = latest information data of PCA Regional Offices (12)
(C) = estimate of average nut count of 3 oldest bunches X 4
(D) = estimate of copra/tree of (C) X 4
(E) = (C) X 100 (average standing bearing trees)
(F) = (D) X 100 (average standing bearing trees)

Key Notes:
1) A higher regional and national annual nut and copra productivity (yields) estimate
compared years prior to 2000. Average regional annual productivity ranged from 41.2 to
74 nuts/tree or from 0.98 to 1.44 t copra per ha. But under fertilized conditions,
achievable annual average yields = 91 nuts per tree (9,100 nuts/ha) or 30.10 kg
copra/tree (3.01 tons copra/ha).
2) Higher average yields in 2005 mainly attributed to absence of El Niño from 1999-2004,
that is, better supply of rainfall and/or soil moisture.
3) In addition, remaining residual positive effects on yield of countrywide fertilization of at
least 350,000 ha of coconut lands under the previous World bank-assisted Small
Coconut Farms Development Project (1991-1998).

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4. COCONUT PRODUCTIVITY AND PROFITABILITY UNDER TWO RESEARCH-
BASED FERTILIZERS OPTIONS

4.1 Fertilizers Applied (Recommended Per Tree) By Year for a 5-Year Cropping
Period

Table 1.1 shows: for the common salt option, the application is 2.0 kg/tree per year
for the first three (3) years, while in the case of the multi-nutrient 14-5-20 (14%N, 5%P2O5,
20% K2O, 15% Cl, 4.5% S and 0.02% B), at 3 kg, 2 kg, 1 kg, for the first year, second year
and the next three tears, respectively. Thus, for the three (3) years cropping period, these
are a total of 8 kg for both NaCl and MNF fertilizer options.

Table 4.1. Annual Application Rate per Tree of Common Salt (NaCl) and Multinutrient
Fertilizer 14-5-20 (MNF).
NaCl MNF
Component Crop/Stage
Rate/tree (kg) Rate/tree (kg)
Nut-bearing Coconut:
Year 1 2 3
Year 2 2 2
Year 3 2 1
Year 4 1 1
Year 5 1 1

4.2 Fertilizers Applied Per Hectare for the Five-Year Period Cropping

On a per ha basis, for the common salt (sodium chloride) option, for the first three (3
years), an annual quantity of 246 kg/ha (about 6 bags, 40 kg bag) is required and 123 kg/ha
(about 3 bags) for the next two years of the five (5) year cropping period (Table 4.2). For
the next option, the MNF fertilizer grade annual needs per ha: 369 kg (7.4 bags); 246 kg (5
bags); 123 kg (2.5 bags), with a 50 kg/bag capacity reference, for the years 1, 2 and next
three years for the 5 year cropping period.

Table 4.2. Annual Application Rate per Ha with 123 Trees @ 9 M x 9 M Square
Planting.
Year NaCl (kg/ha) MNF (kg/ha)
1 246 369
2 246 246
3 246 123
4 123 123
5 123 123

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4.3 Economic Prices and Yield Assumptions Used in the Computations

Production Output and Input Prices

The prices of the coconut production output ( copra) at four price levels and
production inputs of fertilizer material options (NaCl and MNF) used and labor cost are
indicated for the five year cropping cycle (Table 4.3).

Table 4.3 Increasing copra prices with the next years (5 cropping years), fertilizer
prices of the two fertilizer options (common salt and multinutrient 14-5-20
fertilizer), and labor cost assumed.

9x9 M SQ
Harvesting P3.30/tree 6x/year
Piling and hauling, 2 mandays, 6x/year
Copra making (splitting, scooping, drying, sacking)
40 50
Copra Price at 10% Increase Per 1,000 Nuts
kg/bag kg/bag
Year
Wage Dehusk- Copra
Price 1 Price 2 Price 3 Price 4 NaCl MNF
Rate ing Making
1 17.50 21.0 25.2 30.2 7.00 27.00 100 80 120
2 18.38 22.1 26.5 31.8 7.35 28.35 100 80 120
3 19.29 23.2 27.8 33.3 7.72 29.77 100 80 120
4 20.26 24.3 29.2 35.0 8.10 31.26 100 80 120
5 21.27 25.5 30.6 36.8 8.51 32.82 100 80 120

4.4 Yield Profile under Three Cropping Conditions: Unfertilized (UF), Common Salt
Application (CSA), and Multi-Nutrient Crop Nutrition Management (MNF)

The annual yield in terms of copra considered under unfertilized conditions

(unmanaged farming) is at 10 kg copra/tree or 1.23 t copra/ha during the five cropping cycle
(Table 4.4). Obviously, this basis is simplified assumption, albeit annual coconut yield could
fluctuates from year-to year by about 2-5%, even without fertilizer application as crop’s
response to annual variability in rainfall intensity and distribution under rain- fed farming.
With the common salt application (CSA), average yields obtained are: during year 1 – 12.5
kg copra/tree (or 1.54 t copra/ha@ 123 trees); years 2 – 5 with 15 kg copra/tree (or 1.85 t
copra/ha) as shown in Table 3. On the other hand, also presented in Table 4.4, the
application of multi-nutrient N-P-K-Cl-S-B mineral fertilizer (MNF) produces average
coconut yields: at year 1 – 15 kg/tree (1.85 t copra/ha); year 2 – 20 kg/tree (2.46 t
copra/ha); years 3-5 with 25 kg copra/tree (3.08 t copra/ha).

This clearly shows that the CSA increased coconut yield (copra terms) by 25% and
50% over the unfertilized conditions, at year 1 and in following years (year 2-5),
respectively. In terms of copra, this is average annual yield of 1.78 t/ha achievable by CSA
over the unfertilized trees. While, better still, the MNF option increased coconut yield in year
1, year 2 and ensuing years (years 3 to 5) by 50%, 100%, and 150% respectively. And this
is an average annual yield of 2.71 t copra produced with the application of the MNF option,
over 5 year cropping period.

14
 When a comparison of the two fertilizer options on bearing palms (CSA and MNF) is
considered, it is noted that the multi-nutrient fertilizer N-P-K-Cl-S-B (MNF) application
increased copra yield by 20%, 33% and 66% over the common salt (CSA), in years 1, year
2 and year 3-5, respectively. This means a further increase of the annual average copra
yield: 305 kg, 630 kg copra and 1230 kg copra at year 1, year 2 and following 3 years,
respectively, in a five cropping cycle period, with the MNF option over the CSA option.

Table 4.4 Annual yield of coconut trees per tree and per ha for the five (5) cropping
years under unfertilized conditions, and with the application of the two
fertilizer options (sodium chloride and multi-nutrient fertilizer).
Control Sodium Chloride Multi-Nutrient Fertilizer
Year Copra/tree/ Copra/ha Copra/tree/ Copra/ha Copra/tree/ Copra/ha
year (kg) (kg) year (kg) (kg) year (kg) (kg)
1 10.0 1230.0 12.5 1537.50 15.0 1845.0
2 10.0 1230.0 15.0 1845.00 20.0 2460.0
3 10.0 1230.0 15.0 1845.00 25.5 3075.0
4 10.0 1230.0 15.0 1845.00 25.5 3075.0
5 10.0 1230.0 15.0 1845.00 25.5 3075.0

4.5 Net Returns - Profitability Analysis (Per Ha) under a Sensitivity Analysis (SA) at
Four Copra Prices

Copra Price Level 1 - for the unfertilized trees, net returns (net income) at copra
price level 1 (PhP17.50/kg copra) ranged from PhP17,643 to PhP 22,282 per ha from year
1 to year 5. The net present value (NPV @ 18% interest) is PhP 61,067 for the five year
cropping period. For the common salt application (CSA), it is PhP 16,841 to 29,794 with a
NPV of PhP74,133. And for the multi-nutrient application (MNF) to coconut trees, the net
return is PhP 16,620 to PhP52,499 per ha from year 1 to year 5. It has a NPV of
PhP118,918 per ha (5 years cropping).

This also indicates that the MNF option has higher NPV over the CSA option by PhP
44,785 (60.4% higher) at copra price of PhP17.50 /kg copra, thus the former is more
profitable. The main determinant of the higher NPV of the coconut trees applied with MNF
over the unfertilized and common salt application (CSA) options is clearly the higher
productivity of these trees with over the 5 years cropping period or cycle considered.

Table 4.5 Net returns, Sensitivity @ Price Level 1 (PhP17.50 kg/kg Copra, per Ha
Basis)

Control
@ Price 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Returns 21,525.00 22,601.25 23,731.31 24,917.88 26,163.77
Production Cost 3,881.40 3,881.40 3,881.40 3,881.40 3,881.40
Net Returns 17,643.60 18,719.85 19,849.91 21,036.48 22,282.37

NPV @18 61,067.99

Sum of discounted gross benefits = 73,205.79
Sum of discounted gross costs = 12,137.80
BCR (18%) 6.03
15
 Sodium chloride
@ Price 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Returns 26,906.25 33,901.88 35,596.97 37,376.82 39,245.66
Production Cost 10,064.90 10,212.50 10,302.91 9,401.12 9,450.95
Net Returns 16,841.35 23,689.38 25,294.06 27,975.70 29,794.71

NPV @18 74,133.52

Sum of discounted gross benefits = 105,248.31
Sum of discounted gross costs = 31,114.79
BCR (18%) 3.38

Multi-nutrient fertilizer
@ Price 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Returns 32,287.50 45,202.50 59,328.28 62,294.70 65,409.43
Production Cost 15,667.40 12,801.50 9,611.80 9,794.87 9,987.10
Net Returns 16,620.10 32,401.00 49,716.48 52,499.82 55,422.33

NPV @18 118,918.15

Sum of discounted gross benefits = 156,657.02
Sum of discounted gross costs = 37,738.87
BCR (18%) 4.15

Copra Price Level 4 (PhP30.20/kg copra) – for the unfertilized trees (control), the
net income for year 1 to 5 increases from PhP33,313 to 41,329, with a NPV of
PhP114,391 (5 years). The application of NaCl generates: year 1 – PhP36,429/Ha; year 2 –
PhP48,389; year 3 – PhP 51,208; year 4 – PhP55,186; and year 5 – PhP58,385. The NPV
generated amounts to PhP150,754 (5 years cropping).

Compared to the CSA, the MNF application on bearing coconut trees has higher
NPV by a marked difference of PhP82,210, i.e. 54.5% higher than the common salt
application, over the 5 years cropping period. In other words, the application of multi-
nutrient 14-5-20 mineral fertilizer is obviously more profitable than common salt application.

Table 4.6 Net Returns, sensitivity at price level 4 (PhP30.2/kg copra, per ha basis

Control
@ Price 4 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Returns 37,195.20 39,054.96 41,007.71 43,058.09 45,211.00
Production Cost 3,881.40 3,881.40 3,881.40 3,881.40 3,881.40
Net Returns 33,313.80 35,173.56 37,126.31 39,176.69 41,329.60

NPV @18 114,361.81

Sum of discounted gross benefits = 126,499.61
Sum of discounted gross costs = 12,137.80
BCR (18%) 10.42

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 Sodium chloride
@ Price 4 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Returns 46,494.00 58,582.44 61,511.56 64,587.14 67,816.50
Production Cost 10,064.90 10,212.50 10,302.91 9,401.12 9,450.95
Net Returns 36,429.10 48,369.94 51,208.66 55,186.02 58,365.55

NPV @18 150,754.28

Sum of discounted gross benefits = 181,869.07
Sum of discounted gross costs = 31,114.79
BCR (18%) 5.85

Multi-nutrient fertilizer
@ Price 4 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Returns 55,792.80 78,109.92 102,519.27 107,645.23 113,027.50
Production Cost 15,667.40 12,801.50 9,611.80 9,794.87 9,987.10
Net Returns 40,125.40 65,308.42 92,907.47 97,850.36 103,040.40

NPV @18 232,964.46

Sum of discounted gross benefits = 270,703.33
Sum of discounted gross costs = 37,738.87
BCR (18%) 7.17

Concluding Notes

From this production economics of coconut fertilization using two fertilizer options (common
SALT or CSA and multi-nutrient N-P-K-Cl-S-B) or MNF, there are several significant
findings revealed. These are the following:
1) without fertilization for five cropping period/cycle, the annual yield of coconut remains
very low or marginal at 10 kg/tree (1.23 tons copra/ ha (@123 palms/ha);
2) at three years from initial fertilization ( considered time with substantial improvement in
productivity already) the application of common salt (NaCl) @ 1-2 kg/tree results in 15
kg copra/tree (1.85 t copra/ha); while the MNF application produces 25 kg copra/tree
(3.07 t copra/ha);
3) the annual fertilizer cost at three years with CSA and MNF are PhP1,896 and
PhP3,661/ha, respectively, and these are 17% and 40% of the total production cost per
ha;
4) at the third year of fertilization, even at the lowest price level used of PhP17.50/kg
copra, the net returns: from unfertilized trees - PhP19,849/ha; common salt (CSA) –
PhP25,294; and multinutrient fertilizer (MNF) – PhP49,716, with the MNF highest in net
present value (NPV) at 18% interest of PhP 118,918 (5 years cropping) or a difference
of PhP 44,785 over the CSA, and this is MNF 60.4% higher;

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5. NATIONAL COCONUT PRODUCTIVITY PROGRAM – SALT FERTILIZATION
PROJECT (2008-2010 FIELD RESULTS)

Addressing Low National Coconut Production and Productivity by Farms

The Salt Fertilization Project (SFP), one of the components of the National Coconut
Productivity Program (NCPP), was implemented in pursuit of immediately addressing the
slump in coconut production. The project is a good measure in attaining the immediate
objective of increasing coconut production by at least 25 % after a year of application. Salt
is beneficial for coconut because it makes coconut trees resistant to droughts, pests and
diseases. The chloride content of common salt boosts the strong tolerance of young palms
and nut-bearing trees to drought and their quick recovery after drought, thus growth
retardation & yield reduction are minimized.
The salt fertilizer is applied around the 2-meter radius of the base of the coconut trees at
the rate of 2.0 kg. per tree after ring-weeding. The salt fertilizers are broadcasted and
incorporated in the soil by using a shovel. The salt fertilizers are applied any period of the
year, except during rainy days, in areas with almost uniform distribution of rainfall and
without distinct dry and rainy seasons. In areas with distinct wet and dry seasons, these
fertilizers are applied few weeks after the start of the rainy season or before the end of the
rainy season. Status of salt fertilizer application is shown in Table 5.1.

Table 5.1. Status of Salt Fertilization as of May 15, 2010 (PCA-FSB, May 2010)
Particulars Total Total
CY 2008 CY 2008 CY 2009 CY 2009 CY 2009 CY 2010
(Batch I, II, (Batch III
Batch I Batch II Batch III Batch IV Batch V Batch VI
V & VI) & IV)
Delivered
262,274 185,173 41,500 218,000 54,500 24,637 526,584 259,500
(bags)

Applied
262,274 183,293 41,012 162,561 1,042 - 446,609 203,573
(bags)

Trees
6,556,850 4,582,325 1,025,300 4,064,025 26,050 - 11,165,225 5,089,325
Fertilized

Area (has.) 65,568.50 45,823.25 10,253.00 40,640.25 260.50 - 111,652.25 50,893.25

Farmers 59,361 45,240 9,040 35,813 241 - 104,842 44,853

Definition of Terms:
• CY 2008 Batch I- refers to the initial purchase of salt of fertilizers, funded by CIIF in year
2008, involving a total of 262, 200 bags. This was intended for the first year of salt
fertilizer application of the farmer-recipients of this batch. The supply and delivery of the
salt fertilizers were contracted by the Arvin International Marketing Inc.
• CY 2008 Batch II- refers to the second purchase of salt fertilizers, still funded by CIIF in
year 2008, involving a total of 185,173 bags. The supply and delivery of the salt fertilizers
were contracted by Artemis Salt Corporation. This was also intended for the first year of
salt fertilizer application of the farmer-recipients of this batch.
• CY 2009 Batch III – refers to the repeat order of salt fertilizers amounting to 41,500
bags, intended for the second dosage of application of salt for farmer-recipients of
Batches I & II with the exception of Ilocos Sur and Bataan in which their allocation will be
for new participants. This repeat order of salt fertilizers from Artemis Salt Corporation is
funded by AFMA.
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 • CY 2009 Batch IV- refers to Repeat Order II– 2009 amounting to 218,000 bags of salt
fertilizers. This batch was supplied and delivered by Arvin International Marketing Inc.
and was funded by AFMA. The fertilizers were intended for the second dosage of
application of salt of 2008 farmer-recipients and the first application for the bearing
coconut trees planted at the PCA Research and Coconut Seed Production Centers.
• CY 2009 Batch V- refers to the Repeat Order of CY 2009 Batch IV, involving 54,500
bags of agricultural grade salt fertilizers contracted by Arvin International Marketing Inc.
This batch of salt fertilizers is intended for first application of new farmer-recipients from
Regions VI, VII and VIII.
• CY 2010 Batch VI– This batch involves a total of 340,900 bags of salt fertilizers and is
funded by AFMA. This will be supplied and delivered by the Artemis Salt Corporation and
will be intended for the first application of new batch of farmer-recipients.

For 2010, it is vital that the project is immediately pursued as salt fertilization is a
quick turn-around activity in mitigating the effects of El Niño which is now severely
affecting many agricultural areas of the country. With the immediate availability and
application of salt fertilizers in coconut farms, the negative impact of El Niño in
coconut areas will be considerably lessened (PCA-FSB 2010).

Early Salient Salt Fertilization Response of Coconut

Initial result of assessment reflected in Table 5.2 shows a clear positive yield
response to salt application in some major coconut provinces of the country. Worth
noting for instance, is the nut yield increase in the province of Zamboanga del Norte
where benchmark data production shows an average of 58 nuts per tree per year. Nut
yield increased to 84 nuts per tree per year or by 45% increase, with a 17 % increase
in meat thickness and an increase of 86% in copra terms one year after salt
fertilization. Overall, from the same table, 17-45% increase in nut yield, 0-18%
increase in meat thickness & the 24-86% increase in copra yield will give an average
value of P368.06c increase in total income per tree per year (16.73 kg copra/tree/yr x
P22/kgcopra). This indicates that salt fertilization of coconut trees can increase yield
by at least 25%, even only after a year of initial application.

Table 5.2. Initial Results of Salt Fertilization Yield Assessment from Some Major
Coconut Regions/Provinces of the Country (at 2 kg salt/tree/year)
(PCA-FSB, May 2010)
Benchmark Information One Year after Salt Fertilizer Application
Region/
Province No. of Ave. Ave. Ave. Ave.
Kg Percent Kg
sample nut Fresh nut Percent Fresh
copra/ increase copra/ % copra
farms yield/ Meat yield/ (%) Meat
tree/ meat tree/ increase
tree/ Thickness b tree/ increase Thickness b
year thickness year
year a (mm) year a (mm)
IV-A
12 48 11 9.6 60 25 12 9 13.3 39
Quezon I
VIII
20 50 11 10 70 40 12 9 15.6 56
Leyte
IX
24 58 12 12.9 84 45 14 17 24 86
Zambo Norte
X
Lanao del 12 66 11 13.2 77 17 13 18 17.1 30
Norte

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 Benchmark Information One Year after Salt Fertilizer Application
Region/
Province No. of Ave. Ave. Ave. Ave.
Kg Percent Kg
sample nut Fresh nut Percent Fresh
copra/ increase copra/ % copra
farms yield/ Meat yield/ (%) Meat
tree/ meat tree/ increase
tree/ Thickness tree/ increase Thickness
year b thickness year b
year a (mm) year a (mm)
XI
16 58 12 12.9 72 24 13 8.33 16 24
Davao Norte
XII
Sultan 10 56 11 11.2 72 29 11 - 14.4 29
Kudarat

Average 56 11.33 11.63 72.5 30 12.5 10.22 16.73 44

a - based from total nut count of 3 oldest bunches x 4

b - nut yield/tree ÷ nut/kg copra
c - average kg copra/tree/yr x P22 per kilogram of copra at farmgate

6. LOOKING AHEAD

Coconut palm trees, as in many forest trees has a substantial carbon storage (sink)
capability estimated at 196.75 t C/ha (722 t carbon dioxide (CO2), and with C sequestration
rate of 4.78t C/ha/yr (17.54 t CO2 ), reported by Lasco et al (2000), being a woody perennial
cropped-plant. While non-woody crops as rice and banana have no sequestration ability
because their biomass are almost constant over time. This mentioned strength of the
coconut tree should be significant in mitigating the negative or unwanted impacts of climate
change, exacerbated by the increasing levels of local and global greenhouse gases
(GHGs), especially the CO2. Clearly, this understanding of the coconut growing attributes
and conditions, carbon sink or storage and CO2 sequestration recent findings strongly
justifies the judicious management of the current stands of coconut trees in 3.3 M of
coconut lands with about 335 M trees (UCAP 2007).
In this regard, the replanting and new planting intensification, cum rehabilitation of
current stands following the integrated crop management, (ICM) using site-specific farming
technologies should not be ignored to achieve optimum farm productivity and profitability for
the maximum social, ecological and economic benefits of the coconut industry sectors, and
the Philippine nation in general.
An indicative potential cash value of the annual coconut farm-ecosystem C
sequestration was presented recently by PCA (Magat 2009). It assumed the
following: average of 5.1 t C/ha of stable coconut biomass and 15 t /ha from the
sequestered soil organic carbon (SOC), 50% of stored SOC, at 30 cm soil depth with
4 kg soil/ha) = 20.1 t C/ha/yr (Canja 2009). At USD15per t C (means PHP705 @
1USD=47PHP). Thus, estimated cash amounts to at least PHP14,170.50/ha per year
(PHP14.17M for every 1,000ha of coconut lands for climate change mitigation. If
coconut lands are intercropped with fruit trees and other perennial crops capable of
C sequestration in their plant biomass and the soil (via SOC), then this cash value
could easily double.
In the light of these developments, the social, environmental and economic
benefits from the planting and growing of coconut palm trees is further significantly
enhanced and should be one of the priorities in the rural and economic development
of the country.

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References:

Bureau of Agricultural Statistics (2009). Crop Statistics of the Philippines: 2003-2008, 6th
ed. DA-BAS, Ben- Lor Bldg., Quezon Ave. Quezon City, Philippines. 130 p.
Canja, L.H.(209). Soil organic carbon (SOC) Estimation. Pers. Comn.
Field Services Branch (FSB) 2010. NCPP-Salt Fertilization Project (2008-2010). A Status
Report, May 2010, FSB. Philippine Coconut Authority, Diliman, Quezon City.
Lasco, R.D., Lales, J.S., Anonuevo, M.T., Guillermo, I.Q., De Jesus A.C., Medrano, A.C.,
Bajar, O.F. and Mendoza, C.V. 2000. Carbon Dioxide (CO2) storage and
sequestration in Leyte geothermal reservation, Philippines. World Geothermal
Congress, May 28-June 10, 2000. Kjustu, Tohoku, Japan. Proceedings 639-642.
Magat, S.S.(2010) Productive and sustainable coconut farming ecosystems as potential
carbon “sinks” in climate change minimization (A review and advisory notes).
COCOINFO International 17(1): 24-31. Also: presented: 4th Scientific symposium,
Philippine Association of Career Scientists and the Scientific Career Council, DOST-
CSC.”S&T” Challenges and Opportunities in the Midst of Climate-Change. 01
December 2009, Richmonde Hotel, San Miguel Ave., Pasig City, Metro Manila.
Magat, S.S. (2008). Good Agricultural Practices in coconut Production. Second ed. Manila.
EU-Trade- Related Technical assistance. 79 p.
Magat, S.S. and Carpio C.B. (1997). An updated guide on the coconut growing zones and
production suitability of the 14 coconut producing regions and 67 provinces of .the
Philippines. Occasional Paper. Agricultural R & D Branch, Phil. Coconut Authority.
Diliman, Quezon City. 17 p.
UCAP (2004). Coconut Statistics 2003. Y.V.Agustin (editor). UCAP. Ortigas Center, Pasig
City, Metro Manila. 171 p.
United Coconut Association of the Philippines, Inc. (UCAP) (2009). Coconut Industry Kit.
(Series of 2008) July 2009 Y.V.Agustin (editor), Ortigas Center, Pasig City Metro
Manila. 50 p.

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