Press Release
February 17, 2009

LOREN LOOKS INTO THE PLIGHT OF COCONUT FARMERS

Senator Loren Legarda, chairman of the Senate committee on agriculture, visited Quezon Province today (February 17) and held a consultation meeting with leaders of coconut farmers and fisherfolks in the municipality of Lopez.

The meeting was organized to know the problems of the farmers in the area, and to implement remedial measures to address them, particularly those besetting the local coconut industry which is now in distress because of the huge drop in exports of major coconut products.

Quezon is one of the top coconut producing provinces in the country, and produces an annual average of 950,000 metric tons of coconut, which is its major crop.

Among the farmer-leaders of Quezon Province who have a dialogue with Loren were; Cita Esmao, president of Ugnayang Magsasaka sa Quezon (UGMA); Juliet Escasa, Treasurer, UGMA; Connie Llantos, chairperson, leaders of women's groups Kababaihang Magsasaka Para sa Kalayaan (KAMALAYAN); Helen Cerilla, Treasurer, Samahan ng mga Magsasaka sa Lopez (SAMALO); and Jesus Villapando, Bantay Dagat Representative. Loren was alarmed by latest report of the United Coconut Association of the Philippines (UCAP) citing that country's coconut earnings as of January 28 dropped by 88% to $18.81 million from $152.24 million during the same period last year, while the volume dipped by 81% to 39,714 metric tons from 212,378 metric tons in the same comparative periods.

UCAP report specifically shows that coconut oil exports were down by 79% to 25,020 MT from 121,766 MT compared to a year ago record. Coconut oil accounts for 63% of total coconut products shipments. Copra meal shipments dropped by 70% to 10,750 MT from 36,031 MT.

The report said that there was a decline in demand from foreign buyers, especially those affected by the global economic crisis. It was also attributed to lower demand from buyers, partly due to the increasing popularity of palm kernel oil, which is much cheaper than coconut oil. Current price of kernel oil is $515 per MT, while coconut oil is pegged at $670 per MT.

"There is an urgent need to implement remedial measures to address the current plight of some 3.5 million coconut farmers and around 25 million Filipinos who are directly or indirectly dependent on the industry," Loren said.

"One immediate solution that I recommended to the Department of Agriculture, while there is low demand for coconut products in the world market, is to assist coconut farmers in planting and propagating high-value crops suitable to cultivate in idle lands in the coconut plantation," the senator said.

"I would also look into the conditions of existing coconut plantations in vulnerable areas in Quezon Province where quarrying activities are eroding coconut lands. I heard reports that in some areas like the Guisguis-San Roque barangays in Sariaya, Quezon, quarrying activities are weakening the roots of coconut trees and cause the coconut lands to recede. I call on the local government in Sariaya and the Department of Environment and Natural Resources (DENR) to see to it that precious coconut trees which take 10 to 20 years to mature and become harvestable be taken care of. Water land walls have to be constructed by quarrying companies, if needed. Coconut farmers whose trees fell because of the softening of the soil should be compensated for damages" Loren urged concerned entities.

"Another remedial measure, which is a long term and maybe sustainable, is to encourage more investment in the production of coco-biodiesel, particularly Coconut Methyl Ester or CME which is derived from coconut oil," Loren suggested.

The lady senator said that the Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM) which she also chair, will oversee the rationalization of the distribution of Agricultural Competitiveness Enhancement Fund (ACEF) and the stimulus fund for food production as well as scholarships in technical and vocational skills needed in farming and fishing communities.

"Coconut farmers will get their rightful share in order to revive the ailing coconut industry. Since there is low foreign demand for coconut oil at present, we should tap local demand through production of coco biodiesel," Loren said.

Loren noted that oil companies and motorists have started to brace for the higher blend of CME to diesel products now sold at the pumps.

Citing information provided by the Philippine Coconut Authority, Loren noted the environmental and health benefits we could get by using coco-biodiesel.

"Compared with other forms of bio-diesels, the medium carbon chain of coco-biodiesel offers excellent lubricity, solvency, and detergency. According to studies, addition of coco-biodiesel results in better combustion, less pollution, and more engine power," Loren said.

"Coco-biodiesel is hoped to spearhead the introduction of ester industry in our country. It would be an industry that would create more jobs and provide a potential high-value export product," the senator stressed.

Loren also recommended the promotion and massive commercial production of virgin coconut oil which is gaining popularity as food for good health.

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