Press Release
July 30, 2009

SAVE COCO FARMERS, AILING RP COCO INDUSTRY--ANGARA

Senator Edgardo J. Angara is urging the Senate to pass the Coconut Emergency Measure Act (Senate Bill 869) of 2007 into law to immediately address the dropping price situation in the country's coconut industry sector.

"Because of the recent surplus of coconut oil in the global market and the typhoons that hit the country, [coconut] production in the Philippines has been flat. Consequently, coconut farmers are in desperation to cut their trees and sell them as lumber instead of harvesting the coconut into copra, oil and other products," says Sen. Angara, former Agriculture Secretary.

The excessive global supply of coconut and its by-products is worsened in the country with the introduction of synthetic materials, other sources of oils and fuels and alternative products sourced from other countries.

Coconut products are still among the top agricultural earners of the country. Over 20 million Filipinos in the country depend on the planting and harvesting of coconuts for their living. "If the coconut industry collapses, millions of our Filipino farmers and their families will have nothing to put on their tables," Sen. Angara laments.

SB 869 seeks to launch an income supplement program for small coconut farmers, tillers, workers and owner-cultivators who comprise the overwhelming majority of the coconut industry. From an initial funding of P1 Billion, the Philippine Coconut Authority (PCA), the Philippine Commission on good Governance (PCGG) and the Office of the Solicitor General will implement income supplement projects for coconut farmers to include:

1. Transport allowance to bring copra and husked nuts from farm to mill;

2. Direct buying of copra by the National Food Authority (NFA) at a competitive base price determined by the PCA;

3. Assistance to fanners including transport equipment assistance to farmer organizations and accredited oil mills and desiccators;

4. Issuance of volume-based incentive coupons;

5. Livestock and seedling dispersal;

6. Information drive, training and assistance from the DOST to fully utilize coconut and its by-products;

7. Providing them skills to efficiently market their products; and

8. Assisting them in the acquisition of fertilizers

However, there is hope in the coconut industry. The recent trend in introducing coconut oil to the market as a healthy therapeutic supplement and the numerous studies showing the coconut oil's potential in the bio-fuel and renewable energy segment, among others, can underscore the vital role of the coconut industry in the country's health and environment drives.

Sen. Angara further stresses, "This calamity requires an emergency action to provide immediate and long-term relief to coconut farmers suffering from the effects of abnormally low prices of copra and other coconut products. This is a timely and critical intervention to save the coconut industry and help our farmers overcome the crisis. Hence, enacting this bill into law will serve as a stimulus plan to revive and sustain the country's coconut industry."

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