The growth in Philippine coconut production is anticipated to remain stagnant in the coming year due to the low productivity associated with the aging trees prevalent across the nation's plantations. "We estimate coconut production to stay at levels similar to previous years as efforts to improve productivity will take time to bear fruit," stated Romeo I. Chan, chairman and chief executive officer of Axelum Resources Corp., highlighting the challenges faced in enhancing the sector's output.
Recent data from the Philippine Statistics Authority reveals a slight decrease in coconut production, with the volume dropping to 14.89 million metric tons (MT) in 2023 from 14.93 million MT in the previous year. The decline in production is attributed to the advanced age of the fruit-bearing trees, along with adverse weather conditions and the impact of climate change. These factors have collectively contributed to the dwindling harvest yields over time.
In response to the declining productivity, President Ferdinand R. Marcos, Jr. has directed the Philippine Coconut Authority (PCA) to formulate a plan aimed at revitalizing the industry. This includes an ambitious goal to plant 100 million coconut trees by 2028. The PCA's current year target involves replanting approximately 8.5 million coconut trees, with projections to significantly increase the annual replanting efforts in the subsequent years
Chan emphasized the potential for success in meeting the government's replanting objectives through collaborative efforts between the state and the private sector. He also pointed out the critical role of the coco levy fund, established under Republic Act No. 11524, in supporting the modernization and rehabilitation of the coconut industry. The act mandates a phased financial infusion into a trust fund dedicated to these efforts, with allocations reaching up to $1.296 billion over five years.
Source: BusinessWorld