Viability of Coconut Production and

Viability of Coconut Production and Trade in the Philippines FEASIBILITY AND PROFITABILITY Summary of Findings, Conclusion and Recommendations Many decades past, the Philippine economy was largely dependent on agriculture (Albert 2013). It gradually became less and less dependent from a third at 29.7% in 1946 to only 11.1% in 2012. The 2011 Gross Regional Domestic Product reported that Central Luzon or Region 3 and IVA or CALABARZON are the top contributors to the sector at 13.8% and 9.5%, respectively. Of the regions, agriculture has the largest share in the economy of the Autonomous Region of Muslim Mindanao or ARMM.

This region also has one of the highest poverty levels at 45.9% as of 2009 (Albert). The Philippine Coconut Authority (2014), the sole government agency responsible for the full development of the coconut industry, points to it as the leading agricultural sector. It says that 3.1M hectares of the 12 million hectares of farmlands are planted to coconut; 68 of the 79 Philippine provinces are classified as coconut areas; and as of last agency count, there were 324 million bearing and non-bearing coconut trees.

There are currently 35 million coconut farmers in the country whose products account for 1.14% of the country's GNP. Overall and despite the decline in the dependence of the economy on agriculture, 25 million Filipinos still directly or indirectly depend on the industry for their livelihood and survival. Their coconut production also accounts for large 59% share of the world's coconut exports. These exports earn the country an average net income of U.S.$760 million annually (PCA). It is veritably the "Tree of Life (Delmo 2012)" for its versatility.

It can be used for food, housing, fuel, furniture, decorations and other uses. Its meat and water can be eaten and drunk. It can be converted into oil, leaves, fuel, husk, pith, shell, medicine, and dye (PCA, Delmo). This study seeks to determine how viable coconut production as an enterprise in Region 5 today. It intends to answer the following questions: 1. what is the overall condition and potentials of the coconut production in the; country; 2.

The current conditions and feasibility of such an enterprise in Region 5, specifically Camarines Sur, Siruma and Butawanan.; 3. The legal and physical requirements of setting up the enterprise; and 4.

actual and projected barriers or issues for the enterprise and their solutions The purpose of this study is to obtain sufficient, accurate and appropriate information on the feasibility, profitability and requirements of starting a coconut production business in Butawanan, Siruma, Camarines Sur in Region 5 or Bicol Region The significance of this study lies in its modest contribution to the improvement of the coconut industry in the village, town, province and regional levels by providing increased employment to the residents of Butawanan.

Directly or indirectly, this will uplift their living conditions economically and socially. This study will use the conceptual framework of food security of the Food and Agriculture Organization of the United Nations. The two determinants, namely physical and temporal, influence this framework. The physical determinant consists of the food flow, in turn characterized by availability, accessibility and utilization. Availability is achieved if sufficient food is ready for the target population's consumption.

Accessibility or access is achieved when the targeted households and all the members possess enough resources to secure appropriate foods for their nutrition. And adequate utilization means the capability of the targets' bodies to take in and use the food produced. Utilization is adequate when the food or diet is nutritious and safe; produced and made available in an adequate biological and social environment; complemented by proper health care to avoid disease and promote the proper use of the food.

The scope and limitation of this study cover the production of 10 new coconut varieties in my 20-hectare property in Butawanan in Siruma, Camarines Sur for a trial period of 3 years, beginning next year and their sale in Mercedez town for a trial period of 5 years starting ____. II. Review of Literature The Tree of Life The coconut tree or cocos nucifera, is called "the Tree of Life" for the multiple uses of almost of its parts as products and by-products (PCA 2014).

Its meat can be made into coco flour, dessicated coconut, coconut milk, coconut chips, candies, local sweetened shredded coconut meat, latik and animal feeds. Copra is the dried meat derived from the coconut fruit. It is 64% oil but is most easily digestible as compared with other oils. It provides energy, delays aging, and can be used as detergent, lard, chemical, crude oil, hair dressing, margarine, butter and cooking oil. Its leaves can be converted into paper, brooms, hats and mats, fruit mats, bags and roof materials.

Coconut is eaten as ingredient in salads, desserts, pastries and directly as buko as a refereshing drink. When mature, coconut can be made into dessert and special menus. Its sap or water was recently discovered to have curative value for renal disorders. Coconut husk has brittle fibers, mattress fibers, and coir dust, which are made into brushes, doormats, carpets, bags, ropes, yam fishing nets and mattresses. Its pith can be made into coco pickles and desserts like guinatan and lumpia.

It can also be used to make helmets, caps, shoe straps, fans, house decors like lamps shades and flowers to adorn the table. It can also be made into fermented or alcoholic juice, multi-purpose shells, and wood for benches, tables, carvings, picture frames and construction materials from its trunk and roots (PCA). Towering coconut trees are an almost ubiquitous and refreshing sight in both the countryside and the urban areas in the Philippines (Hub Pages 2014). They are easy to recognize and have become a national symbol.

Recent statistics say that 25% of the country's total cultivated lands are planted to coconut. The Philippines ranks second in coconut production only to Indonesia but the top exporter of coconut oil to the world market. The Food and Agricultural Organization was quoted in 2009 that the Philippines had become the top coconut producer at 19,500 tons ahead of Indonesia at 15,319,500 (Hub Pages). A large percentage of the population depends on coconut farming for their livelihood (Batanes 2012). Coconut farmers have a characteristically pleasant and peaceful life style and environment.

They live at a comfortable distance from the noise and rush of metropolitan areas, especially Metro Manila, which is preferable to them even in exchange of lesser income. The air in coconut plantation areas is clean and cool in contrast to the polluted air of Metro Manila and other cities. Winds bring cool air from these trees and overall vegetable even during summer, which is almost intolerable in the metropolis (Batanes). Coconut land owners employ laborers who do not own land and pay them wages (Batanes 2012).

They are hired to harvest every 2 or 3 months according to the volume of the yield and the number of harvesters depends on the size of the plantation. A hectare needs only one or 2 harvesters. If the tree is tall, the harvester climbs it to pick the coconuts. If the tree is young and short, the harvester uses a long bamboo with a sharp knife at the top point to snip mature coconuts from the crown of the tree (Batanes).

Copra and How it is Made Copra is the dried finished product of coconut for selling (Batanes 2012). The merchant who buys it, in turn, sells the product to coconut oil mills. The process of making copra consists of seven steps. These are harvesting, piling and hauling, de-husking, halving the coconut, drying and scooping from the shell. Traditional coconut harvesting is considered one of the hardest in the world.

The harvester climbs to the top of a coconut tree and cuts or disengages the fruits one by one with a sharp and slightly curved knife. He can tell which are mature enough for picking and making into copra. If the tree is young, the harvester makes alternate cuts upwards on which to step when climbing to the top. As he climbs, someone else on the ground gathers and piles the coconuts that fall on a carabao-driven bamboo cart. A carabao is a water buffalo.

When the harvesting is finished, the carabao is driven to the work area where the harvested coconuts are taken down and piled again. At the work area, the harvesters manually de-husk or remove the coconut husks with a sharp steel instrument, which is attached to a piece of wood for support. The harvesters cut through one side of the coconut with this instrument about four or five times until the husk is completely removed. The task is difficult and arduous as it requires much strength and energy.

The coconuts are then split into halves with the use of the back of the cleaver. Cutting must be made in a straight line, crosswise and performed in a quick and powerful motion with one hand. The other hand holds the coconut against a hard and flat surface. Some experts halve a coconut by the palm of their hands. But neophytes should not attempt to do this. Halved coconuts can be dried in one of two ways.

The first is by letting them dry by the heat of the sun, which takes a longer time. The other and faster way is by heating them. A bamboo house or shack without walls is built at about 3 feet above the ground. It has only a roof and a floor. The halved coconuts are piled on the floor. Some coconut husks are piled beneath the shack but not too close to burn the shack.

A torch is used to set fire on these piled coconut husks but they are monitored carefully. More fire is set if it turns low. The halved coconuts turn brown and separate from the shells when ready for scooping. Just enough heat from medium to low is used to avoid burning. When the fruits at the bottom are done, the fire is taken out and the coconuts are allowed to cool. When cool, the coconuts are taken to another working area.

When some are not too well done, they must be separated and heated again until they turn brown and cooked enough for scooping. Harvesters scoop the cooked coconuts from the shell by using a handmade and wooden semi-pointed instrument, which curves at the tip. Dried coconut meat is scooped with it from the shell. When finished, harvesters cut the meat into 4 to 6 pieces for every halved coconut. The product, copra, is placed inside a sack for selling.

The sacks are brought by the carabao-driven cart to the main road where they can be transferred to some other transport means if the coconut plantation is distant. From there, the sacks of copra are brought to the where the merchants can buy them (Batanes). Copra Production and Consumption Decline The country's new record in 2010 at 2.8 million tons went down to 2.3 million tons or by almost 20% because of the drought effects of El Nino (Corpuz 2012).

This level is expected to remain from 2012 as coconut palms must take what is termed as "biological rest" of three consecutive years after the heavy yields from 2008-2010. This has led to an increase in imports of 100,000 tons in 2011 and seen to remain until local production can go up again. It must, however, be noted that the 2010 high copra production levels were achieved despite El Nino. That year was the third consecutive time of excellent copra yield.

The Department of Agriculture responded by resorting to aggressive replanting efforts and price adjustments (Corpuz). Region 5 -- Bicol Region This region is located at the southernmost edge of Luzon, measuring approximately 18,000 kilometers (PSA 2014). It is composed of 6 provinces, one chartered city, 6 component cities, 107 municipalities and 3.471 barangays or villages. There are 14 congressional districts in this Region at present. Its population as of 2010 was 5,420,411 with an annual growth rate of 1.46%. The provinces are Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate and Sorsogon. The capital of the region is Legaspi City.

The economy of the region is still basically agricultural as about 40% of its total workforce is in the agricultural sector. Its other major economic contributing sector is mining. The two major geothermal fields, which contribute a large amount of power to the Luzon Grid, are located in this Region (PSA). Its regional economy growth rate as of 2012 was 7.1% and poverty incidence among families in the same year was 32.3% (PSA 2014). It is the 7th poorest among the country's regions.

As of 2012, its gross regional domestic product was P216,873,375, with an 8.9% increase over the preceding year's P199,233,506. Agriculture, fishery and forestry were the leading sectors, which accounted for P52,731,633 of the overall gross regional domestic product. The sectors, however, did not register any increase from the preceding year. Coconut ranked 5th in crop production for 2012 at 1,204,459 metric tons or a 3.2% growth from the previous year's 1,201,707. Palay topped the list. Coconut ranked fourth in the crop area harvested list at 453,501 hectares with a 0.2% growth from the preceding year at 452,681 hectares (PSA).

Camarines Sur is located at southern-eastern part of Luzon and in the middle of the Bicol Peninsula (PSA 2014). It is politically subdivided into 5 congressional districts, one chartered city, one component city, 35 municipalities and 1,063 barangays or villages. Its land area of 5,502 square kilometers is about 30% of the Bicol Region and 1.83% of the entire Philippines. As of the latest provincial census on May 1, 2010, its population was 1,822,371 or approximately one-third of that of the Region. The average growth rate between 2000 and 2010 was 1.62%.

Its economy is 62% agricultural and the total land area planted to crops with 18% to coconut. Naga City is its financial, trade, religious and educational center. Pili is, however, the provincial capital. The average family income of the province in the year 2000 was 102,349 with 5 members per household by the year 2010. It comes under income class 1, which means that it has an average annual income of P459 million or more (PSA).

One of its municipalities is Calabanga, which is under a class -1 income category, partly urban and has a population of 73,333 (Philippine Islands 2014). Its land area is 163.80 km and considered one of the most populous municipalities in the province. It belongs to the Luzon group of islands. It is around 17 km in the northwest part of Pili and 259 km east-south of Manila. The municipality has 48 barangays or villages, 9 of which are at the center and the 39 at the outlying areas, some even located many kilometers away from the center.

One of its small municipalities is Siruma, which used to consist of several towns until it became a single and independent town on its own. It used to be under the jurisdiction of Quipayo, which was among the oldest parishes of the Archdiocese of Nueva Caceres. Quipayo eventually became a barangay or village of Calabanga. An 1846 decree by Governor General Narciso Claveria ceded Siruma to Camarines Norte. The name was taken from an island named "Matandang Siruma," which meant a small red ant.

It is now the third district of Camarines Sur, a fourth-class municipality with a total population of 17,050 as of 2010 count. Its local government under Municipal Mayor Sandy Ondis boasts of holding the New Guiness World Record of planting 64,900 trees in less than half an hour. Siruma is subdivided into 22 political barangays or villages. One of these is Butawanan. While some of the barangays or villages or Siruma became urbanized, others, especially those in distant areas, maintained their rural structure. Butawanan is one of these. It has a diminutive population of 1,487.

Mercedes is important municipality in this paper. It is among the 10 most populous in Camarines Norte, a partly-urban second-class municipality with a population of 44,375 as of the latest count (Philippine Islands 2014). It has a land area of 173.65 km. It is located at 7 km east of Daet, the capital of Camarines Norte and approximately 222 km east-south-east of Manila.

It has also become a commercial location for its proximity to bigger cities and municipalities like Iriga City in Camarines Sur, Lopez in Quezon, Libmanan and Calabanga in Camarines Sur, Naga City and Nabua and Buhi, also in Camarines Sur (Philippine Islands). Philippine Agriculture Performance in 2013 Philippine agriculture grew by 1.15% in 2013, according to the Department of Agriculture (BAS 2013). All sub-sectors realized output gains despite a minimal increase in crop production. Gross agricultural output was valued at P1.5 trillion at current prices, a 3.51% increase over that of 2012.

The crops sub-sector in particular earned P814.7 billion gross at current prices or a 2.13% increase over that of the previous year. Like corn, the gross value of coconut production fell by 8.44% because of lower production and prices. Production volume at 7.4 million metric tons was a 0.40% decrease from the previous year's level. Both the harvest area and production at the ARMM region also decreased in the second quarter of 2013 as a consequence of shifting to cultivating oil palm and cassava and the destructive Typhoon Gorio.

This damage was made worse by Typhoon Yolanda in Leyte, Eastern Samar, Samar and Aklan in the fourth quarter of 2013 (BAS). The production of coconut went down by 3.26% during the reference period as a result of reduced harvest because of the damages inflicted by Typhoon Pablo in Davao Oriental, Davao del Norte, Compostela Valley, Agusan del Sur and Surigao del Sur (BAS 2013). Other destructive Typhoons, which reduced harvest, were Labuyo and Santi in Aurora.

Other causes of reduced coconut production were cutting and replanting to less productive trees in Oriental Mindoro, shift to rubber cultivation in Basilan, lesser prices of copra in Surigao del Norte, and cutting of trees infested by scale insects in Batangas. Coconut price was cut down by 5.36% as the result of lowered price for copra (BAS). The Philippine Coconut Authority Creation, Mission, Vision, Functions Presidential Decree 232 dated June 30, 1973 created the Philippine Coconut Authority or PCA (2014).

It incorporated the powers and functions of former entities Coconut Coordinating Council, Philippine Coconut Administration, and the Philippine Coconut Research Institute. PCA is the only government agency with the mandate to develop the full potential of the industry according to the established "vision of a unified, globally competitive and efficient coconut industry (PCA)." In fulfilling this vision, it oversees all the aspects and activities of the coconut industry and other palm oil industry.

It also insures that coconut farmers' direct participation in, and benefits from, the development and growth of the industry, as provided by section 2, Article 1 of Presidential Decree 1468. PCA is sworn to insuring the development and implementation of high-value and workable programs with transparency, responsibility, accountability and professionalism (PCA).

Its functions are to formulate, implement and promote a strategic and comprehensive development program for the achievement of the vision and mission of the agency; conduct continuing nationwide coconut planting and replanting, fertilization and rehabilitation and other programs aimed at farm productivity; undertake research and extension efforts on farm productivity and process development in order to achieve and maintain product quality and diversification; set up quality standards for products and by-products as well as develop and enhance both domestic and foreign markets; and improve the capacities of farmers and farm workers and ensure their overall social and economic well-being (PCA).

Brief History and Evolution The promotion of the coconut industry was first the responsibility of the National Coconut Corporation or NACOCO, which was created in1940 (PCA 2014). In 1954, it was renamed into the Philippine Coconut Administration or PHILCOA but for the same function. The scope of operations of PHILCOA expanded and had to be renamed into the Philippine Coconut Research Institute or PHILCORIN. The Institute was to monitor, evaluate and undertake research on coconut and its productivity.

At the peak of the Period of Expansion in 1971, PHILCORIN was replaced by the Coconut Coordinating Council. The Council was to charged with the supervision, coordination and appraisal of the implementation of the government's coconut self-sufficiency program. These agencies, however, had divergent purposes and directions, which did not focus on the total development of the industry and the welfare and interests of coconut farmers. To rectify this divergence, Presidential Decree 232 created the Philippine Coconut Authority or PCA on June 30, 1973.

.It was transformed into an independent public corporation on July 14, 1976 by Presidential Decree 961 and under the direct and sole control and supervision of the Office of the President. This particular Decree was the first codified laws governing the development of the coconut and other palm oil industry. Presidential Decree 1468 subsequently revised it on June 11, 1978 as the Revised Industry Code. This eventually served as the charter for the creation of PCA as a public corporation.

The transfer of jurisdiction from the Office of the President to the DA over PCA was grounded on the aim at providing the Department with the power to undertake overall coordination and monitoring of the policies and programs of the different agricultural sectors. The 1987 Administrative Code confirmed and incorporated the attachment of PCA to DA (PCA). PCA Organizational Structure PCA has a Governing Board who oversees the operations of the agency (PCA 2014). The top official is the Administrator as chief operating officer.

The lead departments are the Corporate Planning Office, the Management Services Office and the Public Relations and Information Office. Out of its small human resource complement of only 1,170, 982 of them are technical, extension and research specialists who work in the field, down to the municipal level. The agency infrastructure is strategically located in and operates in 12 coconut regions, 68 provinces, and 1,419 municipalities. The infrastructure includes 3 research centers in Albay, Davao and Zamboanga and an extension training center in Davao.

There are also 5 macapuno satellite laboratories operating in Pangasinan, Albay, Tacloban, Zamboanga and Davao and two national seed production centers in Carmen, Cotabato and Ubay, Bohol. PCA also links up with international organizations like CODEX, FOSPA, NIOP, BUROTROP, COGENT/IPGRI in the Americas and the APCC and AVOC in Europe and Africa. The current Chairman is Secretary Proceso L. Alcala and the Administrator is Euclides G. Forbes. PCA head offices are located in Diliman, Quezon City (PCA).

Latest Coconut Statistics Per 2011 statistics report, 3,562 hectares are planted to coconut, which represents 26% of total agricultural land (BAS 2012 as qtd in PCA 2014). Of the 79 provinces in the country, 68 are classified as coconut areas. There are also 1,195 coconut municipalities. As of last count, there are 340 million coconut-bearing trees nationwide. These coconut trees yield an annual average of 15.2 billion nuts or 43 nuts per tree per year on the average. Copra production in 2011 was 2.550 metric tons and slightly decreased to 2.510 in 2012. The nut equivalents were 15.207 billion in 2011 and 15.238 billion in 2012, respectively.

The country exported 1.505 metric tons in 2011 and 1.530 metric tons in 2012. And domestic consumptions of copra were 0.740 in 2011 and 0.900 in 2012 (UCAP 2012 as qtd in PCA). Major Programs and Projects These are categorized under Production Services, Market Development Services, Research and Development, and Regulatory Services (PCA 2014). The six Production Services Programs are Rehabilitation through Fertilization or Salt Fertilization, National Coconut Planting Replanting or a participatory coconut planting program, Maintenance of Coconut Seed Farm Seed Garden, Institutional Building, Farm Diversification or intercropping, and Kasagahan sa Niyugan ay Kaunlaran ng Bayan or KAANIB.

Market Development Services are chiefly in the form of investment trade promotion. Research and Development Services focus on varietal improvement; bio-technology tissue culture; crop agronomy, nutrition and farming systems; integrated crop protection; product development and special projects. And Regulatory Services cover the strict implementation of pertinent laws, ordinances and quality standards pertaining by entrepreneurs pertaining to the industry (PCA).

Production Services Rehabilitation through Fertilization or Salt Fertilization uses common salt to increase productivity of fruit-bearing coconut trees as well as resistance to pests and diseases National Coconut Planting/Replanting uses open pollinated varieties in suitable areas and where older trees are cut according to the guidelines of Republic Act 8048 Maintenance of Coconut Seed Farms and Seed Gardens supports the long-term coconut planting/replanting program Institutional Building means the continuing formation of coconut cooperatives and farmers organizations to build self-reliance among producers and entrepreneurs and ultimately achieve the goals of self-empowerment and the uplifting of their standard of living Farm Diversification or Intercropping is short-season planting of high-value crops in spaces between coconut trees.

Examples are corn, peanut, banana, cacao, coffee, and pineapple. Kasaganahan sa Niyugan ay Kaunlaran ng Bayan or KAANIB promotes a coconut-based farming as a profitable business Market Development Services take the form of investment trade promotion, such as trade fairs, exhibits and missions, market match, and local and foreign industry dialogues, which promote coconut products Research and Development Services Varietal Improvement means sustained studies on breeding and genetics, tissue culture and biotechnology Bio-technology Tissue Culture calls for continuing studies on better techniques for incremental productivity.

These techniques include embryo culture, germplasm exchange, cryo preservation and the use of biotechnological methods to produce better-yielding varieties Crop Agronomy, Nutrition and Farming Systems require continuing studies on mineral nutrition, integrated soil fertility management under coconut-based farming and sustainable cropping systems Integrated Crop Protection explores ways of developing integrated pest management strategies in controlling pests like the Orycles rhinoceros, slug caterpillar, phytophthora, weed management with the use of botanical biocides Product Development consists of studies and experiments aimed at reducing industrial dependence on traditional coconut products and developing new products in raising domestic and foreign earnings Special Projects are studies aimed at developing alternative uses of existing coconut resources, technology, and coconut by-products Regulatory Services strictly enforce the provisions of Republic Act 8048 or the Coconut Preservation Act of 1995; the registration of coconut products and/or by-products trade or dealership, manufacturing, and processing; and the promotion and maintenance of quality standards for both coconut products and by-products for export and referential purposes (PCA).

The PCA Regional Office is located on Rizal Street in the old Albay District, Sagpon, Legaspi City (PCA 2014). The current regional manager is Mateo B. Zipagan (PCA). The use of common salt as fertilizer has proved to be effective in increasing coconut production (PCA 2000). It is also the cheapest but the best source of chlorine in increasing copra production. This also backs up the consistent finding among studies that chlorine deficiency explains low production.

One such study was a PCA survey, which revealed that at least 40% of low coconut-producing provinces were severely lacking in chlorine (PCA). These studies have demonstrated that salt hastens crop growth and development, increase copra weight and the number of nuts; reduces leaf spot damage; and proves to be environmentally-friendly when applied properly (PCA 2000). Farmers were able to fertilize more than 170,000 hectares of coconut -- with approximately 18 million trees -- by using salt. The practice increased production at 125% as compared with coconuts unfertilized with salt.

Indonesia recognizes the value of salt as a general and ideal fertilizer for their plantations measuring 2 million hectares (PCA). Salt fertilizer may be applied in one of three ways (PCA 2000). One is by broadcasting or dispersing on flat to slightly sloping areas. The salt grains may then be forked-in at 2-3 inches in depth when combined with nitrogenous fertilizers. Or it may be holed in hilly or sloping areas at 8-10 inches with 3-5 inches in depth at the base of the coconut trees.

When broadcasting or dispersing, the salt fertilizer is placed uniformly on the weeded area at the base of the palms. This should be at 1 meter radius, depending on the maturity of the palms (PCA). The use of salt fertilizer can result in additional P10,000-P19,000 earning per year at P12 per kg of copra (PCA 2000). To maximize and optimize the benefit, the trees should be well cared of, kept free of disease and pests (PCA).

Coconut Leaf Pruning in Region 5 Weather disasters have been a recurring experience in the Philippines, as they are in more and more countries throughout the world in recent years (Baas & Ramasamy, 2000). The geographical location and natural environment of the Region make it particularly vulnerable to all kinds of disasters, including floods, typhoons, drought, and landslides. Agriculture is easily the most affected in disaster-prone areas, especially those in the upland agro-ecological sites.

Bicol Region is one such vulnerable area and coconut farmers confront this serious problem as more than 20% of its cultivated land is planted to coconut. Coconut leaf pruning can be a simple, practical, profitable and environment-friendly solution and option. It allows intercropping of high-sunlight dependent crops, such as vegetables at short periods of planting, in smaller vacant areas between coconut trees, and at reduced capital requirements. At the same time, it realizes additional income and enhances food security for the farmers and their families (Baas & Ramasamy).

Rationale and Objectives When palms are often spaced 8 meters apart, almost 75% of the area is unused and 40-60% of the sun shines during peak hours, especially through palms 25 years old or older ( Baas & Ramasamy 2000). The lack of sun beneath the palms and the race for soil nutrients are among the reasons why farmers do not use the spaces in-between for other crops. Eliminating older trees should allow the use of these wasted spaces for vegetable cultivation.

At the same time, the practice could reduce the ill effects of bad weather especially on flowering fruits and the yield itself (Baas & Ramasamy). Coconut leaf pruning will simultaneously allow and enhance the growth of intercrops underneath coconut trees (Baas & Ramasamy 2000). Using this technology will increase farmers' income from coconut and intercropping of root crops as well as from pruned leaves and their by-products. Consequently, it will put more nutritious food on the farmers' tables, enhance food security and contain the risk of extreme weather.

Coconut leaf pruning will also minimize water requirement and the need to transport coconuts in dry months (Baas & Ramasamy). Mechanics of Coconut Leaf Pruning CLP or coconut leaf pruning takes away the leaves from leaf Rank 19, which holds the tender nuts to the oldest leaves during harvest (Baas and Ramaamy 2000). A harvesting pole and scythe are used to perform this. CLP allows sufficient sunlight to beat down for perennial and annual crops to develop normally and yield at maximum levels.

CLP is performed from leaf rank 23 or 24 if only 10-15% nut yield is intended but at least 18 young leaves should be left in the upper portion of the crown. CLP should be performed every 45 days. Pruned leaves do not go to waste. They can serve as mulching materials that can stop intercrop evapo-transpiration (Baas & Ramasamy). Mixed cropping or multi-storey cropping system grows two or more crops in the same coconut space a year (Baas & Ramasamy 2000).

It combines crops of different heights and with different types of root systems in the same soil environment. Among the most highly recommended coconut intercrops are tomato, eggplant, sweet pepper, squash, okra, ginger, sweet potato and cassava. CLP is not ideal for coconut trees 12 meters or taller. There is enough sunlight transmission under such tall trees and pruning will be quite difficult. Long-term CLP from leaf rank 19 at 3 years or longer is likely to reduce production by as much as 25%.

However, increasing the size by 10-15% or copra per nut or a higher yield of intercrops can compensate for reduced production (Baas & Ramasamy). Benefits of CLP With the minimal cost of the technology in addition to better varieties, CLP will increase farmers' family income (Baas & Ramasamy 2000). It insures higher yield and better intercrop quality, which result in higher efficiency cropping system and greater farm productivity.

Tests on three pilot municipalities for three seasons provided evidence of improved crop varieties using CLP, which resulted in an increase in the revenue of farmer-cooperators. The findings of another pilot testing conducted on select upland or rain-fed areas showed that intercropped crops under pruned coconut trees were more resilient to extreme weather conditions. The only crops, which did not withstand too much rainfall, were sweet or green corn, tomato and peanut during the cropping season (Baas & Ramasamy). III.

Methodology This study uses the descriptive-normative method of research in recording, describing, interpreting, analyzing and comparing updated information from authoritative sources, such as the Philippine Department of Agriculture Bureau of Agriculture Statistics, Philippine Coconut Authority, Philippine Statistics Authority and Philippine Islands. IV. Findings From a largely agricultural economy, the Philippines' dependence on agriculture gradually receded from 29.7% after the last War to only 11.1% two years ago (Albert 2013). The PCA points to the coconut industry as the leading agricultural sector and that of the 12 million hectares of farmlands, 3.1 are planted to coconut.

The agency also reports that 68 of the 79 Philippine provinces are coconut areas; there are 324 million bearing and non-bearing coconut trees as of the latest statistics; and 35 million coconut farmers in the country. Their inputs constitute 1.14% of the Philippines' GNP. Despite the reduced dependence on agriculture, 25 million Filipinos still derive their livelihood and thrive on the industry (Batanes 2012). Coconut exports bring in an annual net average net income of U.S.$760 million (PCA).

And it is called "The Tree of Life (Delmo 2012)" for its versatility and longevity in sustaining life (PCA, Delmo). Coconut farmers are not only insured of survival and long life by growing coconuts. They also enjoy a peaceful life and pollution-free environment, despite lesser income, as compared to city life (Batanes 2012). Coconut land owners hire and pay laborers or harvesters wages to harvest their produce every 2 or 3 months, depending on the size of the plantation and the estimated and projected volume of yield (Batanes 2012).

Copra is the finished product, which is sold to merchants. Processing copra consists of 7 steps and traditional harvesting is among the hardest tasks in the world. This study describes all these steps to the end (Batanes) After peaking at 2.8 million tons in 2010, national production in the country decreased to 2.3 or close to 20% due to the El Nino drought (Corpuz 2012). The level was to remain in the next 3 consecutive years as the trees take their "biological rest" from a record yield in 2010.

Reduced production led the country to import 100,000 tons in 2011 and will be sustained until local production shoots up again to sufficient levels. Copra production, however, was high during this year despite the destructive effects of El Nino and was the third consecutive of excellent output due to aggressive replanting measures and price adjustments (Corpuz). Region 5 or the Bicol Region is located at the southernmost tip of Luzon and has a land area of approximately 18,000 kilometers (PSA 2014).

It has 6 provinces, one chartered city, 6 component cities, 107 municipalities, 3,471 villages or barangays.and 14 congressional districts. Census count in 2010 registered a population of 5,420,411 at an annual growth rate of 1.46%. The capital is Legaspi City. The regional economy has remained largely agricultural with 40% of its workforce is in the agricultural sector. Its economic growth rate increased to 7.1% in 2012. It ranked as the 7th poorest region in the country with a 32.3% poverty incidence. Its regional GDP went up by 8.9% from P199,233,506 in 2011 to P216,873,375 in 2012.

Coconut was the 5th in production in 2012 at 1,240,459 from 1,201,707 in 2011. In 2010, coconut was fourth at 452,681 hectares and a 0.2% growth rate (PSA). Camarines Sur Lying in the middle of the Bicol Peninsula, this province occupies 30% of the region at a 5,502 square kilometers land area and 1.83% of that of the entire country (PSA 2014). As of 2010 census count, it had a population of 1,822,371 or about a third of the region and growing at 1.62% between 2000 and 2010. It still has a largely agricultural economy at 62% with 18% of its land area planted to coconut.

Its capital is Pili but Naga City is its center of trade, educational and, religious activities. It is a class-1 province with a minimum average annual income of P459 million. One of its municipalities and part of the Luzon group of islands is Calabangan, one of the most thickly populated. One of its barangays or villages is Quipayo, which used to be among the oldest parishes of the Nueva Caceres archdiocese.

Among the many municipalities under the jurisdiction of Quipayo was Siruma until a gubernatorial decree in 1846 restructured the territory and ceded Siruman to Camarines Norte. Siruma is now an independent town with 22 villages under it. One of these is a distant village, called Butawanan, whch has retained its rural structure and a tiny population of 1,487 as of recent census count (PSA). Mercedes This is one of the most thickly populated municipalities in Camarines Norte (Philippine Islands 2014).

It is partly urban and a class - 2 municipality in Daet, the capital of Camarines Norte. It is a commercial center as it is accessible to bigger cities and municipalities, such as Lopez in Quezon Province; Iriga City, Libmanan and Calabanga, Naga City, Nabua an Buhi in Camarines Sur. Coconut or copra produce from Butawanan can be sold in Mercedez through a small boat at a short hour delivery or in Manila,, which is 8 hours away by land travel and 30 minutes by air (Philippine Islands).

Last year, all the sub-sectors of Philippine agriculture grew by 1.15% despite a minimal increase in crop production (BAS 2013). Lower yield and prices reduced the gross value of coconut in particular by 8.44%. Production went down by 3.26% because of the destructive effects of Typhoon Pablo in Davao Oriental and Del Norte, Compostela Valley, Agusan del Sur and Surigao del Sur. Besides destructive weather, yield went down because of cutting, replanting to less productive crops and reduced prices (BAS).

The PCA, Latest Statistics, Programs, Accomplishments Presidential Decree 232 dated June 30, 1973 merged the powers and functions of the former Coconut Coordinating Council, Philippine Coconut Administration, and the Philippine Coconut Research Institute into a single entity, the Philippine Coconut Authority (2014). Presidential Decree 961 of July 14, 1976 subsequently placed it under the Office of the President as a public corporation until its transfer under the Department of Agriculture as an attached entity by virtue of the 1987 Administrative Code.

It is the sole government agency with the task of developing and overseeing the growth of the coconut industry and other palm oil industry in all of its aspects as well as the overall welfare of coconut farmers. It is ruled by a Governing Board whose policies are implemented by the entire organization, in turn headed by an Administrator.

The majority of its personnel complement consists of technical, extension and research specialists who work in the 12 coconut regions, 68 provinces and 1, 419 municipalities as well as 3 research centers, an extension center, 5 satellite laboratories and 2 national seed production centers. The PCA office building is located in Diliman, Quezon City (PCA). In its 2011 report, the Department of Agriculture says that 3,562 hectares or 20^ of the total agricultural land in the country are planted to coconut (BAS 2012). It also says that 68 of the 79 provinces are coconut areas with 1,195 coconut municipalities.

There are 340 million coconut-bearing trees in the entire country, which yield 15.2 billion nuts or 43 nuts on the average annually. The 2,550 metric tons of copra went down slightlight to 2,510 MT in 2012. But the nuts slightly increased from 15,207 billion in 2011 to 15,238 billion in 2012. Copra domestic consumption increased from 0.740 in 2011 to 0.900 in 2012 (UCAP as qtd in 2012). Export in 2011 increased from 1.505 MT to 1.530 in 2012 (BAS). The Coconut Industry Development Roadmap of 2011-2016 aims at an increased national production, training of more farmers, strategic research and development, and stricter enforcement of regulations (PCA 2014).

It aims at raising production levels from 800 kg per hectare to 1000 kg and farmers' income from P20,000 per hectare per year to at least P30,000; training 600,000 farmers on production processing, enterprise development and fortifying existing 1,200 farmer organizations and cooperatives; expand and conduct more aggressive research and development on the agricultural, medicinal, nutraceutical and industrial uses of coconut and expanding the markets of both existing and new products; and enforcing current regulatory policies more strictly. The agency has been pursuing these targets in 7 identified mechanisms.

It has been planting and replanting about 66,000 hectares each year with high-yield hybrids and locally improved varieties; using salt in fertilizing 330,000 hectares a year; yearly intercropping of high-value commercial crops in 75,000 hectares of coconut farms; diversifying single-cropped areas; introducing copra-processing technologies in order to eliminate aflatoxin and sustain quality standards; transforming non-traditional coconut products into useful items, such as bio-diesel and coir fibers; and connecting farmers with processors and markets directly (PCA).

The Commodity Roadmap's major programs and projects are farm productivity and supply reliability, product diversification and quality standards, trade and market development, institutional development and special projects (PCA 2014). Under the Farming Productivity and Supply Reliability Program are the Accelerated Coconut Planting/Replanting Program, which includes the KAANIB and the Salt Fertilization Project; varietal improvement or biotechnology; crop agronomy, nutrition and farming systems; copra quality improvement project; and the Coconut Preservation Act of 1995 or Republic Act 8048.

Under the Product Diversification and Quality Standards Program are high-value commercial products development, bio-fuel development, coco coir product development, and product quality standards development. Under the Trade and Market Development are strategic research and market development; standards enforcement and regulatory services; and trade information, relation and market assistance. Under the Institutional Development Program are coconut farmers' institution building, such as education and skills training; farmers' data bank; farmers' registry system; national information network; local coconut industry development council; and industry and corporate promotions.

And the Special Projects Program tackles palm oil industry development (PCA). In support of thee Roadmap programs and projects are the four broad services meant to implement these programs and projects. These are Production Services, Market Development Services, Research and Development, and Regulatory Services (PCA 2014). The different services under each type are listed and briefly discussed in earlier pages of this study (PCA).

Farm owners who are contemplating on growing coconuts for business may consider the use of salt as a fertilizer and the use of the coconut leaf pruning technology. Studies have found the effectiveness and the economy of common salt in increasing coconut production (PCA 2000). Salt is the best and cheapest source of chlorine, which is a basic ingredient in crop production. Studies have shown and explained that chlorine deficiency is one cause of low yield.

They found that salt facilitates the growth and development of coconuts, increases copra weight and the number of nuts, reduces leaf spot damage and is healthful to humans and the environment when correctly applied. Farmers who have tried using salt have successfully fertilized 18 million trees on 170,000 hectares of coconut and reaped 125% as compared with non-salt fertilizers. Further studies have also demonstrated that farmers can add as much as P10,000 to P19,000 to their income per year at P12 per kg of copra (PCA).

The use of Coconut Leaf Pruning or CLP, as has been demonstrated in Region 5, will also increase farmers' income at minimal cost (Baas & Ramasamy 2000). CLP removes leaves from Rank 19 leaf during harvest to allow sufficient sunlight. Its use insures greater production and better intercrop quality. These redound to greater efficiency cropping system and farm productivity (Baas & Ramasamy). Accomplishments in 2013 The Bureau of Agricultural Statistics reported that coconut production reached 15.344 billion nuts in this review year as compared with 15.862 billion in 2012 or a 3.26% decrease (PCA 2014).

Under the Accelerated Coconut Planting Program, the Participatory Coconut Planting Project produced 8,934,952 seedlings, which were distributed to 52,830 beneficiaries. And the Coconut Seedling Dispersal Project or Indigenous People Outreach Program yielded 8,227,738 seedlings, which were also distributed. A total of 836,868 bags of salt were distributed under the Salt Fertilization Project. The KAANIB Enterprise Development Project continues to monitor the 90 already identified sites. This year, 517 sites were established and 7 more were identified.

The Market Development Services Program registered 10,290 traders, processors, exporters, oil millers and coco lumber dealers and processors and promoted the conduct and participation in 20 trade fairs, 3 market surveys and issued 14 export commodity clearances. And under the Research and Development Program, four studies are currently conducted on varietal improvement; 5 on biotechnology and tissue culture; 5 on crop agronomy, nutrition and farming system; 8 on integrated crop protection; 8 on product development and 12 special studies. Moreover, 681 plant tissue samples and 893 samples suitable for export and referential purposes are undergoing laboratory analysis (PCA).

Major Issues with Current Programs These are top-level commitment, development of financing, appropriate criteria for resource allocation, institutional issues; implementation of the programs; participation of civil society, access to global markets, and CARP and other relevant laws (Dy & Reyes 2006). As to top-level commitment, there is no sustained roadmap; leadership constantly changes; funds for development are negligible. There is serious shortage of long-term funding for perennial crops and crop diversification. On the criteria for resource allocation, rice receives a far bigger budget than coconut per hectare or per farmer.

On the institutional aspect, the growth of the industry has suffered much delay because of low-level investment on short-lived and low-budgeted programs, which do not create strong impact. Implementation is problematic as it does not involve stakeholders like the local government units, the private sector, the civil society and educational institutions. Civil society in the form of NGOs and private groups has yet to be fully engaged in addressing lower production levels. Lowering tariff barriers lead to technical trade barriers, which hinder global market access.

CARP turned off private investors because of the retention limits and transferability provisions. And the overall weak approach to problems in the industry has led to lost opportunities to reduce poverty, global competitiveness and sustainable development in the last decades (Dy & Reyes). Region 5 Statistics In 2012, the Bicol Region produced 1,240,450MT from 35,651,678 bearing trees planted in 453,501 hectares (PCA 2014). Camarines Sur is the third highest-producing province with 333,822 from 7,759,876 bearing trees in 119,045 hectares. Camarines Sur has the largest area planted to coconut of all 6 Bicol provinces.

Sorsogon has the highest number of bearing trees at 8,161,715. Camarines Sur is 14th in the national ranking in terms of volume of production out of 80 provinces. And it is 6th in the size of the areas planted to coconut, also nationwide (PCA). Historical Prices of Copra in the Bicol Region (2000 -- April, 2014) The average price per kilogram were P9.78 in 2000; P7.36 in 2001; P12.19 in 2002; P. 13.98 in 2003; P21.23 in 2004; P17.98 in 2005; P17.08 in 2006; P24.09 in 2007; P30.10 in 2008; P.

18.16 in 2009; P27.37 in 2010; P41.32 in 2011; P25.04 in 2012; P21.60 in 2013; and P34.82 as of April, 2014 (PCA 2014). The Bicol Coconut Industry Representatives of the industry very recently presented an update on their status during a meeting in Davao City.