FRESH VIEWPOINTS: A NEW PERSPECTIVE

By Brian James Lu

BRIAN JAMES J. LU, MMgt, is an entrepreneur, business adviser, government consultant, and is deeply involve in civil society organizations. He advocates good governance, ethical business practices, and social responsibilities. He is the President of the National Economic Protectionism Association (NEPA) and Chairman of the Foundation for National Development (Fonad). His broad experiences in the private and public sectors give him a unique perspective to advance his advocacies.

The nation celebrates Coconut Week this August, a long-standing tradition that recognizes the immense value of the coconut, often referred to as the “tree of life.” The Philippine Coconut Authority (PCA) leads the celebration with the theme “Paghubog sa Pilipinong Magniniyog Daan sa Pag-Angat ng Ekonomiya at Maunlad na Bagong Pilipinas.” This annual event highlights the crucial role that the coconut industry plays in the country’s economy, culture, and the daily lives of millions of Filipinos, particularly coconut farmers.

Coconut Week is more than just a celebration; it’s a time to reflect on the past, present, and future of the coconut industry. Various activities showcase the versatility and sustainability of coconut-based products throughout the week.

This year’s theme emphasizes the support of coconut farmers, who are the backbone of the industry. Through the PCA, the government is committed to empowering these farmers through a variety of programs aimed at improving their livelihoods. These initiatives include distributing high-yield coconut seedlings, promoting intercropping practices, and providing financial assistance to help farmers recover from the challenges posed by climate change and other adversities.

A notable addition to this year’s Coconut Week celebration is the involvement of Negosyo Advocates, an association of entrepreneurs promoting locally made products and encouraging consumers to #buyfilipino and #buylocal. Negosyo Advocates hosted a roundtable discussion where entrepreneurs shared their experiences, challenges, and aspirations as micro, small and medium enterprises (MSMEs) that use coconuts as their product base. They also organized “Good Food Sundays” in Mandaluyong City, showcasing coconut products and foods from various entrepreneurs and culinary enthusiasts. The event included an insightful discussion about the coconut industry and entrepreneurs’ role in promoting coconut-based products for farmers.

The culmination of Negosyo Advocates’ activities was a coconut culinary show at the PCA grounds. During the event, chefs prepared coconut-inspired recipes using high-quality coconut ingredients, providing nutritious and delicious food for PCA officials and employees to enjoy. The event highlighted the need for more entrepreneurs to advocate for coconut-based products, especially in the food industry.

The history and cultural heritage of the Philippines deeply embed coconuts. When Magellan’s remaining ships reached Leyte Gulf, they discovered the coconut tree, which they called the “Tree of Life.” They were amazed by how the natives used the tree for food, nutrition, medicine, shelter, and many other purposes. Today, modern technology has expanded the uses of coconuts, producing essential products such as soap, medicine, shampoo, jet fuel, cooking oil, and countless others.

The Philippines has the largest land area planted with coconuts globally, and it was once the world’s top coconut producer until Indonesia took the lead. The coconut represents the Philippines’ natural competitive advantage over other nations, with 69 out of the country’s 82 provinces producing coconuts. Remarkably, just three countries, including the Philippines, account for over 80 percent of the world’s coconut supply.

It’s astonishing to learn that, according to PCA data, there are 345 million bearing coconut trees in the Philippines, producing 15 billion nuts annually. Yet, it’s uncertain whether we are fully utilizing this resource or merely scratching the surface of its potential.

Traditional coconut products, like coconut oil, are a major export from the Philippines to 57 countries. The country is the world’s second-largest exporter of coco shell charcoal and supplies coco shell-based activated carbon to 99 international markets. Non-traditional products like coconut water are also significant, with exports reaching 78 countries. The Philippines is the top exporter of virgin coconut oil globally, further solidifying its natural competitive advantage.

Despite these achievements, more than 2.5 million coconut farmers in the Philippines face significant challenges. Unfortunately, despite the abundance of coconuts and success in both local and international markets, 90 percent of coconut farmers live below the poverty line, as stated in the Philippine Coconut Industry Roadmap 2021-2040. The coconut value chain appears to have overlooked coconut farmers. While businesses and entrepreneurs have grown wealthy, coconut farmers continue to struggle in poverty. With the average age of Filipino farmers between 57 and 59 years old, there is a growing concern that future generations may abandon farming altogether, leading to the conversion of agricultural lands for commercial and residential use, further threatening the nation’s food security. Reports indicate that many farmers no longer wish their children to inherit the farming lifestyle, as it often leads to a life of hardship.

President Ferdinand R. Marcos Jr.’s administration has committed to planting 100 million more coconut trees to replenish the country’s coconut supply. However, we must synchronize this initiative with efforts to develop and open more markets for both traditional and non-traditional coconut products. Additionally, there is a growing need to promote coconut-based foods and condiments developed by entrepreneurs in both domestic and international markets.

Now in its 38th year, the celebration of Coconut Week is a testament to the enduring importance of the coconut industry in the Philippines. It honors the ingenuity, hard work, and dedication of the millions of Filipinos who have made the coconut a vital part of the nation’s heritage and future. We encourage every Filipino to honor the Tree of Life and ensure that it continues to thrive for generations to come.