Press Release
May 14, 2009

To aid RP's coconut industry amid global financial crisis
ANGARA EYES CREATION OF PHILIPPINE COCONUT
DEVELOPMENT INDUSTRY

Sen. Edgardo J. Angara today seeks to establish the creation of the Philippine Coconut Industry Development Authority (PHILCIDA) in order to perk up RP's ailing coconut industry.

"More than twenty million Filipinos all over the country are affected by the shrinking coconut industry mainly due to recent cuts in coconut oil and copra prices in the market. Our coconut farmers are in desperate straits due to the coupling effects of recent glut of palm oil in the world market and typhoons that hit the country last year," said Angara who now chairs the Senate Committee on Finance.

He added, "If this scenario continues the coconut industry will collapse. Thus, we should focus our efforts towards saving our number one export earner. This can be initially done by providing a conducive policy atmosphere which will enable the revival of our coco industry."

In 2008, coconut oil prices fell to new record low within the last two (2) years. According to the Department of Agriculture - Philippine Coconut Authority (DA - PCA), coconut oil and copra prices were greatly affected by the overall weak tone in vegetable oils, lingering uncertainties in global financial markets, steep decline in crude mineral oil prices, and lower Asian vegetable oils markets.

In Southern Tagalog, copra prices went down from Php 28.25 per kg in 2007 to Php 24.75 per kg in 2008. This rapid and steep decline in prices is worse in the Visayas and Mindanao regions, averaging more than Php 7.00 of decline within a year. Given this stark situation, farmers are no longer harvesting coconuts. More farmers cut trees and sell them as lumber, instead of harvesting the coconut.

The coconut industry is the country's oldest and most strategic industry, contributing 1.14% of the total Gross Domestic Product amounting to US$ 760 million. The Philippines is a world leader in coconut exports, dominating 59% of the global market.

Statistics from DA - PCA indicated that areas planted with coconut covers 3.258 M hectares equivalent to 27% of total agricultural land. Sixty-eight (68) out of seventy-nine (79) provinces are considered coconut areas, representing 1,195 coconut municipalities.

Angara recently filed a bill which seeks to create a corporate body known as the Philippine Coconut Industry Development Authority (PHILCIDA), in order to promote the development and growth of the country's coconut industry. This is commensurate to the end goal of ensuring that the more than 20 million coconut farmers, farm workers, processors, lessees and tillers, and their families, shall become direct participants in, and beneficiaries of, such development and growth thereby increasing their income and uplifting their quality of life.

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