This is in reply to Jose Osias’ letter titled “Gov’t oblivious to coco’s vast potential” (Opinion, 7/10/14).
I do not agree that just because it did not follow the fresco approach of his group, the Philippine Coconut Authority (PCA) is incompetent or guilty of neglect. The fact is, the government set aside P305 million from the PCA’s 2014 budget for the construction of coconut hubs that will eventually be owned and operated by coconut farmers’ organizations. The purpose of these coco hubs is to turn farmers into manufacturers and sellers of their own products (virgin coconut oil, coco sugar, coco nectar, coco soy sauce and other fresco-based products, thereby making them earn more), not just producers of raw materials.
Also, the PCA has entered into a contract with the Philippine International Trading Corp. for the purchase of tufting machinery abroad for the P60-million tufting facility being built in Javier, Leyte.
I disagree with Osias’ statement that the number of coconut trees remaining is still a considerable base to support industrial production.
A month before Supertyphoon “Yolanda,” the Food and Agricultural Council came up with these findings: While demand for coconut products is increasing by 10 percent per annum, production is moving up by 2 percent only. The production rate may, in fact, be on the decline considering that coconut trees in East Asian countries, including the Philippines, are aging and need fertilization.
The PCA remains constrained by budget limitations even though the Aquino administration has increased its allocations from less than P1 billion in 2011 to more than P3 billion in 2014. With the additional funds, the PCA was able to plant more coconut seedlings—from 5 million in 2011 to 17 million in 2012, and to 20 million in 2013. Its target is to plant another 20 million trees in 2014 and every year thereafter.
Still, the replanting program was just enough to cover the losses from aging and malnourished trees. The Bureau of Agricultural Statistics estimates that 14 percent or 40 million of the coconut trees become senile each year.
Aggravating the problem, Typhoon “Pablo” destroyed 5 million trees in Compostela Valley and Davao Oriental, and Yolanda 33 million more, thus worsening an already bad situation.
The PCA only got P17 million for the rehabilitation of the coconut areas in Davao. On Dec. 28, 2013, it got hold of a special allotment release order for P500 million, but no advice to spend it followed. The PCA did get P2.8 billion for areas Yolanda devastated, and this has been made available.
For the areas infested by scale insects, the government budgeted P700 million even as the affected trees number only two million.
I agree with PCA deputy administrator Roel Rosales: The 2-year-long replanting program is back to square one.
Still I maintain: With its limited funds, the PCA should prioritize replanting and fertilization over market development. The latter is a lesser problem of the industry considering that there are already more than 35 coconut products thriving in the foreign market. Even then, the government allocates funds for fresco-based processing and for the development of emerging products.
—EUCLIDES G. FORBES,
former administrator,
Philippine Coconut Authority