LOREN SEEKS MEASURES TO SAVE THE COCONUT INDUSTRY

Senator Loren Legarda urged the Department of Agriculture (DA) and the Philippine Coconut Authority (PCA) to implement remedial measures to address the problems besetting the local coconut industry amidst report of huge drop in exports of major coconut products.

Loren, chairman of the Senate Committee on Agriculture and Food, was alarmed by latest report of the United Coconut Association of the Philippines (UCAP) showing that the country's coconut earnings as of January 28 dropped by 88% to $18.81 million from $152.24 million during the same period last year, while volume dipped by 81% to 39,714 metric tons (MT) from 212,378 MT in the same comparative periods.

Specifically, UCAP report shows that coconut oil exports were down by 79% to 25,020 MT from 121,766 MT compared to a year ago record. Coconut oil accounts for 63% of total coconut products shipments. Copra meal shipments dropped by 70% to 10,750 MT from 36,031 MT.

According to the report, there was a decline in demand from foreign buyers, especially those affected by the global economic crisis. It was also attributed to lower demand from buyers, partly due to the increasing popularity of palm kernel oil, which is much cheaper than coconut oil. Current price of kernel oil is $515 per MT, while coconut oil is pegged at $670 per MT.

"There is an urgent need to implement remedial measures to address the current plight of some 3.5 million coconut farmers and around 25 million Filipinos who are directly or indirectly dependent on the industry," the senator said.

"One immediate solution that I recommend, while there is low demand for coconut products in the world market, is to assist coconut farmers in planting and propagating high-value crops suitable to cultivate in idle lands within the coconut plantation," Loren said.

"Another remedy, which is a long term and maybe sustainable, is to encourage more investment in the production of coco-biodiesel, particularly Coconut Methyl Ester or CME which is derived from coconut oil," the senator suggested.

Loren said that she was happy with the news report that starting today (February 6) oil companies and motorists will have to brace for the higher blend of CME to diesel products that will be sold at the pumps.

According to the report, the 2 percent CME blend forms the second phase of the government's bio-fuels program as prescribed under the Bio-fuels Law of 2006. This is said to be in conjunction with the kick-off of the mandatory sale of ethanol-blended gasoline by the oil firms.

The report also stated that "while the law just set an initial blend of 5.0 percent, most industry players preferred increasing the blend to 10 percent which is the standard in most jurisdictions worldwide."

Loren noted the information provided by the PCA on the environmental and health benefits we could get by using Coco-Biodiesel.

"Compared with other forms of bio-diesels, the medium carbon chain of Coco-biodiesel offers excellent lubricity, solvency, and detergency. According to studies, addition of Coco-Biodiesel results in better combustion, less pollution, and more engine power. The engine run smoothly - with longer maintenance intervals," Loren explained.

Citing its environmental and health benefits, Loren, a renowned environmentalist, said Coco-biodiesel is renewable and biodegradable, being a plant-based. It lowers emission of nitrous oxide and sulfur oxide - the main contributors to smog. Coco-biodiesel also significantly reduces serious air pollutants such as black smoke and air toxics that cause lung cancer, pulmonary tuberculosis, pneumonia, bronchitis, heart attack and stroke.

"Coco-Biodiesel is hoped to spearhead the introduction of ester industry in our country. It would be an industry that would create more jobs and provide a potential high-value export product," Loren said.

She added that it would enhance energy supply security through the use of indigenous resources which would result to foreign exchange savings.

Loren also recommended the promotion and massive commercial production of virgin coconut oil which is gaining popularity as food for good health.