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Coconut Industry Situationer

Coconut Industry Situationer. Focus Subsectors: Coir & Peat. Coconut Production: Philippines vs Davao Region. Areas Planted to Coconut 3.402 M hectares /385,942 hectares (11.34% regional share – the highest among the regions in the country) Coconut bearing trees

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Coconut Industry Situationer

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  1. Coconut Industry Situationer Focus Subsectors: Coir & Peat

  2. Coconut Production: Philippines vs Davao Region • Areas Planted to Coconut • 3.402 M hectares /385,942 hectares (11.34% regional share – the highest among the regions in the country) • Coconut bearing trees • 341.3 Million / 39.7 Million (11.63% regional share) • Nut Production • 15.1 Billion nuts/year (average – 2005-2009) • 45 nuts/tree/year (average – 2005-2009) • Davao Region is the biggest coconut -producing • region in the country Source : PCA Website

  3. Coco Coir and Peat Production in Davao Region ComVal Regwill Enterprises Root Systems Corporation Matina, Davao City BIOFASER Fibers, Inc Calinan, Davao City • Davao Oriental • Mati Coco Fiber Technology • Yiwu Husk Factory • Davao Oriental coco Husk Social Enterprise, Inc. • 02 Wisphil Trading Corporation • Fiber Technology Export • Davao del Sur • Pontmain Resource, Inc. • Mabuhay Fiber Corporation • Coco Zest Co., Inc. • Philfiber Corp • Choun II Corp • Nature’s Gain Corp • Sheenrank Corp, Main Market : China Production Capacity per annum: Coco Coir - 7,220 metric tons * Coco Peat - 9,150 metric tons * * Figures for Davao Sur & Davao Oriental only

  4. Philippine Export Earnings Source : BETP

  5. Major Export Markets Baled Coco Coir • People’s Republic of China • Taiwan/Hongkong • Singapore • Japan • USA Coco Peat • Korea • People’s Republic of China • Taiwan/Hongkong • Japan • Singapore • UK, USA & Canada Nets of Coir • Japan

  6. Philippine Market Share vs World 2008 World Suppliers of Coco Coir Philippines is the 2nd biggest coco coir products supplier in the world Source : BETP

  7. Major Export Markets Baled Coco Coir • People’s Republic of China • Taiwan/Hongkong • Singapore • Japan • USA Coco Peat • Korea • People’s Republic of China • Taiwan/Hongkong • Japan • Singapore • UK, USA & Canada Nets of Coir • Japan

  8. Philippine Market Share vs World 2008 World Suppliers of Coco Coir Philippines is the 2nd biggest coco coir products supplier in the world Source : BETP

  9. Coco pots Car seat rope Uses of Coco Coir • Widely used as bed mattresses • Upholstery • Geo Textile/Soil Erosion Control • Other Uses

  10. Liner Plant liner Grow poles Brush Other Uses of Coco Coir GTH

  11. Uses of Coco Peat • Coco Peat is a multi-purpose soil conditioner and growing medium (horticulture & vegetation). It is the best alternative to mined peat moss. • Europe market for cut flower (exports more than $2B/year) • Locally, for nurseries, grow-outs of trees, landscaping • Green houses using soil-less, hydrophonic system • Latest development is that coco peat is being used as a filter for water treatment systems * Brick Type Block Type Loose Form

  12. Applications of Coco Peat as growing medium bioengineering difficult-to-vegetate terrain for longer water retention in golf courses

  13. Demand for Coco Coir Products • Mattress demand for China • (100M beds/mattresses needed annually) • 4.5 kilos of coco fiber to make 1 mattress • Importation of raw coco fiber in 2009 reached more than 200,000 MT (US$ 56 M) • Philippines exported only 1,123 MT of raw fiber in 2009 or 0.5% of China’s demand • China’s demand increases almost 20% every year of US$11 M Source : BETP

  14. Demand for Coco Coir Products • Geo Textile / Erosion Control materials for • China’s Desertification project • Estimated at 270,000 square-kilometer concentrated mostly in the Northern part, i.e. provinces of Beijing, Harbin, among others • Desert areas increasing around 1.27% every year due to sandstorms occurring during the months of October to December

  15. Sectoral Issues/Concerns • Most processing plants in the region are operating under capacity due to problem in collection of coconut husks • Coco Peat utilization /processing has not been fully explored –production cost is much higher than the buying price in the export market • High transport and labor costs • Export market for coco peat not fully explored

  16. Coco Coir Product & Process Flow Car furniture, Construction Materials Industries Coconut Husk Stitching Machine Bailing Machine Fiber Pad (bed mattresses, Rubberized pads, fiber boards) Baled Fiber Decorticating De-fibering & Drying Machine Infrastructure And Real Estate Projects Fiber (30%) Weaving Loom Geotextile Nets & Fascines (for erosion control, road & river embankments) Twining Machine Ropes/Twined Fiber Forest Nurseries, Horticulture, Agriculture, Golf Courses Dust (70%) Hydraulic Compactor Cocopeat Block & Compost (Soil Conditioner)

  17. Coco Coir /Peat Value Chain Map Husk Gathering Décor- ticating • Processing • Baling • Twining • Compacting Trading (Local & Foreign Markets) Baled Fiber / Geotextile Producers Traders / Exporters Coco Farmers Decorticators Coco Peat Processors Local Farms/Nurseries/ Commercial Gardens GTH Manufacturers Distributors/Malls Small Coco Farmers Coops/ Ass’ns Coconut Industry Cluster Team/Phil Coir DA-PCA/CIIF/DTI/DOST/LGUs

  18. Trading / Exporting Processing Decorticating Husk Gathering Weaknesses/Threats Strengths/Opps World demand for Geotextile / coco coir High transport cost High cost of equipment Untapped opportunity For coco peat-based products Limited market access for coco peat Low Price for Coco Peat Underutilized capacity Unstable supply of coco husks No common standard for coco Husk buying scheme (by piece, etc High transport cost Abundant supply of Coconut : 2.5 B nuts Limited market awareness

  19. VISION To expand Philippine’s market share in the global market to 35% in 2016

  20. Objective Strategy To develop and expand domestic supply-base for coco coir Redistribution Strategy To strengthen access to market information To strengthen market linkage among actors within the VC Market Expansion and Promotion Strategy

  21. Objective Strategy To develop and expand domestic supply-base for coco coir Redistribution Strategy To strengthen access to market information To strengthen market linkage among actors within the VC Market Expansion and Promotion Strategy

  22. Redistribution Strategy Interventions • Organization and/or Capacity Building of small farmers cooperatives at the barangay levels • Assistance in setting up consolidation centers (barangay levels) for efficient collection and delivery of coco husks • Provision of CSFs (collection & delivery) • Facilitation of supply transaction agreements b/w coco farmers & processors • Technology promotion – peat treatment and compacting Farmers Coops, Firms, LGUs, Philcoir, CIIF, DA, PCA, DOST, DTI

  23. Market development & Promotion Strategy Interventions • Institutionalization of a market information network system (generation, processing, continuous updating and dissemination -to operators at all levels of the VC- of market and other related info) • Organization of a National Coco Coir/Peat Summit for product and market promotion (Interagency initiative – Lead from DTI - BETP) • Facilitation of market-related business matching (Inbound or outbound) • Facilitation for PPP (farmers and processing firms) on trading and techno transfer • Capacity building on exporting/ market negotiations for new players Farmers Coops, Firms, Philcoir , DA-PCA, DOST, DTI -BETP

  24. IMPROVING BUSINESS ENVIRONMENT Coco Coir / Peat

  25. IMPROVING BUSINESS ENVIRONMENT

  26. For Comments

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