DAUGON AN KAULANGAN

1. DAUGON AN KAULANGAN (BEAT THE ODDS. USE YOUR COCONUT) OIC – Regional Manager Alfredo R. Rillo Training – Workshop on Building Capacities of Communities for Coconut Fiber Production RSTC Building, Bicol University, Legazpi City

2. BEAT THEDDS C C NUT P H I L I P P I N E C O C O N U T A U T H O R I T Y Regional Office V GanniZ USE YOUR

3. P H I L I P P I N E C O C O N U T A U T H O R I T Y GanniZ THIS IS ABOUT: Uses Supply Entrepreneurs Yields Oleo chemicals Upgrade Rehabilitation Interlocking aspects of our coconut industry.

4. P H I L I P P I N E C O C O N U T A U T H O R I T Y GanniZ The Coconut OUTSIDE THE NUT INTERCROP IN BETWEEN TREES

5. Walking through Coconut Trees & Farm HUSK Coco Peat, Dust, Fiber, Twine, Geotextile, Fiber Board SHELL Charcoal, Activated Carbon MEAT Copra, CNO, RBD, DCN, Copra meal, Flakes, Flour Fatty Acid, Fatty Alcohol, Esters, Glycerin Macapuno, Virgin Coco Oil WATER Juice, Wine, Vinegar OUTSIDE THE NUT Sap Sugar, Wine, Handicrafts, Wood-based IN BETWEEN THE TREES INTERCROPS: Plants & Livestock These are the business and product streamer with global market just passing by.

6. P H I L I P P I N E C O C O N U T A U T H O R I T Y GanniZ QUICK FACTS • 3.0 million hectares planted to Coconut trees • 300 million trees, 12 billion nuts annually • 20 million farmers and dependents • 2.4 million MT total copra production • 4.9 million MT total copra crushing capacity • 1.2 million MT total coconut oil production • 80% is exported and 20% is consumed locally • Total gross receipts of US$800 million

7. SUPPLY FORECAST(2005-2010) IF LEFT UNMANAGED The need to plant and plant and plant. Last year, volume of production decreased by 18% but export value increased 9.6 %

8. P H I L I P P I N E C O C O N U T A U T H O R I T Y GanniZ WHAT NEEDS TO BE DONE STRATEGIC PATH TOWARDS THE TEN POINT AGENDA Generate Jobs C R I T I C A L P A T H Develop Agri-Business Lands MARKET CAPITAL SUPPLY & PRODUCTION MANAGEMENT -Stakeholders -Convergence -PCA

9. IMMEDIATE TASKS • INCREASE THE SUPPLY BASE • Rationalize policy to reduce cutting of trees (RA 8048) • Keep planting more trees • Prioritize new fast growing, high yield varieties that are also true-to-type (GMA Farmers Variety/SYNVAR) • Put a nursery & seedfarm per province • PROVIDE FARMERS’ SAFETYNET • Village-based livelihood • Give better opportunities from copra • VALUE-ADD PROCESSING > OLEOCHEM • TARGET MARKETS ON INDUSTRIAL, MEDICAL & ENVIRONMENT

10. GLOBAL MARKET POTENTIALS • BACK TO NATURAL AND ORGANIC • CHINA CAN’T GROW COCONUT EXCEPT IN HAINAN. ECONOMY HEATING UP, BUYING & INVESTING IN ALMOST EVERYTHING. • INTERNATIONAL POLICIES AFFECTING THE COCONUT INDUSTRY SUCH AS LABEL ON TRANSFAT, EU 2003 DIRECTIVE, JAPAN FUEL EMISSION STANDARDS, AND KYOTO PROTOCOL

11. ENTERPRISE INITIATIVES COMMUNITY BASED • RAW PRODUCE > MICRO /MINI > SME • VALUE-ADD VIA DOABLE, VILLAGE-BASED, HIGH YIELD, LOW INVESTMENT, QUICK RETURNS • fiber products, charcoal, VCO, Intercrops • WAKE UP SLEEPING TECHNOLOGIES • MAXIMIZE LOCAL NETWORKS & RESOURCES • Every province has a State College/ University • Civic groups, local chambers • GIVE BETTER OPPORTUNITIES FROM COPRA • Bring the Oil Mills closer to supply (2K TON +) • More access to UCPB-CIIF funds & benefits

12. Virgin Coconut Oil (VCO) Export Market a) Performance: YEAR MT US$ VALUE 2001 1.8 19,810 2002 19.1 91,618 2003 113.0 406,580 2004 120.0 422,856 b) Destinations: 1. Current - USA; Norway; Korea; Japan; Netherlands; Singapore; Malaysia; and South Africa 2. Potential - Demands from China, Australia and EU About 90% of production is absorbed by the domestic market. Issues : Harmonizing standards; Organic Certification; Process; Labels; Packaging; Volume Integration

13. INTERCROPS - Puts money in the hands of the farmer - Conditions and fertilize the soil OLEOCHEMICALS - basic (FAs. Glycerine) - derivatives (biodiesel & lubes) • Huge global markets like EU and Japan • Create the wealth and wonderful products that surround us

14. Coco Biodiesel • Potential Domestic Market • Phil. Diesel Demand 6.6 B lit./yr. • Phil. Coco Oil Export 1.0 B lit./yr. • 1% Coco-Biodiesel as diesel Blend 66 M lit./yr. • Percent of Coco Oil Export 6.6% • Potential Export Market • Example: • Japan’s annual diesel demand 48 B lit./yr. • Tokyo’s annual diesel demand 12 B lit./yr. • Demand for land transport 2.0 B lit./yr. • 5% biodiesel Blend 2.0 B lit./yr.

15. HOW DO WE GET THERE? • Develop and expand the domestic economy by reducing dependence on the low value export of Crude Coconut Oil • Increase the purchasing power of the coconut farmers through value addition to the coconut industry • Generate employment by continuous planting of coconut trees • Empower the coconut farmer to be a major contributor in related industries • Stabilize the supply of coconut oil as raw materials to encourage both domestic and foreign investment • Make the oleochemicals activities the main engine for growth that will pull the whole coconut industry by expanding economic development

16. PCA NETWORK P H I L I P P I N E C O C O N U T A U T H O R I T Y GanniZ • 12 Regional Offices & 69 Provincial Offices • 3 National Research Centers • Research Service Laboratories • 1 Plant & Soil Analysis • 1 Test & Standards • 1 Biotechnology • 5 Macapuno Satellites • 1 Food Processing • 2 Integrated Pest Control • Training • 1 CETC • Seed Garden • 2 National Seed Production Centers • Regional Seed Production Centers • Private Sources of OPV seednuts in • 233 municipalities = 202,583 hecatres • = 38,415,973 annual capacity

17. In summary THE COCONUT ROADMAP is USE YOUR C C NUT • LET US FOCUS ON THE USES, SUPPLY, THE ENTREPRENEURS, THE YIELDS, OLEOCHEMICALS, THE UPGRADE AND REHABILITATION • WE MAXIMIZE COMMUNITIES, ORGANIZATIONS, COMMERCE, OPPORTUNITIES, NETWORK, THE UCPB-CIIF AND THE TECHNOLOGIES

18. P H I L I P P I N E C O C O N U T A U T H O R I T Y GanniZ Thank you and may God Bless us with the wisdom, courage, and strength to do what is right for the coconut industry towards the promotion of its growth and equity.