OIC – Regional Manager Alfredo R. Rillo 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

C C NUT USE YOUR BEAT THE DDS 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 C C NUT

Interlocking aspects of our coconut industry. THIS IS ABOUT: Uses Supply Entrepreneurs Yields Oleo chemicals Upgrade Rehabilitation Interlocking aspects of our coconut industry. 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 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 OUTSIDE THE NUT INTERCROP IN BETWEEN TREES 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

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.

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 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

COPRA SUPPLY (M metric tons) SUPPLY FORECAST (2005-2010) IF LEFT UNMANAGED The need to plant and plant and plant. YEAR COPRA SUPPLY (M metric tons) NUT SUPPLY (B nuts) 2005 2.348 11.740 2006 2.316 11.580 2007 2.289 11.445 2008 2.260 11.300 2009 2.238 11.190 2010 2.216 11.080 Last year, volume of production decreased by 18% but export value increased 9.6 %

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

IMMEDIATE TASKS INCREASE THE SUPPLY BASE PROVIDE FARMERS’ SAFETYNET 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

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

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

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

- Puts money in the hands of the farmer 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

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.

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

PCA NETWORK 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 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

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

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. 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