DAVAO CITY – The Department of Trade and Industry (DTI) XI under its Coconut Farmers Industry Development Plan (CFIDP) program has collaborated with an international organization to develop high-value products for the coconut sector, particularly coconut husk.
PUM Netherlands, a group of volunteers who are senior experts in business advisory, has been facilitating several capacity-building and product development initiatives for around 25 DTI CFIDP-assisted coconut-based enterprises (CBEs) and coconut farmers (CFs) in Davao Region.
PUM expert Mr. Cees de Kreij, who has over 20 years of experience in working with the coconut sector in the Netherlands as a consultant, conducted one-on-one sessions with the coconut farmers and cooperatives engaged in coconut husk processing. The meeting was aimed at providing technical expertise in processing coconut husks into substrates and growing media for fruits, vegetables, and plants through technology transfer interventions to a group of coconut stakeholders.
It is worth noting that the Davao Region ranks 4th in terms of areas planted with coconut and volume of production in the Philippines. At the same time, the region ranks first as a coconut producer with a 13% share of the country’s total coconut production.
Nonetheless, amid the Davao Region’s robust resources, the coconut industry is still confronted with several challenges: 1) low income among coconut farmers; 2) low productivity or yield of coconut trees; 3) inadequate technologies especially post-harvest facilities; 4) low utilization of coconut and coconut by-products in the domestic and export market; and 5) lack of new and high-value products such as coconut milk, coconut cream, coconut water for food
DTI XI regional director Romeo L. Castañaga thanked the PUM Netherlands for their assistance to the coconut farmers and coconut-based enterprises in Davao Region in developing new products such as substrate and growing media out of coconut husk which has huge market demand in Europe. The Netherlands and the European Union (EU) are into soil-less agriculture in growing their fruits, vegetables, flowers, and other plants.
For 2025, DTI XI, under the CFIDP plans to conduct coconut husk mapping to determine the region’s capacity of supplying coconut husks in volume and prepare an industry study on its potential markets.
The regional trade chief shared that although the opportunities are abounding, DTI XI needs to address some challenges first, especially with the beneficiaries.
“We have noted several challenges when venturing into producing and promoting coconut products for horticulture purposes. These range from market access and expansion to technology and innovation, and laboratory facilities,” he said.
On market access and expansion, one of the major challenges is gaining access to international markets and expanding the presence of coco coir and coco peat products. Currently, coconut coir is being consolidated by exporters and organized into bales then exported as raw materials. No value-adding is being done. Further, stringent import regulations, trade barriers, or competition from other countries with established coconut coir industries make it difficult for the local coconut industry to expand.
In terms of product development and quality control, coconut peat or coir has not been developed to become high-value products, particularly as agricultural inputs, or used in horticulture as substrates or pots. Also, there are problems with the inconsistent quality of coco coir and coco peat products.
Castañaga explained that inconsistent quality can lead to product rejection and loss of reputation in the market, adding that the challenge in pursuing this product development strategy is the high cost of laboratory expense, and the lack, or few, facilities that can test the coconut husk, particularly in terms of salinity, pathogens, and diseases/parasites/organisms.
On environmental sustainability, DTI XIsupports the country’s advocacy for sustainable coconut farming and processing methods since these are essential to maintaining the ecological balance of coconut-producing regions. Issues like deforestation and excessive use of agrochemicals can pose challenges.
On supply chain management, DTI XI admitted that coordinating the supply chain from coconut farms to processing facilities and consumers can be complex. Thus, ensuring a stable and reliable supply of raw materials (coconut husks) is crucial for uninterrupted production.
On technology and innovation, farmers and processors are encouraged to embrace modern technology and innovation in the production and processing of coco coir and coco peat products. According to Castañaga, this is essential for the industry to stay competitive and consistently improve product quality.
Considering these challenges, getting an extra hand from the PUM expert is a welcome development for DTI XI. Among the expertise that the beneficiaries receive are technical knowledge, quality control and standards, market research and strategy, technology and innovation, sustainability, and value-adding.
These interventions are expected to increase the income of smallholder coconut farmers and farmer cooperatives, provide access to new technology, and develop new high-value coconut products intended for the export market.
As of December 2024, DTI XI has already assisted at least 800 coconut farmers in the Davao Region through CFIDP under the program for the coconut sector, DTI will focus its assistance on support services especially the sub-component on research, marketing, and market promotion. DTI XI
