The coconut industry in the Philippines is facing greater competition for its limited supply, as the biodiesel sector’s increasing demand clashes with the needs of exporters of coconut products.
In October 2024, the Department of Energy increased the biodiesel fuel blend to 3% (B3) and plans to boost it to 5% (B5) over the next three years.
This change has raised worries among exporters about potentially having fewer coconuts available for export.
Romeo I. Chan, who leads Axelum Resources Corp., recognized the environmental benefits of more biodiesel use, such as better fuel efficiency and higher prices for copra (dried coconut meat). However, he warned that using more coconuts for local biodiesel could hurt the export sector, which produces valuable coconut products and brings money into the country.
The situation is made more complex by predictions of a drop in coconut production due to the El Niño weather pattern.
The U.S. Department of Agriculture predicts that coconut oil exports will fall to 900,000 metric tons for the 2024-2025 market year, down from 1.14 million metric tons the year before.
Charles R. Avila, the Executive Director of the Confederation of Coconut Farmers’ Organizations of the Philippines, voiced concerns that the increased biodiesel blend requirement may not be achievable without impacting exports. He noted a 15% decline in coconut production year-on-year, largely due to aging coconut trees in the Philippines.
In light of these challenges, President Ferdinand R. Marcos, Jr. has instructed the Philippine Coconut Authority (PCA) to create a plan to revive the coconut industry, which includes planting 100 million coconut trees by 2028.
The Philippine Coconut Industry Development Plan 2024-2034 aims to boost coconut production by 4.7 billion nuts each year, valued at ₱33.1 billion, by 2034.
For this year, the PCA plans to plant 15.3 million trees, with goals to plant 25.4 million trees each year from 2026 to 2028.
Mr. Avila stressed the need for greater involvement of coconut farmers in these efforts to ensure the industry can grow sustainably.
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