News article from Mb.com.ph

News Summary:
The Department of Agriculture has allotted P502.310 million for the planting and replanting program and P336.187 million for the fertilization program of the Philippine Coconut Authority. It is with these funds that PCA aims to plant and replant coconut trees in a total of 138,125 hectares through the Accelerated Coconut Planting and Replanting Project. Furthermore, there are four projects under the said program.  First is the Participatory Coconut Planting Project (PCPP), second, the Coconut Seedlings Dispersal Project (CSDP), third, is the Indigenous People Outreach Program (IPOP), and lastly, the Hatid Punla (HP).


News Commentary:
Given that most news articles related to the coconut industry is about coconut exports, the group would have to say that this news articleis a good sign for it shows that the social problems in the coconut industry are now given more attention. This news article corrects assumptions made by people, which was what the group assumed prior to this article, that Non-government Organizations (NGOs) were the only ones taking initiative to create projects that help in the betterment of coconut farmers’ welfare. This article shows that the government too, allots funds for such programs and this support will help the farmers remain motivated to stay in the coconut industryand give them the capability of improving their aging coconut farms, given that at present, their average income is only about P10,000/ha/year.

However, setting aside the initial reaction that the article is a good indicator for the social aspect of the industry, the group has determined that the article still needs to be more precise in its statements as it raises questions. Some of these questions are concerned with the Participatory Coconut Planting Project wherein a monetary incentive averaging P31.40 per tree (that is established and at least 3 years old), equivalent to P3,140 per hectare will be given to farmers who raise and plant their own coconut trees.There are a lot of confusions that arise simply from this statement and lead the group to ask: Will PCA giveincentives to farmers with trees that are 3 years old now or will they only start monitoring those who raise their own seedlings and in effect, start giving the incentive only 3 years from now? The article lacks information that will give its readers a better understanding of how much help the program can give to farmers.

Furthermore, these investments by the government on the coconut industry—on various programs and projects—help address the increasing demand for coconut products. Planting and replanting programs will improve the industry in the long run byensuring that the problem of low coconut productivity (43 nuts/tree/year—which is only 53% of potential yield of 80 nuts) is resolved.


Authors:
Alvarado, Regine
Balmes, Jenalyn
Cerrer, Ysabel
Villanueva, Virgil

 

News article from Bworldonline.com by Bettina Faye V. Roc

Philippine coconut oil exports more than doubled for the month of June compared to the same month in 2011 (indicating the second straight month of recovery for coconut oil exports for the first half of 2012) as a result of better demand and more stable supply. However, another news article [1] stated that coconut oil exports from Eastern Visayas experienced a huge drop where Netherlands (the number one importer of coconut oil) bought 36, 214 MT in the first half of 2011, but did not import at all from January to June 2012. Despite the significant drop in exports by the said region, the group assumes that perhaps shipments of coconut oil from other coconut-producing regions in the Philippines were large enough so as to offset this effect, and still contribute to the growth in the country’s overall exports of coconut oil.

Coconuts are among the country’s major agricultural exports (59% share in world exports), with coconut oil as one of the top ten exports of the country. Although coconut oil exports for June have increased by 246.7% compared to the same period last year, this does not guarantee strong and continuous recovery despite the stable supply. Also, unstable demand may be brought about by the numerous issues confronting the global market such as the ongoing European Crisis. Any change in the palm kernel oil industry, being a strong competitor, may also easily affect the overall performance of the coconut industry. In addition, non-economic factors may also influence the international demand for coconut oil exports such as the quality and health issues concerning coconut oil.

Thus, although coconut oil exports have been recovering for the past two months, it is crucial that the government must continue to take measures in strengthening coconut oil exports. The ongoing European Crisis is a variable they must consider not only because it is a large economy that could affect the world economy but also because it is the country’s number one importer of coconut products. Furthermore, the quality of coconut oil must be improved to address the health issues concerning the product.

These news articles aid the group in their industry analysis as it helps them learn to read news critically--by not immediately accepting or believing what is written in the article--and trains them to do extra research in order to verify the information given.

[1] S. Q. Meniano, “Region 8 coco oil exports post huge drop,” Business World, July 17, 2012, Economy Section, http://
www.bworldonline.com/content.php?section=Economy&title=Region-8-coco-oil-exports-post-huge-drop&id=55326 (accessed
July 19, 2012).



Authors:
Alvarado, Regine
Balmes, Jenalyn
Cerrer, Ysabel
Villanueva, Virgil
 

News article from Bworldonline.com by Bettina Faye V. Roc

     The significant increase (around 300% in Q1 2012) in coco water exports mentioned in the news article, although whose amount may be of little importance compared to other major (coconut product) exports, is definitely a good way to capture the attention of food exporters.  For a long time now, coconut oil has been the largest agricultural export of the country. However, while the coconut oil exports increased by 132%, there is still a need to develop the coconut industry, hence, the need to explore ore on other coconut products that producers and investors can capitalize on in the future.

     This news will benefit the coconut industry in the sense that coconut water could be a great potential export product in the future, despite the fact that it only constitutes (approximately) 0.7 % of other coconut products being exported by the Philippines (as of 2010). Furthermore, the discovery of the increasing demand for coco water abroad serves as a stepping-stone for the stakeholders of the coconut industry to fully explore other coconut products, which possess an untapped market that could later on generate great profits.

     Despite the intense growth of the demand for coco water abroad, a probable threat is the unstable economic conditions of the major importers for coconut products such the U.S. and Europe. Eighty percent of the coco water exports goes to the U.S. Other top buyers of coconut water are the Netherlands, Singapore, Hong Kong, and Australia. On the other hand, Europe is the major importer of other coconut products such as coconut oil.

     The goal of the group’s industry analysis is to position the Coconut industry by recommending the appropriate target market for each coconut product and choosing the products with the highest potential where the industry could focus more. This news could help the group in their analysis of the industry since it shows that there are coconut products that are not marketed properly and not given enough attention, but can contribute in the development of the industry. In addition, the news can help provide data in analyzing the trade offs of coconut products, and overall, provide a better understanding of the industry as a whole and the profitability of coconut products.


Authors:
Alvarado, Regine
Balmes, Jenalyn
Cerrer, Ysabel
Villanueva, Virgil