DAVAO CITY, Philippines—As the government urges coconut farmers and small businesses to become entrepreneurs to spur higher-value products, a farmer group said the industry continues to face challenges that go beyond market access.
The Department of Trade and Industry in Davao Region (DTI-11) will highlight the “cocopreneurs” initiative at the Coconut Philippines Mindanao Trade Fair 2026, set for Sept. 10 to 13 in Davao City.
The agency targets P30 million in sales in the four-day trade fair, which will gather around 100 coconut farmer organizations, cooperatives, and coconut-based enterprises from across Mindanao.
But Leo XL Fuentes Jr., Mindanao regional coordinator of farmer-scientist network MASIPAG, said value-adding should be accompanied by measures addressing long-standing problems in the coconut industry.
“We welcome this initiative, effort, [and] push for value adding in the coconut sector. Positive ni nga development (This is a positive development),” Fuentes said.
He added the Philippines remains behind neighboring countries such as Thailand and Vietnam in developing its coconut value chain, citing the perennial problem of price volatility—which is why value-adding is a good initiative.
Mindanao remains a major producer
The Philippines produced 3.41 million metric tons of coconut with husk in the second quarter of 2023, with Davao Region accounting for the largest share at 461,070 metric tons, or 13.5% of national output, according to the Philippine Statistics Authority (PSA).
PSA data for Davao Region also showed coconut production reached nearly 1.97 million metric tons in 2024, accounting for 87.2% of the region’s non-food and industrial crop production.
Despite the scale of production, Fuentes said many people working in the coconut industry remain constrained by land ownership and limited access to processing.
“Looking beyond trade fairs and other market opportunities, it would also be good to examine more deeply at the coconut industry as part of the bigger agricultural sector, which is confronted with the realities of small landholdings and widespread landlessness,” Fuentes said.
He added that in the coconut industry, a large portion of it consists of copra makers and coconut farm workers whose incomes are practically limited, because they do not own the land they till.
DTI wants farmers to move beyond copra
DTI-11 said it wants coconut farmers to move beyond traditional products such as copra, charcoal and coconut oil and develop products with greater market value.
Maria Victoria Placer, DTI Davao del Sur provincial director and DTI-11 coordinator for the Coconut Farmers and Industry Development Plan (CFIDP), said the agency is working with farmers and cooperatives to develop products for new markets.
The trade fair will showcase products including coconut sugar, syrup, coconut water, other coco food products, cosmetics, supplements, and crafts.
The agency also plans to link producers with institutional buyers and help enterprises explore export markets.
However, Placer acknowledged that small coconut processors face significant costs in meeting regulatory and market requirements.
“Another concern we have for our coconut enterprises [is] compliance [with] government regulations,” she said.
These include business permits, registration with the Cooperative Development Authority and certifications needed for export markets. Food and cosmetics exporters must also meet Food and Drug Administration requirements.
Placer said the costs are particularly difficult for micro and small enterprises.
“So, it is very expensive—something our micro and small processors cannot afford. So, most likely, those who can really afford it are the medium and large enterprises,” she said, speaking in mixed English and Tagalog.
Processing, land access remain issues
Fuentes said the lack of domestic industries capable of providing processing and value-adding also limits the sector’s development.
“Adding to that is the lack of domestic industries that provide processing and impactful value-adding,” he said.
He also cited coconut diseases and the need to develop diversified and integrated farming systems to maximize the potential of coconut farms.
DTI-11 said producers also need to consolidate their output to meet the volume and quality requirements of larger buyers.
Placer said consolidation at the local level could help producers meet the requirements of institutional and export buyers.
The trade fair is intended to create more opportunities for farmers and coconut enterprises by connecting them with buyers and promoting higher-value products.
For the farmers, however, the challenge extends beyond finding buyers. They said small coconut farmers would need enough land, processing capacity, capital and market access to enter the industry’s higher-value segments—and to receive a larger share of the value the crop generates. (davaotoday.com)
