Coconut production plays an important role in the national economy of the Philippines. According to figures published in December 2009 by the Food and Agriculture Organization of the United Nations, the Philippines is the world's second largest producer of coconuts, producing 19,500,000 tonnes in 2009. [1] Production in the Philippines is generally concentrated in medium-sized farms. [2]
The Philippines is the world's top producer and exporter of virgin coconut oil. [3] [4]
According to the United Nations, coconut production in the Philippines grew at the rate of 5.3 per cent per year from 1911 to 1929, and increased by 3.5 per cent from 1966 to 1970. [5]
In 2012, the Philippines exported more than 1.5-million tonnes of copra, coconut oil, copra meal, desiccated coconut, coco shell charcoal, activated carbon and coco chemicals, a 1.49 per cent increase compared to the volume exported in 2011. [6]
In 1989, it produced 11.8 million tonnes and at the time was the second largest producer but has since surpassed Indonesia. [7] In 1989, coconut products, coconut oil, copra (dried coconut), and desiccated coconut accounted for approximately 6.7 percent of Philippine exports. [7]
As of the early 1990s, about 25 percent of cultivated land was planted with coconut trees, and it is estimated that between 25 percent and 33 percent of the population was at least partly dependent on coconuts for their livelihood. [7] Historically, the Southern Tagalog and Bicol regions of Luzon and the Eastern Visayas were the centers of coconut production. [7] In the 1980s, Western Mindanao and Southern Mindanao also became important coconut-growing regions. [7]
In the early 1990s, the average coconut farm was a medium-sized unit of less than four hectares. [7] Owners, often absentee, customarily employed local peasants to collect coconuts rather than engage in tenancy relationships. [7] The villagers were paid on a piece-rate basis. [7] Those employed in the coconut industry tended to be less educated and older than the average person in the rural labor force and earned lower-than-average incomes. [7]
There are 3.6 million kilometres dedicated to coconut production in the Philippines, which accounts for 25 per cent of total agricultural land in the country. [6] Land devoted to cultivation of coconuts increased by about 6 percent per year during the 1960s and 1970s, a response to devaluations of the Philippine peso (PHP) in 1962 and 1970 and increasing world demand. [7] Responding to the world market, the Philippine government encouraged processing of copra domestically and provided investment incentives to increase the construction of coconut oil mills. [7] The number of mills rose from 28 in 1968 to 62 in 1979, creating substantial excess capacity. [7] The situation was aggravated by declining yields because of the aging of coconut trees in some regions. [7]
In 1973, the martial law regime merged all coconut-related, government operations within a single agency, the Philippine Coconut Authority (PCA). [7] The PCA was empowered to collect a levy of P0.55 per 100 kilograms on the sale of copra to be used to stabilize the domestic price of coconut-based consumer goods, particularly cooking oil. [7] In 1974, the government created the Coconut Industry Development Fund (CIDF) to finance the development of a hybrid coconut tree. [7] To finance the project, the levy was increased to P20. [7]
Also in 1974, coconut planters, led by the Coconut Producers Federation (Cocofed), an organization of large planters, took control of the PCA governing board. [7] In 1975 the PCA acquired a bank, renamed the United Coconut Planters Bank, to service the needs of coconut farmers, and the PCA director, Eduardo Cojuangco, a business associate of Marcos, became its president. [7] Levies collected by the PCA were placed in the bank, initially interest-free. [7]
In 1978 the United Coconut Planters Bank was given legal authority to purchase coconut mills, ostensibly as a measure to cope with excess capacity in the industry. [7] At the same time, mills not owned by coconut farmers—that is, Cocofed members or entities it controlled through the PCA—were denied subsidy payments to compensate for the price controls on coconut-based consumer products. [7] By early 1980, it was reported in the Philippine press that the United Coconut Oil Mills, a PCA-owned firm, and its president, Cojuangco, controlled 80 percent of the Philippine oil-milling capacity. [7] Minister of Defense Juan Ponce Enrile also exercised strong influence over the industry as chairman of both the United Coconut Planters Bank and United Coconut Oil Mills and honorary chairman of Cocofed. [7] An industry composed of some 0.5 million farmers and 14,000 traders was, by the early 1980s, highly monopolized. [7]
In principle, the coconut farmers were to be the beneficiaries of the levy, which between March 1977 and September 1981 stabilized at P76 per 100 kilograms. [7] Contingent benefits included life insurance, educational scholarships, and a cooking oil subsidy, but few actually benefited. [7] The aim of the replanting program, controlled by Cojuangco, was to replace aging coconut trees with a hybrid of a Malaysian dwarf and West African tall varieties. [7] The new palms were to produce five times the weight per year of existing trees. [7] The target of replanting 60,000 trees a year was not met. [7] In 1983, 25 to 30 percent of coconut trees were estimated to be at least 60 years old; by 1988, the proportion had increased to between 35 and 40 percent. [7]
When coconut prices began to fall in the early 1980s, pressure mounted to alter the structure of the industry. [7] In 1985, the Philippine government agreed to dismantle the United Coconut Oil Mills as part of an agreement with the IMF to bail out the Philippine economy. [7] Later in 1988, United States law requiring foods using tropical oils to be labeled indicating the saturated fat content had a negative impact on an already ailing industry and gave rise to protests from coconut growers that similar requirements were not levied on oils produced in temperate climates. [7]
By 1995, the production of coconut in the Philippines had experienced a 6.5% annual growth and later surpassed Indonesia in total output in the world. [8]
The economy of the Philippines is an emerging market, and considered as a newly industrialized country in the Asia-Pacific region. In 2023, the Philippine economy is estimated to be at ₱24.27 trillion, making it the world's 34th largest by nominal GDP and 14th largest in Asia according to the International Monetary Fund.
The coconut tree is a member of the palm tree family (Arecaceae) and the only living species of the genus Cocos. The term "coconut" can refer to the whole coconut palm, the seed, or the fruit, which botanically is a drupe, not a nut. The name comes from the old Portuguese word coco, meaning "head" or "skull", after the three indentations on the coconut shell that resemble facial features. They are ubiquitous in coastal tropical regions and are a cultural icon of the tropics.
The government of the Marshall Islands is the largest employer, employing 30.6% of the work force, down by 3.4% since 1988. GDP is derived mainly from payments made by the United States under the terms of the amended Compact of Free Association. Direct U.S. aid accounted for 60% of the Marshall Islands' $90 million budget.
The economy of the Comoros is based on subsistence agriculture and fishing. Comoros has inadequate transportation links, a young and rapidly increasing population, and few natural resources. The low educational level of the labor force contributes to a subsistence level of economic activity, high unemployment, and a heavy dependence on foreign grants and technical assistance. The Comoros, with an estimated gross domestic product (GDP) per capita income of about $700, is among the world's poorest and least developed nations. Although the quality of the land differs from island to island, most of the widespread lava-encrusted soil formations are unsuited to agriculture. As a result, most of the inhabitants make their living from subsistence agriculture and fishing. Average wages in 2007 hover around $3–4 per day.
Copra is the dried, white flesh of the coconut from which coconut oil is extracted. Traditionally, the coconuts are sun-dried, especially for export, before the oil, also known as copra oil, is pressed out. The oil extracted from copra is rich in lauric acid, making it an important commodity in the preparation of lauryl alcohol, soaps, fatty acids, cosmetics, etc. and thus a lucrative product for many coconut-producing countries. The palatable oil cake, known as copra cake, obtained as a residue in the production of copra oil is used in animal feeds. The ground cake is known as coconut or copra meal.
Coconut oil is an edible oil derived from the kernels, meat, and milk of the coconut palm fruit. Coconut oil is a white solid fat below around 25 °C (77 °F), and a clear thin liquid oil in warmer climates. Unrefined varieties have a distinct coconut aroma. Coconut oil is used as a food oil, and in industrial applications for cosmetics and detergent production. The oil is rich in medium-chain fatty acids.
Davao Oriental, officially the Province of Davao Oriental, is a province in the Philippines located in the Davao Region in Mindanao. Its capital is the city of Mati, and it borders the province of Davao de Oro to the west, and Agusan del Sur and Surigao del Sur to the north. The province is the traditional homeland of the Mandaya and Kalagan/Kaagan.
San Miguel Corporation, abbreviated as SMC, is a Philippine multinational conglomerate headquartered in Mandaluyong, Metro Manila. The company is one of the largest and most diversified conglomerates in the Philippines. Originally founded in 1890 as brewery in the Philippines, San Miguel has ventured beyond its core business, with investments in various sectors such as food and drink, finance, infrastructure, oil and energy, transportation, and real estate.
San Isidro, officially the Municipality of San Isidro, is a 3rd class municipality in the province of Davao Oriental, Philippines. According to the 2020 census, it has a population of 33,664 people.
Eduardo "Danding" Murphy Cojuangco Jr. was a Filipino businessman and politician. He was the chairman and CEO of San Miguel Corporation, the largest food and beverage corporation in the Philippines and Southeast Asia. He served as a Philippine ambassador and governor of Tarlac. In 2016, his personal wealth was estimated at US$1.16 billion, and it was estimated that at one time, his business empire accounted for 25% of the gross national product of the Philippines.
Agriculture in Thailand is highly competitive, diversified and specialized and its exports are very successful internationally. Rice is the country's most important crop, with some 60 percent of Thailand's 13 million farmers growing it on almost half of Thailand's cultivated land. Thailand is a major exporter in the world rice market. Rice exports in 2014 amounted to 1.3 percent of GDP. Agricultural production as a whole accounts for an estimated 9–10.5 percent of Thai GDP. Forty percent of the population work in agriculture-related jobs. The farmland they work was valued at US$2,945/rai in 2013. Most Thai farmers own fewer than eight ha (50 rai) of land.
The United Coconut Planters Bank, more popularly known by its initials, UCPB, or by its old name, Cocobank, was a government-owned bank and was one of the largest banks in the Philippines, ranking within the top twenty banks in the country in terms of assets. It was the only existing universal bank not listed on the Philippine Stock Exchange. The bank, owing to its name, catered heavily to coconut farmers, but also served a wide-ranging clientele.
Agriculture in Colombia refers to all agricultural activities, essential to food, feed, and fiber production, including all techniques for raising and processing livestock within the Republic of Colombia. Plant cultivation and livestock production have continuously abandoned subsistence agricultural practices in favour of technological farming resulting in cash crops which contribute to the economy of Colombia. The Colombian agricultural production has significant gaps in domestic and/or international human and animal sustenance needs.
Copra plantations in New Guinea have been cultivated since the late 19th century, originally by German colonialists. They were continued by Australian interests following World War I.
Agriculture in the Philippines is a major sector of the economy, ranking third among the sectors in 2022 behind only Services and Industry. Its outputs include staples like rice and corn, but also export crops such as coffee, cavendish banana, pineapple and pineapple products, coconut, sugar, and mango. The sector continues to face challenges, however, due to the pressures of a growing population. As of 2022, the sector employs 24% of the Filipino workforce and it accounted for 8.9% of the total GDP.
The economic history of the Philippines chronicles the long history of economic policies in the nation over the years.
The Coco Levy Fund Scam was a controversy in the 1970s and 1980s in the Philippines involving former President Ferdinand Marcos and his cronies. It was alleged that Marcos, Danding Cojuangco, Juan Ponce Enrile, and others conspired to tax coconut farmers, promising them the development of the coconut industry and a share of the investments, but on the contrary used the collection fund for personal profit, particularly in the purchase of United Coconut Planters Bank (UCPB) and a majority stake in San Miguel Corporation (SMC), to name a few.
As of 2005, the Philippines was the ninth largest sugar producer in the world and second largest sugar producer among the Association of Southeast Asian Nations (ASEAN) countries, after Thailand, according to Food and Agriculture Organization. At least seventeen provinces of the Philippines have grown sugarcane, of which the two on Negros Island account for half of the nation's total production. As of crop year 2009–2010, 29 sugar mills are operational divided as follows: thirteen mills on Negros, six mills on Luzon, four mills on Panay, three mills in Eastern Visayas and three mills on Mindanao.
Certain associates of former Philippine President Ferdinand Marcos, historically referred to using the catchphrase "Marcos cronies", benefited from their friendship with Marcos – whether in terms of legal assistance, political favors, or facilitation of business monopolies, during his administration. Marcos critics, and the local and international press began referring to these individuals as "cronies" during the latter days of the Marcos dictatorship, and the Philippine government – especially the Presidential Commission on Good Government (PCGG) – continued using the term after the ouster of Marcos in 1986.
During the administration of former Philippine president Ferdinand Marcos (1965–1986) select businesses were favored and patronized by Marcos, receiving financial support, sole patronage, tax exemptions, and control over entire industries rendering these businesses as monopolies. Friends and relatives of Marcos acquired staggering wealth and economic power due to special favors and privileges extended by the administration. While Marcos associates enjoyed government bailout even during the decline of their firms, other businesses suffered high taxes, sanctions, and other unjust treatments that forced them to close up, or to sell their shares. The majority of monopolies linked to Ferdinand Marcos are managed by his close associates, also regarded as cronies by critics. Former First Lady Imelda Marcos insinuated that the Marcoses controlled the majority of the industries in the Philippines. In a 1988 interview, she stated, "We practically own everything in the Philippines—from electricity, telecommunications, airline, banking, beer and tobacco, newspaper publishing, television stations, shipping, oil and mining, hotels and beach resorts, down to coconut milling, small farms, real estate and insurance."
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