Synergizing Capacities and Mobilizing Resources

for Coconut Fiber Production

I. Project Background and Context

Coco fiber is an inexpensive, light, bulky, by-product taken from the

coconut husk, often thrown away as waste material. It is a good medium

in environmental protection and its by-products equally useful. Thus,

coco fiber is one of the promising commodities identified by the United

Nations Development Program (UNDP). It was also voted as the most

environmentally friendly product of BBC World in 2006. The

has a competitive edge in the global market for this particular

commodity in view of its climate, soil and other factors which offers

potential for plentiful supply. The coconut being grown as a major crop

in many parts of the country made the Philippines third in rank next to

Indonesia and India of the total world produce (Reader’s Digest, June

2005).

The Municipality of Tubungan is a 5th class municipality, 42

kilometers south of City. It has a total land area of 8,518 hectares

of undulating/rolling hills and mountains, and 100 ft. above sea level. It

is highly agricultural with rice as the major crop, followed by corn,

coconut and variety of vegetables (Profile of the Municipality of

Tubungan 2004).

- 1 - The Coco Fiber Production Project in the Municipality of Tubungan was implemented and managed by the Federation of Small Coconut

Growers Association (Tubungan, Iloilo) (FSCGA), Inc. which later evolved into the Tubungan Small Coconut Growers Multi-Purpose

Cooperative (TSCG-MPC) under the supervision of the Local Government

Unit of Tubungan and the continuing support and technical assistance of

West Visayas State University (WVSU), the Philippine Association of

Tertiary Level Educational Institutions in Environmental Protection and

Management (PATLEPAM), UNDP and other government and non- government organizations.

The project is in consonance with two of the Millennium

Development Goals which are poverty alleviation and environmental protection and conservation. Specifically, it aims to improve the socio economic condition of the small coconut farmers of Tubungan and ensure environmental sustainability for a healthy and progressive community. To attain the objectives, the project aims to 1) establish an efficient production system of quality coco fiber; 2) develop value added products to coconut; 3) hone the entrepreneurial skills of the coconut farmers; 4) maximize the utilization of organic farm inputs; and 5) generate employment and contribute to the increase of income of the coco farmers and their families in the locality.

- 2 - Preliminary activities started in August 2004. A series of consultative meetings with stakeholders were conducted until April of

2005. This includes a consultation meeting, initially, with the Local

Government (LGU) Officials of the Municipality, then with the members of the Federation of Small Coconut Growers Association (Tubungan,

Iloilo) (FSCGA), Inc. as well as with other members of the community.

Altogether, consultation meeting/workshops were conducted with the critical stakeholders, the people’s organization, LGU and the academe after which a proposal to put up a Coco Fiber Production Project was endorsed. These consultation meetings were facilitated by WVSU, UNDP-

PATLEPAM and Department of Environment and Natural Resources

(DENR)-Environmental Management Bureau (EMB) and Department of

Trade and Industry (DTI) - Board of Investment (BOI).

Likewise, UNDP-PATLEPAM, DENR-EMB together with WVSU held project briefings for other relevant government agencies and non government organizations, possible funding agencies, the LGU of

Tubungan and people’s organizations as regards to the potential of the commodity and the coco coir industry in general.

The stakeholders were consulted and highly involved in decision- making specifically, in choosing the factory site. Moreover, they were afforded the privilege to have observation trips to existing Coco Fiber

Factories and Coconut Plantation. These are the Joboken Enterprises in

- 3 - Bicol, the Ibajay Small Coconut Farmers’ Development Corporation in

Ibajay, , the Coconut Seed Nursery of State University and the Capiz Small Coconut Farmers Cooperative, Inc. in Ivisan, Capiz. The trip to Bicol was shouldered by UNDP-PATLEPAM while local trips were sponsored by West Visayas State University.

Furthermore, representatives from the LGU, the FSCGA, Inc. and

WVSU and members of the Local Management Unit (LMU) attended capability building trainings, symposia, seminars and planning workshops sponsored by UNDP-PATLEPAM.

WVSU as a partner academe conducted community organizing, sector profiling/benchmarking activities and environmental impact assessment.

Beginning June 2005 until August 2007, a total of six (6) trainings were conducted for the members of the FSCGAI and TSCG-MPC. These are the following: Coconut Production, Cooperative Management &

Values Reorientation, VCNO Production & Coco Soap Making, Coop Pre-

Membership Seminar, Coco Fiber Production & Processing Technology and Twining, Loom Weaving, & Handicrafts Making.

In between trainings, other activities were conducted in preparation for the actual operation of the coco fiber plant. With the assistance of the Philippine Coconut Authority in Region VI in choosing a suitable site, the FSCGAI established a coconut nursery by individually contributing

- 4 - coconut seedlings. The coco farmers were also encouraged to plant more coconuts and rejuvenate the old trees to ensure ample supply of raw materials for the coco fiber plant.

To formalize the working relationships among the participating organizations, Memorandum of Agreements were forged between

FSCGAI and the Landowners of the factory site; WVSU and the Local

Government of Tubungan and FSCGAI; and between the Philippine

Association of Tertiary Level Educational Institutions for Environment

Protection and Management (PATLEPAM) and WVSU.

With the referral coming from DENR-EMB, WVSU, the LGU of

Tubungan, and FSCGAI officers prepared a proposal for funding assistance from the Direct Aid Program of Australian Government. The assistance amounting to PhP 250,000.00 came in the form of equipment, a decorticating machine. It is the most basic equipment needed to start a coco fiber factory.

The LGU made policy initiatives by having Municipal Council

Resolutions adopting the coconut as their One Town, One Product

(OTOP) commodity, a priority project of the Philippine government.

Likewise, budgetary allocation was made in support of the project as well as the construction of the access road to the factory site. Upon the completion of the access road, the coco farmer-members initiated

“bayanihan” efforts to prepare the factory site. They also built a Multi-

- 5 - Purpose shed, a temporary structure in the area for their meetings.

Meetings were the venues for planning, information-sharing and consensual decision-making.

On the part of the Local Management Unit, a representation was made to the WVSU Administration which donated two (2) truckloads of salvaged building materials which were later used in the construction of the factory building. The LGU provided funds for the foundation and the enclosure fence of the building whereas the labor counterpart came from the coco farmer-members of the FSCGAI/TSCG-MPC.

The enthusiasm of the coconut farmers was bolstered with the visit of the Resident Representative of UNDP and the United Nations Regional

Coordinator, Hon. Nileema Noble, who formally turned over UNDP’s support for the start up capital of the project in the amount of PhP

300,000.00. She also led the ground-breaking ceremony in the factory site.

The coconut factory is situated in Bgy. Lanag Sur, Tubungan, Iloilo in an area close to the source of raw materials and where there is ample water supply. It is just a few meters away from the banks of the Jar-ao

River. Its distance from national road is approximately 800 meters.

The factory site is a hilly agricultural land with some portions planted with rice. Coconut trees, mahogany, banana, bamboo and grasses are the land cover. Goats are herded at present in the area.

- 6 - Not more than 10 houses (some structures are only resting sheds for

farm caretakers) can be found within half a kilometer radius. Hence,

there is less possibility of complaint of noise and air pollution. West of

the site, along the national road, is the only gasoline station in the

Municipality. Most of the business establishments are in the public

market area around 2 kilometers away from the factory site.

The factory area is being leased to the FSCGAI/TSCG-MPC for ten

(10) years with the privilege of free use in the first three years of

operation by the Gentosala family. One of the family members is a

member of the Board of Directors of the FSCGAI/ TSCG-MPC and

another family member was hired as the caretaker of the factory.

The Coco Fiber Project created job opportunities among the coco

farmers and their families, thereby, increasing their income and

improving their quality of life, at the same time they help protect and

conserve the environment by making use of waste products.

Good Practices Achieved by the Project in the following different considerations:

1. Institutional

There was a convergence of efforts among the different

institutions, specifically, the three main implementers: the academe,

LGU and the multi-purpose cooperative/micro enterprise. Other

- 7 - relevant government agencies such as the Philippine Coconut Authority

(PCA), Fiber Development Authority (FIDA), Department of Agriculture

(DA) Cooperatives Development Authority (CDA), and the Department

of Trade and Industry (DTI), Board of Investments (BOI) and DENR-

EMB mandated to protect the environment and support the growth of

agricultural enterprises and/or people’s economic activities were also

involved.

The Local Management Unit composed of representatives of the

three sectors which provided the leadership was adequately

capacitated. The LGU of Tubungan initiated policy initiatives supportive

of the project in order to ensure its sustainability.

There was regular consultation with the stakeholders who were

highly involved in decision making in all phases of project

implementation.

2. Technical/Technological

Capability building activities were continuously conducted by

experts/resource persons from the academe and other related

agencies.

The academe made continuous coordination and networking by

linking different sectors for technological assistance, funds sourcing

and/or market linkage.

- 8 - Advocacy activities were held such as participation and product

display in several local and national fairs, exhibits and related events.

The WVSU, as the Partner Member Agency (PMA) academe of the

Tubungan Farmers’ Information and Technology Services (FITS)

Center, in collaboration with the Philippine Council for Agricultural

Resources Research and Development (PCARRD) is highly involved in

the focused commodity (coconut) research and its technology

dissemination.

3. Economic

The immediate beneficiaries of the additional or alternative sources of

income from the coco fiber industry are the members of the

FSCGAI/TSCG-MPC. Coconut husks when processed into fiber,

appreciate in value. Other households members also have

opportunities to engage in handicrafts making out of the coco fiber.

Some of the members of the Municipal Federation Rural Improvement

Club of Tubungan (MFRICT) mostly composed of women, though not

members of the FSCGAI/TSCG-MPC were able to earn additional

income from twining, doormat, plant pole and plant hanger making.

The coco peat/dust used as soil conditioner is the most saleable among

the by-products. It sells fast to farmers and horticulturists.

- 9 - 4. Social

Exposure trips and visits to similar projects and industries were

beneficial to coco farmers for experiential learning and best practice

sharing.

Education and training empowers people in decision-making.

Working together with others in achieving similar goals promotes

greater cohesiveness, effectiveness, efficiency and synergy.

Greater involvement on the part of stakeholders creates a sense

of ownership of the project and responsibility for its success.

Peace and order is fostered when needs of people are adequately

met and provided.

5. Ecological

Collaboration and complementation efforts of stakeholders

proved to positively influence the quality of our environment.

Environment friendly practices has become a way of life due to

heightened awareness of the impact of environmental degradation.

Organic farming is now being preferred and practiced by many farmers

in the locality.

II. Challenges

1. Infusion of sufficient capital since its main product, the geo-textile net

is labor intensive and the volume of the product should be sizeable

- 10 - enough before even local or international market could be tapped

whereas factory laborers have to be paid immediately. Efforts are

being done to link with nearby coco fiber factories in the different

provinces in area to be able to come up with the

required volume of production. Even if the international market will be

tapped, the payment for products sold would take a while. Should the

management opt to sell raw fiber, a compacting equipment costing

around P1M has to be procured. Selling raw fibers on the other hand,

which is in demand in the market would deprive the laborers an

opportunity to earn additional income for adding value to the fiber.

2. Handling the complex dynamics of relationships, with so many varying

persuasions and perceptions among the LGU officials and personnel as

well as the people’s organization will always be a challenge to the

academe.

3. The Local Management Unit to come up with effective and efficient

strategies in coordinating with all the stakeholders of the project.

4. Conduct of product development and market researches to cope with

quality standards and market demand.

III. Lessons Learned

1. Collaborative and complementation efforts always pay good

dividends when partners are committed to do their share of the

responsibility.

- 11 - 2. Thorough social preparation prior to project implementation is a must

in order to ensure proper implementation and sustainability of the

project.

3. Investment in education and training would go along way towards

increasing productivity and income.

4. Values reorientation and/or training on values change should remain

an important component of any development effort.

5. Efficient and effective monitoring and evaluation system must be in

place.

6. Leadership is crucial in the success of the project. Thus, frequent

turn over will have some drawback on the project.

7. More time should be allotted in coordinating and monitoring the

project.

IV. Potential for Replication

The Philippines is the third biggest coconut producing country in the world. Hence, this project may be replicated in almost any part of the archipelago where coconut abounds.

- 12 -