National Coco Coir Inter-Agency Technical Working Group

OIC-ARD Marcelina S. Alcantara National Coco Coir Industry Cluster Coordinator Review of Coco Coir Industry Performance Value Chain Map Prospects and Business Models The Way Forward Vision Goals, Objectives & Strategies Programs and Projects

Indicator 2011 2012 2013 2014 o Domestic Sales (PM) 42.47 104.07 131.97 176.3 o Investments (PM) 453.88 293.75 135.88 110.06 o No. of Jobs 631 4,029 4,443 5,162 o MSMEs assisted 181 240 284 285 o Comm-based 16 50 70 64 processing o Loans Facilitated 4.0 5.86 30.93 9.2 o Org’ns strengthened 16 51 133 72 o # of SSF projects - 30 76 155 Approved & Amount 35.40 56.43 29.823 (PM) as of Oct. 2014 Indicator 2011 2012 2013 2014 o Areas Planted/ 29,750 131,205 542,185 21,195** Replanted (ha) o Fertilization (ha) 6,160 197,916 39,438 2,375** o Farmers Assisted 6,160 141,936 71,388 418** o Road Projects 225,046 488,656 2,741,623* 7,204,088* Completed with Bio- Engineering Solution (in sq. meters)

* based on DPWH report during NTWG mtgs ** based on DTI Regions’ reports Indicator CY 2014 2014 % TARGETS Acco Accomplished o Domestic Sales (PM) 112.38 176.3 156.9% o Exports (US $ M) 1.115 6.909 619.6% o Investments (PM) 72.9 110.06 151% o No. of Jobs 4,412 5,162 117% o MSMEs assisted 303 285 94.1% o CBE Assisted 67 64 95.5% o Org’ns strengthened 21 72 342.9% o # of SSF projects Established (As of 155 October 2014) # of Jobs Generated - 7,606 # of MSMEs assisted – 784; # of Other Beneficiaries: 40,668 o SSF – Project Cost 29.823 M AREA NO.OF SSF REGION 3 1 REGION 4A 7 REGION 4B 1 REGION 5 10 REGION 7 2 REGION 8 8 REGION 9 3 REGION 10 10 REGION 11 3

REGION 13 4 (CARAGA) TOTAL 49

Based on the reports submitted by member Regions. Basic Inputs Secondnary Processing Trading Market Processing

Twines & Coconet / coco fascines Producers Traders / Export Propagation Consolidators/ Twines & Coconet Producers Market Exporters Fertilization Decorticators/ baled fiber Stitched mats producers Production producers & Expansion Rubberized mats producers Domestic Market Distributors / Dehusking GDH Producers (coir pots, door Malls DPWH Husk Gathering mats, tufted mats Contractors Mining Comp. Coco Peat Processors (peat blocks, loose form, Local Farms/ 565,000 hectares grow bags, input to org fertilizer) Nurseries/ 188, 333 farmers Commercial 113 enterprises, 8,500 workers Gardens

Research & Development Institutions SUPPORT INDUSTRIES (Transport/Machineries/Ancillaries) Small Coco Farmers/Coops/Assoc’ns/Processors/Exporters/Traders Government Institutions: DA-PCA/CIIF/DTI/DOST/DPWH/DENR LGU Phil Coconut Industry Cluster Team (Coir & Peat)

 Coco Nets / Coco Twines  Stitched mats ◦ Mattresses ◦ Plant liners ◦ Planting materials  Tufted Mats  Coir ropes/cordage  Organic fertilizer with peat as raw material  Peat blocks Domestic (DPWH Projects, Mining Sites, NIA Irrigation Coir Geotextile canals) / Coconets/ Export - China, Asia, US Coco Fascines Coir Mattresses/ Export & Domestic Market (Bed Mattresses and Car Rubberized Coir Seats)

Car seat Domestic and Export Market Coir Tufted Mats (US, EU and Asia)

Coir Twines /Yarns Domestic (Inputs to coco net weaving & tufting) Export - China, Asia, Europe & USA Coco Peat as a multi-purpose soil conditioner and growing medium (horticulture & vegetation). It is the best alternative to mined peat moss. • Europe market for cut flower (exports more than $2B/year) • Locally, for nurseries, grow-outs of trees, landscaping • Green houses using soil-less, hydrophonic system Animal bedding (Japan market)

Domestic market - input to organic fertilizer, animal bedding, soil erosion, horticulture

Brick Type Block Type Loose Form Value addition per 1 Metric Ton of Fiber

P83,250 @ P45/ meter TRADING Trading Products: 1. Geotextile / Coconets P72,150 @ 2. Coco Twines 37 rolls of coco P39.00/roll COCO NET/ Coco Net @ 1x50 m GEOTEXTILE 3. Coco Fiber nets PRODUCTION Per roll w 1” eye P35,000 @ P3.50/hank COCO TWINE 10,000 hanks @ twine twine PRODUCTION 15 m /hank

P8,500 @ P8.50/kilo COCO FIBER 1 ton fiber fiber fiber fiber PRODUCTION

HUSK P2,000 10,000 husks GATHERING husks husks husks husks

INPUTS ( Community-Based Integrated Processing)

Fiber peat Coir Nets Twines Big- Brother Integrator (Decorticating Plant Outsources Twining to Communities and serves as Integrator)

Core Integrator Big-Brother (Vander Knapp as Buyer & Processor of Coco Peat from Decorticating Plants

Approximately 80,000 MT existing capacity of decorticating plants produces 186,666 MT of Coco Peat + the existing piles of unutilized coco peat (Tufting Facility as Market Consolidator of coco twines)

Tufting Facility: - Est Prodn Cap: 700 m/day - No. of twines: 450,000 meters/day - At least 500 twiners

“The Philippine Coconut Coir Industry as a globally competitive and modernized industry with complete capabilities to produce high-value downstream coir products, at a sustainable rate, equally benefiting all stakeholders towards inclusive growth.” Phl Coir: World’s Top 3 in Export by 2016 Strategic Objective by 2016

1 Coco Coir Export Target (2013-2016)

60,000,000

50,000,000 50000000

40,000,000

30,000,000 33500000 In US$In

20,000,000 22500000

10,000,000 15000000

3,380,057 0 2,058,053 2,591,492 Year 2010 2011 2012 2013 2014 2015 2016 Strategic Objective by 2016

2 Strategic Objective by 2016

3 Strategic Objective by 2016

4 Strategic Objective by 2016

5 Coir Industry Cluster Strategic Objectives

Indicators 2013 2014 2015 2016 15.0 22.5 33.75 50.00 Exports (US$M) 500.0 750.0 1,125.0 1,685.5 Domestic Sales (PM) 750 1,050 1,470 2,000 Investments (PM) 3,750 5,250 7,500 10,000 Jobs (No.) 25,000 37,500 52,250 83,000 Production Volume (MT) 300 350 400 450 SMEs Assisted 130,000 150,000 180,000 200,000 Farmers Assisted 1. Weakening export price for fiber 2. High transport cost 3. High power cost 4. Lack of farm-to-market roads 5. Need to produce more value-added products 6. Low productivity 7. Limited access to efficient technologies and equipment 8. Weak community participation 9. Limited access to other export markets 10.Poor utilization of coir and peat in the domestic market . To expand domestic . Market Development & and export markets for Promotion Strategy coco coir products

.To develop and . Redistribution Strategy expand production . Productivity & and domestic supply- Technology Upgrading base of coco coir Strategy value-added products Market Development & Promotion Strategy

Domestic Market Institutionalization of a market information network system (generation, processing, continuous updating and dissemination - to operators at all levels of the VC- of market and other related info) Policy advocacy to invoke widespread use of coco coir products, i.e., government projects, private buildings, use in other industries Facilitation for market matching between community enterprises and big-brother exporters, contractors Capacity building on market negotiations

ACTORS: Community-Based Enterprises, Processors, Traders, Users

ENABLERS : LGUs, DTI, DA-PCA, DPWH, DENR, MGB, Industry Cluster Teams Market Development & Promotion Strategy

Export Market Extensive market research Market promotion through participation in international fairs and similar international exposures Market matching / linking Strengthen market information network

ACTORS: Processors, Exporters, Traders

ENABLERS : DTI-BETP/FTSC, DA-PCA, Philcoir, Industry Cluster Teams Redistribution Strategy

Increase participation of coco farming families into the industry Value-Chain

Organization and/or capacity-building of small farmers cooperatives at the barangay levels Assistance in setting up consolidation centers (town levels) for efficient collection and delivery of coco husks Provision of skills and techno transfer to develop community-based coco coir processing enterprises

ACTORS: Farmer Cooperatives, Community-Based Enterprises

ENABLERS : LGUs, DA-PCA, DTI, DOST, DOLE, DAR, Cluster Teams , PhilCoir Redistribution Strategy

Provision of Shared Service Facilities (SSFs) for community-based processing such as coir twining and weaving Provide entrepreneurship training/seminars for CBEs Facilitation for establishment of strong linkage (market & technology) between coconut farmers and other actors within the value-chain Financing support to CBEs

ACTORS: Farmer Cooperatives, Community-Based Enterprises, Processors, Consolidators & Exporters

ENABLERS : LGUs, DA-PCA, DTI, DOST, DOLE, DAR, Cluster Teams Productivity and Technology Upgrading Strategy

Farm Productivity & Efficiency

Planting/replanting of coconut using improved species Promotion of regular fertilization for coco trees using indigeneous materials, i.e., coco peat, etc. Continuous R&D to increase nut production Improve practice of de-husking process

ACTORS: Farmers and Farmer Cooperatives

ENABLERS : LGUs, DA-PCA, Productivity and Technology Upgrading Strategy

Processing Plant Productivity & Efficiency Provision of productivity trainings such as GMP Develop and/or promotion of cost efficient technology on processing of other value-added products of coco coir, i.e., rubberized coir, stitched mattresses, tufted mats, etc. R&D on coco peat processing technology & other product uses

ACTORS: Community-Based Enterprises, Processors

ENABLERS : LGUs, DTI, DOST, DOLE, Cluster Teams 1.0 Strengthening of Convergence (national, regional, provincial) 2.0 Market Development and Promotion - Domestic - Export 3.0 Production and Productivity Development/ Farming & Processing 4.0 Technology Development and Promotion 5.0 Entrepreneurship Development 6.0 Investment Promotion and Facilitation 7.0 Financing 8.0 Institutional Development 9.0 Policy Advocacy 2011-2016 PAPs, 2013-2016

Area of Concern Policy /Program / Project Resp Impl’n Agency/ Sched Partner A. Market development Market Development, Promo and promotion and Expansion Program (domestic & export market) 2013-2016 DTI, DA- PCA, Market Information System and Info 1. Limited market awareness FIDA , DAR, Dissemination down to the community level LGU,PHILCOIR processors

Market Research- trends and uses of other 2013-2016 2. Lack of market PCA, DTI-BETP, research coco coir fiber and peat as well as potential markets for coir products 2013-2016 3. Weak linkage of actors Marketing Skills Development /Capacity DTI, DA-PCA, within the value chain Building Program for Coco Farm- LGUs entrepreneurs/ farmer organizations 2013-2016 Market facilitation and matching to increase DTI, DA-PCA market access (domestic and export) within PHILCOIR the value chain) PAPs, 2013-2016 Area of Concern Policy /Program / Project Resp Impl’n Agency/ Sched Partner

A. Market development Market Development, Promo and promotion (dom & and Expansion Program (including export market) high – value products) DTI, DA-PCA 4. Validation & promotion Market information and identification of 2013-2016 PHILCOIR of high value products value added and high value products

Extensive market promotion program DTI, DA-PCA including participation in international PHILCOIR 2013-2016 fairs & exhibits

5. Lack of info Strict implementation of PNS for coco FIDA, DA-PCA, dissemination on PNS coir fiber and peat products acceptable DTI of coco coir and peat in the global market PHILCOIR 2013-2016 products PAPs, 2013-2016

Area of Concern Policy /Program / Project Resp Impl’m Agency/ Sched Partner

6. Low domestic market Domestic market promotion program for DTI, PCA, 2013-2016 utilization for coir use of coir products (stitched coir mats PHILCOIR, products for furniture & car industry; etc)

Expand utilization of coconet or DPWH, DENR, geotextile in construction, slope MGB, DAR 2013-2016 protection and erosion control projects; PHILCOIR stream bank and river protection; mangrove protection; road construction, mined-out areas, National 2013-2016 Greening Program; etc. DA, PCA, Institutionalize utilization of peat in LGUs, fertilization and food security programs PHILCOIR PAPs, 2013-2016

Program / Project/ Resp. Impl’m Area of Concern Activity Agency/ Sched Partner B. Farm Production and Enhancement of Farm Production and Productivity Productivity Program

DA-PCA, 7. Need to sustain supply Extensive Coconut Planting, Replanting & 2013-2016 of coconuts/husks Fertilization Program LGUs, PHILCOIR using coco peat as soil enhancer or as major component of organic fertilizer DA-PCA, DTI, Sustain the Advocacy on “May Pera sa LGUs, Bunot” & proper de-husking practice PHILCOIR 2013-2016

Facilitate establishment of husks DA-PCA, DTI, LGUs, consolidation centers PHILCOIR 2013-2016 8. Infrastructure Support Construction of farm to market roads DPWH, DA, - Lack of farm to especially those in coconut farm areas; Congress market roads as well construction of secondary roads within LGU, as secondary roads coconut farms PHILCOIR within coconut farms PAPs, 2013-2016

Program / Project/ Resp. Impl’m Area of Concern Activity Agency/ Sched Partner C. Technology Dev‘t/ Technology Development and Promotion Transfer Program Commercialization of existing and efficient 9. Inadequate value-adding technology on value-adding of coco fiber and DOST, PCA, 2013-2016 for coco fiber coco peat, such as: DTI, PHILCOIR - stitching machines - rubberizing machines - technology for tufted mat - technology for bristle fiber - technology for geotextile - technology for fully automatic looms R&D Program for globally competitive products DOST, SUCs, 2013 – using high end energy saving machine CHED, 2016 PHILCOIR Development of technology protocols for use of DOST, DA, peat in crops PCA, 2013 - 2016 PHILCOIR PAPs, 2013-2016 Program / Project/ Resp. Impl’m Area of Concern Activity Agency/ Sched Partner

Technology Development and Promotion Program

Formulation of organic fertilizer mixture for rice, DOST, DA, 2013 - 2016 corn, coconut, sugar, cassava, other crops and PCA, vegetables using coco peat PHILCOIR

R&D - coco peat for livestock and poultry DOST, DA, 2013-2016 bedding PCA, PHILCOIR

Development/Promotion of Community-based DOST, PCA, 2013-2016 processing technologies CITC, PHILCOIR, DTI

Skills Development/Upgrading Training Program DOST, PCA, 2013- 2016 on enhanced and new value-adding DTI, DAR technologies PAPs, 2013-2016

Program / Project/ Resp. Impl’m Area of Concern Activity Agency/ Sched Partner

C. Technology Dev‘t/ Technology Development and Transfer Promotion Program

Efficiency upgrading of available machines 10. Lack/Inefficient DOST, PCA, 2013-2016 decorticating equipment/ (decorticating machine, drying and twining CITC, DAR machines equipment) PHILCOIR Standardization of small decorticating machines DOST, DA, and determination of the economic-sized 2013-2016 PCA, FIDA, business model, including the type of DTI, CITC, decorticating machines, other necessary PHILCOIR equipment and critical factors to be sustainable and financially viable

Provision of Shared Service Facilities (SSF) 2013 – 2016 DTI, PCA, DAR, DOLE PAPs, 2013-2016 Area of Concern Policy /Program / Project Resp Impl’n Agency/ Sched Partner D. Entrepreneurship Entrepreneurship Development Program Development Sustained Conduct of Entrepreneurship 2013- 11. Need to create a culture Trainings to farmer organizations DTI, DA-PCA, 2016 of entrepreneurship DAR, LGUs among coco farmers Development and expansion of Community- PHILCOIR based coir enterprises E. Institutional Development Institutional Development & Strengthening Program 12. Weak participation of coconut farmers/families Organize & Strengthen coconut farmers , PCA, DA, DAR, 2013-2016 in the industry processors/decorticators and traders DTI, PHILCOIR organizations– industry cluster/value chain 2013-2016 approach PCA, DA, DAR, DTI, PHILCOIR Institutionalization of Value Chain as Tool for 2013-2016 convergence DTI, DAR, DA- PCA, PHILCOIR Continuous Training on Value Chain Approach PAPs, 2013-2016

Area of Concern Policy /Program / Project Resp Impl’mS Agency/ ched Partner

Capacity – building for geotextile DPWH, 2013- application & installation PHILCOIR 2016

Full implementation of the Organic OP, DA, PCA, Agriculture Act – R.A. 10068, LGU, 2013- specifically PHILCOIR onwards on the utilization of coco peat. PAPs, 2013-2016

Area of Concern Policy /Program / Project Resp Impl’n Agency/ Sched Partner

F. Access to Financing/ CIIF Investments in Common Service Generation of Facilities and marketing/distribution OP, CIIF, PCA, 2013- Investment facilities as well as high value PHILCOIR onwards machineries and equipment (Thru the President’s directive) 13. high operational and Financing Window for the Coco Coir DBP, LBP, financing cost; Industry (including other value-adding UCPB, OTHER limited capitalization production)– farmers and GFIs, SBC, 2013-2016 processors/manufacturers and exporters CIIF, DA, ACEF, DTI, EDC, BSP, Make available ACEF and PHILCOIR 14. Financing for other value- Export Support Fund for processors/ adding businesses manufacturers and exporters 15. support for marketing and Promotion of Business Opportunities in the DTI, BOI, PCA, 2013-2016 logistics industry especially in the areas of logistics PHILCOIR (warehousing, transportation), consolidated supply marketing PAPs, 2013-2016 Area of Concern Policy /Program / Project Resp Impl’n Agency/ Sched Partner G. Improvement of Policy Advocacy Program Policy & Business PHILCOIR, Environment Establishment of a National Coco Coir Concerned 2013 Industry Development Council NGAs 16. Streamline the regulatory procedures Review and rationalize regulations and/or DA-PCA, FIDA, 2013- procedures PHILCOIR 2016

Continuous advocacy to expand utilization PHILCOIR of coir products

H. Monitoring & Strengthened Monitoring and Evaluation Evaluation

17. Official figures Designate the oversight agencies (exports) do not DA-PCA, DTI, 2013-2016 match with industry Advocate for the streamlining/validation of PHILCOIR, NSO players report reported figures with the NSO