HIGHLIGHTS OF THE 1ST REGIONAL SUMMIT “Towards a United and Sustained Coconut Industry in Eastern ”

Day 1, August 29, 2008

Opening of the Coconut Summit Production Exhibit

Tacloban City Mayor Alfred S. Romualdez and his wife, Councilor Cristina Gonzales-Romualdez together with Vice Governor Mimietta Bagulaya cut the ribbon to formally open the Summit Exhibit.

Five exhibitors from the region displayed a variety of products such as coco coir, coco wine and vinegar, virgin coconut oil, handicrafts and fashion accessories. The exhibit was coordinated by the Philippine Coconut Authority (PCA) and the Department of Science and Technology (DOST) Region 8.

Welcome Message by City Mayor Alfred S. Romualdez

Mayor Romualdez welcomed in advance Secretary Arthur C. Yap of the Department of Agriculture (DA), who was still on his way to the venue. He also welcomed the other dignitaries - Congressman Noel, Governor Petilla, Vice Governor Bagulaya, PCA Deputy Administrator Carpio and Regional Manager Nierva. Mayor Romualdez also acknowledged his wife, Councilor Romualdez, Regional Executive Director of the DA, Caneda and other Directors, Mr. Henry Yaokasin – a prominent copra trader, German Technical Cooperation (GTZ) officials, Summit organizers and the participants.

The Mayor proudly announced that by the end of the year, the new Gaisano shopping mall will open and early next year will be the Robinson’s mall and these malls will be a market for the coconut products as well as other products in the region. Mayor Romualdez said that the City is growing fast and welcomed everyone to avail of the City’s facilities and encouraged everyone to form groups or cooperatives to help promote the products here and abroad. As a parting word, he said that his office is open anytime to help in promoting the region.

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Welcome Message by Governor Carlos Jericho “Icot” Petilla

Governor Petilla also greeted the dignitaries and made special mention to the An Waray Partylist for being the major sponsor of the Summit and acknowledged the energetic Mayor and his wife, Councilor Cristina Gonzales-Romualdez.

Governor Petilla expressed excitement for the holding of the 1st Coconut Summit and emphasized that the objective is clear: to have a collective design to unite the local coconut industry and ensure its sustainability. He underscored the importance of the coconut industry in the Province and its crucial role in the local economy. The governor said that although he is pushing the province to be the information technology hub, the local economy is still hinged on the coconut industry.

He reported that there are now 5 oil mills in the Province. He related how copra prices affected education because it has a direct correlation to the enrollment of students. Governor Petilla proposed to put more disposable income in the hands of the farmers and challenged everyone to show that there is money in farming. He lamented the fact that farmers are old because the younger generation does not want to go into farming.

The Governor also mentioned his talks with VSU on the need to speed up research related to bio-fuels in view of the on-going oil crisis. He talked about an engine that runs solely on coco diesel. He joked that with plenty of coco oil produced here, Leyteños can become the Arabs of the . In the end, he expressed hope that everyone will all work together for the benefit of the people in the region.

Inspirational Message Deputy Administrator Carlos B. Carpio

PCA Deputy Administrator Carpio read the Inspirational Message of Administrator Garin who could not make it to the Summit. Mr. Carpio said that he was glad that the coconut stakeholders have gathered together in the first ever regional Summit and this is already a good indication towards a united coconut industry.

He mentioned that the thrust at the national level is on increasing productivity. In this connection, he reported that the PCA will be turning over tens of thousands of coconut seedlings for .

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Introduction of Summit Participants

The master of ceremonies, Ms. May Anne D. Reyes of DOST R8, introduced the summit participants per sub-sector grouping. First to be introduced were the Farmers, then the Processors, the Manufacturers (oil and coconut coir) and the Enablers (government agencies) and then further supporting agencies such as the NGOs and advisors from the German Technical Cooperation/ GTZ). The media representatives were also recognized.

Introduction of the Keynote Speaker by DA RED Leo Caneda

DA Regional Executive Director Cañeda introduced the keynote speaker. According to him, Secretary Arthur Yap has a formidable personality and is continuously investing time and effort in making the agriculture sector progress so that there is food in every table. Without further ado, RED Caneda called on the Secretary.

Keynote Speech of Secretary Arthur Yap

DA Secretary Arthur C. Yap acknowledged the key officials at the Presidential table starting with Governor Petilla and Vice-Governor Bagulaya, Congressman Noel who is a friend and classmate and mainly responsible for bringing him to Tacloban for the Summit. He also recognized the presence of Mayor Romualdez and his wife Councilor Cristina Gonzales-Romualdez. He greeted the rest of the dignitaries and Deputy Administrator Carpio from whom he has learned a lot about the coconut and the industry.

He also expressed his wish that the Summit will be a success and encouraged the participants to work closely together. He said he wanted to discuss issues and hear from the people because we are in an unprecedented situation in the global environment. The global population is increasing and yet countries are not investing enough for agricultural needs. In the past, food was not a very serious problem, but countries have become lax and with the price increases of oil, some people are converting their land for fuel production instead of raising crops for food. He summoned everyone on the need to put greater attention to agriculture because we are an agricultural country and there is a golden opportunity for us.

3 Secretary Yap talked about the difficulty of striking a balance between increasing the incomes of farmers with higher prices of farm products and the burden to the majority of the consumers. He gave the example of rice: technically, we shouldn’t mind the prices and let the market dictate which at the moment is at an all-time high so farmers will make money, but then the burden of high prices is passed on to the consumers. Finding solutions is a tough job which the President has ordered him to do.

Going back to the coconut, Secretary Yap implored that our country cannot lose its advantage in this commodity. The proposed Coconut Industry Development Act authored by Congressman Noel is a good initiative, because we cannot afford to displace the 3 million farmers dependent on the industry. He said that before, about 80% of the world coconut oil supply was coming from the Philippines, but palm oil has inched its way and gained inroads. But he is optimistic that the coconut industry will continue its rebound and that the Department will exert more effort in its replanting and fertilization programs, and the anti-disease campaign.

Secretary Yap challenged the private sector. He said that the government must steadily get out of the business and lease out to the private sector.

In closing, he appealed for everyone’s support and reiterated that the Department remains committed to the coconut industry. He encouraged the participants to a dialogue so that he can hear their urgent concerns.

Open forum:

Roberto Capon, faculty from UP Tacloban gave a letter to Agriculture Secretary Arthur Yap. He stressed that it had nothing to do with the coconut industry rather it dealt with the problems on seed production.

Mr. Giray asked if they can substitute husk fiber to sustain the industry in the production of abaca mosaic. DA Secretary Yap answered ‘yes’ to his question adding that there is a CIIF and FIELDS programs (Fertilizer Irrigation and Other Infrastructure, Extension, Education Loans and Insurances Driers and other Post-harvest/Post- production facility activities, Seeds and other genetic materials) that could help him with his needs and commodities. Secretary Yap also urged him and the others who are involved in the industry to voice their concerns so they can be addressed.

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The last question was raised by Mayor Nida Gabornes of Lauan, Eastern whose municipality is frequently visited by typhoons. She pointed out that the main source of income of her municipality is fishing and coconut. She said that before, coconut seedlings were distributed after every typhoon, but lately no assistance of coco seedlings was given. Any form of assistance would be very much helpful and appreciated.

Overview Presentation , Rationale of the 1st Regional Coconut Summit and Eastern Visayas’ Coconut Industry Situation, by Joel O. Pilapil (PCA Assistant Regional Manager Region 8)

Mr. Joel O. Pilapil, PCA Assistant Regional Manager for Eastern Visayas started his presentation by highlighting the comparative advantage of Region 8. The first slide showed the map of the Philippines depicting coconut zones and production suitability. Based on the map, Eastern Visayas is highly suitable and has an edge over most of the Regions. In fact, almost 650,000 hectares (31% of total land area of the Region) are planted with 71.7 million coconut trees, making it the third largest coconut producing area in the country.

Mr. Pilapil reported that in 2007, the 1.99 billion nuts produced in the Region contributed US$ 60 million to the country’s export earnings. According to PCA estimates, there are still close to 150,000 hectares in the region which are highly suitable areas for expansion. There are about 370,000 farmers dependent on the coconut industry who have the capacity to increase production when rightly motivated. Also found in the region are 8 coconut oil mills (1.7B nuts per year capacity), 21 coir fiber plants (139M npy capacity), 1 activated carbon plant (48M npy capacity), 8 coco shell fuelled processing plants (1.3B npy capacity) and 2 coco water vinegar plants and 62 VCO processing plants.

While 1.99 billion nuts seem quite a lot, Mr. Pilapil emphasized that this is in a critical level considering the 1.7 billion nuts capacity of the existing oil mills. That is why we are having this summit in order to inform and challenge all stakeholders to continue planting and replanting coconut to assure feedstock to the oil mills. Mr. Pilapil also emphasized that 5 years ago, Region 8 has only 1 big oil mill which absorbs only 13% of the production in the region, 24% is processed by small oil mills while the remaining 63% goes out from the region. Presently, the 8 oil mills operating in the region do not only offer

5 almost the same copra price in key cities in the country to the advantage of the coconut farmers but it also added internal revenues and generated jobs in the locality where these mills are located.

The emerging industries were also presented. These include products from the coconut husk which could be processed into environment- friendly anti-soil erosion mats, ropes, rubberized coir and home accessories. For coconut shell, there is the activated carbon and shell fuel. For the coconut meat, there is still a lot of room for copra, coco methyl ester and virgin coconut oil. For the coconut water, we have coco vinegar and coco wine.

Mr. Pilapil also presented the Government’s National Coconut Productivity Program which is anchored on three banner projects: Participatory Coconut Planting Project; Salt Fertilization Project; and Plowable Intercropping Project. He showed the various high yielding coconut varieties which are being promoted by PCA. The most promising is the Tall variety and its hybrid because they generate the highest gross returns, net returns, higher benefit cost ratio and achieves earlier break-even year.

Without going into the details, he briefly presented a slide from the GTZ Value Chain Study which shows the issues, problems and relationships in the whole coconut chain. A second slide depicts a conceptual framework for the Coconut Industry Cluster Revitalization, upon which the idea of the Regional Summit was taken.

Mr. Pilapil proceeded to present the 3 main objectives of the 1st Regional Coconut Summit, to wit:

1. To provide a venue for understanding and enhancing roles of STAKEHOLDERS in the coconut industry value chain. 2. To encourage producers in tandem with processors, manufacturers, traders and other players in increasing coconut productivity. 3. To promote a viable coconut industry network among value- chain players in Eastern Visayas.

He then posed a challenge to everybody: Region 8 has abundant comparative advantages and even has competitive edge over other regions in the country but this can not be attained if everybody in the industry will not and can not unite among themselves in having a common vision for the coconut industry.

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As the Summit Director, Mr. Pilapil thanked everyone and wished for a successful Summit.

Presentation on International and Domestic Trade Situation of Coconut Products and By-Product of the Philippines by Mr. Joel Miguel (General Manager for Marketing of Pan Century Surfactants Inc.)

Mr. Joel Miguel, the General Manager for Marketing of Pan Century Surfactants, Inc. started his presentation with a background information on oleochemicals – its properties, uses and applications. Mr. Miguel mentioned the comparative advantages of oleochemicals such as being derived from renewable resources, environment-friendly (easily biodegradable) and use less energy in producing and emits fewer pollutants than those produced from petrochemicals.

He also presented the situation of the Philippine and World production of oleo chemicals. He showed the alarming situation that crude coconut oil (CNO) production only increased by 10% and no relevant increase is foreseen up to 2010 and thus, CNO will not play a big role in the oleo-chemical industry in the near future. In fact, Palm oil and Palm kernel oil (PKO) have already overtaken CNO as the main raw materials for oleochemicals and will remain to be so for the next 10 years. He appealed to the government to look into this situation to arrest the further deterioration of CNO usage in the oleo-chemical industry.

Mr. Miguel showed the oleo-chemical Industry Value Chain, starting with the Raw Material (CNO/PKO) to Oleo-chemicals (Fatty Acid, Fatty Alcohol, Fatty Acid Methyl Ester) to Surfactants and finally End Production (Applications). He estimated the Export to Domestic Basic Oleo-chemicals Ratio to be 70% to 30%.

Regional Development Council (RDC) Support to the Coconut Industry in Eastern Visayas presented by PCA Regional Manager Region 8, Edilberto V. Nierva

7 PCA Regional Manager Nierva read the paper in behalf of the RDC Chair Mayor Mel Senen S. Sarmiento on the support of the Regional Development Council (RDC) to the Coconut Industry.

The paper highlighted the viability and vibrancy of the coconut industry and how it remains as the core economic pillar of the Eastern Visayas Region. It also echoed the call for coconut areas to be more productive given the high potential.

The speaker emphasized that RDC remains committed to provide a favorable framework for the continued development of the industry. The Summit, therefore, is a good opportunity to formulate viable strategies for the whole coconut industry and should be the beginning of a collaborative action of all key players and stakeholders.

Presentation on Value Chain Promotion in the Development of the Coconut Industry – by Juliana Hinterberger, Component Manager for Agribusiness Development of the GTZ supported Environment and Rural Development (EnRD) Program Ms. Juliana Hinterberger, of the GTZ Environment and Rural Development (EnRD) Program presented the highlights of the Coconut Value Chain Study commissioned by the GTZ.

She gave a brief background about the EnRD Program and its goal of capacitating institutions for natural resources governance and effective delivery of services to citizens by the service providers. The focus area of the program is in Eastern and with the various components: coastal and fisheries resources management; community based forest management; disaster risk management; coordinated support services delivery and agribusiness development.

Ms. Hinterberger explained the Value Chain Approach which started with a ranking and prioritization of the various coconut products , followed by a mapping of the industry and lastly the Sub-sector/Value Chain Analysis itself. This included an analysis of constraints and opportunities, a description of existing linkages in the chain, and an overall economic analysis. She then presented two slides contrasting the Market Perspective (upward trend with high potential) and the Farmers’ Perspective which shows that coconut is considered a low value crop which could be due to low potential and low productivity.

She also showed the analysis of the Chain. The corresponding economic analysis in fact confirmed that productivity is only at 30% of

8 its potential (with region 8 even below the national average). According to the findings of the study coconut oil and copra are economically the most important products for famers and will remain to be so.

Further, the major industry players and their profiles were presented. It was highlighted that the average farm size of coconut farmers is ever decreasing since the last 15 years (with region 8 ranging even below the average farm size). On the other side the organizational degree of farmers is low, and most of them market their produce individually, mostly to traders. This situation leaves farmers generally with very little bargaining power in the chain. The overall shortage of raw materials makes oil mills compete on supplies, and to rely heavily on traders for delivery of raw materials. There is a lot of mistrust prevailing between different players in the chain and options for vertical and horizontal cooperation are limited.

Ms. Hinterberger then showed a graphical presentation of the impact chain indicating the relationships, reflecting on major causes of the low income and continuing poverty. Given this scenario, two (2) key entry points were identified: the scattered and small-scale coconut production and the comparably low productivity. For these two entry points, both structural and behavioral considerations were put forward as counterpoint to the classical approach of heavy government induced investment programs and the establishment of farmers’ cooperatives.

In closing, Ms. Hinterberger emphasized that interventions aiming at increasing production and productivity have a high probability to directly improve the income situation at the farm level. She also pointed out that capacity building for existing cooperatives and linkages with micro-finance institutions and banks are crucial for farmers to become active partners within the value chain. Lastly she said that an industry platform or at least a core group would be an important mechanism for defining a joint vision and ensuring a coordinated framework of actions in the region.

OPEN FORUM:

Q (Mrs. ESTRELLA): Is there a way to increase the number of coconut development officers of PCA? Is there a way for the farmers to avail of assistance from PCA?

9 A (Mr. CARPIO): PCA is one of the top three highly subsidized government controlled corporations, together with the National Food Authority (NFA) and National Irrigation Administration (NIA). But millions of pesos are still not enough to pay the salaries so we cannot increase the number of workers. For every three thousand hectares there is one coconut development officers, but we hope that LGUs in coconut communities will help the PCA. Also, we are hoping that Congressman Noel’s proposed bill will be a response to the question. On the accessibility of financial assistance, there are also difficulties, PCA is the number one export earning agri-industry but not well supported.

Q (Mrs. ESTRELLA): That is why we are really hoping that the resolution of congressman will be passed.

A (Mr. NIERVA): One of the aspect of the summit is vital to congressman’s bill, so that we will be generating income, for region 8 has a lot of resources and we should make use of that, we hope that PCA will have real “authority”.

Q (Mr. HINAY): Coconut farmer and whole nut buyer: As like in other towns, whole nut buying is observed and I think that we should make guidelines to avoid “punctured” whole nuts.

A (Mr. CARPIO): This is not a good practice. Even without a policy, we should not buy the “punctured” whole nuts.

Q (Engr. CAIN): Buying whole nuts is one of our old problems. People sell stolen nuts, how can we prevent this?

A (Mr. NIERVA): There is actually a law on it because that is theft but everyone knows that we are weak in implementing the law.

Q (Mr. CHAN): The buyers do not buy the good copra, that is the problem, Government buys a lot of useless fertilizer, and then why not use the two hundred million pesos to buy coconut seeds, instead? There are no programs for the landowner; DAR is in favor of farmers, even the local governments are not doing anything even though the farmers are already stealing from the owners. So what is your government policy that can help the land owners who are poorer than the tenants?

10 A (Mr. NIERVA): Programs are not only for the farmers. There is no discrimination between landowner-farmer and farmers who are tenants, though we focus on the farmers because they are the sector who needs assistance. And on the issue of theft, there should be strong implementation of local ordinances, but this is already out of PCA’s mandate. Strict enforcement is in coordination with LGUs especially the Council.

Q (Mr. POLITO): Every time I go around visiting copra suppliers, they say that the supply is low because of theft. Out of the 162 sellers, 90% confirms that they are victims of theft. Also, coconut lumbers are sold, so why not stop first the coconut trees from being cut down instead of the 200 million fertilizer project? Also, there is no such thing as senile coconut trees!

A (Mr. CARPIO): On the issue of theft, it is true. Insofar as cutting of coconut trees, there is actually a moratorium and only trees 60 years old and above can be cut. Despite the moratorium, there are more trees being cut, so we should help each other to save the industry. People question why they are prohibited to cut their own trees.

Q (Mr. ALBA): It used to be that farmers benefit from, the coco levy fund. Where are the coco levy funds, so that they can buy seedlings and fertilizers?

A (Mr. CARPIO): Levy cases are with the Supreme Court. It is correct to say that the levy funds are meant for this purpose.

Q (MEDIA): What factors affect the fluctuating price of copra, both domestic and international markets?

A (Mr. CARPIO): Coconut is competing with all other traded vegetable oils. If prices of soy bean in the US and palm oil in Malaysia fluctuate, the price of coconut oil changes accordingly. We cannot control the price. There are 5 big groups of coconut players in the country and they can control the price of the coconut for the whole country. With only one of them start lowering their prices, the others will also follow. If we group ourselves together, we could have a better leverage with this cartel. The value chain explained that we need to diversify or go to higher value. Why do we stick to copra? It is the easiest to do but copra has a low value.

11 A (Mr. MIGUEL): It’s a chain reaction, coconut oil price is dependent on global oil prices – we always need to adjust, it is always market driven.

Q (Mrs. DELORIA): I am worried about the coco lumber. There is a case in which even the inflorescence is being cut, this is alarming and PCA should do or make regulations. There is a need to have leadership in this.

Q (Mr. DONES): We are experimenting on joining together and proposing some convergence programs. Is there a possibility that GTZ support our projects?

A (Ms. HINTERBERGER): is not our intervention area, only and - but the province of Northern Samar is a major player in the coconut industry in Region 8. Northern Samar is a step advanced because they already held a provincial coconut summit and formed the Northern Samar Coconut Industry Council, which could stand as a model to have for the whole region. At the regional level, we could support a similar endeavour.

Q (Mr. FIGER): What is the capacity of seedlings regarding Baybay Tall?

A (Mr. PILAPIL): As of this moment, we do not know because the characterization is still on going. It is good that Congressman Cari is downloading money to expand the coverage of the project. Please make arrangements with the Baybay Tall growers present here.

Q (PRESS): The cultural practices of farmers in Eastern Visayas is alarming, coconut trees have cuts on the tree but none in Quezon Province. But in agriculture, it is prohibited and those without cuts have more fruit than those with cuts. Why does PCA not teach proper cultural practices and spacing to our coconut farmers?

A (Mr. NIERVA): There are fieldmen trained in Davao. Good agricultural practices are known, but Filipinos are hard-headed. We have been teaching them to plant the proper way with prescribed measurements but they do not practice it. It is the decision of the farmers. They think that more trees equals more produce.

A (Mr. CARPIO): The “hakhak” can be an entry point for diseases to flourish. in Quezon, they use (bamboo) as ladder to harvest but it is a culture that is difficult to change.

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A (Mr. NIERVA): In the late ‘70s, trainings on how to use bamboos were conducted. There were demonstrations, and farmers appreciated but they did not apply it.

Afternoon, August 29, 2008

3 Input presentations were given before the body split into different working groups.

Input presentation on Good Agricultural Practices – Cresente Talacay, Bgy. Tuba, Jaro, Leyte 2007 Gawad Saka Awardee, Best Coconut Farmer for 2007

Cresente Talacay, a Gawad Saka Awardee for the Best Coconut Farmer in 2007 presented his ‘Good Agricultural Practices’ that won him the “Gawad Saka” award in 2007. In his presentation, he showed how these agricultural practices benefited him and his family financially. He practiced diversified farming with vegetables, root crops and varied fruit trees and plowed his farm three times. He also practiced contour farming system and intercropping method using vegetables such as tomato, squash, and fruits like pineapple suckers, bananas, and root crops such like sweet potato and cassava.

Mr. Talacay’s good practices include the green manuring and composting; the practice of clean culture which included removing the grasses around the coconut trees everyday. He also stressed on the use of commercial fertilizers to increase production.

The produce coming from his farm provided his family with food, but most of his harvests were sold for profit. His fruits were sold to nearby municipalities. Likewise his vegetables were sold in different barangays. Also with the help of his produce, he made special delicacies such as , bukayo, and suman which were in demand especially on fiestas.

Mr. Talacay earns 1,500-2,000 Php a month on copra alone on his 5 hectaresfarm. farm. He gets 1,500 Php/month for his vinegar, while he earns 18,000 Php per annum selling the produce from his fruit trees; 10,000 per annum on vegetables; 20,000 per annum on pineapples; 10,000 Php a year on selling bananas and 5,000 Php a year on root crops. His wife also sells merienda and lunch viands which adds to the family income.

13 Mr. Talacay also finds raising farm animals such as hogs and poultry profitable. From raising hogs he gets 10,000 annually. He also started a fishpond which earns him 5,000 Php a year. Talacay also made his farm animals such as cows and carabaos available for rent giving him 150 Php a day.

Input presentation on the Coconut Nursery Project in City, Western Samar by Menardo S. Montano,

Mr. Menardo Montano, a CDO of Calbayog City presented a paper on Coconut Nursery Project, which is a coconut manufacturing firm in Calbayog City, the Samar Coco Oil Manufacturing, Inc. Throughout his presentation, he explained how manufacturers and traders could help coco farmers increase their production through planting good quality coconut seedlings.

In the goal of having a sustained coconut industry, the nursery project’s objectives include; the replenishing of senescent and senile coconut trees; the expansion of coconut plantations especially in their areas of operation; and to fulfill their corporate social responsibility (CSR).

As part of his presentation, he also delivered their nursery report, since the project’s inception in 2004 up to the present reflecting their project’s operations and the benefits they contributed to their recipients.

Because of this project, they were able to replenish the senile and senescent coconut trees which had been cut down and also able to expand the coconut area planted by 626.82 hectares as of September 15, 2007. They also managed to raise a total of 62,682 good quality coconut seedlings given free to about 410 coconut farmers in the area of operation of Samar Coco Products Manufacturing Corp. and the government was able to saved\ a total P933,480.00 for its replanting program.

Input presentation on Coconut Coir Production, Consolidation and Networking by Ms. Maylyn Villamor, AFFIRE group, City

14 Maylyn Villamor, Department Head for Cooperative Support Services of AFFIRE, discussed about the need for consolidation and networking in the production of coconut coir. As the volunteer president of the Coir Sub-sector, she emphasized that there should be convergence among Government Agencies for the coco coir in the region to become a dominant sub-sector in the coconut industry. the AFFIRE group’s program materialized through the Land Bank Micro-finance project, which was supported by GTZ some years back . This is not actually focused on giving grants to the players of the coco coir industry but actually promote internal capitalization. She also mentioned that there is a great need for integration and consolidation in the industry. These two are actually the key ingredients which will lead to the sustainability of the said programs which will then adhere to achieving the goals of making region VIII the geo-textile hub in the country.

However, according to Ms. Villamor, the coco coir industry is currently generating negative feedbacks from the public because sustainability is not yet seen in the picture. She pointed out that the sector should divert its attention from one-time deals to more long-term agreements with their clients and at the same time be able to increase production to meet the growing demands of the market. Only then will sustainability be achieved.

In terms of business management and marketing, Ms. Villamor stressed out that one has to plan his actions by looking at the demand of the market. Take for example China’s needs for baled fiber. They are actually interested in importing a minimum of 22 tons of baled fiber per month which they transform to rubberized coir. One producer alone will not be able to produce this much fiber in one month that is why there is a great difficulty in meeting the market demand. However, if the sub-sector will consolidate, the industry can actually meet this demand thus generating more yet equal opportunities to all the players in the coco coir industry.

Furthermore, Ms. Villamor pointed out that Central Baling Facilities should work hand in hand with the Central Decorticating Plants. She also advised that the facilities should be located near a terminal port to lower transaction and transportation costs. Lastly, she added that instead of burning coconut husks, which is a usual practice among farmers, why not convert it to its economic value? Not only are they helping in the conservation of the environment by not contributing to the high emission of carbon which destroys the ozone layer, they can actually earn money in the process.

15 In the latter part of her discussion, Ms. Villamor talked about a new technology called s-400 which is used to control soil erosion. This innovation actually won for the Philippines an award sponsored by the British Broadcasting Company (BBC). However, there is little awareness about this technology that is why there is a problem in looking for buyers. In this light, Local Government Units and Government Agencies should work hand in hand in promoting the said technology which can become a major product in the industry and generate job opportunities for the masses.

In conclusion, she reiterated her call for consolidation of the coco coir industry. Players should learn to mobilize their investments. They have to understand that they can achieve more growth when they work together. Trading by low volumes means that one is alone. There is not much growth in here. But, if they consolidate and work hand in hand, not only are they promoting economic empowerment but also equity among the players of the industry.

SUMMIT Workshop Proper

Ms. Viola Siozon, the Summit’s main facilitator, discussed the workshop objective and then divided the participants into four (4) workshop groups corresponding to their respective sub-sectors. The groups were expected to prepare the respective plans for their specific sub-sectors for the next two years. She reminded them to take into consideration the plenary presentations as inputs for their respective plans. Facilitators were also assigned per working group. The following were the working groups and their respective facilitators:

1. Farmers’ group – Mr. Raul Repulda 2. Processors’ group – Mr. Joel Pilapil 3. Traders’/Manufacturers’ group – Ms. Viola Siozon 4. Enablers’ group – Dr. Eliseo Ponce

The respective groups started with a short leveling-off and discussion about the prescribed matrix. As an added input, the farmers’ group even had a short lecture on the Value Chain to better understand the concept.

After about one hour, the workshop groups presented their respective outputs. An open forum ensued after each presentation for comments and suggestions. The workshop outputs of the four groups are attached as Annex A.

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The Summit Director declared a one-hour break and reminded the participants to return at 6:30pm for the dinner and fellowship night sponsored by Congressman Noel of the An Waray Party List.

Dinner and Fellowship

After the dinner, An Waray Partylist Representative Hon. Florencio “Bem” Noel took the floor and gave a backgrounder on the proposed Coconut Industry Act he is sponsoring in Congress. He started with the problems ailing the coconut industry. He followed it up with the Legislations related to the industry starting in 1973 when the Philippine Coconut Industry was created through Presidential Decree 232 and the subsequent Amendments, up to the year 2000 when Executive Order 213 was issued regarding the coconut tree conservation. Congressman Noel also listed the other Bills that were filed since the 8th Congress but never reached beyond 2nd reading.

Cong. Noel then presented the objectives of the proposed Bill which aims to: promote the development of the industry; develop and establish farming systems; hasten and advance industrialization in the industry; promote effective utilization and marketing of products and by-products; increase production; conduct scientific researches and investigations in all aspects of the industry; encourage and promote organization of farmers; Generate and disseminate information; coordinate and integrate all efforts of various agencies of the government; revitalize the Philippine Coconut Authority by establishing a more empowered Philippine Coconut Industry Development Authority (PhilCIDA). It is envisioned that the proposed PhilCIDA will have more teeth in its regulatory function.

Congressman Noel reiterated his statement during the press conference prior to the Summit that the Bill will not mention the coconut levy fund because all similar Bills that were earlier filed in Congress which had provisions about the coco levy fund never reached past 2nd reading. Besides, he said that the issue of the coconut levy fund is already with the Supreme Court.

He enjoined all the participants to support him once the Bill is submitted to Congress. After some brief clarifications from the media representatives, the Congressman thanked everyone for attending the Fellowship night.

This also officially ended the first day of the Summit.

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Day 2, August 30, 2008

Updates on the Infestation and Control of Coconut Leaf Beetle (Brontispa longissima) by Dr. Carlos Carpio, PCA Deputy Administrator

PCA Deputy Administrator Carpio presented the map of the Philippines where the extent of the infestation of Brontispa is indicated. The map showed that the areas most affected are the , Samar, Southern Palawan, and portions of Quezon, Cavite, Laguna and Nueva Ecija. There were also sporadic areas in , Leyte and where the infestation is spreading. Dr. Carpio showed pictures of the diseased coconut trees and the Brontispa.

He said that based on their data, there were about 825,000 trees infested, of which more than 612,000 trees have been treated. So far, about 80% of the treated trees are recovering. Pictures showing how the trees were being treated were also shown. He also reported that not only were affected but also ornamental and wild palms have been infested.

Dr. Carpio said that they are now mass-producing entomopathogens, organisms that affect insects and will be used to naturally counter the spread of Bronstipa. So far, three (3) PCA mass production centers have been put up (Albay, Davao and Lucena). They have also enlisted the help of the DA’s Crop Protection Centers in various regions as well as State Universities and Colleges. The PCA has also released more than 50,000 earwigs (predators that feed on Bronstispa). In addition, they are also formulating safer organic pesticides.

Dr. Carpio then zeroed in his presentation on the status of infestation in Eastern Visayas. He reported that based on their data, there are about 222,000 trees affected in the region, with Western and Northern Samar Provinces with the most infestations. He showed pictures of coconut trees that have recovered in Allen, Northern Samar after 5 months of treatment and thus, there is hope of recovery after all. How much does the treatment of a coconut cost? Who pays? Who to contact in case of infestation?

18 Deputy Administrator Carpio ended with a call for every stakeholder to get their acts together. He challenged everyone to be involved in the campaign to rid the beetle, and that the campaign should be sustained to stop the spread. He underscored the importance of values change in the individual farmers and landowners. Lastly, he also mentioned the crucial role of research and development.

Presentation on the Provincial Coconut Industry Development Council – the Northern Samar Experience by Provincial Board Member Albert Lucero

Board Member Lucero started his presentation with a brief history of the process upon which the Province of Northern Samar went through. He said that Governor Daza created a multi-sectoral Technical Working Group in January 2008 to formulate a plan for the coconut industry in the Province. The TWG then conducted a Provincial Coconut Summit with funding support from the Philippine-Australia Community Assistance Program (PACAP) and the Coconut Industry investment Fund (CIIF). The Summit discussed the pressing issues affecting the industry and paved the way for the creation of the Northern Samar Coconut Industry Development (NSCID) Council.

The TWG also facilitated the drafting of the Constitution and By-Laws of the NSCID Council as well as the Industry Framework which was eventually presented to the general assembly of the NSCID last June 2008.

SP Lucero went on to discuss about the NSCID Council - its composition, functions and the activities it has organized. The seven- point Agenda was also presented, to wit: 1. Crop diversification, product and market development 2. Linking farmers’ productivity to economic development through partnerships 3. Convergence among different stakeholders on economic activities 4. Develop an achievable set of strategies and interventions together with stakeholders 5. Define the role of government agencies in coordination with private sector 6. Linking natural resource management with main economic activity, predominantly agricultural production, and trade and processing 7. Identify and develop good practice and show case in the province

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Finally, he showed the Council’s next steps for the next three years, focusing on institutional development as well as product and market development. He said that what they are doing in Northern Samar may inspire the other Provinces to also implement their own Provincial coconut industry development for the betterment of the whole Eastern Visayas.

“Advantages of a United Coconut Industry: Promoting Chain Collaboration to Achieve the Goal of Increasing Productivity”, by Mr. Ray Abanil, Executive Director. Kaisampalad,

The Executive Director of Kaisampalad Inc., Mr. Ray Abanil was the last presenter and his topic was to put the final touches to the emerging consensus of forging a united coconut industry.

His presentation was premised on promoting collaboration among the stakeholders in the value chain and at the same time recognizing the various challenges confronting the industry. He listed and discussed in detail the advantages of building partnerships as well as the inherent challenges. He also talked about idealized principles such as partnership of equals, transparency, negotiated change, co- governance, responsible business practices and learning and innovation.

He cited mechanism options which could be informal (task/working groups), semi-formal (networks, alliances) or formal (association or councils as in the case of Northern Samar).

Mr. Abanil then delved on a checklist of possible next steps of what could be done to promote chain collaboration and achieve the goal of increasing productivity in the industry.

A short Open Forum ensued to clarify some points in the presentations.

Workshop Synthesis and Next Steps

Mr. Raul Repulda then presented a Synthesis of what transpired in the last one-and-a-half-days, putting emphasis on the sectoral workshop outputs. He pointed out what the different industry players have planned but he also said that there is a need to polish the plan to come up with a more cohesive action, especially with regard to the vertical and horizontal relationships of the different sectors.

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The “Declaration of Unity” was then presented which embodies the sentiments of the Summit participants. As a sign of their agreement to the Summit outputs and their commitment to forge a united coconut industry, the participants then affixed their signatures on the document.

Ms. Juliana Hinterberger was then asked to give her impressions about the Summit. She said that the past two days have been very exciting and that she learned a lot especially the experiences from different areas and this Summit has brought us closer together. She hoped that the participants have been exposed enough on the “Value Chain” way of thinking and that the other actors will become more involved. She emphasized the need to follow-up on the next steps agreed upon so that it will not just be another Summit that will be forgotten after a few days. She also emphasized to everyone, especially the government agencies the necessity to establish a regional level mechanism for stakeholders to coordinate and jointly support the coconut industry. In closing, she thanked all the participants and the partners who made the Summit a reality.

To cap the Summit, representatives from each Province (Leyte, Southern Leyte, , Samar, Northern Samar and ) were called to give their respective response. One of the participants lamented that the Summit’s output may just become a table output. As a response, the PCA Assistant Manager Joel O. Pilapil facilitated the formation of an Ad Hoc Committee to ensure that the action plans will be implemented. The participants agreed that two representatives from each province coming from different sectors in the industry be nominated to compose the Ad Hoc Committee. This was unanimously agreed upon and the participants from the different provinces nominated their representatives. It was also agreed the the Ad Hoc Committee will be backstopped by the core group that organized the Summit in order to ensure continuity and sustainability.

Congressman Noel for his part assured that there will be a bigger Summit next year. He also offered an office space at the An Waray headquarters for the use of the Ad Hoc Committee and reiterated his call for the support of everyone especially when his proposed bill shall have been submitted to Congress. He said that he needs the commitment of all the players and stakeholders.

To formally close the summit, the An Waray Partylist Regional Chairperson, Mr. Niel A. Montejo gave the closing remarks by briefly

21 relating the humble beginnings of the An Waray. He then thanked individually all those who made the first ever coconut summit in the region a success. Mr. Montejo, together with the PCA Regional Manager, Mr. Edilberto Nierva then handed out Certificates of Appreciation to all those who presented papers and took part in the Exhibit.

The Summit officially ended at high noon.

The 1st Regional Coconut Summit was organized through the efforts of the following Agencies and Offices: Philippine Coconut Authority (PCA); An Waray Partylist; Department of Science and Technology (DOST); Kaisampalad, Inc; German Technical Cooperation (GTZ); Department of Trade and Industry (DTI); Department of Agrarian Reform (DAR) and the Congress of the Philippines.

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