“Coconut Industry Production Status, Growing Zones

Republic of the Philippines

Department of Agriculture PHILIPPINE COCONUT AUTHORITY Diliman, Quezon City

A Briefing Guide on the Subject: “Coconut Industry Production Status, Growing Zones, Productivity and Potential to Increase Nut Supply in Coconut Farms through Practical and Efficient Farming Technologies (PEFT)** 1. INTRODUCTION In 1993, a generalized map of the coconut growing zones with estimated hectarages and tree population was prepared by the PCA to guide all concerned about the coconut industry in the identification of key production areas (KPAs) for planning, monitoring& evaluation, and management of development projects and action programs. As the extent of coconut areas in the country is usually affected by the socio-economic conditions as a result of land use conversion, allowed and unwanted tree cuttings for commercial and business purposes, urbanization and housing, cropping shifts and environmental concerns, is vital to understand the more recent status of coconut production status, productivity (yield) indices and developments in yield and income enhancing farming technologies that undergone intensive research and extensive field testing and validation. Later in 1998, then in 2001, the map was revised (PCA-RDEB 2001), as a generalized map of the Coconut Growing Zones and Production Suitability Levels, mainly based on rainfall levels, and distribution, and growing altitude (Magat 2001).. This was used extensively in the identification of Replanting and Fertilization project areas under the Small Coconut farms Development Project (SCFDP, World Bank-Assisted, 1991-98) and in the selection of pilot study sites in the farm validation and field refinements of promising technologies in the country by the PCA’s Research and Extension Service, in coastal and inland areas. 2. INDUSTRY PRODUCTION PERFORMANCE-STATUS The Bureau of Agricultural Statistics (DA-BAS) collects and reports selected coconut statistical survey indices of agricultural crops and commodities at the national and regional levels covering all the 14 socio-political regions of the country. On coconut, the regional and provincial coconut statistics basic field data gathered and reported by the DA-BAS are: (1)area planted (ha); 2) number and yield of bearing trees; (3) volume and value of production/harvested (nut terms in metric ton and PHP) . The PCA and the United Coconut Association (UCAP) are among the significant agencies provided by the BAS of their selected statistics on the coconut crop on an annual basis. The UCAP processed these data and presents it in its Annual Coconut Statistics Book and the Coconut Industry Kit in line with the needed data indices of its sectoral members, including the government through the PCA, and the coconut farmer-growers. The PCA uses the BAS agricultural statistics and the UCAP presentation for its planning, management and regulatory functions, as well as in its R&D tasks, and extension and field services. ** Prepared by the Research, Development, and Extension Branch, PCA, Central Office, Diliman, Quezon City. Email: [email protected] and [email protected].

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2.1 Industry Supply- Value Chain Figure 2.1 Flowchart of Supply and Value of Coconut and Coconut Products in the Philippines PRODUCTION INPUTS

COCONUT PARTS

MACHINERY, EQUIPMENT for PROJECT

VALUE-ADDED PRODUCTS

OIL

COOKING OIL SOAPS DETERGENTS

PROCESSING MACHINERY

COPRA MEAL

LIVESTOCK FEEDS

BEATING MACHINE, DECORTICATOR, BALER, 1- & 2-PLY ROPE TWINER, DOORMAT EQUIPMENT

FIBER

OILMILLS

R&D, PRODUCTION RESOURCES

PRIMARY PRODUCT

MARKET SALES INCOME

MEAT KERNEL

Nursery/Seed Gardens HUSK

COIR DUST

Farmers/ Planting

Fertilization Pest Management

SAP

COCONUT WATER

SHELL HARVEST

WOOD

LEAVES, LEAF SHEATHS, STIPULES

INFLORESCENCE

LATHE, CARPENTRY TOOLS

ORGANIC FERTILIZER ROOTING MEDIA HORTICULTURE POTS

TODDY

JAGGERY, COCONECTAR COCOSUGAR, LUMBANOG WINE, VINEGAR

COCONUT WATER

JUICE, VINEGAR, NATA DE COCO, WINE

CHARCOAL LATHE, CUTTER, POLISHER,HANDICRAFT MACHINERY

ROPES, GEOTEXTILES DOORMATS, BASKETS

FORMED PRODUCTS

WOOD, LUMBER

DOMESTIC AND EXPORT MARKETS

ACTIVATED CHARCOAL

FASHION ACCESSORIES, BELTS, BUTTONS HANDICRAFTS

HANDICRAFTS, FURNITURE

HATS,SLIPPERS,BASK ETS BAGS, HANDICRAFTS FRUIT TRAYS, PICTURE FRAMES, PLACE MATS, BLINDS,ARTIFICIAL FLOWERS

Source: Coconut Industry Strategic Plan for Philippine Agriculture 2020

Key Points: 1) The chart (Figure 2.1) shows the supply chain, value adding and eventual domestic and export markets of the coconut industry sectors, starting from the farms producing the primary coconut products from the harvest of nuts; 2) From nuts, and other coconut parts, with the use of diverse machineries and equipment, technologies, generate primary products such as: copra, oil, copra meal, fiber, cocodust, sap, cocowater, charcoal and cocowood;

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3) The above primary products are then converted to the final marketable high-value coconut-based products, finally traded and marketed. 4) To improve and optimize the benefits by the farming and processing sectors, the government provides research and extension services, including credit, farm input, and market support/ assistance to small and medium scale farmers and product processors.

2.2 Philippine Coconut Situation – Annual 1998, 2004-2008

Key points: 1) Coconut hectarage increased by 240,000 ha for the period 1998-2008, but the hectarage remained almost the same from 2004 (3.259 M ha) to 2008 (3.38 M ha); 2) Annual nut production (harvest) increased by 2.514 B nuts for the period 1998-2008, but this remained almost the same from 2004 (14.825 B nuts) to 2007 (14.853 B nuts); 3) Total nut-bearing production trees increased by 38.27 M trees for the period 1998- 2008, but this only slightly increased from 2004 (331.46 M trees) to 2006 (335.46 M trees).

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2.3 RP Hectarage by in Four Major Producing Regions, Annual 1998, 2004-2008

Key Points: 1) In the Southern Tagalog and Bicol Region (STBR) the coconut hectarage increased by 105,000 ha for the period 1998 to 2008, but remained almost static from 2004 to 2006; while the rest of Luzon remained almost constant 1998 – 2008); 2) In the Visayas Region (VisR) which covers eastern, central and western), it increased by only 38,000 ha for the same period. Its total hectarage was 848,000 ha in 1998 and 953,000 ha in 2008, slightly increasing in coconut plantings, annually; 3) The Mindanao Region (MndR), with 6 sub-regions which are mostly highly suitable for coconut production increased by 123,000 ha from 1998 (1.624 M ha) to 2008 (1.747 M ha). The modest growth trend in hectarage is apparently linear in the MndR.

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2.4 RP Production (Bearing) Trees in the Four Major Producing Regions, Annual 1998, 2004-2008

Key Points: 1) In the Southern Tagalog and Bicol Region (STBR), the total bearing production trees increased by 18.4 M trees for the period 1989 (80.54 M trees) to 2008 (92.97 M trees), with the a very slight linear growth trend during the period 2004-208). While for the rest of Luzon, it increased by only 0.90 M trees with a low 3.76 M trees in 1998, with almost flat growth from 2004(4.66 M trees) to 2008 (4.66 M trees); 2) In the VisR, it increased by 9.49 M Trees from1998 (60.85 M trees) to 2008 (70.34M trees), with the growth in number of bearing trees in the VisR almost nil from 1998 (69.49M trees to 2008 (70.34 M trees); 3) In contrast, in the MndR, the bearing production trees increased by 17.46 M trees for the period 1998 (155.81M trees) to 2008 (171.34 M trees), with an almost slight linear increase from 2004 (164.37 M trees) to 2008.

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2.5 Average Coconut Yield (nuts/tree in the Four Major Producing Regions, Annual 1998, 2004-2008

Key Points: 1) Annual Coconut yield per tree (nut productivity) varied year to year with the MndR having highest yield with the least variability (48-54 nuts/tree), hence a better predictability of nut supply from 2004-2008 compared to the STBR and VisR). 2) The STBR and VisR regions, with second and third highest coconut hectarage and number of bearing trees, respectively, both recorded annual nut yields lower than 40 nuts/tree per year, lower than the national annual average yields of 45 nuts/tree. 3) It is interesting to note that the average nut yields in the rest of Luzon coconut areas is higher than the national average nut yield, and higher compared to the other the traditional coconut regions.

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2.6 RP Coconut Harvest in Four Major Producing Regions, Annual 1998, 2004-2008.

Key Points: 1) In the past year of 1998 and recent production period 2004-2008, the MndR (6 subregions) had consistently produced the highest annual coconut nut harvest (7.48 – 9.31 B nuts), with a linear growth trend indicated by the total performance of the MndR. 2) In all past years, The performance of the MndR is followed by the production of the STBR ( 2.77- 3.34B nuts), and then by the VisR ( 2.19- 2.68 B nuts; 3) In 2008, the contribution of the different major coconut regions (MCRs) to the country’s national coconut harvest output follows: •

MndR - 68.3% (15.820 B nuts)

•

STBR - 20.3% ( 3.103 B nuts)

•

VisR - 17.5% (2.682 B Nuts)

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3. COCONUT GROWING ZONES AND PRODUCTION SUITABILITY, AND REGIONAL PRODUCTVITY LEVELS

3.1 Reference-Guide Map of Growing Zones

Figure 3.1 Coconut Growing Zones and Production Suitability of the Crop.

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PRIORITY I – IDENTIFIED COCONUT PROVINCES CLASSIFIED UNDER THE HIGHLY SUITABLE AREAS The Wet Growing Zone (WGZ) has highly adequate supply of rainfall year-round, with not more than 3 dry months, annually. The expected productivity of bearing trees: Average Annual Yield > 2.5 t copra/hectare. Table 3.1.1. Provinces (29) considered Highly Suitable for Coconut Production (with annual yield = to 2.5 t copra or higher (in nut terms = or higher than 11,250 nuts/ha). Source: PCA Regional Reports (1997). Province Region Estimated Area Estimated Bearing (ha) Trees (no) 1) Quezon II 4-A (Southern Tagalog) 178,180 23,329,000 2) Davao Norte 11 (Southern Mindanao) 121,100 13,726,520 3) Northern Samar 8 (Eastern Visayas) 102,800 10,789,020 4) Eastern Samar 8 (Eastern Visayas) 102,840 10,625,710 5) Zamboanga Sur 9 (Western Mindanao) 111,450 8,534,380 6) Surigao Norte 14 (CARAGA) 91,690 8,201,260 7) Misamis Oriental 10 (Northern Mindanao) 81,740 8,000,130 8) Misamis Occidental 10 (Northern Mindanao) 96,520 7,742,260 9) Albay 5 (Bicol) 79,150 7,474,300 10) Leyte I 8 (Eastern Visayas) 79,800 7,434,310 11) Surigao Sur 14 (CARAGA) 71,800 7,166,640 12) Lanao Norte 10 (Northern Mindanao) 59,770 6,170,590 13) Camarines Norte 5 (Bicol) 78,530 6,049,920 14) Sorsogon 5 (Bicol) 74,690 5,899,650 15) Samar 8 (Eastern Visayas) 80,150 5,786,650 16) Basilan 9 (Western Mindanao) 53,600 5,446,350 17) Sulu 13 (ARMM) 52,860 4,997,010 18) Lanao Sur 13 (ARMM) 53,840 4,653,430 19) Southern Leyte 8 (Eastern Visayas) 46,730 3,821,930 20) Agusan Norte 14 (CARAGA) 39,150 2,939,230 21) Davao City 11 (Southern Mindanao) 29,100 2,768,920 22) Aklan 6 (Western Visayas) 26,860 1,664,980 23) Biliran 8 (Eastern Visayas) 16,930 1,510,920 24) Camiguin 10 (Northern Mindanao) 12,920 1,500,290 25) Sultan Kudarat 13 (ARMM) 13,650 1,483,560 26) Agusan Sur 14 (CARAGA) 23,070 1,463,460 27) Capiz 6 (Western Visayas) 10,770 1,199,750 28) Cantanduanes 5 (Bicol) 14,930 681,250 29) Aurora 4-B (Luzon) 18,290 86,450 Key Points: 1) Based on figure 3.1, a total of 29 provinces are situated in the wet growing zone (WGZ) that is highly suitable for rainfed coconut production year-round, with average achievable annual yields of at least 2.5 tons copra or 11,250 nuts per ha. 2) 42% of the total provinces fall under the WGZ, most of these provinces are located in the eastern parts of Mindanao and the Visayas which has the main advantage of having a highly adequate and well–distributed supply of rainfall year-round required for a sustained supply of nuts for various coconut processing and marketing sectors. Most of the large oil mills/ refineries and other product processing plants are located close or within to the WGZ for their economic and operational advantage.

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PRIORITY II – IDENTIFIED COCONUT PROVINCES CLASSIFIED UNDER THE SUITABLE AREAS These are those areas in the Intermediate Growing Zone (IGZ), with adequate rainfall yearround, only 3-4.5 dry months). Expected Productivity of bearing trees: Average Annual Yield = 1.5 2.5 t copra/ha (= to 6,750 -11,250 nuts/ha).

Table 3.1.2 Provinces considered as suitable areas for coconut production (with annual yield of 1.5 – 2.5 t copra or in nut term 6,750 – 11,250 nuts/ha). Source: PCA Regional Reports (1997) Province Region Estimated Area Estimated Bearing (ha) Trees (no) 1) Quezon I 4-A (Southern Tagalog) 129,010 18,540,730 2) Zamboanga Norte 9 (Western Mindanao) 182,680 13,109,610 3) Masbate 5 (Bicol) 128,560 12,766,460 4) Camarines Sur II 5 (Bicol) 107,420 10,351,340 5) Laguna 4-A (Southern Tagalog) 68,620 9,311,990 6) Davao Sur 11 (Southern Mindanao) 76,060 7,199,670 7) Leyte II 8 (Eastern Visayas) 79,690 6,919,180 8) Maguidanao 13 (ARMM) 76,720 6,845,860 9) Camarines Sur I 5 (Bicol) 64,100 6,006,910 10) Davao Oriental 11 (Southern Mindanao) 61,270 5,891,370 11) Sarangani 12 (Central Mindanao) 60,860 5,429,030 12) Romblon 1-4B (Luzon) 44,830 5,273,320 13) Negros Oriental 7 (Western Visayas) 50,160 4,775,910 14) Batangas 4-A (Southern Tagalog) 37,130 4,746,500 15) Cebu 7 (Western Visayas) 42,290 4,094,330 16) Palawan 1-4B (Luzon) 39,930 3,793,440 17) Bohol 7 (Western Visayas) 42,640 3,621,330 18) Mindoro Oriental 1-4B (Luzon) 37,120 3,188,430 19) Marinduque 1-4B (Luzon) 28,230 2,733,530 20) Zamboanga City 9 (Western Mindanao) 26,710 2,365,200 21) Tawi-Tawi 13 (ARMM) 23,980 2,296,970 22) South Cotabato 12 (Central Mindanao) 23,660 1,964,840 23) Negros Occidental 6 (Central Visayas) 28,000 1,861,520 24) North Cotabato 12 (Central Mindanao) 20,350 1,782,090 25) Antique 6 (Central Visayas) 14,360 1,359,860 26) Iloilo 6 (Central Visayas) 13,970 1,119,460 27) Cavite 4-A (Southern Tagalog) 11,840 694,700 28) Siquijor 7 (Western Visayas) 6,800 549,440 29) Guimaras 6 (Central Visayas) 5,680 534,310 30) Bukidnon 10 (Northern Mindanao) 5,520 480,830 31) Cagayan 1-4B (Luzon) 17,830 267,450 32) Isabela 1-4B (Luzon) 1,380 109,640 33) Quirino 1-4B (Luzon) 680 35,380 Key Points: 1) Reference to Figure 3.1, a total of 33 provinces is under the intermediate growing zone (IGZ) located through the country from Luzon, mostly areas in the eastern part, facing the Pacific Ocean, and in the southern Tagalog provinces, to the regions of Visayas and Mindanao situated in mostly in eastern part of the country. 2) About 48 % of the country’s coconut producing areas falls under the IDZ, thus suitable for coconut production, despite rainfall-dependent for crop’s water requirement year-round. 3) The supply of nuts for food uses , copra, coconut oil, and other derived coconut products in these growing zone is sustained year-round, due to capability to produce good annual yields ranging 1.5 -2.5 t copra /ha or 6.750- 11,250 nuts/ha.

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PRIORITY III – IDENTIFIED COCONUT PROVINCES CLASSIFIED UNDER THE FAIRLY SUITABLE AREAS These are situated in the Dry Growing Zone (DGZ), with rainfall not well distributed, not less than 6 dry months). Expected productivity of bearing trees: Average Annual Yield = 0.75 - 1.75 t copra/hectare. Table 3.1.3. Provinces considered as fairly suitable for coconut production (with average annual yields of 0.75-1.25 t copra/ha or in nut terms 3,370-5,600 nuts/ha). Source: PCA Regional Reports (1997).

1) 2) 3) 4) 5) 6) 7)

Province

Region

Pangasinan Bataan Mindoro Occidental Ilocos Norte Zambales La Union Ilocos Sur

1-4B (Luzon) 1-4B (Luzon) 1-4B (Luzon) 1-4B (Luzon) 1-4B (Luzon) 1-4B (Luzon) 1-4B (Luzon)

Estimated Area (ha) 8,930 2,770 2,450 2,750 930 2,300 440

Estimated Bearing trees (no) 664,660 249,500 206,000 163,060 58,810 50,800 36,600

Key Points:

1) Only 7 provinces under this dry growing zone, 6 provinces in region 1-4B, extensively situated in the western part of Luzon, facing or adjacent to the China Sea and one province in the drier region (Occidental) of the Mindoro Island, south of Southern Tagalog region (Figure 3.1). 2) Because of the usually long dry season, not less than 6 long dry months during the year, the achievable annual yield is not more than 1.25 t copra/ha (5,600 nuts/ha), the yield mainly limited by the high annual water deficit of 600-800 mm rainfall.

3.3 Indicative Variability in Annual Coconut Productivity in twelve coconut regions in of the country in production year 2005. Table 3.2 Annual Productivity Levels of Coconuts in the Country by Region, Philippines 2005 (estimated from provincial sample farms in Sept 2004) Region (12)

Coconut Bearing Trees Nuts/tree Copra/tree Nuts/ha Copra/ha (per year) (per year) (per year) (ton per year) Area (ha) (no) A B C D E F

1. MIMAROPA and Rest of Luzon

231,532

20,190,789

52.0

11.60

5,200

1.16

2. Southern Tagalog

430,304

46,554,662

74.0

14.44

7,400

1.44

3. Bicol

550,363

50,816,808

41.2

10.80

4,120

1.08

4. Western Visayas

49,073

3,238,135

42.4

9.88

4,240

0.98

5. Central Visayas

119,689

11,856,190

42.0

8.68

4,200

0.86

6. Eastern Visayas

560,303

44,709,660

45.6

9.84

4,560

0.98

7. Western Mindanao

323,792

27,502,848

58.2

14.16

5,820

1.41

8. Northern Mindanao

297,888

30,344,300

47.2

10.04

4,720

1.00

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Coconut Bearing Trees Nuts/tree Copra/tree Nuts/ha Copra/ha (per year) (per year) (per year) (ton per year) Area (ha) (no) Region (12) A B C D E F 1.40 9. Southern Mindanao 311,827 34,757,979 54.0 14.00 5,400 10. Central Mindanao

137,268

12,017,456

58.8

12.52

5,880

1.25

11. CARAGA

231,251

17,829,473

41.2

9.80

4,120

0.98

12. ARMM

286,566

25,731,234

58.8

14.56

5,880

1.45

AVERAGE

-

-

51.2

11.69

5,120

1.169

AVERAGE under fertilized conditions

-

-

91

30.10

9,100

3.01

Formula: (A) and (B) = latest information data of PCA Regional Offices (12) (C) = estimate of average nut count of 3 oldest bunches X 4 (D) = estimate of copra/tree of (C) X 4 (E) = (C) X 100 (average standing bearing trees) (F) = (D) X 100 (average standing bearing trees)

Key Notes: 1) A higher regional and national annual nut and copra productivity (yields) estimate compared years prior to 2000. Average regional annual productivity ranged from 41.2 to 74 nuts/tree or from 0.98 to 1.44 t copra per ha. But under fertilized conditions, achievable annual average yields = 91 nuts per tree (9,100 nuts/ha) or 30.10 kg copra/tree (3.01 tons copra/ha). 2) Higher average yields in 2005 mainly attributed to absence of El Niño from 1999-2004, that is, better supply of rainfall and/or soil moisture. 3) In addition, remaining residual positive effects on yield of countrywide fertilization of at least 350,000 ha of coconut lands under the previous World bank-assisted Small Coconut Farms Development Project (1991-1998).

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4. COCONUT PRODUCTIVITY AND PROFITABILITY UNDER TWO RESEARCHBASED FERTILIZERS OPTIONS

4.1 Fertilizers Applied (Recommended Per Tree) By Year for a 5-Year Cropping Period Table 1.1 shows: for the common salt option, the application is 2.0 kg/tree per year for the first three (3) years, while in the case of the multi-nutrient 14-5-20 (14%N, 5%P2O5, 20% K2O, 15% Cl, 4.5% S and 0.02% B), at 3 kg, 2 kg, 1 kg, for the first year, second year and the next three tears, respectively. Thus, for the three (3) years cropping period, these are a total of 8 kg for both NaCl and MNF fertilizer options. Table 4.1. Annual Application Rate per Tree of Common Salt (NaCl) and Multinutrient Fertilizer 14-5-20 (MNF). NaCl MNF Component Crop/Stage Rate/tree (kg) Rate/tree (kg) Nut-bearing Coconut: Year 1 2 3 Year 2 2 2 Year 3 2 1 Year 4 1 1 Year 5 1 1

4.2 Fertilizers Applied Per Hectare for the Five-Year Period Cropping On a per ha basis, for the common salt (sodium chloride) option, for the first three (3 years), an annual quantity of 246 kg/ha (about 6 bags, 40 kg bag) is required and 123 kg/ha (about 3 bags) for the next two years of the five (5) year cropping period (Table 4.2). For the next option, the MNF fertilizer grade annual needs per ha: 369 kg (7.4 bags); 246 kg (5 bags); 123 kg (2.5 bags), with a 50 kg/bag capacity reference, for the years 1, 2 and next three years for the 5 year cropping period. Table 4.2. Annual Application Rate per Ha with 123 Trees @ 9 M x 9 M Square Planting. Year

NaCl (kg/ha)

MNF (kg/ha)

1 2 3 4 5

246 246 246 123 123

369 246 123 123 123

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4.3 Economic Prices and Yield Assumptions Used in the Computations Production Output and Input Prices The prices of the coconut production output ( copra) at four price levels and production inputs of fertilizer material options (NaCl and MNF) used and labor cost are indicated for the five year cropping cycle (Table 4.3). Table 4.3 Increasing copra prices with the next years (5 cropping years), fertilizer prices of the two fertilizer options (common salt and multinutrient 14-5-20 fertilizer), and labor cost assumed. 9x9 M SQ Harvesting P3.30/tree 6x/year Piling and hauling, 2 mandays, 6x/year Copra making (splitting, scooping, drying, sacking) 40 Copra Price at 10% Increase kg/bag Year Price 1 Price 2 Price 3 Price 4 NaCl 1 2 3 4 5

17.50 18.38 19.29 20.26 21.27

21.0 22.1 23.2 24.3 25.5

25.2 26.5 27.8 29.2 30.6

30.2 31.8 33.3 35.0 36.8

7.00 7.35 7.72 8.10 8.51

50 kg/bag MNF 27.00 28.35 29.77 31.26 32.82

Per 1,000 Nuts Wage Dehusk- Copra Rate ing Making 100 80 120 100 80 120 100 80 120 100 80 120 100 80 120

4.4 Yield Profile under Three Cropping Conditions: Unfertilized (UF), Common Salt Application (CSA), and Multi-Nutrient Crop Nutrition Management (MNF) The annual yield in terms of copra considered under unfertilized conditions (unmanaged farming) is at 10 kg copra/tree or 1.23 t copra/ha during the five cropping cycle (Table 4.4). Obviously, this basis is simplified assumption, albeit annual coconut yield could fluctuates from year-to year by about 2-5%, even without fertilizer application as crop’s response to annual variability in rainfall intensity and distribution under rainfed farming. With the common salt application (CSA), average yields obtained are: during year 1 – 12.5 kg copra/tree (or 1.54 t copra/ha@ 123 trees); years 2 – 5 with 15 kg copra/tree (or 1.85 t copra/ha) as shown in Table 3. On the other hand, also presented in Table 4.4, the application of multi-nutrient N-P-K-Cl-S-B mineral fertilizer (MNF) produces average coconut yields: at year 1 – 15 kg/tree (1.85 t copra/ha); year 2 – 20 kg/tree (2.46 t copra/ha); years 3-5 with 25 kg copra/tree (3.08 t copra/ha). This clearly shows that the CSA increased coconut yield (copra terms) by 25% and 50% over the unfertilized conditions, at year 1 and in following years (year 2-5), respectively. In terms of copra, this is average annual yield of 1.78 t/ha achievable by CSA over the unfertilized trees. While, better still, the MNF option increased coconut yield in year 1, year 2 and ensuing years (years 3 to 5) by 50%, 100%, and 150% respectively. And this is an average annual yield of 2.71 t copra produced with the application of the MNF option, over 5 year cropping period.

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When a comparison of the two fertilizer options on bearing palms (CSA and MNF) is considered, it is noted that the multi-nutrient fertilizer N-P-K-Cl-S-B (MNF) application increased copra yield by 20%, 33% and 66% over the common salt (CSA), in years 1, year 2 and year 3-5, respectively. This means a further increase of the annual average copra yield: 305 kg, 630 kg copra and 1230 kg copra at year 1, year 2 and following 3 years, respectively, in a five cropping cycle period, with the MNF option over the CSA option.

Table 4.4 Annual yield of coconut trees per tree and per ha for the five (5) cropping years under unfertilized conditions, and with the application of the two fertilizer options (sodium chloride and multi-nutrient fertilizer). Control Sodium Chloride Multi-Nutrient Fertilizer Year Copra/tree/ Copra/ha Copra/tree/ Copra/ha Copra/tree/ Copra/ha year (kg) (kg) year (kg) (kg) year (kg) (kg) 1 2 3 4 5

10.0 10.0 10.0 10.0 10.0

1230.0 1230.0 1230.0 1230.0 1230.0

12.5 15.0 15.0 15.0 15.0

1537.50 1845.00 1845.00 1845.00 1845.00

15.0 20.0 25.5 25.5 25.5

1845.0 2460.0 3075.0 3075.0 3075.0

4.5 Net Returns - Profitability Analysis (Per Ha) under a Sensitivity Analysis (SA) at Four Copra Prices Copra Price Level 1 - for the unfertilized trees, net returns (net income) at copra price level 1 (PhP17.50/kg copra) ranged from PhP17,643 to PhP 22,282 per ha from year 1 to year 5. The net present value (NPV @ 18% interest) is PhP 61,067 for the five year cropping period. For the common salt application (CSA), it is PhP 16,841 to 29,794 with a NPV of PhP74,133. And for the multi-nutrient application (MNF) to coconut trees, the net return is PhP 16,620 to PhP52,499 per ha from year 1 to year 5. It has a NPV of PhP118,918 per ha (5 years cropping). This also indicates that the MNF option has higher NPV over the CSA option by PhP 44,785 (60.4% higher) at copra price of PhP17.50 /kg copra, thus the former is more profitable. The main determinant of the higher NPV of the coconut trees applied with MNF over the unfertilized and common salt application (CSA) options is clearly the higher productivity of these trees with over the 5 years cropping period or cycle considered. Table 4.5 Net returns, Sensitivity @ Price Level 1 (PhP17.50 kg/kg Copra, per Ha Basis) @ Price 1 Gross Returns Production Cost Net Returns

YEAR 1 21,525.00 3,881.40 17,643.60

NPV @18 61,067.99 Sum of discounted gross benefits = Sum of discounted gross costs = BCR (18%)

Control YEAR 2 YEAR 3 22,601.25 23,731.31 3,881.40 3,881.40 18,719.85 19,849.91

YEAR 4 24,917.88 3,881.40 21,036.48

YEAR 5 26,163.77 3,881.40 22,282.37

73,205.79 12,137.80 6.03

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@ Price 1 Gross Returns Production Cost Net Returns

YEAR 1 26,906.25 10,064.90 16,841.35

Sodium chloride YEAR 2 YEAR 3 33,901.88 35,596.97 10,212.50 10,302.91 23,689.38 25,294.06



YEAR 1 32,287.50 15,667.40 16,620.10

YEAR 4 37,376.82 9,401.12 27,975.70

YEAR 5 39,245.66 9,450.95 29,794.71

YEAR 4 62,294.70 9,794.87 52,499.82

YEAR 5 65,409.43 9,987.10 55,422.33

105,248.31 31,114.79 3.38 Multi-nutrient fertilizer YEAR 2 YEAR 3 45,202.50 59,328.28 12,801.50 9,611.80 32,401.00 49,716.48


156,657.02 37,738.87 4.15

Copra Price Level 4 (PhP30.20/kg copra) – for the unfertilized trees (control), the net income for year 1 to 5 increases from PhP33,313 to 41,329, with a NPV of PhP114,391 (5 years). The application of NaCl generates: year 1 – PhP36,429/Ha; year 2 – PhP48,389; year 3 – PhP 51,208; year 4 – PhP55,186; and year 5 – PhP58,385. The NPV generated amounts to PhP150,754 (5 years cropping). Compared to the CSA, the MNF application on bearing coconut trees has higher NPV by a marked difference of PhP82,210, i.e. 54.5% higher than the common salt application, over the 5 years cropping period. In other words, the application of multinutrient 14-5-20 mineral fertilizer is obviously more profitable than common salt application.

Table 4.6 Net Returns, sensitivity at price level 4 (PhP30.2/kg copra, per ha basis


YEAR 1 37,195.20 3,881.40 33,313.80

Control YEAR 2 YEAR 3 39,054.96 41,007.71 3,881.40 3,881.40 35,173.56 37,126.31


YEAR 4 43,058.09 3,881.40 39,176.69

YEAR 5 45,211.00 3,881.40 41,329.60

126,499.61 12,137.80 10.42

16


YEAR 1 46,494.00 10,064.90 36,429.10

Sodium chloride YEAR 2 YEAR 3 58,582.44 61,511.56 10,212.50 10,302.91 48,369.94 51,208.66



YEAR 5 67,816.50 9,450.95 58,365.55

YEAR 4 107,645.23 9,794.87 97,850.36

YEAR 5 113,027.50 9,987.10 103,040.40

181,869.07 31,114.79 5.85

Multi-nutrient fertilizer YEAR 1 YEAR 2 YEAR 3 55,792.80 78,109.92 102,519.27 15,667.40 12,801.50 9,611.80 40,125.40 65,308.42 92,907.47


YEAR 4 64,587.14 9,401.12 55,186.02

270,703.33 37,738.87 7.17

Concluding Notes From this production economics of coconut fertilization using two fertilizer options (common SALT or CSA and multi-nutrient N-P-K-Cl-S-B) or MNF, there are several significant findings revealed. These are the following: 1) without fertilization for five cropping period/cycle, the annual yield of coconut remains very low or marginal at 10 kg/tree (1.23 tons copra/ ha (@123 palms/ha); 2) at three years from initial fertilization ( considered time with substantial improvement in productivity already) the application of common salt (NaCl) @ 1-2 kg/tree results in 15 kg copra/tree (1.85 t copra/ha); while the MNF application produces 25 kg copra/tree (3.07 t copra/ha); 3) the annual fertilizer cost at three years with CSA and MNF are PhP1,896 and PhP3,661/ha, respectively, and these are 17% and 40% of the total production cost per ha; 4) at the third year of fertilization, even at the lowest price level used of PhP17.50/kg copra, the net returns: from unfertilized trees - PhP19,849/ha; common salt (CSA) – PhP25,294; and multinutrient fertilizer (MNF) – PhP49,716, with the MNF highest in net present value (NPV) at 18% interest of PhP 118,918 (5 years cropping) or a difference of PhP 44,785 over the CSA, and this is MNF 60.4% higher;

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5. NATIONAL COCONUT PRODUCTIVITY PROGRAM – SALT FERTILIZATION PROJECT (2008-2010 FIELD RESULTS) Addressing Low National Coconut Production and Productivity by Farms The Salt Fertilization Project (SFP), one of the components of the National Coconut Productivity Program (NCPP), was implemented in pursuit of immediately addressing the slump in coconut production. The project is a good measure in attaining the immediate objective of increasing coconut production by at least 25 % after a year of application. Salt is beneficial for coconut because it makes coconut trees resistant to droughts, pests and diseases. The chloride content of common salt boosts the strong tolerance of young palms and nut-bearing trees to drought and their quick recovery after drought, thus growth retardation & yield reduction are minimized. The salt fertilizer is applied around the 2-meter radius of the base of the coconut trees at the rate of 2.0 kg. per tree after ring-weeding. The salt fertilizers are broadcasted and incorporated in the soil by using a shovel. The salt fertilizers are applied any period of the year, except during rainy days, in areas with almost uniform distribution of rainfall and without distinct dry and rainy seasons. In areas with distinct wet and dry seasons, these fertilizers are applied few weeks after the start of the rainy season or before the end of the rainy season. Status of salt fertilizer application is shown in Table 5.1. Table 5.1. Status of Salt Fertilization as of May 15, 2010 (PCA-FSB, May 2010) Particulars

Total CY 2009 CY 2010 (Batch I, II, Batch V Batch VI V & VI)

Total (Batch III & IV)

CY 2008 Batch I

CY 2008 Batch II

CY 2009 Batch III

CY 2009 Batch IV

Delivered (bags)

262,274

185,173

41,500

218,000

54,500

24,637

526,584

259,500

Applied (bags)

262,274

183,293

41,012

162,561

1,042

-

446,609

203,573

Trees Fertilized

6,556,850 4,582,325 1,025,300 4,064,025

26,050

-

11,165,225 5,089,325

Area (has.)

65,568.50 45,823.25 10,253.00 40,640.25

260.50

-

111,652.25 50,893.25

241

-

Farmers

59,361

45,240

9,040

35,813

104,842

44,853

Definition of Terms: • CY 2008 Batch I- refers to the initial purchase of salt of fertilizers, funded by CIIF in year 2008, involving a total of 262, 200 bags. This was intended for the first year of salt fertilizer application of the farmer-recipients of this batch. The supply and delivery of the salt fertilizers were contracted by the Arvin International Marketing Inc. • CY 2008 Batch II- refers to the second purchase of salt fertilizers, still funded by CIIF in year 2008, involving a total of 185,173 bags. The supply and delivery of the salt fertilizers were contracted by Artemis Salt Corporation. This was also intended for the first year of salt fertilizer application of the farmer-recipients of this batch. • CY 2009 Batch III – refers to the repeat order of salt fertilizers amounting to 41,500 bags, intended for the second dosage of application of salt for farmer-recipients of Batches I & II with the exception of Ilocos Sur and Bataan in which their allocation will be for new participants. This repeat order of salt fertilizers from Artemis Salt Corporation is funded by AFMA.

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• CY 2009 Batch IV- refers to Repeat Order II– 2009 amounting to 218,000 bags of salt fertilizers. This batch was supplied and delivered by Arvin International Marketing Inc. and was funded by AFMA. The fertilizers were intended for the second dosage of application of salt of 2008 farmer-recipients and the first application for the bearing coconut trees planted at the PCA Research and Coconut Seed Production Centers. • CY 2009 Batch V- refers to the Repeat Order of CY 2009 Batch IV, involving 54,500 bags of agricultural grade salt fertilizers contracted by Arvin International Marketing Inc. This batch of salt fertilizers is intended for first application of new farmer-recipients from Regions VI, VII and VIII. • CY 2010 Batch VI– This batch involves a total of 340,900 bags of salt fertilizers and is funded by AFMA. This will be supplied and delivered by the Artemis Salt Corporation and will be intended for the first application of new batch of farmer-recipients. For 2010, it is vital that the project is immediately pursued as salt fertilization is a quick turn-around activity in mitigating the effects of El Niño which is now severely affecting many agricultural areas of the country. With the immediate availability and application of salt fertilizers in coconut farms, the negative impact of El Niño in coconut areas will be considerably lessened (PCA-FSB 2010). Early Salient Salt Fertilization Response of Coconut Initial result of assessment reflected in Table 5.2 shows a clear positive yield response to salt application in some major coconut provinces of the country. Worth noting for instance, is the nut yield increase in the province of Zamboanga del Norte where benchmark data production shows an average of 58 nuts per tree per year. Nut yield increased to 84 nuts per tree per year or by 45% increase, with a 17 % increase in meat thickness and an increase of 86% in copra terms one year after salt fertilization. Overall, from the same table, 17-45% increase in nut yield, 0-18% increase in meat thickness & the 24-86% increase in copra yield will give an average value of P368.06c increase in total income per tree per year (16.73 kg copra/tree/yr x P22/kgcopra). This indicates that salt fertilization of coconut trees can increase yield by at least 25%, even only after a year of initial application.

Table 5.2. Initial Results of Salt Fertilization Yield Assessment from Some Major Coconut Regions/Provinces of the Country (at 2 kg salt/tree/year) (PCA-FSB, May 2010) Benchmark Information Region/ Province

Ave. Kg Fresh copra/ Meat tree/ Thickness b year (mm)

One Year after Salt Fertilizer Application Ave. nut yield/ tree/ year a

Ave. Percent Kg Percent Fresh increase copra/ % copra (%) Meat meat tree/ increase increase Thickness b thickness year (mm)

No. of sample farms

Ave. nut yield/ tree/ year a

IV-A Quezon I

12

48

11

9.6

60

25

12

9

13.3

39

VIII Leyte

20

50

11

10

70

40

12

9

15.6

56

IX Zambo Norte

24

58

12

12.9

84

45

14

17

24

86

X Lanao del Norte

12

66

11

13.2

77

17

13

18

17.1

30

19

Benchmark Information Region/ Province


Ave. Percent Kg Percent Fresh increase copra/ % copra (%) Meat meat tree/ increase increase Thickness thickness year b (mm)

No. of sample farms


XI Davao Norte

16

58

12

12.9

72

24

13

8.33

16

24

XII Sultan Kudarat

10

56

11

11.2

72

29

11

-

14.4

29

56

11.33

11.63

72.5

30

12.5

10.22

16.73

44

Average

Ave. Kg Fresh copra/ Meat tree/ Thickness year b (mm)

One Year after Salt Fertilizer Application

a - based from total nut count of 3 oldest bunches x 4 b - nut yield/tree ÷ nut/kg copra c - average kg copra/tree/yr x P22 per kilogram of copra at farmgate

6. LOOKING AHEAD Coconut palm trees, as in many forest trees has a substantial carbon storage (sink) capability estimated at 196.75 t C/ha (722 t carbon dioxide (CO2), and with C sequestration rate of 4.78t C/ha/yr (17.54 t CO2 ), reported by Lasco et al (2000), being a woody perennial cropped-plant. While non-woody crops as rice and banana have no sequestration ability because their biomass are almost constant over time. This mentioned strength of the coconut tree should be significant in mitigating the negative or unwanted impacts of climate change, exacerbated by the increasing levels of local and global greenhouse gases (GHGs), especially the CO2. Clearly, this understanding of the coconut growing attributes and conditions, carbon sink or storage and CO2 sequestration recent findings strongly justifies the judicious management of the current stands of coconut trees in 3.3 M of coconut lands with about 335 M trees (UCAP 2007). In this regard, the replanting and new planting intensification, cum rehabilitation of current stands following the integrated crop management, (ICM) using site-specific farming technologies should not be ignored to achieve optimum farm productivity and profitability for the maximum social, ecological and economic benefits of the coconut industry sectors, and the Philippine nation in general. An indicative potential cash value of the annual coconut farm-ecosystem C sequestration was presented recently by PCA (Magat 2009). It assumed the following: average of 5.1 t C/ha of stable coconut biomass and 15 t /ha from the sequestered soil organic carbon (SOC), 50% of stored SOC, at 30 cm soil depth with 4 kg soil/ha) = 20.1 t C/ha/yr (Canja 2009). At USD15per t C (means PHP705 @ 1USD=47PHP). Thus, estimated cash amounts to at least PHP14,170.50/ha per year (PHP14.17M for every 1,000ha of coconut lands for climate change mitigation. If coconut lands are intercropped with fruit trees and other perennial crops capable of C sequestration in their plant biomass and the soil (via SOC), then this cash value could easily double. In the light of these developments, the social, environmental and economic benefits from the planting and growing of coconut palm trees is further significantly enhanced and should be one of the priorities in the rural and economic development of the country.

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References: Bureau of Agricultural Statistics (2009). Crop Statistics of the Philippines: 2003-2008, 6th ed. DA-BAS, Ben- Lor Bldg., Quezon Ave. Quezon City, Philippines. 130 p. Canja, L.H.(209). Soil organic carbon (SOC) Estimation. Pers. Comn. Field Services Branch (FSB) 2010. NCPP-Salt Fertilization Project (2008-2010). A Status Report, May 2010, FSB. Philippine Coconut Authority, Diliman, Quezon City. Lasco, R.D., Lales, J.S., Anonuevo, M.T., Guillermo, I.Q., De Jesus A.C., Medrano, A.C., Bajar, O.F. and Mendoza, C.V. 2000. Carbon Dioxide (CO2) storage and sequestration in Leyte geothermal reservation, Philippines. World Geothermal Congress, May 28-June 10, 2000. Kjustu, Tohoku, Japan. Proceedings 639-642. Magat, S.S.(2010) Productive and sustainable coconut farming ecosystems as potential carbon “sinks” in climate change minimization (A review and advisory notes). COCOINFO International 17(1): 24-31. Also: presented: 4th Scientific symposium, Philippine Association of Career Scientists and the Scientific Career Council, DOSTCSC.”S&T” Challenges and Opportunities in the Midst of Climate-Change. 01 December 2009, Richmonde Hotel, San Miguel Ave., Pasig City, Metro Manila. Magat, S.S. (2008). Good Agricultural Practices in coconut Production. Second ed. Manila. EU-Trade- Related Technical assistance. 79 p. Magat, S.S. and Carpio C.B. (1997). An updated guide on the coconut growing zones and production suitability of the 14 coconut producing regions and 67 provinces of .the Philippines. Occasional Paper. Agricultural R & D Branch, Phil. Coconut Authority. Diliman, Quezon City. 17 p. UCAP (2004). Coconut Statistics 2003. Y.V.Agustin (editor). UCAP. Ortigas Center, Pasig City, Metro Manila. 171 p. United Coconut Association of the Philippines, Inc. (UCAP) (2009). Coconut Industry Kit. (Series of 2008) July 2009 Y.V.Agustin (editor), Ortigas Center, Pasig City Metro Manila. 50 p.

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“Coconut Industry Production Status, Growing Zones

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