SOCIO-ECONOMIC UPLIFTMENT OF COCONUT FIBER PRODUCTION IN SELECTED BENEFICIARY COMMUNITIES IN THE PROVINCE OF ALBAY: PROBLEMS & PROSPECTS Susana C. Cabredo, Ninfa R. Pelea, Grace B. Brizuela, Yolanda B. Brugada

 From 1995 to 2000 the population of the province grew at the rate of 1.77%.  In 2000 Bicol accounted for 23% of the regional population and host to 208,640 households.  The urban population constitutes 19.6% of the entire population, showing that Albayanos are predominantly living in rural areas.  The average income per capita is P18,758.00, while the average family income of P63, finances an average annual family expenditure of P55,

 In 2000, 46% of total families or 53.1% of the total population in the region was living below the annual per capita poverty threshold of Php 11, although overall poverty incidence decreased slightly from 1997 to 2000 with only 40,510 families or 190,962 individuals graduating out of poverty.  Poverty incidence in the rural areas is higher (79.6% of total families or 79.9% of total population)  Increasing from 78.1% of total families or 78.0% of total population in  Bicol Region is the third poorest region in the country.

 Masbate and Camarines Norte ranked 2 nd and 10 th poorest provinces, respectively, in the country.  By sector, the coconut farmers are among the poorest segment of the population.

The locale of this study is two of the 18 municipalities of Albay. These are the towns of:  Camalig, located on the western side of the province.  Bacacay, a coastal town along the eastern side of the province. Both are 3 rd class municipalities.

 Registered a coconut production of 459,000 MT in year 2000 and ranked 4 th as to highest area planted with coconut (1999 data)  67% of Bicol’s agricultural land is coconut plantation area with Camarines Sur having the biggest area planted to coconuts. Albay is ranked 2 nd in terms of total coconut production in Bicol Region.

Table 1 Coconut Statistics of Bicol Peninsula* *Source: Philippine Coconut Authority, Bicol Region

Some of the features of the coconut industry as reflected in Bicol’s Medium Term Development Plan for are listed below:  There are 651,571 hectares or 37% of the total regional land area planted to coconut, which is 21% of the national total.  Total nut production is 2.2 billion harvested from million bearing trees.  There are 290,204 coconut farmers.  Export value of coconut products from amounted to US$198,486,142, 5.22% of the total coconut product export.  There are six operating oil mills/refinery with a total of 1,500 metric tons daily rated capacity.

 There are eight decorticating plants, one virgin coconut oil plant and one nata de coco producer.  Average yield of copra is 844 kg./ha/year.  Average farm income for monocropped coconut areas is P16,880 per hectare.  Generally, coconut farms in the Bicol Region have low productivity as indicated by a production of 38 nuts per tree per year. Low farm productivity is a result of the following: presence of very old coconut trees that produce very few nuts, presence of cadang-cadang disease, occurrence of typhoons and other calamities and the monoculture attitude of most coconut farmers.

 Complex marketing structure. It takes about three middlemen before copra reaches the major user.  Many coconut farmers are tenants who rely on the landowners on decisions of land and product utilization/disposal.  There are several coconut by-products. Coconut shell is manufacture as activated carbon, the husk is used for coir and peat production. Coconut water is used for nata de coco and vinegar production.  There is a high demand for coconut oil as fuel additive from China and Japan.  Presence of commercial technologies on coconut products.

Coconut Tree is often called “TREE OF LIFE” Because of the dependence for livelihood of a significant proportion of the population on farming, processing and trade of products from the tree and because of the fact that practically all parts of the tree, from its roots to its fronds has an economic value, majority of the families that are dependent on the coconut industry has remained impoverished.

Thus, in the present Medium Term Development Plan for Bicol enumerates the following development strategies for its coconut industry:  Increase average copra yield from 0.8 MT/Ha/Year to a minimum of 1.5 MT/ha/year.  Increase farmer’s net income from P10,000/ha. To P50,000/ha.  Establishment of seed gardens as source of quality seedlings (GMA/Synvar)  Introduction of farm diversification such as Maunland Demo Farms to coconut farmers.  Provision of micro-finance/lending program to coconut farmers.

 Promote the production and marketing of high value coconut products like makapuno, nata de coco, virgin coconut oil, geotextile, buko juice, etc.  Improvement of copra quality through the introduction of copra dryers.  Assist coconut farmer’s cooperatives in direct marketing of their produce to oil mills.  Planting of embryo cultured makapuno seedlings.  Development of appropriate fiber and cocopeat drying facilities.

 Promote partnership between commodity suppliers and processors/exporters.  Establishment of a geotextile corridor along the national highway. Prominently cited among the strategies are value added products from coconut, among which are coco fiber and geotextile. These products have received some attention from investors in the past but most recently, it is the model of Juboken Enterprises, based in Camalig which has received government and media attention because of its job-generating-in-the- barangay feature.

Figure 2. Flow diagram of coco net manufacture

Table 2. Number of families that provide labor in the manufacture of coco coir nets by Juboken Enterprises

Table 3. Income-generating phases in the manufacture of coco fiber nets in Albay.

Table 4. Comparison of the income from coco coir rope and net making with other agricultural activities* *From

The published interview of Felix Bea, a coconut farmer in Mauraro, Guinobatan, Albay, published in : “Families in his Mauraro village traditionally cultivate coconut on one- hectare plots to earn a living as tenant farmers, and Bea’s family no exception…. These days however, Bea’s family can equal its former annual income in about three months, still from coconuts and without growing or selling anymore of them. Now in addition to producing copra from harvested coconuts, Bea’s wife and four children turn coconut fibers into twine….

 Deteriorating soil fertility  Senile trees  Zoning problem which leads to competition in sourcing of husks.  Lack of access roads to coconut farmlands making husk gathering in some areas not economically viable.  Lack of drying equipment and post-harvest facilities  High freight cost and power cost  Lack of high density bailing press  Fabricators of decorticating machines have no standard as to capacity

 Limited market for coir of Philippine standard quality  Competition from other coconut fiber producing countries.  Limited access to capital by village sub- contractors.  Limited number of water containers.

Stitched Fibers and Mats

DIOS MABALOS! DIOS MABALOS!