Chapter 1

INTRODUCTION

1. Background of the Study

Agriculture is the backbone of the Philippine economy. The Philippines, after Indonesia,

is the world's second largest producer of coconut products. As a result, the coconut industry is

one of the most important sources of employment in the Philippines in which Coconut-based

products have experienced strong global export growth as a result of rising global demand.

Traditional coconut products in the Philippines include copra, copra meal, coconut oil, desiccated

coconut, coconut shell charcoal, activated carbon, and oleo chemicals while the non-traditional

coconut products include coco chemicals, coconut food, and non-food products. Fresh coconuts,

grated coco meat, coco flour, nata de coco, coconut water, coconut milk powder, liquid coconut

milk, macapuno, frozen coco meat, coconut chips, and coco jam are among the non-traditional

coconut food products exported by the Philippines (Vancouver Philippine Consulate General,

2020d). The Philippines also exports to major markets non-food coconut products, such as coco

shell powder, virgin coconut oil, hydrogenated coconut oils, coco handicrafts, and coco

coir(DTI-Export Marketing Bureau - TRADELINE PORTAL, n.d.).

 The Philippine manufacturing industry remains the most important sector for long-term

productive employment, value-added generation, and innovation. It has the highest multiplier

effect on the economy than other sectors. Many services exist because of manufacturing, and

many service jobs will disappear if manufacturing disappears. One subsector of the

manufacturing industry is the food industry (Admin, 2022b).

Figure 1. Philippine Coconut Industry Statistics ( Source: Vancouver Philippine Consulate General,

2020e)

Coconut Industry in the Philippines

 The coconut industry is an important sector of agriculture in the Philippines. In the

Transition Report of the last leadership in the Department of Agriculture (DA), a great deal of

importance was given to the Philippine coconut industry. This stands to reason because 69 out of

82 provinces in the country produce coconut, as shown in Figure 2 below. Shown in Figure 3

below, the industry covers about 3.62 million hectares, about a third of the total farm land, and

PHILIPPINE COCONUT INDUSTRY

PERCENTAGE
13 Provinces,
16% of the
Country PROVINCES PRODUCES
COCONUT
PROVINCES PRODUCES
OTHER CROPS

69 Provinces,
84% of the
Country

provides an estimated 2.5 million farmers with employment. As of 2018, it was estimated that the

Philippines had 347 million fruit-bearing coconut trees and a total production (in metric tons) of

14.7 million (nut terms).

Firgure 2. Philippine Coconut Industry Percenage (Source: Banzuelo, 2022)

 Firgure 3. Total Farm Land (Source: Banzuelo, 2022)

As of 2015, domestic consumption of coconut in copra terms was 0.835 million metric tons

TOTAL FARM LAND PERCENTAGE

3.62 mil-
lion
hectares

33.33 % TOTAL COCONUT IN-

of total farm land DUSTRY
OTHER FARM INDUSTRIES
66.66 %
of total farm land

7.24 mil-
lion
hectares
(Philippine Coconut Authority, 2018). The Philippines also remains to be the second-largest producer of

coconut among the Association of Southeast Asian Nations (ASEAN), wherein it comprises almost 40%

of ASEAN’s total coconut production (FAOStat, 2018). Major producers of coconut in the Philippines

include the regions of CALABARZON, Zamboanga Peninsula, Davao, and Northern Mindanao. Being

referred to as the “tree of life” due to its wide array of uses, coconut is mainly exported as products like

virgin coconut oil (VCO) and desiccated coconut (Coconut – Industry Strategic Science and Technology

Plans (ISPs) Platform, n.d.-b).

It is the largest employer of agricultural land and labor in the Philippines (Clarete and

Roumasset, 1983). The coconut industry significantly impacts the country's economy, providing

livelihoods to millions of Filipinos, particularly those in rural areas. Due to the performance of

coconut in the economy as the major source of income, it is considered as a predictor of the

general economic activity of the country. Copra is one of southern Palawan’s main agricultural

products, However copra’s buying prices continuously drop due to its uncertain demands in the

local and global market which has greatly affected the local farmers.
 The coconut industry is one of the country's major pillars in employment generation and

foreign exchange earnings. However, local production problems, the expansion in coconut

hectarage of neighboring countries, and recent developments in biotechnology research on other

competing crops that have high lauric oil content might affect its longterm sustainability and

viability. In a highly liberalized global trade environment, innovation and creativity in the

country's coconut industry are needed for survival (Boceta, 1997). In order for the Philippines to

be globally competitive, the country must exert all efforts to increase coconut productivity, lower

the cost of processing copra, coconut oil, dessicated coconut, and other coconut products,

improve the quality of copra and coconut oil, and develop downstream high-value coconut

products through technological developments.

For the Philippines to be globally competitive in terms of coconut production and

exportation, the country must make an exert efforts to boost and increase the coconut

productivity, reduce the cost of processing copra, coconut oil, desiccated coconut, and many

other coconut products, enhancing the quality of copra and coconut oil, and develop downstream

high-value coconut products through technological developments and advancements.

Among the various agricultural products cultivated in the Philippines, coconuts hold a

special place due to their versatility and wide-ranging applications. With its abundant coconut

plantations and favorable climate, Palawan emerges as an ideal location for the establishment of

the Proposed Brooke’s Point Coconut Agro-industry Center aimed at enhancing coconut

production, processing, industry sustainability and community development.

Philippines Coconut Authority

 The Philippines Coconut Authority is the lead agency in the national coconut research

and development networks established by PCARRD and the DA-BARANGAY PCA-ARDB has

the overall control and direction of three national coconut research centers such as those; Albay

Research Center, the Davao Research Center, and the Zamboanga Research Center, two coconut

seed gardens which are the Coconut Seed Production Center and the Campung Ulay Seed

Garden), and a Coconut Breeding Trials Unit (PCA, 1998). It also has a support department, the

Agricultural Research and Management Department (ARMD). The following research center

Facilities has been a great help in supporting the development of Coconut Production and has

been a great advantage for Farmers in production and as well as exportation.

Brooke’s Point, Palawan

Geographical Location of Brooke’s Point

Brooke’s Point is a first-class municipality that is located southeast of the province of

Palawan. It has geographic coordinates of latitude 8°57’0” N and longitude 117°57’0” E in the

northeast (Barangay Calasaguen) and latitude 8°43’30” N and longitude 117°40’30” E in the

southwest (Barangay Malis).

It is found approximately 192 kilometers south of the provincial capital of Puerto

Princesa City and 759 kilometers southwest of the national capital of Manila. The place is

mostly accessible by land transport from Puerto Princesa and neighboring municipalities.

Its administrative borders are bounded by three municipalities and one waterbody, as shown in

Figure 4. Namely, these are the municipality of Sofronio Española in the north, Sulu Sea in the

east, the municipality of Bataraza in the south, and the municipality of Rizal in the west.
 The land of the municipality is distinctly divided into two. The western side is where the

MMPL is situated while the eastern side consists of mostly flat land, dotted with mangrove

forests along the coastline that faces the Sulu Sea (Amigo et al., 2017).

Firgure 4. Location Map of Brooke’s Point, Palawan (Source: Amigo et al., 2017)
Agricultural Sector

Agriculture plays an important role in the municipality of Brooke’s Point. As the Coconut

Capital of Palawan, the municipality places huge importance in its primary crop, coconuts, which

is manifested in the large land area allotted for its production. Aside from this, Brooke’s point

also contains 16 rural areas and 2 urban areas where approximately 87% of the population are

found in rural areas which are reliant on agriculture (Amigo et al., 2017).

The Agricultural Sector is composed of the following: (1) Crops; (2) Livestock and

Poultry; and (3) Fisheries. The sector will also include the discussion of the NPAAAD/SAFDZ

and the Comprehensive Agrarian Reform (CARP).

Crops

As of 2011, Brooke’s Point has a total municipal agricultural land area of 28,928 ha or

approximately 42.38% of the total land area of the municipality.

There were four major crops identified in Brooke’s Point: (1) coconut; (2) rice; (3) corn;

and (4) banana as seen in Table 57. Several potential crops also exist such as Palm Oil and

Cacao, which may soon overtake some of the major crops in terms of volume of production and

allotted land area due to recent initiatives for development (Larsen, Dimaano, & Pido, 2014).

Land Utilization & Crop Production

 As shown in Table 57, the largest area allotted for agricultural production is occupied by

coconut plantations with an area of 15,112.79 ha or 69.27% of total land devoted to crop

production. This is followed by rice with 3,703.85 ha or 14.59%, corn with 757 ha or 3.47% and

banana with 356.5 ha or 1.63%.

In terms of total volume of production, Brooke’s Point is dominated by the primary crop,

the coconut, with a recorded produce a total of volume of 60,451.16 metric tons. This is followed

again by rice at 12,476.26 metric tons, banana at 7,130.00 metric tons despite

its relatively small area for production due to its high rate of production at 20 metric tons

per hectare then by totality root crops 3,700.00 metric tons due to the massive average

production per hectare of 72.69 metric tons.

 Table 1. Land Area and Production by Type of Crops, 2011

Based on the Municipal (CLUP) Comprehensive Land Use Plan (2000-2010) of the

municipality, 27,949.67 hectares (or 92.98% of the manipulative/multiple use land) are devoted

to agricultural purposes and are being utilized for production of major crops.

Brooke’s Point has a large factory of coconuts trees. They sell coconut products to locals

and exports in other countries. Coconut is one of the sources of different products like coconut

oil, coconut soaps, coconut oil, and coconut water, various decorations and souvenirs.

Brooke’s Point celebrates Kaniyog’n Festival that features coconut products, coconut

designed floats and street dancing every month of March. It is also celebrated with trade fairs,

cultural and contemporary shows, sports activities and a beauty pageant. Kaniyog’n (Kaniyogan)

means coconut plantation (Exploring Brooke’s Point, Palawan, n.d.).

Their main source of income is young coconut and copra, which are only sold for a fair or

sometimes low price market value as dictated by the buyers and traders. Their income was barely

enough to support their everyday food for their families. The municipality of Brooke’s Point has

potential for industrial development. This is due to the fact that the municipality has a rich

natural resource base which can serve as raw materials. Majority of which come into food
production and processing. Uniquely, the municipality also contains cultural practices that

generate income.

Development Challenges

Despite its potential, the Palawan coconut industry faces a number of challenges that

hinders its growth and development. These challenges include low productivity, insufficient

processing facilities, innovations, limited market access, and vulnerability to the effects of

climate change. Addressing these challenges presents an opportunity to unlock the full potential

of the coconut sector in the region.

A large majority of the population still practice subsistence farming. It is known as

agricultural production sufficient only for immediate consumption. As it does not require a high

yield, it usually comes in the form of traditional or conventional farming but also denotes the

existence of poverty for some areas.

This agricultural practice undergoes numerous pressures. Without proper equipment and

sufficient compost material, intensive labor is required to produce a certain yield. Other than that,

there are also pests which may threaten the quantity of production as well as insufficient land

area and the influence of irregular market values or prices.

Overall, for the agricultural sector, the identified primary solution is proper education and

training. This can help the practicing farmers and fishers the importance of sustainability and

resource management as well as proper farming/fishing practices. This could also give

qualifications for livelihood alternative. With regards to land, the DAR (MARO for the

municipality) is granting CARPable areas and Agrarian Reform Communities that are suitable

specifically for farming.

 Table 2. Agricultural Analysis Matrix

Tourism

Tourism can be an effective strategy for economic growth. This includes the development

of local establishments, attractions and support facilities as well as the endorsement of unique

histories, cultures and traditions. As development is not only associated with the generation of

income, it can be seen that well developed infrastructures are also visually appealing which in

turn have multiple functions. This creates a healthy working environment and acts as a

mechanism for inviting investment.

Tourist Arrivals

As of 2016, Brooke’s Point has a total of 14,943 local tourists/visitors and 173 foreign

tourists/visitors. With regards to Figure 34 and 35, it can be seen that the year 2016 is not the

highest record for tourist arrivals for both local and foreign. The year 2013 has the highest

number of accommodated tourists for both local and foreign which declined drastically the

following year. For local tourist arrivals, there is a slow increase in accommodation. On the other

hand, the number of foreign visitors continue to decline each year. This could entail that there is

a need for tourism related developments such as documentaries, endorsements and various

publications which has appeal especially to foreign visitors.

Firgure 5. Total Number of Local Tourists in Brooke’s Point Palawan, 2012-2016

 Firgure 6. Total Number of Foreign Tourists in Brooke’s Point Palawan, 2012-2016

The Proposed Brooke’s Point Coconut Agro- EcoTourism Center

Agriculture plays an important role in the municipality of Brooke’s Point. As the Coconut

Capital of Palawan, the municipality places huge importance on its primary crop, coconuts,

which is manifested in the large land area allotted for its production. Brooke's Point in Palawan,

known for its fertile lands and abundant natural resources, holds immense potential for the

coconut sector. By establishing a Coconut Agro- EcoTourism Center in Brooke's Point, the

community can harness the benefits of research, innovation, and sustainable economic growth.

Establishing a Coconut Agro- EcoTourism Center in Brooke's Point, Palawan holds the

promise of driving sustainable agricultural practices, innovations, economic growth, and

community empowerment with initiatives aligned with the Philippines' agricultural development

goals. This thesis aims to delve deeper into the potential impacts and challenges for the

establishment and operation of research center and commerce hub in the coconut industry as it

plays a vital role in the economy, contributing significantly to agricultural output, export

earnings, and livelihoods. The Proposed Brooke’s Point Coconut Agro- EcoToursim Center also

supports agritourism that would benefit the community and also place for visitors where good

experience and memories can be built. Farmers and Visitors can learn about coconut farming,

processing, and product creation, which promotes cultural interaction and generates revenue for

the local community. The proposed projects have the potential to empower local communities by

providing them with the knowledge, techniques, tools, information, innovations and resources
they need to participate in the coconut sector which has the potential to reduce poverty as well as

improve living standards.

This center aims to serve as a hub for research, training, market access and development

of new practices in coconut cultivation and processing. It aims to promote sustainable farming

methods, increase crop yields, improve coconut product quality, open up new opportunities for

local community and economic growth.

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Vancouver Philippine Consulate General. (2020d, July 24). Philippine Coconut Industry -

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bureau

Admin. (2022b, August 10). Establishing the Davao Food Processing Innovation Center - DAP.

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