Copra price may remain low up to next year PCA exec
PALO, Leyte — Majority of Eastern Visayas’ population dependent on the coconut industry cannot expect a sustained stable copra price in the future with most of the produce intended for export and less for local consumption, a top official of the Philippine Coconut Authority (PCA) said.
PCA regional manager Edilberto Nierva said that copra price in cities has stayed at P17 per kilogram level and it might remain low next year as a result of weak trading in the international market. Farm gate price has been pegged at P12 to P13 per kilogram.
“We are encouraging local and foreign investors to concentrate in local copra processing. The demand in the domestic market can help stabilize the price of copra in the long term. We are starting to push for rural industrialization and we continue to advocate for it,” he said.
Nierva said that currently, export market accounts for 80% of the total copra production in the country with only 20% output left for domestic use. “We want to reverse the scenario but this will take more time and effort,” he added.
Region 8 has eight active oil mills, with most of the produce intended for export.
The official explained that in the past year, supply of coconut oil in the world market has been unstable which prompted international oil processors to shift to other substitutes with sufficient raw material volume.
Other competitors of copra in terms of oil extraction are soya, palm, rapeseed, and sunflower. These oil sources have relatively lower prices compared to coconut oil, Nierva said.
“The current price is not that low compared to the past years but many people are suffering because the price of basic commodities went up,” Nierva said.
It can be recalled that in 2007, copra price went up to P43 per kilogram due to high export demand not strict foreign trading regulations.
“The global financial crisis last year has really affected the trade activity. Countries limited their imports of coconut oil because they wanted to save dollar,” he added.
“Without rural industrialization, our situation will stay as it is. We are in a state that players are not so active. If we have local firms that process coconut oil for domestic use, it will create a good economic activity and stable price.”
Nierva has called on the 1.7 million coconut farmers and their dependents to actively urge local officials to create a good business environment in the bid to encourage more investors in the industry.
Other than the traditional coconut oil, the United Coconut Association of the Philippines listed down last August 2009 the top non-traditional coco exports, which are virgin coconut oil, nata de coco, coconut milk powder, liquid coconut milk, toilet/bath soap, coco flour, shampoo, alkanomide, and makapuno.
Eastern Visayas is the second top coconut producer in the country with a harvest of 1.9 billion nuts or 525,000 metric tons of copra annually. About 649,000 hectares of land in the region are devoted to coconut farming.
By sarwell q. meniano
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