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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 P63,756.00 finances an average annual family expenditure of P55,852.00. Bicol Region is the third poorest region in the country. 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 11,524.00 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 1997. Masbate and Camarines Norte ranked 2nd and 10th 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 3rd class municipalities. Registered a coconut production of 459,000 MT in year 2000 and ranked 4th 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 2nd in terms of total coconut production in Bicol Region. Table 1 Coconut Statistics of Bicol Peninsula* Province Coconut area Number of (ha) bearing trees Total Nut production Total Number of Farmers Albay 99,940 9,163,292 503,981,060 46,823 Camarines Sur 203,282 19,520,892 1,073,649,060 94,274 Camarines Norte Sorsogon 100,086 7,557,178 415,644,790 23,393 97,738 7,762,746 426,951,030 49,840 *Source: Philippine Coconut Authority, Bicol Region Some of the features of the coconut industry as reflected in Bicol’s Medium Term Development Plan for 2004-2010 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 59.78 million bearing trees. There are 290,204 coconut farmers. Export value of coconut products from 1997-2003 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-thebarangay feature. Coconut Husk Inte rmitte nt Dipping De cortica ting (First Pa ss) Rough Fibe r Colle ction Coco Dust Colle ction De cortica ting (Se cond Pa ss) Fibe r Colle ction Coco Dust Colle ction Sun Drying Stock Filing a nd Ba ling Rope Tw ining Ne t W e a ving Stock Filing a nd Ba ling 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 Municipality/ Barangay Camalig Baligang Cabraran Pequeno Sub-contractor 1 Sub-contractor 2 Maninila Bacacay Bonga Sub-contractor 1 Sub-contractor 1 Total No. of families Weavers Rope makers Total 18 80 50 60 18 50 50 290 308 Table 3. Income-generating phases in the manufacture of coco fiber nets in Albay. Process Coconut husks (Raw Material) Decorticating (two passes) Sun-drying Stock Filing and Baling Twining Income-generating activity Gatherer/supplier of coconut husks No. of persons a Rate P0.10/husk for b 14,000 husks varies Income 1400 Operator/Laborer Laborer 2 2 P250/dayc c P250/day 250 250 Laborer Sub-contractor/ f assembler 2 P250/dayc 250 Twining d a varies 3 per twining equipment P0.30/10-m twine e P1/12m twine 150 P50/50m roll P150/50m roll 150e Weaving f a Sub-contractor/assembler varies Weavingd 2 per loom a involves bringing husks to pock up area for 8 hours of operation of the decorticator c or prevailing labor rate d family employment e family/team income f for labor cost b Table 4. Comparison of the income from coco coir rope and net making with other agricultural activities* Agricultural Activity Growing crops Hog farming Livestock farming Chicken broiler production Forestry, logging-related activities Average Coco coir rope making coco coir net making *From www.census.gov Monthly Rate (P) 5,332 6,015 4223 4795 5245 6995 3600 3600 The published interview of Felix Bea, a coconut farmer in Mauraro, Guinobatan, Albay, published in www.columban.com, : “Families in his Mauraro village traditionally cultivate coconut on onehectare 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 subcontractors. Limited number of water containers. Stitched Fibers and Mats DIOS MABALOS!