FROM COPRA TO VCO: TIME TO RETHINK OUR NATIONAL COCONUT STRATEGY

FROM COPRA TO VCO: TIME TO RETHINK OUR NATIONAL COCONUT STRATEGY

The humble coconut—long dubbed the “tree of life”—is still at the center of our national livelihood and economy. Yet despite its rich potential, we continue to make decisions that yield low value, low income, and little long-term vision for our farmers.

Case in point: the recent move by the Department of Agriculture (DA) to promote the use of copra meal as animal feed due to the global shortage of soybeans. While this may be a practical short-term solution, it is not a sustainable national strategy. We must ask: are we extracting the highest value from our coconuts, or are we stuck in outdated practices?

The Copra Conundrum

Let’s face it: making copra from fresh coconuts already causes value loss. When fresh coconut meat is dried into copra, much of the oil’s nutritional and economic value is degraded or wasted. Worse, copra is prone to contamination—from vermin to salmonella—which affects both human and animal health. Its shelf life and hygiene standards are simply not up to par in today's competitive market.

While copra meal is sold cheaply as livestock feed, it represents the lowest rung in the value chain. It is a byproduct of a byproduct. Yes, it's better than waste—but we should be aiming higher.

Cooking Oil vs. Virgin Coconut Oil

On the next rung up is coconut cooking oil—particularly Refined, Bleached, and Deodorized (RBD) oil. It serves as a staple in homes and industries, both locally and abroad. The market is steady, but margins are not exactly eye-popping. It also requires refining infrastructure, and for small farmers and producers, that’s a high barrier to entry.

At the top of the value chain sits Virgin Coconut Oil (VCO)—a premium product in the global health, food, and cosmetic markets. It requires no heavy refining and retains the coconut’s full natural benefits. It fetches significantly higher prices, especially in export markets. Yet despite its proven profitability, we have not gone all-in on promoting VCO as a national strategy.

A Cabinet Cluster for Coconut Value Optimization

Instead of relying on fragmented decisions by individual departments, it’s time for a unified strategy. I propose that the President establish a Cabinet Cluster for Coconut Industry Development and Value Optimization.

This is more than just a policy group—it would be an empowered executive cluster with cross-sectoral coordination authority, similar to the clusters on food security, climate change, and digital infrastructure.

Its core mandates should be:

1.   Shifting the National Value Chain Focus
Transition from low-value copra production to high-value coconut products like VCO, coco sugar, coconut flour, and functional health products.

2.   Strengthening Farmer Participation
Equip coconut farmers and cooperatives with training, technology, and access to decentralized VCO production methods.

3.   Research and Development
Mobilize the Department of Science and Technology (DOST) to develop new processing techniques, storage methods, and product diversification models.

4.   Market Development and Branding
Task the Department of Trade and Industry (DTI) to position Filipino VCO as a global premium brand, just like Thai rice or Colombian coffee.

5.   Food Safety and Standards
Through the Department of Health (DOH) and the Food and Drug Administration (FDA), ensure that coconut products meet export-grade safety and labeling standards.

6.   Inclusive Finance and Investment
Engage the Department of Finance (DOF) and the Philippine Coconut Authority (PCA) to ensure that coconut levy funds are invested in VCO and value-added infrastructure, not in perpetuating the old copra system.

7.   Agro-industrial Support
Let the Department of Agriculture (DA) and the Department of Agrarian Reform (DAR) prioritize VCO production in farm-to-market programs, and make coconut diversification a centerpiece of rural development.

This Cabinet Cluster must be chaired by no less than the Executive Secretary or directly by the President himself, to ensure national alignment and rapid implementation.

Why It Matters

This isn’t just about coconut products—it’s about uplifting millions of coconut farmers who remain among the poorest in the country. It’s about turning agricultural waste into wealth, and building a resilient, climate-smart economy.

It’s also about strategic national planning. Why rely on foreign soybean imports when we can feed the world with high-value coconut products? Why settle for bulk exports when we can sell prestige-grade oils?

Let’s remember that we are one of the top coconut-producing nations on Earth. That should mean something. But unless we evolve beyond copra and into full-value utilization, we will always be shortchanging ourselves.

Final Thoughts

Mr. President, instead of choosing between using copra for animal feeds or cooking oil, let’s choose the higher road. Let us invest in the future of coconut—and that future is in Virgin Coconut Oil and other high-value derivatives.

Now is the time to convene a Cabinet Cluster dedicated to this purpose. Let us align our science, trade, agriculture, and health policies around a unified coconut strategy. In doing so, we don’t just build a stronger industry—we build a better life for every coconut farmer in the Philippines. The tree of life deserves nothing less.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

09-07-2025