RISING COPRA PRICES: GOOD OR BAD FOR THE PHILIPPINES?

RISING COPRA PRICES: GOOD OR BAD FOR THE PHILIPPINES?

The price of copra is rising again. From just ₱25 per kilo not too long ago, it is now at ₱70 to ₱80 per kilo. On the surface, that should be good news. After all, higher farm-gate prices mean more income for our coconut farmers, many of whom have long been living on the margins of poverty. But if it is good for the Philippines, why then is the Philippine Coconut Authority (PCA) sounding the alarm?

This is the dilemma. Higher prices of copra translate into higher prices of coconut oil, now at around ₱172–₱182 per kilo. Since coconut oil is not only a cooking staple but also a major industrial ingredient, the ripple effect is serious. Household budgets get strained, food inflation ticks up, and processors are squeezed by volatile input costs. Worse, the PCA has reported illegal exports of mature coconuts to China, cutting into our domestic supply. In fact, the situation has grown so concerning that the PCA is even considering suspending planned increases in the biodiesel blend mandate just to preserve local coconut oil stocks.

So yes, rising prices are a double-edged sword. They cut both ways—benefiting farmers on one side, but threatening consumers, processors, and the larger economy on the other.

Do the farmers understand this dilemma? Maybe not fully, and why should they? To them, higher copra prices mean a rare relief from decades of low returns. But at the policy level, the contradictions are glaring. If the price of cooking oil doubles, what happens to the ordinary family that already struggles to stretch a day’s wage?

Personally, I think this is the right time to again bring out an old but urgent issue: why should we keep relying on copra as our main product from coconut? The global demand for higher-value coconut products is growing. Instead of exporting dried coconut meat, why don’t we process fresh coconuts into products like virgin coconut oil, coconut flour, coconut water, or even activated carbon from shells? Each of these has a premium market waiting to be served.

Take Lambanog, for example. The Lakan brand has already proven that it can be positioned as a premium, world-class spirit. Why can’t government promote this and other high-value coconut products the way it once pushed cooking oil?

What worries me is that we keep missing opportunities. Copra is the lowest rung in the coconut value chain, yet we continue to be stuck with it. The challenge is not just economic but cultural: we need to break our dependence on copra and leapfrog straight into the value-added industries.

Imagine a network of barangay-level coconut hubs where farmers can process not just copra, but coconut sugar, virgin oil, flour, and coir products. These hubs could be modular, solar-powered, and cooperative-managed. They could integrate with farm schools to train the next generation of coconut entrepreneurs. They could even tie in with cultural branding—using our indigenous terms, motifs, and rituals to market products as authentically Filipino, protected by geographical indications.

This way, the benefits of high coconut prices won’t be erased by inflationary pressures. Instead, value is multiplied locally, and farmers gain more control over their livelihood.

So, are rising copra prices good or bad for the Philippines? The answer depends on whether we choose to remain trapped in the old cycle—or if we take this as a wake-up call to reinvent our coconut economy. My vote is for the latter.

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

11-06-2025