Coconut Industry Case Study

According to Dr. Jocelyn T. Zarate of UPLB BIOTECH, when inoculated to seedlings the fungi infect the roots and help absorb water and nutrients, particularly phosphorus, which is needed by the plant. The fungi also prevent root infection by pathogens and increase plant tolerance to drought and heavy metals.

Coconut products generate the largest agri-food export. The industry has performed dismally over the years due to several reasons, foremost of which are the lack of top level resolve, inequitable resource allocation, and implementation constraints. As a result, low productivity prevails and, in turn, high poverty and insurgency. (Dy, R. 2006)

Coconut farmers, 96% of whom are smallholders are suffering because of declining farm productivity

However, local production problems, the expansion in coconut hectares of neighbouring countries, and recent developments in biotechnology research on other competing crops that have high lauric oil content might affect its long term sustainability and viability. In a highly liberalized global trade environment, innovation and creativity in the country 's coconut industry are needed for survival. 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, desiccated coconut, and other coconut products, improve the quality of copra and coconut oil, and develop downstream high-value coconut products through technological developments. Indonesia has already dislodged the Philippines as the world 's largest producer of coconut. Recently, the Philippines ' position as the top exporter of coconut oil in the world is also being threatened by the increasing share of Indonesia in the world market. Unless the weaknesses and threats in the Philippine coconut industry are faced, the country 's share in the world market for coconut oil will continue to diminish. (Aragon,

As with other trends or fads in foods, monoculture farming has become an issue in areas where coconuts are grown. As the coconut tree ages, it becomes less productive. This motivates farmers to plant more and more coconut trees to maintain a constantly stream of product. Replacing native plants and biodiversity to meet the demand for coconuts can take a major toll on the soil, leading farmers to turn to chemical fertilizers to boost their productivity. With increased demands for production, some governments have rolled out plans to subsidize chemical fertilizers for farmers. With a cheap alternative to organic farming methods, environmental protection can take a backseat while farmers focus on cutting costs. As with any agricultural endeavor, there is threat to local biodiversity as well as soil, water and air health when chemical inputs are introduced. (Macklin,