Agriculture Secretary Francisco Tiu Laurel Jr. is backing President Ferdinand Marcos Jr.’s call to amend the Coconut Farmers and Industry Trust Fund Act, stressing the need to prioritize replanting to secure the future of the country’s top agricultural export.
Tiu Laurel warned that aging coconut trees—many over 50 years old—are severely limiting yields, putting the sector at risk. “We must revise the law to focus the trust fund’s resources on the most critical needs—particularly replanting,” he said.
Despite being the world’s second-largest coconut producer, the coconut sector is underperforming. Of 134 processing plants, many operate at only half capacity, while oil mills run below their 3.7 million metric ton potential due to weak farm yields.
The country exports an average of $2 billion worth of coconut products annually. However, to meet growing global demand—especially from Europe—the industry must boost productivity. The Philippine Coconut Authority (PCA) exceeded its 2024 planting target, planting 8.6 million seedlings despite El Niño, but still lags behind the goal of planting 100 million trees by 2028.
For 2025, the government allocated P1 billion for replanting and P1.8 billion for fertilization. Yet, officials say more flexible use of the P80-billion trust fund is crucial. Proposed amendments would enable expanded support for drip irrigation, water systems, fertilization, and farmer welfare.
“These reforms are about more than productivity—they’re about securing the livelihoods of millions of Filipino coconut farmers,” Tiu Laurel said.
PCA administrator Dexter Buted added that consultations with stakeholders have shaped the proposed revisions to ensure the law meets the evolving needs of the coconut industry.
