Export of Philippine coconut fiber and by-products to China is gaining ground following global interests on their use for environmental protection and health values.
Philippine commercial attaché in Guangzhou Archimedes Gomez noted that coconut products have been catching global interest lately because of its health and environmental values "The coconut oil, aside from its use as cooking oil, has proven to be a good additive to diesel fuel, which could lengthen the mileage of vehicles. Coconut oil, in the form of Virgin Coconut Oil, has also been an area of interest because of its health value. Now, we have coconut fiber’s growing use as a material to address ecological concerns, such as desertification and soil erosion. We hope we could capitalize on the positive properties of the coconut," Gomez said.
Recently, coconet has been getting a lot of attention in the local press due to the nomination it got as one of the finalist in the BBC World Challenge contest.
Quoting a report from Gomez, Trade and Industry Undersecretary Thomas G. Aquino said that the recent Philippine mission to China sold 300 metric tons (about 18 containers) of coconut fiber worth $56,000 as initial orders to two Chinese companies.
Gomez also reported that Dr. Justino Arboleda, President and Chief Operating Officer (CEO) of Cocotechnologies Inc., signed an agreement with Gansu Desert Control Research Institute (GDRI) to pilot test coco coir geotextile, mats, biologs and coconet peat in a 20,000 square area in Gansu Province.
"The initial orders are good indications of forthcoming sales. The significant orders of coconut fiber products clearly indicated that we are gaining headway in penetrating the Chinese market for coconut products. The promotion of coconut product exports is line with the diversification to other export products and markets, as contained in the Philippine Export Development Plan," Aquino said.
The initial orders are not the Philippines’ first shipments of coconet to China.
It could be recalled that in 2003, DTI announced that Filipino firm Cocotechnologies Inc. signed a memorandum of understanding with Guangzhou Rivers Enterprise Co Ltd to supply coco coir and geotextiles, mats, biologs and coconut peat for soil erosion control used in a Guangzhou Rivers’ sixhectare dumpsite project.
The agreement involves the supply by the Philippine company of 70 containers of coco coir geotextile, biologs, and fascines worth $1 million. Fascines are rolled coco mats with short fibers and peat inside.
Another supply contract of coco fiber and coco geotextile between Philippines and Chinese firms were likewise firmed up during the visit of President Arroyo in Guangzhou in September 2004. Lagunabased Philippine Environmentech Products Corp agreed to supply exclusively.
The exports of coco fiber products to China are expected to further bolster the income of people in the regions.
About 23 to 25 percent of the country’s cultivated lands are planted with coconut trees, and an estimated 30 million people are partly or wholly dependent on the coconut industry as their sources of livelihood.
Historically, the Southern Tagalog and Bicol regions of Luzon and Eastern Visayas were the centers of coconut production. In 1980s, Western Mindanao and Southern Mindanao also became important coconut-growing regions. The Philippines is the second largest producer of coconut products, next only to Indonesia.
Prior to the BBC World Challenge nomination, coconet also won the Nature’s Wisdom Award, for encouraging people to be in social and technological harmony with nature and the Global 100 Eco-Tech Awards during the World Expo 2005 in Aichi, Japan.
A total of 8 companies participated in the mission. Members of the delegation met and discussed possible areas of cooperation with officials of nine government agencies and private entities in China, namely: Guangzhou Yi Xin Fiber Products Co., Ltd; Guanghong Staple Factory; Shunde Lechong Furniture Association (SLFA); Guilin Branch of the China Council for the Promotion of International Trade (CCPIT), Guilin Municipal Gardens Bureau; Guilin Heishan Arboretum; Chongging Municipal Government Foreign Affairs Office; Chongqing Environmental Protection Bureau; National Agricultural Science and Technique Zone of Chongqing; and the Gansu Desert Control Research Institute (GDCRI).
This year, as part of the export promotion efforts of the government, trainings on weaving and twining continue to be conducted to further improve the competitiveness of coconut products in the international market.
The training is one of the projects to be funded by the Bangko Sentral ng Pilipinas under its P10.5 million grant for export promotion and development. (BCM)