Philippines Tropical insights

The Philippine government is considering suspending the planned October increase of the biodiesel blending rate to B4, containing 4% coconut methyl ester (CME), in an attempt to address the sharp rise in fuel prices, reports Business Inquirer. "The National Biofuels Board (NBB) recently held a meeting where it was proposed to suspend the implementation of B4 in October," said Celia Rakepo, head of laboratory services at the Philippine Coconut Authority (PCA), as reported on June 12. According to the Department of Energy (DOE), the goal of increasing the level to B4 is to promote cleaner energy and economic growth. Rakepo reported that the recommendation was made during a meeting of the National Biofuels Board (NBB), as the planned increase in CME content in all diesel fuels sold in the country could lead to rising coconut prices. She added that although the country has sufficient coconuts, copra prices are increasing. As Business Inquirer writes, the NBB proposal was to be ...

The Philippine Coconut Authority (PCA) aims to plant 50 million coconut trees by 2026, doubling its original target of 25 million. This plan is part of a five-year initiative launched in 2023, with the goal of planting 100 million coconut trees by 2028. From 2024 to date, over 8.5 million coconut trees have been planted, with an estimated additional 15 million expected by year-end. According to reports, President Marcos has allocated funding, and the Coconut Authority will collaborate with planting communities to accelerate production material cultivation. The revised five-year plan also includes improving yields of existing 340 million coconut trees through fertilization programs. Many of these trees are aging, currently producing only around 40 coconuts annually, which is just one-third of their peak production. Global coconut oil demand continues to grow, partly due to the EU's decision to classify palm oil as environmentally unsustainable and plan to phase out imports by 2030, creating new opportunities for coconut-producing countries like the Philippines. Simultaneously, global coconut oil prices are rising due to declining copra production and surging demand for fresh coconuts as a healthy beverage. In 2024, Indonesia's coconut production is 17.13 million tons, with the Philippines at 14.77 million tons. The Philippines' coconut production decline is largely attributed to the destruction caused by Typhoon Yolanda in 2013, which destroyed approximately 10 million coconut trees.

Thirty years ago, the Philippines was the world's largest coconut producer, but its position was taken by Indonesia. Recently, Philippine President Marcos proposed expanding coconut cultivation to reclaim its historical status as the world's largest coconut producer. The Philippine Coconut Authority (PCA) aims to plant 50 million coconut trees by 2026, doubling its original target of 25 million. This plan is part of a five-year initiative launched in 2023, with the goal of planting 100 million coconut trees by 2028. From 2024 to date, over 8.5 million coconut trees have been planted, with an expected additional 15 million trees by the end of the year. According to reports, President Marcos has allocated funding, and the Coconut Authority will collaborate with planting communities to accelerate production materials. The revised five-year plan also includes a fertilization program to increase yields from the existing 340 million coconut trees. Many of these trees are aging, currently producing only about 40 coconuts annually, which is just one-third of their peak production. Global coconut oil demand continues to grow, partly because the EU has classified palm oil as environmentally unsustainable and plans to phase out imports by 2030, creating new opportunities for coconut-producing countries like the Philippines. Simultaneously, global coconut oil prices are rising due to declining copra production and increased demand for fresh coconuts in healthy beverages. In 2024, Indonesia's coconut production is 17.13 million tons, while the Philippines produces 14.77 million tons. The Philippines' coconut production decline is largely attributed to the destruction caused by Typhoon Yolanda in 2013, which destroyed approximately 10 million coconut trees. Image source: DA-PCA2025 International Fruit and Vegetable Report. All rights reserved. Reproduction requires permission from International Fruit and Vegetable Report.