Copra: impact on the economy

The economy of Eastern Visayas depends, to a large extent on copra production. About 31 percent or 649,030 hectares of this region is planted to coconut. It is our main crop.

Thus when copra corriente prices went up by an average of 41.2 percent in 2011, it was good news for the region.

Based on data from the Bureau of Agricultural Statistics, copra production barely increased from 529,686,272 kilograms in 2010 to 529,978,721 kilograms in 2011 or an increase of only 0.06 percent.

However, if these are multiplied by the price for 2010 and 2011, this results in a value of P10.3 billion in 2010 and P14.6 billion in 2011. That is a significant increase of over P4 billion. This is a large infusion of funds into the region’s economy.

Compare this with the Gross Regional Domestic Product (GRDP) of Eastern Visayas in 2009 which was valued at P30,482,024 billion, it is obvious why copra is a major contributor to GRDP which measures the value of goods and services produced in the region.

Copra production is on the rebound. After years of low prices, it has recovered to the level where it is now. As the world economy recovers from its difficulties in past years, demand for copra also increases.

Government efforts to promote production and processing of coconut are well placed. For example, the Philippine Coconut Authority has been implementing the replacement of senile coconut trees and promoting salt fertilization.

These efforts deserve stronger support.

Given the market situation, it looks like copra will be the main crop of this region for years to come. The question is how it can result in efficient use of resources so that more processing industries such as those in coco coir production can be set up.

There is more to coconut than the copra.