I {heart} COCOFED, coz I am. Are you?

April 1, 2007 by reyna09
Filed under: Politics & Government

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COCOFED President’s Message

On the Commemoration of COCOFED’s 60^{th year Anniversary}

^{As we celebrate COCOFED’s 60th anniversary, it is only fitting that we give a fresh look to our role and commitment as the primary organization of coconut farmers in the country.}

This is as an opportunity for us to return to our roots. The BIRTH of COCOFED happened because there was a need for coconut farmers to join together and set our own goals. Its GROWTH happened because we worked hard together and fulfilled these goals.

COCOFED remains a strong grassroots force, which is basically what it was intended to be. While most of our endeavors are still put on hold, we continue to give hope to our farmers by working unceasingly so we could get our programs back on track again.

But for us to remain relevant in these changing times, we understand that we have to be expansive and outward looking. We reach our 60th year taking another crucial step in carrying out our continuing mission – increasing and improving coconut productivity and profitability for our farmers. In our ongoing effort to be reelected to Congress, we have fostered ties with other coconut farmers’ groups to encourage discussion of industry issues across party lines. By working towards a broader framework of joint actions, we could achieve far-reaching solutions to our common problems.

Only by a strong party list representation can COCOFED continue to protect the interest of our farmers and get the government to address the needs of the coconut industry. We believe that through legislative means we can bring much-needed funding to promote industry growth and genuinely improve millions of lives dependent on coconut.

This would not be possible without all your support. Once again let us continue to gather our strength together. Let us begin another productive four decades that will take COCOFED to our Centennial.

Manuel V. del Rosario, President

Ten-Point Legislative Plans

1. Creation and establishment of a coconut fund for the development of the coconut industry
Fundamentally, the question facing the coconut industry is how to “plow back” part of its revenues to create programs for its own development. In 2005, the Philippine coconut industry contributed nearly US$1 billion (US$964 million) to the country’s foreign exchange coffers. Coconut remains the top agriculture export earner of the country. Despite its huge contributions to the national economy, the industry has been ailing and coconut farmers have remained poor. The industry plight is compounded by its long endurance of neglect by successive governments.
This perennial problem requires a radical response. Thus, COCOFED shall initiate a government appropriation bill for the creation and establishment of a COCONUT FUND. The FUND shall be used to launch and implement, among others, programs to improve farmers’ income, help farmers innovate and compete, enhance market competitiveness, and ensure a broad and equitable distribution of industry benefits among the multi-sectoral coconut stakeholders.
2. Recovery of the Philippine Coconut Oil Trust Fund (US Excise Tax Fund valued at over US$182M)
As a measure to protect the US dairy industry from competition, the US government collected from 1934 to 1966 the amount of US$332 million in excise tax on coconut oil from the Philippines. The tax was deposited in the US Treasury under the name Philippine Coconut Oil Trust Fund. A portion of the tax amounting to US$150 million was refunded to the Philippine Commonwealth Government but subject to condition that the coconut industry would not be allowed to benefit from it nor would the industry be given allocation for its development from the national budget. Indeed, the refund was used on projects totally unrelated and without direct benefit to coconut, such as the development of Quezon City, putting up sugar centrals, and the development of Mindanao. The balance of US$182 million has remained with the US Treasury.
Previous administrations have filed claims for the remaining refund, but our government has yet to show its firm resolve to push the issue to a settlement. Resurrecting the claim with the aid of legislation will test the Philippine Government’s will to seek the correction of an injustice committed against the coconut farmers who were burdened by the tax and who are now struggling to make a living on marginal income. Should the excise tax recovery become a reality, the government must ensure that this time the coconut industry be its primary beneficiary.
3. Strengthening of the capabilities of the United Coconut Associations of the Philippines (UCAP) and the Philippine Coconut Authority (PCA)
Ideally, both government and private sectors should work in tandem to provide direction and steer the wheel of development for the coconut industry. Government has strong legal and political position while private enterprise has efficiency and flexibility. Strengthening the partnership between and capabilities of both the Philippine Coconut Authority (government) and the United Coconut Associations of the Philippines (private, but of which PCA is also a member) will harness the strengths of both sides to work towards common goals, which include, among others, developing innovative marketing strategies, creating new business ventures, and intensifying product promotion.
4. Establishment of a coconut-based educational system
Filipino students need stronger science, math, language, and technology skills to get good jobs. Poverty is depriving many children of coconut farmers access to quality education that could help them build those skills.
COCOFED is committed to improving the chances of these children at school and in life by initiating legislation to establish an educational institution which will provide scholarship grants and other forms of educational assistance primarily to children of coconut farmers. As a state institution, it will be funded from the national budget and will offer a strong curriculum from early learning through college.
The same institution shall foster through special courses awareness of the importance and uses of coconut and better understanding of the coconut industry and its economic significance. More importantly, it shall offer courses that should build skills and expertise needed to develop new coconut products, expand international markets, and increase the profitability of coconut farming.
5. Creation of a Research & Development Fund in support of the existing coconut based research institutions
Research and development is the key to enhance market competitiveness of coconut products in these fast-changing times. Already in place are R&D institutions that for decades have contributed to the viability of the coconut by discovering and improving coconut products and exploring value-added ones. Known scientists and researchers have devoted their time and expertise to efforts like investigating the medical potential of coconut oil and harnessing its use as a biofuel.
Still, coconut R&D remains limited by funding constraints. The establishment of a COCONUT FUND will ensure continuing funding support for efforts to investigate and develop prospects for new coconut products, technologies, and markets. The industry would grow stronger economically by moving up the industrial ladder to produce coconut products with greater value added to the basic inputs. Results and benefits of R&D programs must be disseminated widely to all sectors of the industry.
6. Legislation for the duty-free importation of machinery and materials for the production and processing of coconut-based products
Coconut farming and processing can be a high-cost business and a significant percentage of these costs must be invested up-front. The cost of equipment exemplifies financial barriers to venturing into coconut processing. To better assist farmers and processors to face the financial burdens associated with coconut entrepreneurship, COCOFED shall push for legislation to allow duty-free entry of machinery and materials for the production and processing of coconut-based products. Such move will encourage business expansions and open doors for new investments on coconut.
7. Legislation for tax incentives for the exportation of coconut-based products
Geared towards foreign trade, the coconut industry should provide incentives to encourage exportation. The government should likewise ensure exporters that their interests are at the forefront of policy decisions. By legislating coconut export tax incentives, COCOFED shall be providing a combination of tax relief and government assistance to promote exports and increase dollar revenues, provided they are within the framework of the WTO.
8. Creation and establishment of a health insurance program for coconut farmers and workers
Health and medical care continue to escalate, to the point of eroding whatever little income coconut farming families are getting. In the Philippines, healthcare insurance is closely tied to employment, and private healthcare plans are still widely unaffordable. For its part, the government provides medical benefits through the Philhealth to mostly public and private employees who are regular contributors to the Philhealth fund.
COCOFED shall seek through legislation government appropriation to cover a healthcare plan for coconut farmers to provide them access to medical care which otherwise they could hardly afford considering the meager returns from coconut farming. The program should have far-reaching impact in terms of realization by the farmers that their own industry and government understand their problems and are at work to provide solutions.
9. Creation and establishment of a copra price stabilization mechanism
Despite the WTO, rich countries continue to provide safety nets for their farmers in terms of direct payments, loans, and other commodity programs. The US government, for instance, maintains artificially high prices to protect their internal markets, while dumping excess production to the world market to the disadvantage of their trading partners elsewhere. These enormously costly programs serve to keep farm incomes at levels that afford their farmers quality living standards.
To ensure profitability of coconut farming as the playing fields are supposedly still being “leveled” by the WTO, legislation must be initiated to allow government to provide a mechanism to protect copra prices from fluctuations due to production and market vicissitudes.
10. Development of a rural-based coconut industrialization program
Many rural communities desire industrial development in the hope of improving the people’s quality of life. Coconut communities are no different. The concept of vertical integration in the coconut industry which would allow farmers to be entrepreneurs and capitalists was the goal of industry self-help efforts in the past. Uplifting the rural base should be consistent with the concept of overall economic development.
Recognizing these facts, COCOFED shall seek to introduce legislation that will pave the way for the industrialization of coconut farming communities. Such an endeavor will require careful consideration of the fact that not every rural community has the potential for successful industrialization. Priorities should be determined by such factors as community location, available resources, access to markets and public facilities and services, and even the attitudes of the people. Industrialization of coconut farming regions is going to be a long process and part of COCOFED’s commitment is to create conditions necessary to achieve its goals.

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Comments

5 Comments on I {heart} COCOFED, coz I am. Are you?

reynz on Sat, 31st Mar 2007 3:58 am

Yeap, Eye em. R U?

If you know anybody out there who is/was a COCOFED Scholar, I want you. Or if you know someone, I want him too. I want you to join me in my crusade, well, ok that’s probably too strong of a word but I know that you know what we are fighting for. Got it?!

[Reply]

Bettina on Sun, 15th Apr 2007 4:56 pm