Aerial view of a mixed agricultural farm with rows of vegetable patches and coconut palm trees, demonstrating efficient land use and environmentally sustainable farming in a tropical setting. © GIZ/Griply Productions

Building a better future for coconut farmers in the Philippines

Sustainable Development and Good Agricultural Practices in the Philippine Coconut Supply Chain

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  • Commissioning Party

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Country
  • Lead executing agency

    More

  • Overall term

    2020 to 2024

  • Other Stakeholders

    Symrise AG, The Absolut Company AB, Franklin Baker Company of the Philippines

  • Products and expertise

    Rural development

Context

The Philippines stands as the world’s second largest producer and exporter of coconuts, with over 20 per cent of the population relying on this sector for their livelihoods. However, the industry faces declining productivity. About 20 per cent of the coconut trees across 3.5 million hectares are old, and the soil has become infertile. These issues arise largely because few farmers adopt eco-friendly practices that could revitalise their plantations. Although intercropping, where coconuts are cultivated together with other crops in one field, could prevent soil erosion and enhance their income, the practice is not widely used. Many farmers depend solely on coconuts for their earning, which are often insufficient. Consequently, many households in these areas live below the national poverty line. In addition, farmers’ debts to local traders force them to accept low prices for their crops, compounded by poor labour conditions and lack of social security. This situation drives young people away from rural areas in search of better opportunities, jeopardising the industry’s future despite its crucial economic role.

Objective

Better farm yields and higher incomes have improved the social and economic situation of farmers in the provinces of Laguna, Quezon, and Camarines Norte. Coconut production has become more sustainable.

Approach

The project aims to enhance the livelihoods of 500 coconut farmers in the provinces of Laguna, Quezon and Camarines Norte. By focusing on improving social, economic, and environmental practices within the coconut supply chain. The initiative increases farmer incomes through three key measures:

  • Skills building: The project trains farmers in farm business management approach integrating good agricultural practices and environmentally sustainable practices using Farm Sustainability Assessment in partnership with the Philippine Coconut Authority and Local Government Units.
  • Demonstration and innovation: It establishes coconut-based farming system model farms to display vegetable intercropping and also promote partnerships that provide access to resources.
  • Community engagement and market access: The project develops programmes to heighten safety, widen market access, and motivate youth engagement in farming. It facilitates community dialogues that support farmer group structures and promote intercropping market opportunities.

The project is supported by Symrise AG, The Absolut Company, and Franklin Baker Company.

Last update: May 2024