Coconut farmers can now sell their products directly to the coconut oil millers after the latter, including processors of high value coconut products, agreed to buy from them instead of using middlemen and traders.
Agriculture Secretary Emmanuel Piñol said the direct marketing arrangement was reached during the Coconut Industry stakeholders caucus convened by the DA.
According to Piñol, the oil millers buy their copra supplies from middlemen and traders at the current mill gate price of P22 to P24 per kilo, to produce coconut oil.
“This is almost double the buying price of Copra at farm gate which is between P8 to P12 per kilo,” Piñol said.
He explained that under the direct marketing arrangement, the DA through the Agricultural Credit Policy Council (ACPC) will provide organized Coconut farmers groups with working capital to buy the Copra Production of members.
“This will be delivered directly to the Oil Mills who will pay the farmers at the price the traders are getting. The DA will also provide the farmers groups funds for the purchase of hauling trucks and dryers.The direct marketing arrangement will be implemented before the end of November,” Piñol added.
Other measures discussed were the promotions advocacy by the DA on the benefits of Coconut Oil and other products; and the insurance coverage for Coconut farmers whose farms were affected by pests.
Piñol said the Coconut Industry stakeholders will meet again next week to ensure the implementation of the measures.