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PROVINCIAL COMMODITY INVESTMENT PLAN (PCIP) COCO SAP SUGAR AND WHOLENUT Philippine Rural Development Project Province of Camarines Sur
PROVINCIAL COMMODITY
INVESTMENT PLAN (PCIP)
COCO SAP SUGAR AND WHOLENUT
Philippine Rural Development Project
Province of Camarines Sur
CAMARINES SUR PROVINCIAL COMMODITY INVESTMENT PLAN
Wholenut and Coco Sap Sugar
I. DEVELOPMENT BACKGROUND/CONTEXT
Camarines Sur is located in the Bicol
Peninsula at the Southern part of Luzon. It
is bounded on the north by the province of
Camarines Norte and San Miguel Bay, on
the Northeast by Pacific Ocean, on the
Northwest by the province of Quezon, on
the south by the province of Albay, on the
southeast by Lagonoy Gulf and on the
southwest by the Ragay Gulf. It is about 450
km southeast of Manila or only about 6-8
hours travel at the Maharlika Highway thru
the new Andaya highway.
It is the biggest province in the Bicol region with the total land area of 549,703
hectares. The terrain is generally hilly and mountainous; a factor why the agricultural
land (total land 326,826 hectares) is mostly favorable to coconut (204,092 hectares).
Camarines Sur is subdivided into five (5) congressional districts. It is composed
of 35 municipalities and the cities of Iriga and Naga with the latter classified as
independent chartered city. It has a total of 1,063 barangays.
The population of the province in 2010 (NSO Census) was 1,822,371 at the
growth of 1.62%. It is projected to reach 2,095,038 in 2018. Per National Statistic
Coordinating Board (NSCB) report, in 2012 at the annual per capita poverty threshold
level of P18,717.00 the poverty incidence among families was 31.70 percent. On this
estimate at the average size of family of 5, there were 121,614 poor families in
Camarines Sur. Hence, the province was rated fifth for the magnitude of poor families
in the country.
Figure 1: Map of Camarines Sur
Agriculture is apparently the major economy of Camarines Sur. However,
production supply and utilization accounts show that the agricultural resources are
underutilized, therefore with big potential for development. Notwithstanding the fact
that the province is self sufficient in rice and corn and that commodity outflow of
products from abaca, sugarcane, coconut and other crops are in record.
This Commodity Investment Plan of Camarines Sur (PCIP) formulates scheme
that will propel increase of family income of the subsistence coconut farmers in the
rural areas. Fund assistance thru the Philippine Rural Development Project (PRDP) shall
be requested for the interventions necessary to improve agriculture production,
environment and as well capability of the farmers to expand and enhance agri-based
enterprises for sustainable development.
II. DEVELOPMENT VISION AND FRAMEWORK
1. Vision of the Province
The vision of Camarines Sur is stated below;
“ A globally competitive province sustained by agro-industrial and agro-
tourism enhanced economy with resilient and empowered people living in a
healthy and safer environment”
This PCIP plan follows the same vision. Thus, its concept is the
development of business enterprises that will produce high value agricultural
products that are viable in the world market. Global competition is recognized
particularly with the full implementation of GATT in 2015. But it has been
proven in previous years that the coconut product lines from the Philippines
such as coco sap sugar, coco water, Virgin Coconut Oil (VCO), among others, are
with competitive advantage.
2. Development Goals
To realize the vision above, the province set the Millennium
Development Goals (MDG) that should have been attained by year 2015. Such
goals classified for different sectors are enumerated herein.
This plan will have great contribution to the attainment of the following
goals;
Agriculture and Economic Sector:
Provide employment to at least 5% families in the rural areas;
Improve/sustain agricultural production and quality of agricultural
commodities;
Decrease magnitude of poor families by at least 10 percent;
Prevent unnecessary land conversion within the agricultural areas;
Reduce power cost and energize all barangays of the province;
Goals for other sectors include the following:
Health Sector:
Improve the efficiency, effectiveness and equity of health care delivery;
Reduce incidence of malnutrition in pre-school and school age children
by 50%;
Education Sector:
Provide education facilities and improve performance level;
Environment and Protection Sector
Attain zero casualties in times of disaster and calamities;
Conserve, rehabilitate and protect forest, marine, coastal and inland
resources;
Brief Information on Camarines Sur Agricultural Situation
The major agricultural products of Camarines Sur are rice, corn, coconut,
sugarcane and banana. The land use for these crops, the corresponding number
of farmers involved in the farming enterprises, and the average productivity are
presented in Table 1 below.
Table 1. Actual Land Use, Number of Farmers and Productivity of Major
Agricultural Crops in Camarines Sur, 2012
CROP ACTUAL LAND USE (Hectare)
NUMBER OF FARMERS
PRODUCTIVITY (MT/Ha.)
Coconut 204,092 95,196 2.80
Rice 83,686 68,266 3.61
Corn 18,788 9,018 3.54
Abaca 5,418 3,884 0.135
Sugarcane 4,206 1,211 42.3
Others 10,636 86,386
Total 326,826 263,961
Sources: Coconut data from PCA/BAS ; Rice and Corn from BAS; Abaca data from
FIDA /BAS and Sugarcane data from PENSUMIL/BAS
Main Issues and Concerns in Agricultural Development
Low production and low productivity
Camarines Sur continuously supports projects to increase low production and
low productivity of agricultural crops. It is only in rice and corn that the province has
production beyond the food requirement of its population. However, as in other crops
production must be increased for national food security. Similarly, productivity must
increase to maximize economic returns.
Table 2. Comparative Productivity of Major Crops, Philippines, Bicol Region and
Camarines Sur, 2012
CROP PRODUCTIVITY (MT/Ha.)
Philippines Bicol Camarines Sur
Coconut (copra) 4.30 2.74 2.80
Rice 5.00 3.51 3.61
Corn 4.50 2.04 3.54
Abaca 0.495 0.55 0.135
Sugarcane 60.92 42.385 42.385
Source: BAS 2012
Need for more infrastructures facilities and utilities to support agricultural production
and processing projects
To stimulate agricultural production and agri-based processing projects in the
rural areas, more roads, irrigation systems, potable water systems and transport utilities
are needed. The goal is a net road density of 1.0 per square kilometer land area and
rural road density of 1.5 kilometer per 100 hectares of arable lands.
Corollary Issues
Increase in production and productivity of agricultural crops can be attained if the corollary
issues below are addressed;
Urban encroachment into prime agricultural lands
More and more agricultural lands are converted to residential and commercial
use thus decreasing the prime lands for agricultural production.
Idle lands and underutilization of production areas
The total potential agriculture development production area estimated in the
Provincial Physical Development Framework Plan (PPDFP) is 370,813 hectares.
Comparing this with the actual physical area utilized for agriculture, which is 326,826
hectares, there are 43,987 hectares available lands for expansion. Moreover,
production can be increased by promoting intercrops between widely spaced coconuts
and fruit trees and increasing plant population to the optimum level.
Environmental degradation
Natural fertility of the soil has deteriorated not only because of continuous
farming but also due to erosion. The long use of inorganic fertilizer and agricultural
chemicals also reduces the natural potential of the soil to supply the nutrition for the
crops. Along with the worldwide trends against use of health dreadening chemicals,
Camarines Sur adopts and strongly promotes organic farming. Other strategies to
address this issue are:
a) Contour farming and Sloping Agricultural Land Technology (SALT)
b) Bicol River Comprehensive Development Program
c) Expansion of El Verde
d) Dredging/desilting of Lakes Bato, Buhi, Baao-Bula and other major
waterways
Lack of agricultural support services, financial assistance and post harvest facilities for
agro-industrialization
The high demand for raw materials in agro-industrialization plus the income
benefits to the farmer producers is expected to lead to increase in crop production. This
would involve the following;
a) Improved agricultural extension delivery system;
b) Strengthen cooperativism and farmers association;
c) Provision of post harvest facilities, agricultural machineries and equipment;
d) Linkage to financial institutions
The desired outcomes for this issue are;
a) Establishment of Agro-Industrial Economic Zone;
b) Establishment of Camarines Sur Food Terminal;
c) Establishment of Provincial Industrial Center
III. PRIORITY COMMODITY CHAINS DEVELOPMENT
1. Coco Sap Sugar and Whole Nut For Priority Sub-Chain Development
Earlier in this report it was presented that coconut is the leading crop of Bicol
Region, and Camarines Sur is the leading province for its production. Likewise, for
the national scenario, Camarines Sur is 12th highest producer of coconut and 6th in
terms of area therefore it is included in the coconut grid of the country. The areas in
the coconut grid have significant role to keep the Philippines as top copra and
coconut oil supplier in the world. However, this goal does not prevent the country
from looking for other commodities that can complement copra and coconut, as
there are better opportunities for improving Philippine economy through
maximizing utilization of the coconuts. Coco sap sugar and whole nut processing are
the two value chains within the coconut industry that could have bright future. This
is supported by the findings on the Value Chain Approach (VCA) report for the
Philippine Rural Development Project (PRDP) on coco sugar and whole nut. The
proposed investment plan is in harmony with the Agriculture and Fishery
Modernization Plan (AFMP) of Bicol Region and the Coconut Industry Road Map of
the Philippines Coconut Authority, and the Camarines Sur Provincial Development
Plan.
A. Prospects in the Coco Sap Sugar Value Chain
According to the VCA report, coco sap sugar processing in Camarines Sur
is” just waiting for its big break”. The reasons are;
There is definitely a market for coco sugar;
Camarines Sur can serve the market better than suppliers in
Mindanao because of its proximity to Manila and competitive sap
based pricing strategy;
There are approximately 40,000 coconut trees fit for coco sap
sugar supply base in Camarines Sur at present
Brief information in the Coco Sap Sugar
The Product
Coco sap sugar is a natural sweetener produced from coco sap that has
been extracted from coconut inflorescence. Various studies point out that coco
sap sugar is better than cane sugar, maple syrup and honey because of its low
Glycemic Index. Glycemic Index is an indicative ratio of the glucose retained in
the blood after consumption of a sweetener. A sweetener with low Glycemic
Index means that its glucose is highly utilized by the body. (Annex 1)
Coco sap sugar is also rich in amino acids, vitamins and minerals (Annex 2
and Annex 3).
Coco Sugar Global Market Players
Thailand, Indonesia and the Philippines are the only three (3) countries
producing coco sugar in the world. The Philippines has the greatest share of
52%. The Philippine coco sugar has a superior quality because it does not use
sodium metabisulfate in the processing.
Coco sugar produced in the Philippines is exported to Australia, New
Zealand, South Korea, Japan, Norway, United States, Canada and France.
Emerging markets are Europe and Middle East.
The Philippine export volume in 2011 was reported at 43 MT coco sugar
from about 11 million in 2010. The PCA proposed 17,010 MT export target in
2016.
Philippine Coco Sugar Producers
About 86% of coco sugar producers in the Philippines come from
Mindanao. Only 5% is produced from the Bicol region. Region IVA and Region
IVB has a share of 3% each in the domestic supply.
Camarines Sur is the sole supplier of coco sugar in Bicol with one
producer-exporter that has state of the art and world class facilities, the Coconut
Republic.
Farmers’ Benefit in Coco Sugar Value Chain
The Gross Return that a farmer will receive from coco sap sugar
enterprises utilizing a one-hectare coconut farm is estimated at P1,312,500 per
year, compared to a traditional copra production with only about P98,000 per
year of Gross Returns. This is based on the following assumptions;
a) One hectare with 100 coconut trees;
b) Estimated harvest of coco sap is 1.5 liters per tree per day;
c) Estimated 1 kilogram sugar produced per 6 liters of sap;
d) Average 25 days per month collection of sap;
e) Price of 1 kilogram coco sap sugar is P 175 (Farm Gate Price;
f) Average copra production is 2.8 MT per year;
g) Price of copra is P35 per kilogram;
B. Prospects in the Whole Nut Value Chain
The flow of whole nut processing is illustrated in Figure 2.
Figure 2. Whole Nut Processing
W
i
t
h
t
T
h
r
The above figure illustrates the different high value products that can be
processed from the four major parts of the whole nut. This PCIP caught the
potential of coconut meat for Virgin Coconut Oil (VCO) in as much as there are
existing processors of this commodity in the province. Integrating coco flour and
coco water in a village enterprise may be promising. Camarines Sur looks
forward to Pilot Test a business enterprise that would maximize the utilization of
the whole nut into VCO, coco flour and coco water.
Pilot testing of a village level integrated processing of the whole nuts is
justified by the findings in the VCA report, summarized below:
1. Most of the value adding activities for whole nuts are being done
outside the Bicol Region. The players in Camarines Sur are mostly
traders and raw material suppliers holding micro enterprises.
2. Camarines Sur farmers are supplier of raw materials.
3. The whole nut is tied to copra that is also mainly dependent on the
market for edible oils. The competition among edible oils is stiff.
Coconut oil does not hold strong position in the market for edible oils.
4. Whole Coconut has another market – the processors of desiccated
coconut, coco flour, coconut water, virgin coconut oil and others; the
buying price of whole nut is still relative to the prices of copra. A raw
material supplier will most often get the least share of economic
benefits.
5. The best option in the whole nut chain is integrated processing, as
with big processors outside Bicol, but the VCA study saw the difficulty
of pushing this option at the moment as there is no mature
technology for this that is applicable at the village level.
2. Value Chains Competitive Strategy
The aim of the Camarines Sur PCIP is to develop a strategy that will establish the
competitive advantage of its high value coconut products not only in the domestic
market but in the world market as well. These products would be coco sap, VCO,
coco water and coco flour. Initial priority will be given to coco sap sugar production
because of the existing great potential of the commodity and the socio-economic
benefits that is expected to accrue to the currently impoverished farmers. The
presence of coco vinegar producers throughout the province shall be the starting
point of the development of the enterprise. Some of them are now in coco sugar
production.
Five (5) village level type of coco sugar processing centers shall be established, or
one processing center in a district. The village center plant shall be the mechanism
for assembly, productivity development, and mobilization of active farming
communities. Its objective is to institutionalize coco sugar processing as the way of
life of the rural families in the clustered area.
The five (5) village centers shall be linked to a provincial packaging and
marketing arm, the Camarines Sur Multi-Purpose Cooperative (CMPC). The CMPC, a
multi-awarded primary cooperative is a affiliate of the federation of cooperatives of
the Philippines, the NATTCO, which is engaged in marketing of the products of its
members. The CMPC has been noted for being the “big brother” in cooperative
development of many emerging coops province wide. Quality control, packaging,
labelling and all other aspects of marketing shall be the major functions of the CMPC
on the coco sugar value chains development.
A conservative projection of coco sap sugar in Camarines Sur, for the period
2014-2019, is presented in Table 3.
Table 3. Projected Coco Sugar Production in Camarines Sur, 2014-2019
YEAR NO. OF HOUSEHOLDS
TREE REQUIREMENT (Number)
TARGET SAP PRODUCTION (Liter/Year)
TARGET COCO SUGAR PRODN. (Kg./Year)
2014 68
2015 102 2,040 918,000 153,000
2016 128 2,560 1,152,000 192,000
2017 160 3,200 1,440,000 240,000
2018 200 4,000 1,800,000 300,000
2019 250 5,000 2,250,000 375,000
The VCA Report opines that at present it would be hard to push investment on
whole nut value chain in Camarines Sur. However, our PCIP does not close the door for
investment in the commodity in the future. In 2015, the province will initiate
interventions in the development of the industries of the whole nuts, particularly VCO,
Coco Water and Coco Flour.
According to the VCA Report, a technology for a small scale multi-product
processing plant, costing about P 10 million for integrated processing of VCO, coco
water and coco flour is available for Pilot Test. Camarines Sur will spearhead a trial
under this project.
3. Constraints and Interventions
To realize the goals of the Camarines Sur PCIP, such that competitiveness in the
coconut value chain is attained, the constraints in the key gap have to be addressed.
The issues and constraints were identified in the VCA Report. Potential intervention to
resolve the issues to eliminate the constraints and to finally improve the industry are
hereby presented and discussed.
Input Supply Segment
The raw material of coco sugar is the sap extracted from the inflorescence of the
coconut tree. It is the same raw material used for production of coco vinegar and wine.
However, for coco sugar purposes, the sap must be heated for at least 15 minutes to
prevent further fermentation. Otherwise the product will remain syrup even after
evaporation. A sap that is not heated will eventually be vinegar.
Not all coconut trees yield the proper quantity and quality of sap best for coco
sugar. Every tree must be studied for sugar efficiency. A tree that will yield average of
1.5 liters per day is desirable, aside from being less than 20 feet in height for ease and
safety of collection. Tacunan is the most recommended variety because of genetic
advantage in sap production and dwarfism. The PCA is conducting an inventory of
Tacunan trees to validate the previous plantation of approximately 40,000 trees. The
minimum target for a conservative estimate is 5,000 trees sufficient to target coco sugar
production of 375 MT per annum. However, for sustainability every year there has to
be replanting to replace trees that are no longer fit for sap collection. The constraint is
the limited seedlings produced particularly dwarf varieties, in the nurseries operated by
PCA in Camarines Sur. To solve this problem, the project shall link with the PCA to
make available dwarf varieties in their nurseries. At present, PCA nurseries are limited to
production of local tall varieties. At least 5,000 seedlings of sweet, dwarf varieties shall
be planted every year for expansion and sustainability in the coco sugar value chain.
Similarly, for the sustainability and expansion of the whole nut multi-product
processing, 400,000 seedlings shall be distributed/planted.
Agri-Productivity Segment
Camarines Sur has comparative advantage on coconut industry over some other
provinces in the country because of its proximity to Metro Manila and the high
suitability and sustainability indicators for coconut production.
The potential area for coconut expansion is estimated at 85,047 hectares
because the existing area actually planted to coconut is 119,045 hectares while the
estimated suitable land is 204,092 hectares.
Yields of existing farms in the province are lower than the national average due
to the presence of old, senile trees and low yielding varieties. Adoption of fertilization
technology is low. This calls for massive information campaign on the use and
application of salt fertilizers under the salt fertilization project of PCA and expansion of
their present coconut planting and replanting program.
Sustainability of the comparative advantage of Camarines Sur in the coconut
industry is threatened by the infestation of the leaf scale insect reported to have widely
affected the provinces of Batangas, Laguna and Quezon. The PCA must lead the
monitoring of the pest, implement strictly quarantine measures to prevent the spread
of the insect and conduct urgent studies for effective control and eradication of the leaf
scale insect.
Assembly and Processing Segments
Existing coco sugar enterprises in Camarines Sur are operating at household level
scale and is characterized by production volume just sufficient to gain the income
requirement for the day. The processors with regards to the enterprise have weak
informal linkage with local assemblers although three cooperatives already initiated to
extend services on quality improvement, packaging, labelling, marketing and other value
addition functions. Coco sap sugars are now on market trial through the Camarines Sur
Multi-Purpose Cooperative and the Pecuaria Development Cooperative.
To upgrade the assembly segment in the coco sap sugar value chain, there shall
be Five (5) Village Level Processing Centers (VLPC) to be established in Camarines Sur.
They shall be geographically scattered to capture the potential production of the key
municipalities. The proposed location and service area of each VLPC are presented
below;
District Location of VLPC Service Area
I Ragay Ragay, Del Gallego, Lupi and Sipocot
II Pamplona Pamplona, Libmanan, Pasacao and San Fernando
III Pili Pili, Minalabac and Ocampo
IV Goa Goa, Lagonoy, Sangay and Tigaon
V Iriga City Iriga City, Buhi, Baao and Bula
The center will have two alternative functions 1) processing of heated sap to raw
sugar or semi-processing of coco sap sugar from evaporation to granulation, and/or 2)
assembly of raw coco sugar produced by households. The Camarines Sur MPC will lead
in the coco sugar business not only in processing and marketing but in organizational
and value re-orientation as well.
Other key constraints in the assembly and processing segments and the
corresponding potential interventions are;
There are limited number of farmers with the skills on coco sap collection and
coco sugar processing. Sets of trainings shall be conducted to produce at least
250 efficient sap collectors and at the same time coco sap sugar processors per
day. These trainings shall focus on the appropriate technology of coconut tree
care and maintenance, inflorescence care and management, sap collection and
preservation, quality assurance and control strategies, and others.
The current farmers’ technology might not be hygienic. Coco sugar is a food
commodity that requires Food Certification from BFAD, GMP-HACCP to enable
distribution in the local, domestic and world market.
The current processing equipment and facilities of the household coco sap sugar
producers are lacking – only vat, improved furnace, wooden ladles. They have
no dryers, grinders, pH meter etc, whereas, a processor exporter in the province,
the Coconut Republic, has state- of- the art processing plant.
The household processors or the Village Level Processing Centers shall be given
assistance to upgrade their processing equipment and facilities.
On the whole nut value chain, it is worth noting that Manila-based processors,
like GIGA, are looking for stable supply of VCO and there is an increasing demand for
coco water in the export market. “Processed and bottled coco water taste as good as
fresh without danger of shelf-life as that of fresh coconuts”, according to the VCA
finding. On the other hand in Camarines Sur, VCO processors are operating at
household level, scattered, unorganized and with limited market-orientation. The
whole nut processing is solely for VCO as there is no existing village technology where
the coco meal out of the VCO processing can be converted to coco flour.
The VCA report showed that a village level multi-product processing technology
for VCO, coco water and coco flour is available for Pilot Test. This is an opportunity for
Camarines Sur to spearhead the venture that might open the bright prospects of village
level processing of whole nuts into various products. Sipocot, with the Farmland Multi-
Purpose Cooperative, showed interest to engage in this business enterprise.
Marketing Segment
The identified gap in the marketing segment both for whole nut and the coco
sugar value chains is mainly the absence of linkage to any market because the players
do not have marketing experience, the product volume is inadequate, they have limited
market information and there is no product standard being practiced.
The VCA report concludes that the coco sugar as a product “is just waiting for its
break”. There is actually market and the consolidators are available for coco sap sugar.
There are distributors in Manila who are interested to enter into marketing contracts.
The Camarines Sur Multi-Purpose Cooperative is now open to membership of coco sap
and coco sap sugar producers to facilitate packaging, market development, marketing of
coco sap sugar, and also the allied product, coco vinegar. The Pecuaria Development
Cooperative, a shareholder of Global Wellness Corp. (Glowcorp.), a national federation
of organic producers cooperative is also interested to be a marketing arm of the coco
sap sugar at the national and export level.
Under the whole nut value chain, one important issue is the finding that supply
of whole nut (for VCO) is affected by current price of copra. At times when the price of
copra is high, the farmers prefer to produce copra rather than to sell to whole nut
traders or assemblers. The proposed intervention on this concern is to encourage
membership of the whole nut suppliers to the cooperative-processor, such that as co-
owners of the plant, they will receive a value of net surplus proportionate to the
quantity of nuts one supplied, in form of the patronage refund and dividend.
Logistic
Marketing infrastructure and utilities would address the issue of inefficient and
lacking marketing and transportation system from the input supply farms to the Village
Centers, then to the marketing center. This would involve the construction or
improvement of Farm to Market Roads (FMR) and provision of transport vehicles. The
Farm to Market Roads identified as important in order to increase value addition
includes 1 spill way, 1 bridge and 24 road sections with total length of 227.79 km in 15
municipalities.
Project Area Prioritization
The priority areas for the Camarines Sur PCIP were determined using the
Expanded-Vulnerability and Suitability Assessment Tool (E-VSA) with the following
parameters:
Parameter Percentage Distribution Data Source
Agricultural suitability and vulnerability to climatological and geophysical hazards
50 BSWM
Coconut Production 20 PCA
Number of Coconut Farmers 15 PCA
Road Density 10 DPWH,2002
Poverty Incidence 5 NSCB
TOTAL 100
Utilizing the data from PCA, the top 15 coconut producing municipalities,
including the component city of Iriga, are ranked as shown in Table 4. This means that
these are the major sources of nuts of the existing copra-based coconut industry. The
same areas shall be the potential sources of whole nuts for the proposed processing
projects of VCO, coco flour and coco water production as indicated in the map (pls. see
Annex 4a).
Table 4. Top Fifteen Nut-Producing Municipalities, Camarines Sur, 2012
Municipality Production Municipality Production
1. Lagonoy 85,458,560 9. Goa 26,618,550
2. Tinambac 65,590,500 10. Garchitorena 23,483,950
3. Ragay 56,176,786 11. Lupi 22,035,633
4. Buhi 45,061,828 12. Iriga city 21,999,496
5. Sipocot 37,571,510 13. Libmanan 21,931,882
6. Del Gallego 35,314,040 14. Presentacion 19,260,813
7. Pasacao 29,818,067 15. Pamplona 15,348,918
8. Caramoan 27,536,800
A separate evaluation, using the number of coconut farmers (PCA,2011) resulted
to identification of a different set of municipalities (Table 5). Del Gallego, Libmanan,
and Pamplona were replaced by Sagnay, Baao, and Bato in the prioritization. These are
the location of most number of coconut farmers as indicated in the map (pls. see Annex
4b)
Table 5. Top Fifteen Municipalities Based on Number of Coconut Farmers, Camarines
Sur, 2011
Municipality No. of Coco Farmers Municipality No. of Coco Farmers
1. Goa 10,632 9. Iriga City 4,213
2. Lagonoy 10,215 10. Sipocot 3,320
3. Caramoan 8,102 11. Garchitorena 3,201
4. Sagnay 6,401 12. Pasacao 3,200
5. Presentacion 5,186 13. Lupi 2,958
6. Tinambac 4,464 14. Baao 2,899
7. Ragay 4,350 15. Bato 2,867
8. Buhi 4,315
Poverty incidence using the data from National Statistics Coordinating Board
(NSCB) is another parameter considered to give importance to alleviation of poverty.
The set of 15 areas ranked within the top 15 did not show Buhi, Sipocot, Goa, and iriga
City despite their being major production areas as indicated in the map (pls see Annex
4c). Instead Sagnay, Siruma, Balatan, and MInalabac are in the list (Table 6).
Table 6. Top Fifteen Municipalities Based on Poverty Incidence, Camarines Sur, 2013
Municipality Poverty Incidence Municipality Poverty Incidence
1. Garchitorena 59 9. Balatan 50
2. Siruma 58 10. Pasacao 49
3. Caramoan 54 11. Minalabac 48
4. Tinambac 53 12. Lagonoy 47
5. Del Gallego 52 13. Libmanan 47
6. Sagnay 52 14. Pamplona 47
7. Lupi 50 15. Ragay 46
8. Presentacion 50
The available data for road density revealed that among the 15 top production
areas, the municipalities that are in the highest need for roads are Garchitorena,
Tinambac, Caramoan, Goa, Ragay, Lagonoy, Sipocot, Lupi and Buhi as indicated in the
map (pls. see Annex 4d).
Finally, the four (4) parameters above were joined with the VSA data of the
Bureau of Soils and Water Management of the DA. This tool, termed as Expanded-
Vulnerability and Suitability Assessment (E-VSA) facilitated the selection of the priority
areas for the Camarines Sur PCIP. The top 15 municipalities/city in consecutive priority
rank are the following; Lagonoy, Goa, Tinambac, Sipocot, Ragay, Lupi, Buhi, Caramoan,
Del Gallego, Iriga City, Pasacao, San Jose, Sagnay, Libmanan and Pamplona which are
indicated in the map (pls. see Annex 5).
Apparently, the E-VSA methodology is not appropriate for selection of priority
municipalities for the Coco Sap Sugar Value Chain Investment Plan for the reason that
this product line utilizes dwarf coconut varieties and trees that are 20 feet below in
height. Therefore the most logical areas to be covered for production base are those
with existing plantations. Following is the list of municipalities and their existing trees
suitable for coco sugar raw materials source (Table 7):
Table 7. Area Planted, Number of Hills, Age and Estimated Production of Existing
Dwarf and Local Tall Varieties below 20 feet in Height, by Municipality, 2014
Municipality Area
Planted
(ha.)
Number of Hills Estimated
Prodn.
(nuts,
pieces)
Varieties
Age of
Non-
Produc-
tive Trees
Produc-
tive
Non-
produc
-tive
Total
CAM.SUR I
District I 141.5 13,150 900 536,350
Ragay 85 7,500 500 8,000 300,000 Tacunan &
Local Tall 2-6 years
Lupi 10 1,000 1,000 40,000 Tacunan &
Local Tall
Del Gallego 35 3,300 200 3,500 200 Tacunan &
Local Tall 2-6 years
Sipocot 10 1,200 200 1,400 57,600 Tacunan,
Dwarf &
local tall
Below 5
years
Cabusao 1.5* 150 0 150 6,750 Tacunan
District II 63.5 6,370 400 298,300
Libmanan 13 990 400 1,390 55,600 Tacunan,
Dwarf &
local tall
Below 3
years
Pamplona 6.0 640 640 25.600 Local Tall &
Dwarf
Pasacao 10 1000 0 1,000 40,000 Local Tall &
Dwarf
San
Fernando
8 840 0 840 33,600 Local Tall &
Dwarf
Minalabac 25 2,750 0 2,750 137,500 PCA 15-
1/15-2
&Local Tall
Milaor 1.5 150 0 150 6,000 Local Tall &
Dwarf
District III 35 3,785 0 168,650
Naga City 7 750 0 750 37,500 PCA 15-
1/15-2 &
Local Tall
Magarao 3 315 0 315 12,000 PCA 15-
1/15-2 &
Local Tall
Bombon 2 220 0 220 8,800 PCA 15-
1/15-2 &
Local Tall
Calabanga 12 1,320 0 1,320 59,400 PCA 15-
1/15-2 &
Local Tall
Pili 8 630 0 630 28,350 PCA 15-
1/15-2 &
Local Tall
Ocampo 5 550 0 22,000 Local Tall &
Dwarf
CAM SUR II
Sangay 51 1,100 4,300 5,400 Tacunan 3-6 years
Buhi 2 250 0 250 24,000 Tacunan
Baao 5.7 0 570 650 Tacunan 3 years
Presentacion 20.0 0 2,000 2,000 Tacunan
Source: PCA,2014
TOTAL INVESTMENT COST
COST PROPONENT DA PLGU PRDP TOTAL
Lots
Coco Sap 3,000,000 3,000,000
Whole Nuts 500,000 500,000
Buildings
Coco Sap 750,000 750,000 6,000,000 7,500,000
Whole Nuts 225,000 225,000 1,800,000 2,250,000
Equipment & Facility
Coco Sap 7,500,000 7,500,000
Whole Nuts 2,440,000 7,560,000 10,000,000
Vehicles
Coco Sap 660,000 2,340,000 3,000,000
Whole Nuts 1,200,000 2,3000,000 3,500,000
Working Capital
Coco Sap 3,000,000 3,000,000
Whole Nuts 1,250,000 1,250,000
Trainings/Promotions
Coco Sap 1,100,000 2,620,000 280,000 4,000,000
Whole Nuts 200,000 220,000 80,000 500,000
TOTAL 7,250,000 6,775,000 6,775,000 25,200,000 46,000,000
IV. INSTITUTIONAL ARRANGEMENTS FOR PRDP FUNDING
1. Implementation Supervision
The over-all local implementation of the project will be headed by the Provincial
Program Management & Implementation Unit (PPMIU) with guidance from the
Provincial Core Planning Team and close coordination from the project beneficiaries
specifically the local governance. Furthermore, in order to assess every status of the
activities of each counterpart, the PPMIU shall confer with the respective head of I-
PLAN, I-REAP, I-BUILD counterparts.
Alongside with this concern, an appropriate funding must be allocated in terms
of office supplies and the like, some capital outlays (i.e. laptops/desktops & accessories,
camera, etc.), water & electricity/office maintenance, honoraria of project personnel in
corresponding transportation allowances, mobility facility, etc.
2. Organization & Management
All program updates shall emanate from the office of the Program Director-
Luzon Cluster. The Regional Program Coordinating Office shall likewise provide
directions and technical assistance to the provincial-based PPMIU. The PPMIU shall be
responsible in the actual project management implementation with a direct and timely
coordination with all the project components. The I-Support counterpart shall take the
project components. The I-SUPPORT component shall take a primordial role since it will
be responsible in administrative, logistics and monitoring and evaluation aspects of the
projects.
ORGANIZATIONAL STRUCTURE
3. Monitoring and Evaluation
This very significant project activity is very essential in regular project assessment. It
can be the gage to know when plans are not working and when circumstances have
changed. These kinds of information are needed to make effective decisions about the
programs implementation, about changes that are necessary in strategy or plans.
Specifically, the I-SUPPORT must provide feedbacks to the project implementors and
other stakeholders in order to identify problems/issues that may impede
implementation for possible redesign actions. Consequently, M & E must provide
mechanism for assessing the programs in terms of efficiency, effectiveness, relevance,
appropriateness and sustainability. Likewise, if shall assist in enhancing the capability of
partner-stakeholders (i.e. organizations, LGUs and the communities.
OFFICE OF THE SECRETARY -DA
PROGRAM DIRECTOR LUZON B CLUSTER
REGIONAL PROGRAM COORDINATING OFFICE
I-PLAN I-REAP I-BUILD I-SUPPORT
PCRT
PPMIU
I-SUPPORT
I-PLAN I-REAP I-BUILD
PROJECT BENEFICIARIES
Summary of Budgetary Requirement
Segment PRDP Other Agencies
DA-GOP PLGU Proponent Group
Total
1. Input Supply 72,900,000 72,900,000.00
2. Agri. Production
120,950,000 2,500,000
3. Assembly 840,000 360,000 1,300,000 2,500,000
4. Processing 25,200,000 3,935,000 6,415,000 5,950,000 41,500,000
5. Marketing 2,000,000 2,000,000
6. Support Services
1,792,625,611
224,078,201 224,078,201 2, 240,782,014
TOTAL 1,817,825,611 193,850,000
230,853,201 230,853,201 7,250,000 2,480,632,014
ANNEXES
Annex 1. Glycemic Index of Different Kind of Sugar commonly Available in the Market
Kind of Sugar Gycemic Index (GI)
1. Coco Sap Sugar 34-54 per serving
2. Cane Sugar ( Refined sugar,
brown sugar, turbinado sugar,
muscovado sugar, molasses and
sucanat)
65-100/serving
3. Maple Syrup 69+
4. Honey 70+
5. Stevia Less than 1
Source: FNRI Indicative Value: High GI - more than 70 Low GI – less than 55
Meduim GI - 56 to 69
Annex 2. Amino Acids and Vitamins Content of Coco Sap
Amino Acids (g/100g) Vitamins (mg/DL)
Kind of amino acid Value Kind of Vitamins Value
1. Tryptohpan 1.27 Thiamine 77.00
2. Lysine 0.32 Riboflavin 12.20
3. Histidine 1.19 Paraminobenzoic acid 38.4-47.10
4. Arginine 0.39 Pyridoxal 38.40
5. Aspartic Acid 11.22 Pantothenic Acid 5.20
6. Threonine 15.36 Nicotinic Acid 40.60
7. Serine 8.24 Biotin 0.17
8. Glutamic Acid 34.20 Folic Acid 0.24
9. Proline 3.52 Inositol 127.70
10. Glycine 0.47 Choline 9.00
11. Alanine 2.56 Vitamin B12 trace
12. Valine 2.11
13. Isoleucine 0.38
14. Leucine 0.48
15. Tyrosine 0.31
16. Phenylalanine 0.71
Annex 3. Comparison of Mineral Content of Three Kinds Available Sugar in the Market
(mg/l (ppm):
Macronutrient Coco sap Sugar Brown Cane
Sugar
Refined Cane
Sugar
1. Nitrogen 2,020.0 100.0 0.0
2. Phosphorous 790.0 30.0 0.7
3. Potassium 10,300.0 650.0 25.0
4. Calcium 60.0 240.0 80.0
5. Magnesium 290.0 70.0 10.0
6. Sodium 450.0 20.0 10.0
7. Chlorine 4,700.0 180.0 100.0
8. Sulfur 260.0 130.0 20.0
9. Boron 6.3 0.0 0.0
10. Zinc 21.2 2.0 1.2
11. Manganese 1.3 2.0 0.6
12. Copper 2.3 0.6 0.6
13. Iron 21.9 12.6 1.2
Source: PCA-Plant Tissue Analysis Laboratory
Annex 4. Top Fifteen Municipalities Based on E-VSA Composite Ranking
Municipality Coconut
Production
Number
of
Coconut
Farmers
Poverty
Incidence
Road
Density Rank
1. Lagonoy 85,458,560 10,215 47 0.48 1
2. Goa 26,618,550 10,632 41 0.43 4
3. Tinambac 65,590,500 4,464 53 0.23 2
4. Sipocot 37,571,510 3,320 44 0.48 5
5. Ragay 56,176,786 4,350 46 0.47 3
6. Lupi 22,035,633 2958 50 0.48 8
7. Buhi 45,061,828 4,315 44 0.50 6
8. Caramoan 27,536,800 8,102 54 0.33 7
9. Del Gallego 35,314,040 2,510 52 0.63 9
10. Iriga City 21,999,496 4,213 32 1.43 10
11. Pasacao 29,818,067 3,200 49 0.55 11
12. San Jose 8,693,400 860 39 0.94 13
13. Sangay 9,203,584 6,401 52 0.29 15
14. Libmanan 21,931,882 2,040 47 0.56 12
15. Pamplona 15,348,918 1,201 47 0.83 14
Annex 5. Map Showing the Top Fifteen Municipalities (Composite E-VSA Result)
Note: Ranking of municipality was based on color. The darkest to light color indicate priority
Annex 4a. Map Showing the Top Fifteen Municipalities in Coconut Production (PCA
Data)
Note: Ranking of municipality was based on color. The darkest to light color indicate priority
Annex 4b. Map Showing the Top Fifteen Municipalities with Most Number of Coconut
Farmers (PCA Data)
Note: Ranking of municipality was based on color. The darkest to light color indicate priority
Annex 4c.Map Showing the Top Fifteen Municipalities with Poverty Incidence (NSCB,
2009)
Note: Ranking of municipality was based on color. The darkest to light color indicate priority
Annex 4d. Map Showing the Road Density of the Municipalities of Camarines Sur (DPWH
data)
Note: Ranking of municipality was based on color. The darkest to light color indicate priority
Location and Supplier of Proposed Village Level Processing Centers for Coco Sap and Whole Nut
Location Player Municipal Supplier
A
Satellite Processing Center
1 Ragay CSMPC/Ragay Coconut Industry Devt. Council
Del Gallego, Lupi, Sipocot, Ragay
2 Pamplona Pamplona Farmers Coop. Inc. (PAMFACO)
San Fernando. Pasacao, Libmanan, Pamplona
3 Pili Israel MP Coop. Inc. Minalabac, Naga City, Ocampo, Pili
4 Goa Maymatan Farmers MPC Tigaon, Sangay, Lagonoy, Goa
5 Iriga City Rinconda Movement for Sustainable Agriculture (RINCOMESA)
Iriga, Buhi , Bula, Baao and Bato
B. Main Processing & Packaging and Marketing Center
1 Pili CMPC - Lead Proponent All Village production
C. Whole Nut Village Level Multi-Product Processing Center
1 Sipocot Farmland Multi-Purpose Cooperative Sipocot, Lupi, Ragay, Libmanan, Pasacao & Pamplona
