Coconut still Mindanao’s agri giant

Coconut still Mindanao’s agri giant
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COCONUT retained its position as Mindanao’s top agricultural product from 2019 to 2023, maintaining its lead despite slight fluctuations in annual output. This is based on the latest Mindanao in Figures 2024, a publication of the Mindanao Development Authority (MinDA) that compiles key macroeconomic indicators across the island.

Over the five years, Mindanao produced a total of 44.6 million metric tons (MT) of coconut. In 2023 alone, output slightly dipped to 8.96 million MT from 9.01 million MT in 2022. Despite the decline, coconut remained the region’s most produced crop.

Banana ranked second in total production during the same period, with 38.22 million MT. This was followed by palay (22.40 million MT), sugarcane (21.87 million MT), corn (21.24 million MT), and pineapple (12.52 million MT). Other notable crops included cassava at 9.94 million MT, oil palm at 2.44 million MT, rubber at 2.08 million MT, mango at 1.35 million MT, abaca at 143,145 MT, coffee at 125,574 MT, and cacao at 44,157 MT. Collectively, these 13 major crops yielded a total of 176.94 million MT between 2019 and 2023.

In terms of export value, however, bananas overtook coconut as Mindanao’s top commodity in 2023. Fresh and dried bananas, including plantains, brought in $1.22 billion in Free on Board (FOB) value, while coconut exports generated $920.37 million. Despite its larger production volume, coconut ranked second in export earnings, highlighting the need to boost value-adding efforts in the coconut industry.

MinDA noted that, aside from agricultural goods, metallic minerals were also among the region’s leading exports. The agency explained that FOB, or Free on Board, is a trade term indicating the point at which the responsibility for goods transfers from the seller to the buyer, typically in international shipping.

MinDA Assistant Secretary Romeo Montenegro underscored Mindanao’s vital contribution to the country’s food supply and export performance. He said for the region to become more competitive globally, it must adopt economies of scale and align its practices with international standards. He pointed to countries like Thailand and Singapore as models in this area. Montenegro reaffirmed that agriculture remains central to MinDA’s development agenda, which includes expanding agribusiness, strengthening value chains, and improving coastal resource management.

In the Davao Region, agriculture continues to be an important economic driver, even as it contributed only 14.5 percent to the regional economy in 2023. According to SunStar Davao, the sector contributed around ₱147.18 billion to the ₱1.02 trillion gross regional domestic product (GRDP), marking a modest 0.6 percent increase from the previous year. Still, this relatively small share reflects long-standing structural issues and growing vulnerabilities—especially in the face of climate change.

Extreme weather conditions caused by the El Niño phenomenon, including droughts, floods, and heat waves, have severely affected agricultural productivity across Mindanao. MinDA warned that these disruptions not only reduce crop yields but also threaten farmer incomes and food security. To mitigate the impact, the agency has been promoting the adoption of climate-resilient farming systems and the upgrading of infrastructure to help communities better withstand environmental shocks.

At the same time, there is a growing movement toward producing high-value and value-added agricultural goods. In a recent effort to support this shift, the Department of Trade and Industry in Davao del Norte, in collaboration with MinDA, organized a Mindanao-wide Coconut Farmers Cooperative Summit. The event focused on promoting downstream industries such as virgin coconut oil, coconut water, and coco coir—products that have strong potential in niche global markets, particularly in Europe under the EU’s GSP+ preferential trade program.

Complementing these efforts are research and development initiatives aimed at strengthening organic agriculture. With funding from the Korea International Cooperation Agency (Koica), a ₱53 million R&D project is being implemented to improve the production and processing of organic cacao and durian. While these crops have relatively lower output, they are viewed as high-potential commodities with export value if properly developed.

While coconut remains the agricultural backbone of Mindanao, the region’s long-term growth lies in embracing modernization, investing in climate adaptation, and enhancing value-adding strategies. With sustained support from MinDA, local government units, and international partners, Mindanao’s agriculture sector is well-positioned to evolve into a more resilient and globally competitive agri-based economy. DEF

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