The Federation of Free Farmers (FFF) has asked the Department of Finance (DOF) to appoint a panel of coconut farmers’ representatives that can advise members of the Trust Fund Management Committee (TFMC).
The TFMC decides on the disposition of coco levy funds and assets after the enactment of the Coconut Farmers and Industry Trust Fund Act of 2021 also known as Republic Act (RA) 11524.
The TFMC is comprised of the DOF secretary as chairman and fund manager with the secretaries of the Department of Justice (DOJ) and the Department of Budget and Management as members.
“The TFMC decides on the disposition of coconut levy funds and assets. It also determines the yearly funding allocation out of the P100 billion trust fund levy collections for the various projects and support services to be extended to coconut farmers and their organizations,” said Leonardo Montemayor, FFF chairman, in a statement.
FFF made the appeal for farmer representation after the DOJ issued an opinion stating that dividends and other proceeds from coconut levy-sourced assets should be remitted directly to the trust fund established by RA 11524 instead of to the national government.
The DOJ said its ruling also applies to the United Coconut Chemicals Inc. and the Coconut Industry Investment Fund-Oil Mills Group, among others.
Montemayor said the original capitalization of the two companies was sourced from coconut levies imposed on farmers between 1973 and 1982.
FFF said in 2021, several groups have asked then DOF Secretary Carlos Dominguez III to include an advisory council of coconut producers’ representatives in the crafting of the implementing rules and regulations governing the TFMC.
Montemayor said the request was not granted.
The Philippines is the world’s second largest coconut producer next to Indonesia but is the world’s top exporter, shipping around 70 percent of output. Products include crude and refined coconut oil, desiccated coconut, copra meal and coconut water.
Despite stable export growth, the coconut industry continues to suffer from declining farm yield that started in 2010 due to infestation and major typhoons, low investments, limited research and development and poor infrastructure.
Based on data from the Philippine Statistics Authority, coconut production slipped 0.26 percent in 2022 to 14.89 million metric tons (MT) for husked (young and mature) in 2023 from 14.93 million MT in 2022.
