QUEZON CITY – Amid the continued surge prices of domestic copra, cooking oil, and other coconut products, the Philippine Coconut Authority (PCA) convened major industry players for an Industry Consultation on Stabilizing Prices of Cooking Oil and Other Coconut Products at the PCA Central Office Auditorium on April 5, 2025.

The high-stakes meeting, spearheaded by the PCA’s Trade Information and Relations Division (TIRD) under the Trade and Market Development Department (TMDD), brought together stakeholders from the coconut oil milling, refining, desiccating, and oleochemical sectors. The meeting aimed to gather feedback, identify shared challenges, and develop actionable measures to address the ripple effects of the sustained price increase across the coconut value chain, particularly its impact on processors, manufacturers, and ordinary Filipino households.

The consultation, a follow-up to a preliminary meeting held with Authority officials and other key agencies, was prompted by a PCA briefer highlighting the critical upward trajectory of copra prices since July 2024, directly impacting the cost of cooking oil and other coconut-based commodities. Data presented by the PCA-TIRD revealed that the national average farmgate price of copra reached P58.10/kg as of March 31, 2025, a staggering P30.41 increase compared to the same period last year. Millgate prices have also soared, reaching a national monthly average of P75.34/kg in March 2025, surpassing even the peak triggered by the Russia-Ukraine conflict in March 2022.

“The Philippine coconut industry is at a critical juncture,” the PCA emphasized in its briefing. “If not addressed urgently, the rising costs of copra and coconut oil could strain the operations of processors and ripple into widespread food inflation affecting every Filipino household.”

The ripple effect of these copra price hikes has translated to alarming retail prices for Refined, Bleached, and Deodorized Coconut Oil (RBD CNO), commonly used as cooking oil, ranging from P172 to P182 per kilogram at the millgate level. Major domestic suppliers report a company price of P168.83 per liter, with a suggested retail price of P173.90 per liter, figures that are causing significant concern for ordinary Filipino households and the food manufacturing sector.

Administrator & CEO Dexter R. Buted emphasized the urgency of the situation, pressing everyone involved, "We cannot afford complacency. The PCA will act with decisiveness, armed with data-driven policies and strengthened partnerships with the private sector and government agencies. The coconut industry is too vital to the Philippine economy to be left at the mercy of volatile market forces."

The consultation tackled a comprehensive agenda, including a detailed presentation on the issue of escalating coconut oil and copra prices and proposed actions, the Masterplan for the CY 2024-2028 Coconut Productivity Programs, and the Coconut Production Forecast vis-a-vis the PCA's planting, replanting, and fertilization initiatives. Discussions also centered on the Coconut Farmers and Industry Development Plan (CFIDP) activities aimed at price and supply stabilization through intercropping, animal integration, and shared service facilities.

A significant portion of the forum was dedicated to an open discussion on possible strategies to mitigate the risks associated with the soaring coconut oil prices. Among the key suggestions and proposed resolutions that emerged from the consultation were:

1. Intensified Monitoring of Export Activities: Stakeholders voiced strong concerns regarding potential illegal exportation of mature coconuts, citing the recent seizure at the Port of Cebu of P232 million worth of coconuts destined for China, despite an existing export ban (source: sunstar.com.ph). The PCA and the Bureau of Customs will strictly monitor and curtail such activities to ensure sufficient domestic supply;

2. Re-evaluation of Biofuel Blend Increase: Several attendees proposed a temporary suspension of the scheduled 1% increase in the coco-methyl ester (CME) biodiesel mandate, set for October 2025. They advocated for an immediate dialogue with the National Biofuels Board to assess the impact of the increased blend on domestic coconut oil supply and pricing, suggesting a potential temporary adjustment to prioritize cooking oil availability for consumers;

3. Strategic Utilization of the Social Amelioration and Welfare Program (SAWP): Recognizing the need for short-term solutions to boost coconut production, participants explored avenues to leverage the Department of Labor and Employment's (DOLE) SAWP, established under Department Order No. 144, series of 2015. The focus was on identifying specific programs within SAWP that could be swiftly implemented to support coconut farmers and expedite increased coconut yields. A commitment was made to engage in discussions with DOLE to operationalize relevant SAWP components.

A strong consensus emerged on the necessity of ongoing and in-depth consultations with all relevant stakeholders to devise comprehensive and strategic solutions to the sustained price increases. The PCA committed to organizing a series of follow-up meetings to further refine proposed measures and ensure collaborative action across the industry.

The PCA acknowledged the urgency of the situation and assured industry players that the insights and recommendations gathered during the consultation would be thoroughly evaluated to formulate concrete action plans and policy recommendations. The Authority reiterated its commitment to balancing the welfare of coconut farmers with the need to ensure affordable cooking oil and stable prices for other coconut products for the benefit of the broader Filipino populace.

"The coconut industry is a pillar of our economy and the lifeblood of millions of Filipino farmers. We must strike a balance between maintaining farmer profitability and ensuring that consumers and industries are not priced out of essential coconut-based goods," PCA-TIRD Division Chief Luz Brenda P. Balibrea concluded.

The outcome of these deliberations and the subsequent actions taken by the PCA are keenly awaited by consumers and industry stakeholders alike, as the nation grapples with the economic impact of the escalating prices of a staple commodity.