towards Vonn Andrei E. Villamiel
The coconut sector stands to gain a lot from the recent US tax concessions, although critics say the size of these sums depends on the strength of the industry and regional competition.
According to the Supreme Court, the US has been exempted from more than 200 agricultural subsidies that it does not produce in large quantities. As such, certain Philippine agricultural goods will no longer be subject to the 19% repatriation tax.
Coconuts and its derivatives are the Philippines’ top agricultural exports to the US. In 2024, the Philippines exported coconut oil to the US, accounting for 4.6% of the total, according to Philippine statistics officials.
Charles R. Avila, President of the Confederal of the Coconut Farmers’ Associations of the Philippines, said that the exemption of the fee “is an important relief for farmers and sellers.”
Mr. Avila was told Businessworld Via Viber that when Philippine Exports, including coconut products, were charged with high tariffs, the first response was to find other markets.
“Our immediate reaction is that the US is not the only market that produces coconuts.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. He said that the release of currency removes the doubts that have been holding manufacturers and exporters.
“Now people can organize, invest, and expand … as far as the DA is concerned, we should start investing more in the US,” said Mr. Laurel told reporters on 3 sidesthe ld Philippine Hydro conference last week.
However, analysts also pointed out that the exemption of the fee is not specified in the Philippines. The US decision applies to all supply countries, as part of its efforts to raise domestic food prices.
“The Philippines does not suddenly have the opportunity to export opportunities for US products. All other countries have been exporting the same amount this year,” said Ibon Foundation executive director Jose Enrique A. Africa was told Businessworld Via Viber.
Because of this, gains will start to boil down to production and regional competition, said the best of the regions.
Samahang Industriya NG Agriculturactor Director Jayson H. Cainglet was told Businessworld Via Viber that the Philippines is facing tough competition within Southeast Asia. “For coconut oil and coconut water, Indonesia is now producing them at scale. For Bananas, Indonesia, India, and China can compete with us,” he said.
Mr Cainglet also said that these countries enjoyed government support and subsidies, which gave them an advantage in manufacturing and maintaining competitiveness.
“The pressure and the task is actually in the government to intervene in a planned intervention to improve the domestic price to get the edge of the market. The analysis of the highest price and the acquisition of the value of the Philippines will build again” said Mr. Africa.
He said the government should also take steps to allow small farmers and local producers to benefit from exporting agricultural products, such as ensuring higher farm prices.
Eduardo Mora, coconut farmer and sector representative of the National Commission on Poverty, was told Businessworld Via Facebook Messenger a lot needs to be done to translate the commercial benefit to Farmer WelfALAL.
“SA Bahagi Ng Magsasaka Ng Niyog, Ang Nagtatakda ng Presyo ng raw material a ang ang buy ng aming Copra mula sa Pilipinas Papuntang Ibang Bansa. Ang Mabegita Dito ‘Yung Negosyante e’ Yung Bibili, Hindi Naman Mga Magsasaka. .
Mr. Mora said the government should also invest in building productive capacity and develop local industries.
“Kaya Naman ng The Philippines NA Paunlarin Ang Industriya. Kiailangan Ng Value added processing para dito na Pilipinas gawin in Mga Filipino, Mga Magsasaka Ang Makinabang. .
