No more middlemen: Coconut farmers to sell their products directly to oil mills

  • The coconut farmers can now sell their products directly to oil mills
  • The products will be sold to oil mills at the price the middlemen and traders are getting
  • An American company will put up factories in Mindanao that would produce hollow blocks using coconut fiber

Coconut farmers can now earn higher profits from their products after several oil mills agreed to buy directly from them instead of relying from middlemen and traders for their supplies to produce coconut oil.

The direct marketing arrangement was reached after the Department of Agriculture (DA) convened the coconut industry stakeholders in a caucus held in Quezon City last Thursday, November 22.

Image from Agriculture Secretary Emmanuel Piñol’s Facebook account

According to Agriculture Secretary Emmanuel Piñol, oil mills buy their copra supplies from middlemen and traders at P22 to P24 per kilo which is almost double the farm gate price of copra.

“This is almost double the buying price of Copra at farm gate which is between P8 to P12 per kilo,” Piñol said.

Image from Food Farm News

The coconut farmers will be organized into cooperatives, said Sec. Piñol. These cooperatives will receive working capital from the DA to enable them to buy the copra production of their members. They will then sell and deliver the products to oil mills at the price the middlemen and traders are getting.

These cooperatives, Sec. Piñol said, will also be given funds for the purchase of dryers and hauling trucks.

The direct marketing arrangement will be implemented before the end of November.

Meanwhile, according to ABS-CBN, the DA has signed a deal with an American company to put up factories in Mindanao that would make hollow blocks and roofs using coconut fiber.

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