Coconut Institutions' Future Uncertain in the Philippines

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Two major institutions aimed at supporting Filipino coconut farmers are reportedly deteriorating, as highlighted by Leonardo Montemayor, former Secretary of the Department of Agriculture. The United Coconut Planters Bank-Coconut Industry Investment Fund's Finance and Development Corp. (CocoFinance) and Foundation (CocoFoundation) are struggling, hampered by unresolved issues around the coco levy fund.

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The coco levy fund, originally designed to boost the coconut industry and alleviate farmer poverty, faced years of legal limbo over its ownership. This situation left 3.5 million coconut farmers without essential support, according to Montemayor. While these institutions initially helped mitigate farmer neglect, their resources have dwindled due to governance challenges and policy shifts.

Established in the late 20th century, CocoFoundation focused on educational and scholarship programs for coconut farmers' children, enabling about 3,000 graduates by 2023. CocoFinance, on the other hand, provided loans and financial literacy workshops, disbursing P10.34 billion by 2019 to roughly 235,000 farmers.

Despite the positive Supreme Court ruling in 2012 and subsequent legislation in 2021, which earmarked the levy fund for farmers' benefit, Montemayor alleges that both organizations were sidelined in policy decisions. Professional leadership has reportedly been replaced with political appointees, leading to reduced resources and operational inefficiencies.

Looking forward, Montemayor advocates for a leadership overhaul and restored professional management within these institutions. He urges the Marcos administration to hold current officials accountable to ensure effective distribution of resources to farmers. Without these reforms, he suggests the institutions’ ability to assist nationwide could further diminish.

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  Adapted by ASEAN Now · Inquirer · 28 May 2026