Southern Mindanao coco industry recovering

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Posted by agri_center | Posted in Coconut, Enterprise, Food and Nutrition | Posted on 07-06-2009

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Southern Mindanao coco industry recovering

AFTER losing nearly 70 percent of its exports during the first quarter of 2009, the coconut industry is now back on its feet, at least with one coconut exporting company in Southern Mindanao.

In an interview, Jalilo dela Torre, regional director of the Department of Labor and Employment (Dole)-Southern Mindanao, said the coconut industry suffered severely from the global financial crisis.

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“They lost about 70 percent of their exports,” dela Torre said, citing the experience of Franklin Baker, a Davao del Sur-based company exporting coconut products abroad.

But as the global financial crisis waned by the start of the second quarter of 2009, the company was starting to pick up with demand for export products rising.

“With this, we also expect an increase in the prices of copra, and other coconut products, reviving the industry,” dela Torre said. “Demand is again picking up.”

In April 2009, the decline of the coconut industry prompted the Mindanao Business Council (MinBC) to hold a Coco Summit on June 25 to 26 in Mati, Davao Oriental.

In the summit, MinBC aims to inform coconut farmers on how to maximize the potential of the coconut by teaching farmers how to come up with other coconut byproducts.

PCA report

Based on the Philippine Coconut Authority (PCA), the coconut industry is a dominant sector of Philippine agriculture, with 3.1 million hectares devoted to coconut out of the 12 million hectares of farmlands in the country.

Sixty-eight out of 79 provinces are coconut areas, with over 324 million bearing and non-bearing trees planted by 3.5 million coconut farmers. Twenty-five million Filipinos are directly or indirectly dependent on the coconut industry.

The Philippines gets a 59 percent share of world coco exports with Davao Oriental as the top copra producer in Mindanao.

The coconut industry is also among the top five net foreign exchange earners with an average of US $760M annually.

Coconut stats

Statistics from the United Coconut Association of the Philippines showed that the global financial crisis caused coconut exports to plummet by 81 percent from 212,378 metric tons (MT) in January 2008 to 39,714 MT last January.

The volume of coconut oil exports, in particular, plunged by 79 percent from 121,766 MT to 25,020 MT for the same comparative months.

This situation is coupled with local concerns that include the stagnating and declining productivity of coconuts, low domestic consumption, and weak research and development, among others. (CPM/Sunnex)

Source: Sun Star

South Korean investment for $49-M coconut-based sweetener plant in RP brings good tidings to PCA Samar

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Posted by agri_center | Posted in Business Opportunities, Coconut | Posted on 05-06-2009

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South Korean investment for $49-M coconut-based sweetener plant in RP brings good tidings to PCA Samar

In an interview today with the Samar Provincial Coconut Development Officer (PCDO) Emi Acasio, he said that it is a good development and an alternative to copra which Eastern Visayans are used to.

In the last Palarong Pambansa held in Tacloban City in April, 2009, the Philippine Coconut Authority (PCA) displayed coconut sap sugar believed to be good for diabetic patients.

Ms Rafaela Lacdao manning then the PCA booth, said that the sap is taken from coconut water used to make tuba. The liquid is boiled until it caramelizes and turns brown, the product is equivalent to the local ‘kalamay’.

Base on further study, coco sugar is 100% natural and is produced from coconut sap or sweet toddy evaporation with no preservatives.

The sugar particles are powder soft and easily melts in the mouth.

Tests done by the Philippine Food and Nutrition Research Institute (FNRI) and Department of Science Technology (DOST) of the Philippines has revealed a low glycemic index (GI) of 35 making Coconut Sugar a healthy sweetener.

Coconut sap sugar is foreseen to create numerous livelihood opportunities in rural areas as the process involves a simple farm level technology, but it is labor-intensive due to the coconut sap harvesting activity.

The news that came today says that a South Korean food processing company committed itself to President Gloria Macapagal-Arroyo to put up a coconut-based sweetener manufacturing plant in the Philippines .

CJ Corporation (CJC) led by its chairman Kyung Shik Sohn and its president and CEO Jinsoo Kim called on the President at the onset of the 20th ASEAN-ROK Commemorative Summit held at the Shilla Hotel to personally present to Mrs. Arroyo their “expansion” plan for the Philippines .

Press Undersecretary Lorelei Fajardo told reporters that CJC, whose $7.5-million animal feeds production plant in San Rafael , Bulacan has been operating since 1997, plan to put up their natural on coconut-based sweetener manufacturing plant in Sta. Cruz, Davao del Sur.

“The prospective employment generation of CJC’s plant to manufacture its coconut-based brand Xylose sweetener will generate at least 1,000 jobs,” Fajardo said.

She added that the President instructed Trade Secretary Peter Favila to ensure the “smooth operation of CJC’s investment in the country.”

“The President gave assurance that the Philippine government would extend all necessary assistance and support to ensure the smooth operation of CJC’s investment in the country,” Fajardo said.

The coconut industry is considered a major dollar-earner in the country that provides livelihood to a third of the country’s population.

Of the 12 million hectares of farmlands in the country, one-fourth is devoted to coconut farms in 68 provinces.

The Philippines currently has a 59 percent share in the total coconut exports globally, and the industry contributes 1.14 percent to the gross national product every year.

In Samar province, although PCA knows the plant may not necessarily be in Eastern Visayas , still the office believes that massive production of coconut sugar could radiate to other provinces where coconut plays a vital role in its economic development.

To re invigorate the industry, PCA is currently undergoing fertilization program where municipalities are given salt fertilizers.

Just last week, Acasio committed 80 bags of salt fertilizers for the coconut farmers of Pinabacdao town.

Source: www.pia.gov

Coconut-leaf beetle plagues trees in Zamboanga’s villages­–agri office

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Posted by agri_center | Posted in Coconut | Posted on 07-05-2009

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ZAMBOANGA CITY—The Brontispa longissima,or coconut-leaf beetle, has invaded the coconut trees in nine barangays here, prompting emergency measures to prevent the destructive pest from spreading to other parts of the city.

City Agriculturist Diosdado Palacat said the infested barangays are Bunguiao, Cabatangan, Curuan, Lunzuran, Pasonanca, San Roque, Sta. Maria, Tumaga and Vitali—the latest.

Palacat’s office is about to survey how many coconut trees the leaf beetle has actually plagued. Palacat said his office has created Task Force Brontispa to help the Philippine Coconut Authority (PCA) contain and eliminate the Brontispa longissima infestation in the city.

Task force head Carlito Rubares has advised the farmers to report new trees the leaf beetle has infested.

“[The farmers] have to be vigilant so that we can help save our coconut industry,” Palacat said.

The coconut leaf beetle feeds on young leaves and damages seedlings and mature coconut palms.

In the last three decades, the beetle has become a serious threat to coconut trees in the Pacific region, especially in Indonesia, Solomon Islands, Vietnam, Nauru, Cambodia, Laos, Thailand, Maldives, Myanmar, Hainan Island and Aru Islands and, most recently, the Philippines.

Brontispa longissima came to the Philippines in 2004 through imported ornamental plants.

Written by Bong Garcia / Reporter

Source: Written by Bong Garcia / Reporter

Coco industry decline worries Bukidnon lawmaker

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Posted by agri_center | Posted in Coconut | Posted on 07-05-2009

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A HOUSE committee member on Food and Agriculture has expressed concern over the declining coconut industry of the country.

Bukidnon Second District Rep. Teofisto Guingona told Sun.Star Cagayan de Oro by phone, over the weekend that the coconut industry has suffered a sharp decline and that national government should come in to prop it back up.

“Unless we do something about it, we will lose our place in the coconut world market,” Guingona said.

He cited a recent Asian Development Bank (ADB) study that showed that “the Philippines will lose the distinction of being the world’s top coconut producer and supplier.”

The report also stated the government’s continuing failure to address the concerns of stagnation and declining productivity of coconuts, low domestic consumption and weak research and development, “as major reason for the decline.

“Our competitive advantage in the international market is being chipped away unless the government does something to address the declining productivity of coconuts,” Guingona said.
He added that while other countries are catching up with the Philippines in terms of production and export, national government has done anything on any “large-scale replanting.”

“We haven’t even adequately invested in research and development of the coconut industry. The government must invest in the–immediate rehabilitation of the coconut industry, particularly in replanting of the new coconuts,” Guingona said.

He further pointed out that coconut trees in the country are harvested for its lumber faster than replanting them.

“At present, the rate of coconut trees being cut down is faster than the rate of new coconuts being planted,” Guingona explained.

Guingona is saddened to note that coconut used to be the country’s biggest crop industry after rice and corn and our country as a leading coconut producer in the world.

“Coconut is the country’s biggest crop industry after rice and corn. We are also the world’s top producer and supplier of coconut with our 59 percent share in world coconut exports,” he said.

Guingona said that should the coconut industry continue to decline, some 3.5 million coconut farmers and another 25 million Filipinos are bound to be affected.

“These people who depend on the coconut industry are mostly concentrated here in Mindanao and in Southern Luzon. But they are among the poorest of the poor as the coconut industry continues to languish from government neglect,” he said.

Written By Cong B. Corrales

Source: Sun Star

Coconut oil mill gets P100-M rehabilitation money from government

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Posted by agri_center | Posted in Coconut | Posted on 07-05-2009

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LEGAZPI CITY—Legazpi Oil (LegOil) Co. has rehabilitated its coconut-processing plant here using a P100-million fund given by the government to help the coconut industry in Bicol upgrade and modernize its facilities.

The region is one of the country’s leading producers of the crop.

The LegOil plant at the old LegOil compound in barangay Arimbay would start operations after the inauguration rites this Friday, Pepita Baltazar-Aquino, LegOil chairman, said on Wednesday.

“We now have modern facilities for copra crushing and oil processing, and we will start round-the-clock operations at once after the inauguration rites,” Aquino said.

After Friday’s affair, the plant will accept copra from coconut farmers and suppliers in the region, according to LegOil director Mario Espinosa.

The plant will process copra into crude oil, edible oil and other finished products that would be sold to the domestic and international markets, Espinosa said.

LegOil started operations here more than four decades ago, but was mothballed over two years ago after Typhoon Reming damaged its facilities.

The closure of LegOil forced copra traders and producers in Bicol to sell their produce to Lucena City, site of the nearest coconut mill that accepted direct deliveries.

The revival of LegOil brings back convenience to coconut farmers in Bicol. The company also offers better prices for copra, Espinosa said.

LegOil expects to get 250,000 tons of copra per day on average. “Farmers and traders have expressed willingness to once again deal with LegOil,” as they would get paid at “mill-gate prices that are higher than farm-gate prices,” he said.

Espinosa said the government, through the office of President Arroyo, and the Philippine Commission on Good Government has contributed P100 million to set up the fund.

“This is an initial fund released by the government to LegOil, and once our operations become successful, President Arroyo has promised us an additional P200 million [in] government [assistance] for us to be able to expand and have additional capitalization,” he said.

Bicol is among the country’s biggest coconut-producing regions, but the industry was affected by the two supertyphoons that hit Bicol in 2006 and devastated its coconut plantations.

Espinosa said the industry is recovering from devastation.

A study by LegOil that showed better prospects for the industry has encouraged the government to give P100 million as initial investment to help the industry fully recover from ruin.

The LegOil facilities sit in vast compound near the coastline of Albay Gulf. Its strategic location allows the mill to deal with coconut producers from the provinces of Albay, Sorsogon, Camarines Sur, Camarines Norte and the island provinces of Catanduanes and Masbate.

Written by Danny O. Calleja / Correspondent

Source: Business Mirror

Rediscovering the potentials of makapuno

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Posted by agri_center | Posted in Coconut | Posted on 03-05-2009

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IF EATING coconut is healthy, can it also enhance beauty? If you ask the Philippine Coconut Authority (PCA), the answer would be a resounding yes.

The PCA, created under Presidential Decree 232, is mandated “to oversee the development of coconut and other palm oil industry in all its aspects.” One of its research centers in Albay has developed cosmetics out of makapuno.

The researchers said makapuno may be used to make hand and body lotion, hand sanitizers, facial masks, hair cream and hair gel, shampoo, conditioner and even a biodegradable edible film (which can be used as wrapper for candies and lumpia).

Makapuno is an exotic nut obtained from the coconut tree (scientific name: Cocos nucifera). It is different from the ordinary coconut in having the inside completely filled with thick and curdled white meat. Some experts called it as “mutant coconut.”

Dr. Maria Judith B. Rodriguez, who spearheaded the study, discovered that makapuno has a high content of galactomannan, a polysaccharide that is also classified as a gum.

“This galactomannan gives the makapuno a jellylike solid endosperm (meat) and highly viscous liquid endosperm,” she explained. “Usually the meat is made into jam while the liquid endosperm is thrown away.”

The coconut waste attracted her attention. “Newly harvested makapuno liquid endosperm, when applied as is on the hands and other parts of the body (including hair), has a soothing and moisturizing effect,” she said.

Dr. Rodriquez then applied for a grant from PCA central office. When it was approved, the study paved way to the development of an inexpensive and large-scale method of isolating the galactomannan from the waste makapuno liquid endosperm.

The PCA innovator called the whitish, fibrous powder produced from galactomannan as “mak gum” as it came from mutant coconut. Her study showed that a liter of waste makapuno liquid endosperm can make 50 grams of makapuno gum.

Galactomannan is considered “a natural biopolymer” as it has a “natural hydrating function making it suitable for formulations that treat dry, damaged or aged skin,” to quote the words of Dr. Rodriguez.

Compared to other hand and body lotion products sold in the market, she said the makapuno-based lotion is better because it is natural, nongreasy, and no allergic reactions have been observed upon its application.

Currently, the Albay-based coconut research center is working on formulating facial masks, hair cream and gel, shampoo and conditioner, and a body massage lotion out of the makapuno. It also doing studies on making makapuno sanitizers.

Not only that, the mak gum has also been tried as a raw material for the development of biodegradable edible film (biofilm), which can be used as an efficient wrapper for candies and lumpia. The biofilm will also be tried as possible gauze for wounds.

“There is now a high demand for stable, biodegradable wound dressing materials that can absorb body fluids and deliver medications to keep wounds clean and dry, (thus) speeding the healing process,” Dr. Rodriguez pointed out.

But the best product from makapuno is still for food. The makapuno’s meat is largely used for ice cream, pastries, preserves, and other Filipino delicacies. It is also incorporated in such favorites as fruit salad and halo-halo.

Makapuno is such a hit among Filipino consumers that big companies like San Miguel Corporation are in need of makapuno by the tons each month. In Laguna, buko pie — made from ordinary and mutant coconuts — are best sellers.

The high demand for makapuno both from the local primary and secondary food processors stands constant on a yearly basis.

“More than four million more nuts are required to fill the gap between the current and required supplies,” said PCA regional director for Bicol Minda Arellano.

The latest nationwide survey showed that there were only about 30,000 makapuno trees in the country, and its existing stand of fruit-bearing trees supply only about three percent of the demand.

The PCA urges Filipino farmers to plant makapuno in their farms. It is a profitable crop as one can realize a monthly income of around P800,000 once the trees start to bear nuts. Currently, a nut of the makapuno variety costs nearly 10 times than the ordinary coconut.

Farmers don’t have problem these days in getting their planting materials unlike in the past. Almost half a century ago, makapuno was a mystery and a rare nut to the farmers.

“Every so often, the coconut farmers found makapuno nuts in their copra harvest,” wrote Dr. Benito S. Vergara in a booklet on the subject. “If no liquid sound was made while shaking the nut, there was a very good chance that it was a makapuno.”

In those times, farmers had a hard time producing makapuno. “The makapuno nuts do not germinate, and so a pure makapuno tree could not be produced,” Dr. Vergara, a national scientist, stressed.

The oldest method of propagating makapuno was by planting the kabuwig (from the same bunch). This was to ensure that the recessive genes of the makapuno would surface in the next generation when trees were planted near each other. But the highest possible percentage of nuts turning to be makapuno was only 25 percent.

But Dr. Emerita V. de Guzman, who had Master of Science and Doctor of Philosophy degrees in Plant Physiology from Cornell University in the United States, was convinced she could do something to improve the low percentage and produce a pure makapuno tree yielding 100 percent makapuno nuts.

Thanks to her thorough research and study, Dr. de Guzman was able to produce such kind of makapuno. In 1981, she cross-pollinated the embryo culture coconut trees (that is, transferred the pollen from one makapuno tree to another makapuno tree). The nuts produced were 100 percent makapuno.

But it was not until the persistent effort of another lady scientist, in the person of Erlinda Paje-Rillo (also of PCA Albay), that the technology on the propagation of 100-percent makapuno planting materials, called embryo-cultured makapuno (ECM), has been commercialized.

Currently, government and private embryo culture laboratories are producing ECM seedlings in Albay, Cavite, Pangasinan, Leyte, Davao, Zamboanga, Tiaong, and Lipa. Rillo said the Department of Science and Technology had also funded significant ECM plantings in Davao, Zamboanga, Tacloban, Pangasinan, Albay, and Cavite.

Written by By Henrylito D. Tacio

Source:  Sunstar

PCA discovers pest nemesis of Brontispa

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Posted by agri_center | Posted in Coconut, Research and Development/Product Development, Tips and Techniques | Posted on 06-04-2009

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MANILA, Philippines – The Philippine Coconut Authority (PCA) has discovered new parasitoid insects which could prove to be of great importance in the country’s continuing battle against Brontispa longissima which has previously attacked more than 1.6 million coconut trees nationwide.

“Our research center in the Davao City has identified two indigenous small insects that parasitize Brontispa by laying their eggs in the larva or pupa of the pest” PCA Administrator Oscar G. Garin said.

He said the PCA-Davao Reseach Center conducted a study where a total of 1,948 parasitoid adults were released in infested barangays in Region XI and parallel laboratory tests.

“The parasitoids collected in the field inflicted about 30-50 percent parasitism on the pest’s larva or pupa” Garin noted, adding that laboratory results showed that seven to 47 adult parasitoids emerged from one larva/pupa 18 to 26 days from injection for parasitization.

“With the earwigs, we now have three indigenous species for biological control of this foreign pest” the administrator enthused as he underscored the need to adopt a long-term integrated pest management system.

Garin advised the use of chemical insecticides through trunk injection or spraying to be done only in severe cases and at first treatment, with the long term and sustainable approach to be comprised of biological control, use of entomophatogen fungi, good farming practices and strict quarantine controls.

“Our research centers are now mass rearing these parasitoids for immediate use in areas that may suffer recurrence of Brontispa infestation” he concluded.   – Coconut Media Service

PCA finds new parasites versus coco pest

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Posted by agri_center | Posted in Coconut, Research and Development/Product Development, Tips and Techniques | Posted on 06-04-2009

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The Philippine Coconut Authority (PCA) has discovered two new parasitoid insects which could help control the dreaded Brontispa longissima which has previously attacked more than 1.6 million coconut trees nationwide. This was announced by PCA administrator Oscar G. Garin.

Brontispa is a beetle that feeds on the emerging leaves of coconut trees, seriously damaging them and making them unproductive. In severe situations, the trees could be killed.

“Our research center in Davao City has identified two indigenous small insects that parasitize Brontispa by laying their eggs in the larva or pupa of the pest,” Garin said during the recent Brontispa in-house evaluation and action planning session held at the PCA in Quezon City.

Garin revealed that the PCA-Davao Research Center conducted a field release evaluation where a total of 1,948 parasitoid adults were released in infested barangays in Region 11 and parallel laboratory tests.

The parasitoids collected in the field inflicted about 30 to 50 percent parasitism on the pest’s larvae,” he said adding that laboratory results showed around 7 to 47 adult parasitoids emerged from one larva 18 to 26 days from injection for parasitization.

“With earwigs, we now have three indigenous species for biological control of this foreign pest,” Garin enthused as he underscored the need to adopt a long-term integrated pest management system.

The administrator further stressed that use of chemical insecticides through trunk injection or spraying should only be done in severe cases and at first treatment. The long term and sustainable approach should comprise of biological control, use of entomophatogen fungi, good farming practices and strict quarantine controls.

He added that PCA’s research centers are now mass rearing the parasitoids for immediate use in areas that may suffer recurrence of Brontispa infestation.

Source: Manila Bulletin

Rediscover many uses of coconut

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Posted by agri_center | Posted in Coconut, Trivia | Posted on 26-01-2009

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“THE amazing thing about the coconut palm is that it provides almost all the necessities of life: food, drink, oil, medicine, fiber, timber, thatch, mats, fuel, and domestic utensils, as well as serving important environmental services such as soil erosion control in coastal regions, wind protection and shade for other crops.”

That is the observation of Craig Elevitch, author of various books on tropical agriculture.

Coconut has been touted as a “lazy man’s crop.” According to an old legend, coconut is God’s gift to the lazy man. “He sleeps in the shade of the tree, is awakened when a nut falls, drinks the milk, and eat some of the meat. He then feeds the rest of the meat to the chickens and cattle, which produce eggs and milk and meat, respectively. The leaves provide thatch for the roof and walls of his coconut hut, and are also woven into hats, baskets and mats.”

With multifarious uses, coconut is indeed a “tree of life.”

Coconut is known scientifically as Cocos nucifera, but in the Philippines it is known as lubi (among Visayan folks), niyog (among Tagalogs and Ilokanos), ngu-ngut (Pampangueo), and ongot (Ibanag).

“The coconut industry is a pillar of Philippine agriculture,” noted Senator Edgardo J. Angara, former secretary of agriculture. “It is the oldest and most strategic industry in the country, comprising 1.14 percent of our gross domestic product, or as much as US$760 million.”

History records showed that the first impetus to coconut cultivation in the Philippines was given during the Spanish occupation. An edict was passed in 1867 by which every Filipino family was compelled to plant at least 200 square feet to coconuts.

Today, there are many products you can get from coconut. The most popular is the oil, which has many uses. Studies have shown that coconut oil is good for human consumption.

In a resolution commending Dr. Conrado Dayrit Jr. for his untiring and courageous effort in research on coconut oil, it was bared that coconut oil is sort of a drug “that regulates the body’s functions and defense mechanism. It restores the normal balance of tissues or cells that have become dysfunctional.”

Coconut oil is also used as ingredient for skin care and cosmetics, and many others. It is one of two plant oils commercially produced that contains medium chain triglyceride, a formula ingredient for infant milk powder.

Recently, the government passed a bill mandating that diesel fuel be mixed with coconut oil. This attracted the attention of people from all over the world as the Philippines is the only country heavily investing in coconut fuel. Studies suggest that a 5 percent coconut blend provides optimal fuel efficiency.

After that, too much coconut oil begins to dilute the power of diesel fuel. Jun Lau, chief operating officer for Chemrez Technologies (the only factory in the country capable of converting coconut oil into biofuels), explained that what coconut oil does is help the cars run smoother.

“When you put cocobiodiesel into a vehicle, you get a cleaning effect,” he explained. “It can actually work like a detergent to clean out all the carbon deposits, all the sludge, all the carbon buildup; you effectively have it melted away. So you do two things: you clean and lubricate. And effectively bring a car to its designed operating efficiency.”

Coconut milk, which is made from water and grated coconut meat, is indispensable in some Filipino food preparations. But unknown to many, electricity can be produced from coconut milk. Plants of the Philippines, published by the University of the Philippines Press, gives this information: “Bacteria implanted in the coconut milk break it down to a simpler form thus producing electricity: this mechanism is called biochemical fuel cell. The fuel cell can convert chemical energy to electrical energy by the oxidation of the fuel directly. The fuel cell and the oxidant are supplied to the cell continuously during the operation by fermentation process.”

In the past, coconut water was the “in thing.” During World War II, Japanese used coconut water to rehydrate wounded patients when there was a shortage of sterile glucose.

Coconut water is good for people with kidney problems. One Filipino doctor claimed: “two glasses of fresh buko juice every day can reduce one’s chance of having kidney or ureter stones.”

Daily ‘bucolysis’ and renoculsis with ‘buko’ juice result in a 10 percent reduction in the size of kidney stones.

Diabetics can also benefit from drinking coconut water. PCA informs: “Potassium content of water is remarkably high at all nut ages. Together with sodium and phosphorus, potassium content also tends to increase with the age of the coconut to peak at nine months. This characteristic of coconut water makes it a very good drinking water for diabetics. Diabetics waking from a coma recover quickly after drinking coconut water.”

A joint study by the University of the Philippines-Philippine General Hospital and Department of Science and Technology (DOST) found that coconut water from 9-month old nuts could be safely injected into a healthy person. But here’s a warning: Patients with weak kidneys may not be able to tolerate high doses of fluid due to its high potassium content. This can lead to heart attack!

Coconut water has been used for centuries as a remedy for a lot of ailments. Occasionally by itself, or often mixed with coconut milk, it has been used to treat intestinal worms and relives stomach and urinary problems. It is also said to diminish rashes caused by smallpox, chickenpox, and measles. It is also thought to be beneficial to the skin.

Written by: Henrylito D. Tacio

Source: www.sunstar.com.ph

Buko Pie: A sweet product of technology transfer

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Posted by agri_center | Posted in Coconut, Enterprise, Success Stories | Posted on 08-01-2009

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From Los Baños to the world

The Buko Pie is slowly reaching the international market.

From producing fruit pies only for the local consumption, Lety’s Buko Pie is now exporting its products to Japan and Australia; and soon in South Korea and Canada.

The increasing demands in the local market and the continuing global clamor for the pies are now becoming profit for this small and medium enterprise (SME).

Recipe for success

Lety’s Buko Pie can now reach distant markets due to the Department of Science and Technology’s Small Enterprise Technology Upgrading Program (DOST-SETUP). The technical and financial assistance from SETUP enabled this SME to adopt the “blast freezing technology”—a process of rapidly freezing the pies, thereby increasing its shelf life for up to 12 months. In effect, “blast frozen pies” are made and are now being exported to the global market.

Lety’s Buko Pie is just one of the few SMEs that is lucky enough to have adopted a technology and reap its benefits.

Unsavory reality

Adoption of technologies or technology transfer, however, is not commonly practiced in the country because of the difficulties associated with it.

For one, a large investment is needed in technology transfer. Having relatively smaller earnings, SMEs are incapable of such investments. They can avail of loans from financial firms but this does not appear to be a viable solution, as most of these firms require collateral. However, in the case of Lety’s Buko Pie, the financial assistance from SETUP came with no collateral.

Another difficulty is that there is the lack of a complete account of “mature” technologies that are ready for adoption. SMEs may not be fully aware of the technologies that, when adopted, could possibly boost their businesses.

The weak private-public collaboration in research and development (R&D) also adds to the constraints to technology transfer efforts in the country. A 1998 innovation study showed that more industries acquire technologies from outside sources rather than from public R&D institutes.

In addition, there is a limited budget allocated for public sector R&D activities. In 2002, the country spent only 4.5 billion or 0.11% of its gross domestic product on R&D – way below  the 1% prescribed by the United Nations.

The country also has an uncoordinated technology transfer system and a weak intellectual property rights culture. These are manifested by the low number of technology licensing offices operating in the country and the outright hesitancy of scientists and inventors to part ways with their technologies. Thus, only a few inventions and intellectual properties penetrate the market and are used by potential user-adaptors. In 2001, only 351 patents were granted out of 946 patent applications.

To make more technologies accessible to their end-users therefore, a clear and sound policy for the transfer and adoption of technologies is needed.

Helping hands

Small businesses don’t have to remain “small.” DOST-SETUP facilitates the transfer of technology from DOST agencies to the SMEs.

Likewise, DOST’s Technology Incubation for Commercialization bridges the gap between the stage of technology development and actual adoption.

PCARRD, one of DOST’s councils, has the Techno Gabay Program, which brings science-based information and technology services to the end-users in the agriculture, forestry, and natural resources sectors. DOST has also updated the guidelines on intellectual property and technology management in the national research and development system.

The Bureau of Agricultural Research of the Department of Agriculture, on the other hand, implements the National Technology Commercialization Program (NTCP). NTCP is envisioned to boost the productivity and profitability of agriculture and fisheries.
Moreover, the Department of Environment and Natural Resources, through the Ecosystems Research and Development Bureau, provides a website presenting the technologies and information generated on environment and natural resources.

More than kitchen help

Solely, the individual programs of government agencies cannot resolve the constraints embedded in technology transfer. These fragmented initiatives must be backed up with a national strategy that will cater to the needs of various stakeholders.

Strengthen the country’s Innovation System.
The different initiatives pushed by the national agencies should be directed into one common goal: integrate all technology transfer activities in the country.

In this case, barriers to collaboration must be eradicated.

Intensify information campaign on IPR.
Most scientists and researchers do not disclose their technologies because they think that it would be disadvantageous to them. As a result, only a few technologies are patented and used by the public.

With an intensified intellectual property rights (IPR) campaign drive, more scientists and R&D personnel will be enlightened on the benefits and advantages of owning an IPR.

Create a policy allowing scientists and researchers to work in the private sector for a limited period without violating the Code of Ethics for government workers.
Where government R&D experts are tapped by the private sector as consultants, a policy must be crafted on the extent of information sharing and the length of service of R&D experts in the private firms. This recognizes that government R&D experts can closely monitor and supervise the technology transfer if they will be given ample time to serve in the private sector.

Allow the use of income from technology transfer activities
Given the limited budget allocated for S&T, the R&D institutes (RDI) should be allowed to use their income. This would empower the RDIs to generated resources from technology transfer activities to be used for further research. As such, they may establish a revolving fund for the purpose.

Create a national policy on Technology Transfer
On top of the strategies in strengthening the country’s innovation system is the lobbying for a national policy on technology transfer. The government has been investing substantially in R&D but the intellectual properties generated have often remained in the laboratories. This proposed national policy would promote more effective use, management, and commercialization of these intellectual properties. With a national policy on technology transfer, more technologies would be available to the public that, in effect, would create value for our economy.

Lety’s Buko Pie succeeded not only because of the passion and dedication of its owners, but also because of the technology that they have adopted. Truly, with unified innovation programs and a clear national policy on technology transfer, the success story of Lety’s Buko Pie may be your business’ success story as well.

Written by Apple Jean C. Martin and Butch S. Pagcaliwagan, S&T Media Service

Source: pcarrd.dost.gov.ph