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Expanding Market For Cocowater Economics Essay

Categories: EconomicsWater

Coconut is the major tree harvest in the Philippines. Gary Teves of the Landbank of the Philippines in one his addresss provinces that coconut merchandises in the state serves as a beginning of income to an estimation of 3.4 million coconut husbandmans with an estimation of 491 million coconut trees, located in 3.3 million hectares ( 33 % ) of Philippines ‘ cultivable land and that these produces 12 billion nuts yearly which benefits practically one-third of the Filipino population.

This paper is an appraisal of production related issues in the Filipino Coconut industry which examines and analyzes literature to farther cipher the likely supply curve of Cocowater endeavouring upon accent on the impact of the physical resource capablenesss ( i.

e. , types of dirt, conditions conditions, seedlings, coconut husbandmans and labourers, irrigation, production country, fertilisers, technological promotion, capital, etc. ) to productivity output.

The intent of the survey is to measure the competence of Cocowater production in the Philippines, concentrating on the taking coconut-producing-province in the state, Quezon.


With the planetary tendency towards healthier and more low-cost nutrient options, the demand for Cocowater as a healthier replacement for ordinary imbibing H2O, energy drinks and thirst quenchers accordingly increased in many Coconut bring forthing states.

The Philippines being one of the largest coconut-producing states in the universe aims to hold competitory advantage in its production to provide the turning involvement for cocowater globally and in the export market.

It could merely transpirate if there is a factual analysis of the supply curve correlating the different inputs to explicate interrelatednesss that are intended to fulfill the altering demand forms.

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Proper allotment of the Philippines ‘ natural resources to to the full use its value would be of advantage of the state in the economic side. Looking at the executable net income coming from the cocowater export market, it could beef up the turning economic system of the Philippines to achieve sustainable development.

Managing our resources for cocowater production could propose creative activity of lasting and long-run occupation for the rural community, substructure development in the country of production, debut of technological promotions in the industry, incorporate authorities policy and rural development would wholly be good to the state to to the full hold inclusive growing.

Research Problem:

With the spread outing market for Cocowater in the international scene, how can Quezon state ‘s coconut manufacturers conform to the increasing demand tendency?

The aims of the survey are as follow:

To depict the resource capableness of Quezon as the chief coconut bring forthing state in the Philippines ;

To relatively measure such resource capablenesss and its impact on high productiveness ;

To supply development findings in Quezon which focuses on increasing coconut harvest productiveness ;

To place correlativity among resources that could act upon alterations in coconut production ;

To separate authorities support and policies which contribute most to coconut economic prosperity ;

To utilize historical informations ( 1990- 2010 ) vis-a-vis resource potency to efficaciously project the supply demand.

Significance OF THE STUDY

In line with the turning exigency of Cocowater both in the local and international position, an appraisal of such physical resource inputs would assist explicate production supply agenda for the Coconut manufacturers and set up executable economic addition to pull Government aid for the coconut industry.


The survey will find the assorted inputs and variables that affects the supply of cocowater in the Philippines specifically that of Quezon Province. The theoretical account created sing the correlativity and impacts of the said variables to the cocowater end product will be discussed and analyzed. This survey will besides garner pertinent informations. Challenges and jobs in the industry and besides its strengths would be the focal point of this research. However, every survey has its ain restriction, merely the economic position will be studied and analyzed and less would be the focal point on the agricultural procedures and position. Besides, given restraints in informations assemblage, a 20-year clip frame from 1990 to 2010 would be used to supply important analysis.

Coconut H2O as discussed in this paper refers to the processed coconut H2O, export-quality merchandise which is considered waste during production of dried-out coconut. It is nevertheless different from H2O from fresh immature coconut which must be consumed instantly after aggregation. Therefore, this survey focuses merely on the coconut H2O that is exported internationally.


A societal protagonism and networking medium- The Coconut Industry- the narrative of tree of life ( 2009 ) describes coconut as an agricultural merchandise that has been with us since our initial forbears foremost settled this archipelago. Our ascendants found many utilizations for fundamentally every portion of the coconut tree.A From it they derived nutrient and ingredients for delightful bill of fares ; fresh drinksA with medicative belongingss for bring arounding nephritic upsets ; alcoholic drinks and acetum ; soap and hair conditioning oil ; lasting edifice stuffs ; fiber for cordage and mattress ; stuffs for broom, basket, mat and chapeau, in short, merely about everything they needed to populate in a universe unfussy by Western ways and wonts. The early Filipinos treated their coconut chiefly as a plentiful renewable beginning of their basic demands in life and merely secondarily as ware for exchange. By early 1800s, soap and oleo manufacturers in England got interested in the distant coconut tree.A For wellness and economic grounds, these manufacturers decided to stir from carnal fats to vegetable oils.A Early on, they had revealed that of all the so known beginnings of comestible oil, coconut was the most concentrated and economical to process.A This was now the nineteenth century and although the period saw the resurgence of imperialism, trade liberalisation was on the rise among the European powers.

A digest of coconut industry public presentation ( Dayrit ) tackles the Filipino status wherein the Filipino provincial husbandmans were going fascinated into the emerging universe market as a colonial producer-supplier.A Through Spain, Great Britain and the other European powers on path purchasing coconut merchandises, chiefly copra which is more of a natural stuff than a processed product.A Even today, Europe remains a top importer of coconut oil, taking in 46 % of the entire universe imports of coconut oil, with the Philippines providing 25 % A of all Europe-bound coconut oil. Besides, in their digest of literatures, they cited Blair and Robertson et. al. , who discussed the Philippine coconut industry get downing from 1642 when the Spanish colonisers passed an edict necessitating each Indio to works 200 coconut trees in order to bring forth fibre for galleon rigs from coconut chaffs and calking for the hulls from wood coal. By 1899, copra was being exported to Europe for the industry of soap and oleo. Harmonizing to the Philippine Coconut Authority, the first two decennaries of the American business of the Philippines saw the development of the coconut industry. The first modern coconut oil factory in Manila was established in 1906 therefore resulted in the coconut oil production commercialisation. By 1927, coconut exports to the US ranked 2nd to saccharify. The execution of Tidings-McDuffie Act and the US Revenue Act of 1934 restricted further development for the coconut industry in the Philippines. After World War II, processed coconut merchandises, such as coconut oil and margarine chemicals, bit by bit replaced copra as the major export. However, the part of coconut merchandises to the state ‘s export net incomes fell from a high of 35 % in the 1950s and 60s, to less than 2 % in 2001. The bureau besides stated that the coconut represents the Philippines in many ways. It is profoundly embedded in our Filipino civilization. About 25 % of our cultivated land is planted with coconut trees, and it is estimated that 33 % of Filipinos are straight or indirectly dependent on coconuts for their support. The major merchandises derived from coconut trees are copra, copra meal/cake, desiccated coconut, coconut oil, and oleo chemicals. Other merchandises include coconut H2O, acetum, coir, coconut chaff, and handcrafts. Copra was the coconut major merchandise from the 1900s until the seventiess.

Coconut farms are widely distributed nationally, mostly in parts of Southern Luzon in the North and Mindanao in the South. There are around 324 M coconut trees in the state, approximately 85 % of which are considered productive. The coconut industry provides an one-year norm of 5.97 % part to the GVA and 1.14 % to the GNP. Below are the declared facts about the coconut industry in the Philippines by the PCA ( PCA Coconut Statistics ) . The coconut industry is a dominant sector of Filipino agribusiness:

Of the 12 million hectare of farming areas, 3.1M hectare is devoted to coconut

68 out of 79 states are coconut countries

Over 324M bearing and non-bearing trees

3.5M coconut husbandmans

25M Filipinos are straight or indirectly dependent on the industry

Annual norm of 5.97 % part to GVA and 1.14 % to GNP

59 % portion in universe coconut exports

Among the top 5 net foreign exchange earners, norm of US $ 760M per twelvemonth

This industry plays a cardinal function in the Philippine ‘s defining of national development. It is among the top 10 export green goods of the state as exhibited by the good export piece of both traditional and non-traditional merchandises. It provides a sustainable income beginning for Filipinos by manner of employment creative activity through its many plans.


This subdivision deals with the local and international selling, the agricultural sector and the industrial sector of the coconut industry. The agricultural sector provides informations on how much land is allotted to coconuts seting, the figure of coconut merchandises produced, and other indexs as good. The industrial sector provides informations on the different procedure a coconut merchandise undergo before it reaches the end-users such as transit, and other agri-industries. Local selling presents the flow of the coconut trade good from manufacturers to end-users. The export industry, which represents the greater portion of the coconut industry construction discusses the benefits every bit good as the drawbacks of an export-oriented industry.

Agricultural Sector

Coconut is one of the most comprehensively adult harvests in the Philippines. Dy and Reyes ( The Philippine Coconut Industry: Performance, Issues and Recommendations ) , in their study to Economic Policy Reform and Advocacy, provides factors as to why coconut plays an of import function to the state ‘s agribusiness sector such as ; ( 1 ) coconut farms are reportedly present in 69 states in the Philippines ; ( 2 ) These farms cover 3.3 million hectares ( hour angle ) , or about 30 % of farming areas in the Philippines ; ( 3 ) coconut parts host among the largest figure of rural hapless ; ( 4 ) Agricultural exports of the state is composed about half by coconut merchandises ; ( 5 ) coconut lands are said to hold largest potency for variegation ; ( 6 ) coconut industry has an huge resource for industry ‘s development such as the coconut levy financess.

The coconut thenar is found to turn under changing climatic and soil conditions. The ideal dirt conditions for better growing and public presentation of the coconut tree are those with proper drainage and good water-holding capacity. It should be ensured by the husbandmans that there is a proper supply of wet in the land either from well-distributed rainfall or through an effectual irrigation system.

Missing sustainable engineering for vegetive method of extension, coconuts from the Philippines are propagated through seeds. If the seed nuts go on to be of hapless quality, the coconut plantation will confirm into being inefficient and wasteful causation important loss non merely of money of the husbandman but besides that of his clip.

However, mere planting of good seedling does non ever guarantee better production. This is chiefly due to misconceptions in choice of stuff used such as female parent thenar, sick direction with respects to irrigation and fertilisation and more. This could and would reflect in footings of hapless foundation, growing, development, end product produced and its quality ensuing to a important economic loss non merely locally but besides in the broader position of planetary export state of affairs.

Planting system and Spacing are of import factors to see in the agricultural production of coconut merchandises to guarantee high productiveness output owing to the allowable denseness of immature coconuts due to restraints of H2O handiness and besides the measure and quality of sunshine in a given distance to each and every tree.

Industrial Sector

Dr. Rolando Dy ( The Philippine Coconut Industry: Performance, Issues and Recommendations ) identified five factors at work for the development of the Philippines agriculture industry. These are: markets, geographical location, natural gift, entrepreneurship, and trainable work force.

Markets – The Philippines has the 12th largest population in the universe estimated at around 94 million. The state ‘s population provides immense domestic market for nutrient merchandises. Nonetheless, Dy said that the underperformance of the agribusiness sector in the past decennaries has resulted in the impairment of the buying power of the rural population, which comprises half of its clients. An estimated 75 % of the 16 million families in the state have comparatively low buying power.

Geographic Location – The Philippines is situated in a strategic location. It is close to the fast turning economic systems of China, South Korea and Japan. China has an estimated 300 million people belonging to the in-between category, which spent around $ 405 billion on nutrient in 2008. Jointly, South Korea and Japan has a consumer market of 168 million which are largely from high income market. As member of ASEAN, the Philippines besides has entree to around 150 million center to high income category consumers in the part. The state is besides near the developed economic systems of Australia and New Zealand which host largely big in-between income categories.

Natural gift – The Philippines is endowed with fertile lands and tropical clime which are favourable for turning tropical and semi-tropical harvests.

Entrepreneurship – The state has many successful agriculture enterprisers that have presence in the international markets.

Trainable Workforce – The Philippines self-praise of an abundant supply of trainable work force that provide the anchor for the agriculture sector

The future growing in agribusiness calls agricultural variegation with the intensification of present production tendency. Agribusiness merchandises represented a manner to diversify agribusiness off from traditional harvests, because of their higher value compared to the traditional harvests. Their higher net income degree in general besides realizes higher value in the export trade. These value-added merchandises being labour-intensive besides create rural employment, sought by most authoritiess, to maintain people in the rural country and to cut down urbanisation jobs. Coconut harvests undergo several post-harvest activities such as, transit of goods, storage, quarantine/ disinfection against fruit fly to use the full potency of coconut outputs.

Gonzalez O. N. et. Al. ( 1983 ) provided a developed procedure coconut merchandises undergo before it reaches the market. Coconut H2O go through a process of filtration at one time utilizing either traditional method of cheesecloth filtration or through automatically filtering machine or traveling through a basket extractor which extracts bristly unprocessed atoms. Immediately, coconut H2O is submitted to pH accommodation with the usage of food-grade acid and refined sugar. Sodium benzoate is added as preservative given the degree that is permitted by Bureau of Food and Drugs ( BFAD ) . It is so pasteurized through a High Temperature Short Time ( HTST ) heating unit. All of which entails extra cost and to guarantee net income, technological promotion must be adopted to hold lowest possible norm cost, therefore, extra value for the merchandise.

Local Selling

Domestic and local selling outlines the transmittal of coconut merchandises from the husbandmans, at its natural signifiers, and is so handed over to coconut bargainers, to its end-users: coconut importers.

An assessment paper- Coconut in the Mekong Delta ( Smith, et al. , 2009 ) provided an analysis of the coconut bring forthing states in Asia and states several failings in the local selling of coconuts in the Philippines. It is said that there is a relatively low productiveness output in farm degree, adding to the low farm gate monetary values which serves as long-run disadvantage for the industry. It besides asserts that husbandmans in the Philippines are observed as being among the poorest of the agricultural manufacturers. In Malaysia and Thailand, the other major coconut bring forthing states in Asia, low net income from coconuts has driven husbandmans to switch to other more profitable harvests and an overall diminution in the local coconut selling industry.

One of the jobs with marketing coconut H2O is its high perishableness rate. Storage, bar from spoilage and transit of the resource are some of the important procedures if the coconut H2O is non pasteurized after the aggregation due to restraints of installations and engineering which is of great disbursal to manufacturers.

However, Joson, L.M. et. al. , ( 1984 ) developed a procedure called “ Concentration of Coconut H2O by Reverse Osmosis ( RO ) ” that could reply the job by making concentration of coconut H2O into a signifier easy rehydrated to cut down cargo, weight, volume and costs to better coconut production stableness.

Export Processing Sector

The Philippine Coconut Industry is export-oriented. The traditional coconut export merchandises are rough oil, dessicated coconut, copra, refined coconut oil, copra solvent repast pellets, copra cake/meal expeller pellets, coconut shell activated C and coconut shell wood coal. Department of Agriculture provides statistics sing the finish of Philippine coconut export in 2006 ( Coconut Situationer, 2007 ) :


Right now, the Philippines is the universe ‘s biggest exporter of coconut, chiefly coconut oil. Coco oil exports, nevertheless, fell by dual figures in both volume and value footings in August 2011 due in portion to take down domestic end product ( United Coconut Associations of the Philippines ) . But despite of this, given the aggressive demand for coconut H2O as a healthy and alternate athleticss drink globally, functionaries said the Philippines, being the universe ‘s top coconut exporter, is taking stairss to guarantee sustainable supply.

Carlos Carpio, deputy decision maker of Philippine Coconut Authority ( PCA ) , one time said in an interview that the governmentA has increased its budget for coconut replanting in the state. The bureau was given eight times more than last twelvemonth ‘s budget, amounting from P60 million to P512 million this twelvemonth and around P354 million was besides allocated for the coconut plantations fertilisation ( ABS-CBN, 2011 )

Harmonizing to Philippine Coconut Authority, as of 2010, 26 % or 3.56 million hectares of the Philippines ‘ entire agricultural lands are planted with coconut. 68 out of 79 states are coconut countries including the large plantations in Quezon and Camarines Sur ( PCA Coconut Statistics )


Coconut H2O is the liquid found inside the fresh coconut. It is processed utilizing the latest engineering to continue the refreshing quality and spirit of natural coconut H2O. It is a thirst-quenching drink and can be used as juice base for drink when mixed with the other fruit spirits. It is tasty, and full of the salts, sugars and the vitamins needed by jocks. It is a natural drink merchandise with the delicate olfactory property, gustatory sensation, imbibing characteristic and the nutritionary value of pure, fresh coconut H2O, and all the features required of a athleticss drink.

Philippine Coconut Authority ( 2005 ) describes cocowater as water/juice of coconut that is besides called liquid endosperm. It becomes a great waste as it is thrown off during copra devising. Uses of coconut H2O include acetum, coconut vino, and production of nata and ‘as a replacement for dextroglucose ‘

The harvest home and processing processs allow the manufacturers to box and pasteurise the natural Coconut Water that are biologically pure, with no demand for adding any preservatives. Finely savoring and full of all the natural fluids, vitamins, foods, sugars, minerals and salts demanded and needed by everyone of all age groups.


Two taking US beverage companies will be puting in the coconut H2O industry of the Philippines for selling and distribution in the United States. The job is if there is a long-run strategic agreement that could be more advantageous to our state and our people than merely being a agriculturist and provider for foreign trade names. Philippine ‘s largest companies are now sing doing our ain planetary trade name for coconut H2O that is marketed to the universe. Hopefully, our ain trade name of coconut H2O can regenerate our coconut industry and pave the manner for backward perpendicular integrating, providing their ain natural stuffs for the production of coco H2O.

The fact that the Philippines is one of the universe ‘s largest manufacturer of coconuts, experts have concluded that the Philippine coconut assortment likely tastes the most delightful in the universe. Scientists at the Philippine Coconut Authority explain this is due to our state ‘s alone geographics as an archipelago. An archipelago allows for the best growth conditions due to the natural air current forms and sea currents that cross air out our 7,107 islands which so combine with an ideal tropical clime and suited flaxen dirt to bring forth the universe ‘s best-tasting fresh coconuts. Apparently, the best fertiliser for coconuts is salt, which abounds in our oceans. This alone merchandising point and competitory advantage that yields a superior coconut represents a compelling statement for making our ain trade name of coconut H2O.

What the authorities must make, through the Philippine Coconut Authority, is to form husbandmans throughout the archipelago to get down monolithic and intensive planting and to guarantee best turning patterns among husbandmans to vouch the highest quality and measure with consistence and efficiency. In the procedure, allow us delight non reiterate the errors of our mis-administration of coconut and sugar. Simultaneously, DOST can work on a engineering which can reap and box coconut H2O that can widen shelf life without the warming that destroys foods and affects gustatory sensation, or adding preservatives ( Willy E. Arcilla, 2011 )


A important figure of policies and programs have been legislated since 1970s to form several responsibilities on the coconut industry. Furthermore, it is observed that policies imposed by the authorities are pro-big Cocos nucifera manufacturers merely to the disadvantage of little farm landholdings. With this advancement, BOI ( Board of Investments ) , NEDA ( National Economic and Development Authority ) and other concern development squad recommend an Action Plan to ( Research, Development, and Extension Branch, PCA, Central Office ) :

Formulate a roadmap to steer the industry in tandem with the behavior of regional and national stakeholders ‘ acmes to better the investing clime in emerging coconut merchandises.

Conduct investing forums to present available engineerings, secure investings for SMEs ( Small-Medium Enterprise ) and supply aid to farmer groups in setting-up SMEs.

Enforce through the LGUs ( Local Government Unit ) , PNP ( Philippine National Police ) and PCA ( Philippine Coconut Industry ) the jurisprudence that prohibits the film editing of the coconut trees.

Formulate and enforce, through PCA, BFAD ( Bureau of Food and Drugs ) and FDC ( Freedom from Debt Coalition ) the merchandise criterion for all emerging coconut merchandises.

Supply response for non-traditional merchandise, like Coconut H2O, receives a small attending for survey because of patterning trouble and information restraints. To pattern supply analysis suitably, an apprehension of manufacturer ‘s short-term determinations ( input applications ) and long-run determinations ( land allotment, investing degrees, etc. ) is required. Therefore, it is indispensable to understand supply response for coconut H2O because supply analysis helps to find profitableness of production, the impact of authorities policies, and the effects of input deficits ( labour deficit ) .

The following subdivision reviews literature on past surveies that dealt with agricultural merchandises to find other variables and factors that can impact the supply of the given merchandise.


Previous diaries had studied the relationships of different variables that affects the supply of agricultural merchandises specifically that of coconut, its relationship and correlativity to one another.

Coconut Production, Total Coconut Tress in Quezon Region, Cost of constitutions and care, Equipment adopted by coconut manufacturers, Irrigation system

( 1 ) Devadoss and Luckstead in their paper “ An analysis of apple supply response ” ( 2009 ) discussed the information beginnings and the variables used to pattern the supply of Apple. Data was collected for the undermentioned variables refering to apples, cherries, and pears: output per acre, bearing land area, investing ( new plantings ) , mean monetary values for fruits, fuel costs, labour costs, service and machinery costs, stuff costs, involvement costs, and conditions for the province of Washington. The period for the informations scopes from 1974 to 2005. Since their analysis trades with apple harvests at the province degree, they were able to obtain informations for several of import variables including new plantings, remotions, output, and county-specific conditions information. This comprehensive information allowed them to gauge the relevant structural equations alternatively of trusting on a individual reduced-form supply equation.

This paper gives the research workers the likely variables needed to pattern the supply of an agricultural merchandise that would be utile in econometric analysis and calculating portion of this paper.

Access to Credit and Fundss

( 2 ) A paper by Endaya, , ( 2006 ) provides the research workers with a alteration of the theorizing clime and concern environment of the promising coconut-based industries. For these industries to grok their economic prospective and add to investing and efficiency development, the authorities should vouch a vigorous investing ambiance for them.

The general representation of the investing environment in the Philippines provided by the World Bank ‘s and Asian Development Bank ‘s ( ADB ) investing clime studies barbed to the upper cost of making concern in the Philippines comparative to its next-door states ( Endaya, Villegas, Espina, Tallada, & A ; Mesias, 2006 ) . Many of the surveyed houses in the World Bank study measured the state ‘s employment ordinances ( e.g. , pay repair, hiring, and firing ) as a main hindrance. More than half besides reported paying payoffs or incurring human deaths from discourtesy and convulsion. Further factors that set off investors were the fickle analysis of policies, electrical or control outages, deficiency of confidence in tribunals maintaining belongings rights, hapless entree to electricity, revenue enhancement rates, and entree to funding establishments. The state besides did non put to death good in the countries of opening a concern given the drawn-out steps and stage to enter a concern, largely for micro-enterprises and little and average endeavors.

These results established the decision of the ADB study in which most houses reported as the chief to rigorous restraints the countries of macroeconomic volatility ; corruptness ; looming cost and outages of electricity ; utmost revenue enhancement rates ; reserves in economic policies ; and high happening of offense, larceny, and civil upset every bit good as hapless revenue enhancement supervising Apparently, the handiness of complete and knowing employees was the merely clean factor of the Philippines. Most of the surveyed houses were besides enthusiastic of the enhanced telecommunication systems in the state in commissariats of contact and charge.. ( Endaya, Villegas, Espina, Tallada, & A ; Mesias, 2006 )

Surrounded by the supply and rate series of the lifting coconut-based industries, the SWOT ( strengths, failings, chances, menaces ) survey showed a hapless rate series that is still really susceptible to concerns in macroeconomic basicss and exterior dazes. ( Endaya, Villegas, Espina, Tallada, & A ; Mesias, 2006 ) The connectivity and linkages between and among these subdivision parts of the potentially powerful coconut-based agro-industrial group are besides really delicate. There are some hardy mechanism like few well-managed criterion plantations ( 2-3 dozenss per hectare copra output ) and few Agrarian Reform Communities that expected methodological support from DAR and PCA every bit good as frequenter establishments. Artifact betterment appeared tough with internationally spirited industrial progresss in virgin coconut oil ( VCO ) and its element functional nutrient, biodiesel, geotextile, and rubberized coir discoveries, to mention a few. What linger really awkward are the market adulthood and gross revenues endorsement piece, and its frail linkages to merchandise enlargement and logistics and allotment sequence.

( 3-5 ) A common attack to get the better ofing husbandman recognition restraints in the yesteryear has been to supply directed subsidised recognition. Several surveies, Binswanger et. Al ( 1983 ) in “ Risk Aversion and Credit Constraints in Farmers ‘ Decision-Making: A Reinterpretation ” and Bromley et. Al ( 1989 ) in the “ On Risk, Transactions, and Economic Development in the Semi-arid Tropics ” suggest that chances to distribute hazards to other parties are deficient, therefore restricting husbandman usage of recognition and the acceptance of new engineerings. Krause et Al. ( 1990 ) in “ Risk Sharing Versus Low-Cost Credit Systems for International Development ” therefore investigate the efficaciousness of three risk-sharing options that the authorities can set about alternatively: a risk-bearing recognition system with the refund plan adjusted against the sum of rainfall, a strategy of hazard sharing by hired labourers wherein portion of the labourers ‘ rewards paid at crop are relative to the grosss of the cropping twelvemonth, and a risk-sharing strategy with fertiliser providers wherein payment for the inputs is relative to the grosss from the fertilizer-using engineering. These strategies are applied in the context of the acceptance of new cultivation patterns for black-eyed pea and millet in Nigeria. The consequences of the survey indicate that offering low-interest recognition is a comparatively uneffective scheme in promoting the acceptance of agricultural engineerings: significant alterations in the involvement rate consequence in merely modest alterations in the rate of acceptance. However, all three proposed strategies increased engineering acceptance. When at least the principal was repaid, irrespective a technological invention is “ yield increasing ” if it increases yield per unit country and does non cut down optimum variable costs per unit country ( for illustration, intercrossed farm animal ) and “ cost reduction ” if it reduces optimum variable costs per unit country but does non increase output per unit country ( for illustration, improved provender preparation ) .

Rainfall informations ( millimeter ) in assorted research Stationss in the PHL, Crop productiveness index for coconut in assorted dirt types, Monthly Observation on temperature, sunlight hours and solar radiation

The implicit in factors to which are attributed the fluctuation in output due to rainfall is complex and necessitate a conjunct and multidisciplinary attack to understand such mechanisms and formulate steps to relieve damaging effects. The impact of major climatic factors such as solar radiation and comparative humidness should be studied along with rainfall.

( 6 ) In Trinidad, Smith “ The relation between rainfall, dirt H2O and output of copra in a coconut estate in Trindad ” ( 1966 ) they reported a strong correlativity between output and cumulative rainfall over a period of 29 months prior to reap.

( 7 ) Abeywardena ( 1968 ) in his survey “ A Forecasting coconut harvests utilizing rainfall informations – A preliminary survey ” he discusses the output at Bandirippuwa Estate ( BE ) in the Low Country Intermediate Zone ( IL, ) of Sri Lanka, which showed that rainfall during the period May to August of the old twelvemonth was more influential on output fluctuation than rainfall during the period January to April or September to December.

( 8 ) Prasada Rao ( 1986 ) in his “ Rainfall and output in the Pilicode part, North Kerala ” reported that both high rainfall during the months of June, July and August every bit good as the absence of post-monsoon and pre-monsoon showers adversely affected the subsequent twelvemonth ‘s nut output in Kerala, India.

( 9 ) Studies in Thailand by Dootson et Al. ( 1989 ) have shown that the average monthly temperature, figure of showery yearss, sunshine hours and vaporization were the factors mostly correlated with output.

( 10 ) Prasada Rao ( 1991 ) “ Agrometeorogical Aspects in Relation to Coconut Production ” has indicated the necessity of farther surveies of the climatic demands of coconut. These surveies revealed that the harvest response to major climatic variables, particularly rainfall had to be farther investigated and their consequence should be based on distribution of rainfall and besides on the dirt type. An designation of the grade of influence of the climatic factors for a given location would be utile in crop-simulation theoretical accounts and to understand the physiological phenomena of the thenar. Further, such an analysis would help in short-run output prediction and accordingly in finding the possible output in a given agro-climatic part.

( 11 ) In order to place to what extent these bi-monthly rainfall parametric quantities influence output fluctuation, step-wise arrested development, Crop-Rainfall Model by Peiris and Peries ( 1993 ) in their paper “ Effectss of Bimonthly rainfall on Coconut Yieldin the Low Country Intermediate Zone of Sri Lanka ” was used to choose the most suited parametric quantities which would be utile in foretelling one-year output in a given country in the Low Country Intermediate Zone in Sri Lanka, on short-run footing.

( 12 ) A paper by Reynolds, S.G. ( 1979 ) provided premises by Salter and Goode, and Abeywardena which tackles the relationship of coconut outputs to climatic parametric quantities and calculating expression on rainfall with a multiple correlativity coefficient of r= 0.94 to coconut outputs. Besides, the paper cited Smith ‘s method of projecting prospective production of coconut with different degree of precisenesss.

Equipment adopted by coconut manufacturers

( 13 ) Time and once more, Feder and Umali ( 1993 ) in “ The Adoption of Agricultural Innovations ” reviewed that the factors that were through empirical observation found to be critical factors in finding end product ( for illustration term of office and instruction ) have faded into insignificance in the ulterior phases of agricultural development. A clearer, but still imperfect apprehension of the complex acceptance rhythm of engineerings and inventions is emerging. From the study of the engineering acceptance literature, several issues necessitating greater research attempts come to the head. Significant attempt has been invested in analysing the determiners of the single agent ‘s acceptance behaviour for increasing productiveness, therefore end product and in placing the function of assorted restraints and substructure, environmental, and climatic factors. As environmental preservation issues have come to the head, increasing focal point is being directed to the survey of the determiners of environmental preservation engineering diffusion.

( 14-17 ) Another country that has received considerable focal point is that of dirt preservation. Forster and Stem ( 1979 ) in “ Adoption of Reduced Tillage and Other Conservation Practices in the Lake Erie Basin ” , Baron ( 1981 ) in “ Landownership Characteristic and Investment in Soil Conservation ” , Ervin ( 1981 ) in “ Soil Erosion on Owned and Rented Cropland: Economic Models and Evidence ” , and Norris and Batie ( 1987 ) in “ Virginia Farmers ‘ Soil Conservation Decisions: An Application of Tobit Analysis ” found that older husbandmans are less likely to utilize dirt preservation patterns because of their shorter planning skylines and the less than perfect capitalisation of output alterations in land monetary values. Furthermore, younger husbandmans may be more educated and more involved with more advanced agriculture. The acknowledgment of the eroding job has been found to positively act upon preservation behaviour, while farm size has been found to hold a positive influence on the acceptance of preservation patterns. Income has besides been found to hold a positive influence on acceptance of eroding control patterns. It is by and large held that tenants of farming area are less likely to put in preservation patterns.

( 18 ) New engineerings offer chances for increasing productiveness and incomes and for bettering merchandise quality. However, what determines the existent betterments in productiveness and merchandise quality, thereby heightening economic public assistance, is non the rate of development of new engineerings, but the velocity and extent of their application in commercial operations ( Stoneman, 1986 ) . In a general sense, the faster a superior engineering is diffused, the larger the betterment of societal public assistance, as higher income ( or larger ingestion ) can be enjoyed earlier. Experience has shown, nevertheless, that several factors can restrain engineering acceptance: deficiency of recognition, limited entree to information and inputs, and unequal substructure.

( 19 ) Feder and Slade ( 1985 ) in “ The Role of Public Policy in the Diffusion of Improved Technology ” posit less than socially optimum degrees of acceptance by husbandmans to “ the divergency between the nonsubjective distribution of net benefits and the subjective distribution. ” This divergency can be traced to limited information, which affects husbandmans ‘ perceptual experience of the hazards ( for illustration, output, input and end product monetary value ) involved in following the new engineering. The impact of hazard and uncertainness on engineering acceptance has been extensively studied, and Feder et Al. supply a comprehensive study. The principle for public sector intercession, hence, remainders on the demand to extinguish or at least to minimise this divergency. Feder and Slade explore assorted policy options in the instance of a husbandman whose determination behaviour is described by a mean-variance public-service corporation map with hazard antipathy. The husbandman has to make up one’s mind how much land to apportion to the new engineering, whose output is capable to variableness. It was besides shown that policy intercessions to advance engineering acceptance are non ever welfare increasing. Market failures restraining engineering acceptance may be corrected through suitably designed public policy intercessions. However, the finding of appropriate policy options and their optimum strength and continuance require greater survey, if resource misallocation is to be avoided.

( 20 ) The impact of authorities monetary value stabilisation activities is farther investigated by Kim et Al. ( 1992 ) in “ Technology Adoption Under Price Uncertainty ” , in the instance of intrafirm diffusion of a yield-increasing vs. a cost-reducing engineering. Assuming a individual farm with fixed landholdings, no accommodation costs, and end product monetary value as a random variable, the husbandman must apportion his landholdings between the two inventions. The husbandman maximizes the expected public-service corporation from his or her income from the new engineerings. They show that as monetary value variableness decreases, ceteris paribus, the proportion of land allocated to the yield-increasing engineering additions. Conversely, the land allocated to the cost-reducing engineering lessenings. Modeling the long-term equilibrium picks of the house, they assume an accommodation cost associated with the output increasing engineering, which is a map of the size of the landholding. They find that lower monetary value variableness will increase the velocity of diffusion of the yield-increasing engineering and will cut down that of cost-reducing engineerings.

Other related Literatures

( 21 ) A paper in Development Research Department of World Bank by Michael Hartley provided methods on how to pattern input demand and end product supply of agribusiness merchandises. It provides Stochastic Duality theory which is “ a treatment of the dichotomy theory of the net income, end product supply and cost denseness maps for the representative micro farm unit. However, instead than contending functional signifiers for the ( expected ) net income and/or cost maps, and deducing the input demand and end product supply maps matching to them under absolutely competitory net income maximization or cost minimisation, we shall, alternatively, derive the signifier of the appropriate fringy p.d.f. , from which outlooks, discrepancies and all snaps of involvement may be calculated by numerical methods for any set of province variables ” ( 1983 ) This theory would assist the research workers to pattern the likely supply of coconut given the uncertainnesss and hazards that obviously out of control of the producers/farmers such as natural catastrophe and/or catastrophes.

( 22 ) Rosa Rolle in her paper “ Good pattern for the small-scale production of bottled coconut H2O ” ( Rolle, 2007 ) provides the coconut H2O processing concatenation which comprises the critical stairss and processes that must be carried out in order to bring forth high quality coconut H2O which is a demand to derive competitory advantage in the market by bring forthing high quality outputs.

This paper would besides supply the research workers with three engineering bundles developed by the Technical Cooperation Projects of FAO which are utile in optimising the likely outputs of husbandmans and enterprisers such as: a high degree engineering bundle which employs the usage of microfiltration for cold sterilisation of the merchandise ; a middle-level of cold saving engineering targeted for usage by little and average endeavors and an “ appropriate ” degree of engineering targeted to coconut H2O sellers.

Together with the aim of the research workers to supply development findings in Quezon which focuses on increasing coconut harvest productiveness, these technological bundles would be of great assistance for the research workers to develop techniques for the local and little husbandmans and rural enterprisers to vie non merely in the local but more particularly in the planetary sense in footings of bring forthing export quality cocowater merchandises by bettering quality and shelf-life of end products.

( 23 ) Coconuts in the Mekong Delta ( Smith, et al. , 2009 ) provides both local and planetary situationer of coconut production. It gives appraisal of fight and industrial potency of taking coconut bring forthing states in Asia such as Sri Lanka, Thailand and the Philippines. It besides provides the information as of 2006 with respects to both universe demand and supply for coconuts.

( 24 ) Besides, Pabuayon et. al. , in their paper “ The Philippine Regulatory Policy on Coconut Cutting ” ( 2009 ) provides information and information useful for the research worker sing the environmental issues associated with the film editing of coconut trees in the Philippines with the terminal in position of placing possible alterations in the current regulative policy. The analysis is based on primary and secondary informations gathered from instance coconut farms, husbandman leaders, and community development officers of the coconut authorities bureau in Quezon state, the largest coconut bring forthing country in the state.

( 25 ) Last, a survey done by Philippine APEC Study Center Network provides the research workers with survey measuring the Philippine physical resources ( i.e. , land, H2O and conditions form ) with focal point on rice, maize and coconut production systems. It specifically: 1 ) described the state ‘s agricultural capablenesss and defined boundaries/interactions among resources that influence agricultural production ; 2 ) mapped out major agricultural production countries and determined possible relationships between public presentation and resources ; 3 ) compared the Philippines ‘ physical resources and agricultural public presentation with states such as Thailand ( rice and maize ) , Indonesia ( rice and coconut ) and Malaysia ( coconut versus oil thenar ) ; and, 4 ) identified some policy issues on effectual and efficient resource usage for agricultural development. In turn toing Filipino agricultural production demands while viing globally, the survey besides forwarded the undermentioned considerations: 1 ) enlargement of agricultural land can merely assist to a limited extent since the Philippines has the smallest land country among the four states ; 2 ) the state does non necessitate to recommend for increased transportation of labour forces towards agribusiness since our land to agricultural population ratio is already low compared to Thailand and Malaysia ; 3 ) Filipino growing rates are comparable but remain the lowest in footings of absolute yield/ha, therefore a demand to look at variegation. Overall, the survey pointed out a demand to accommodate national nutrient security policy and the thrust against poorness based on proficient and socio-economic contexts. ( Velasco & A ; Cabanilla )


This subdivision discusses the information beginnings and the variables used by the research workers for this survey.


The statistics, facts and figures, and informations used for this survey include secondary and primary informations. The secondary informations were obtained from several authorities sections, agency and bureaus every bit good as private establishments related to agriculture and/or coconut production. ( Filipino Coconut Authority, Bureau of Agricultural Statistics, United Coconut Associations of the Philippines, Philippine Coconut Research And Development Foundation Incorporated ) Primary informations would be collected through field studies in the coconut bring forthing territories of Quezon Province, the cardinal country of coconut production in Philippines. The informations were collected to obtain physical input-output coefficients of coconut farming specifically in the Cocowater production.


An of import result of this research is an econometric theoretical account which represents the jutting supply of coconut H2O, utilizing variables that best represent the factors impacting the output of coconut production.

Coconut Production

Entire Coconut Tress in Quezon Region

Value of Exports ( F.O.B. in US $ Million )

Monthly Observation on temperature, sunlight hours and solar radiation

Rainfall informations ( millimeter ) in assorted research Stationss in the PHL

Labor required set uping a hectare of coconuts

Cost of constitutions and care

Crop productiveness index for coconut in assorted dirt types

Annual rate of fertiliser application

Consequence of fertiliser application on the average one-year nut production

Coconut-growing states

Coconut H2O thrown out by desiccators ( company )

Equipment adopted by coconut manufacturers

Irrigation system

Access to recognition


“ The Cobweb Model shows how achieving supply and demand equilibrium might be so automatic if, as seems sensible, the providers set the monetary value and the consumers react with a measure demanded. For some inclines of the demand and supply curves, the equilibrium can be unstable. The Cobweb Model is the authoritative presentation that dynamic behaviour by economic agents might non meet to a stable equilibrium with supply equal to demand. This application provides two ways to chart the result and lets you experiment with the cardinal parametric quantity that determines whether the result is stable or non. ” ( The Cobweb Model )

The Cobweb theoretical account discusses that the disparities between supply and demand of agricultural merchandises, so as the instabilities in monetary value of merchandises, is the consequence of supply determination which based on the current market state of affairs. These instabilities in the market of agricultural merchandises that have different snap of supply and demand are an inevitable phenomenon.


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Expanding Market For Cocowater Economics Essay. (2020, Jun 02). Retrieved from

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