Analysis of the export competitiveness of Philippine coconut oil, 1990-2013

Date

5-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Bates M. Bathan

Abstract

The study analyzed the export competitiveness of Philippine coconut oil from 1990 to 2013. Specifically, it described the trends in production, area, number of bearing palms, yield, and domestic prices of fresh coconut identified factors affecting the fresh coconut production analyzed the domestic production and consumption, export volume and value, export destinations and domestic and exports prices of coconut oil determined the price competitiveness of Philippine coconut oil determined the quality competitiveness of the Philippine coconut oil and identified factors affecting the export volume of Philippine coconut oil. It also identified problems in the Philippines coconut oil industry and provided policy implications. It utilized secondary data, which were analyzed using trend analysis, multiple regression analysis, revealed comparative advantage analysis and stringency analysis. Results of the trend analysis showed that the country was the top producer and exporter of coconut oil in the world market, even though it was not the top producer of fresh coconut. It was also revealed that the top two exports destinations of Philippine coconut oil were the United States and the Netherlands. Moreover, in the multiple linear regression analysis, it was found out that year and super typhoons Zeb, Babs, Megi and Haiyan significantly affected the production of fresh coconut in the country. On the other hand, super typhoon Angela, El Niño, and cocolisap infestation was not significant. Results of the revealed comparative advantage (RCA) analysis revealed that both the Philippine and Indonesian coconut oil was price competitive in the world market. However, the price competitiveness of the Philippine coconut oil based on RCA had been increasing at a higher rate than Indonesian coconut oil, and that the country had maintained its gap with Indonesia. Furthermore, results of the stringency analysis revealed that Philippine coconut oil is quality competitive in the world market. Specifically, PNS for virgin coconut oil is found to be at par with the CODEX standard for named vegetable oil and the APCC standard for virgin coconut oil with only slight differences in some provisions. Using multiple regression analysis, it was revealed that the factors that significantly affected the export volume of Philippine coconut oil to the top two importing countries were the domestic production of Philippine Coconut oil and price ratio of coconut oil export price of Philippines and Indonesia. The problems encountered by coconut farmers were the increasing number of unproductive palms rampant cutting of coconut palms occurrences of super typhoons and credit constraints. On the other hand, the problems encountered by coconut processors and exporters which affected the competitiveness of Philippine coconut oil were the inefficiency in processing stringent SPS measures applied to coconut oil and increasing global competition among coconut oil producers and in vegetable oil markets. To address these problems, the following were recommended the replanting of farms with high-yielding coconut varieties quick response during occurrences of super typhoons improvement in credit access to coconut farmers, provision of processing machines to coconut farmers, and further harmonization of the PNS with Codex and APCC standards.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2016 A14 R49

Document Type

Thesis

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