ABSTRACT The purpose of this study was to determine if Coconut Industry in Misamis Oriental had any tremendous effects on the Philippine economy. The Philippine Economy is very much affected in the decrease of Coconut Production. The Coconut Industry in Misamis Oriental went down and was generally due to lower rainfall condition. Investments were also affected due to the pourings of the coconut industry. The decline suggested that Coconut Industry in Misamis Oriental reduced so many productions such as copra, coconut oil and desiccated coconuts, which are the primary products of coconut.

Other end-products were also affected such as detergents, shampoos, vinegar and nata de coco. The coconut Industry in Misamis Oriental has a tremendous effect in Philippine Economy. These effects are of the investments and in exports, having a decline thus affecting seriously in the Philippine Economy. The major sources of this study were on-line from the Department of Agriculture-Statistics and Economics division, from Mind news. com, also from COCO FED which relates about the development of Coconut Industry. Some sources were gathered from books mainly about the situational report of Philippines.

INTRODUCTION The topic of the study is Economic Study of Coconut Industry in Misamis Oriental. The researcher got this topic since high school wherein he pursued to get the course in college for further study backgrounds regarding coconut industry and the economy. The Coconut Industry in Misamis Oriental is a striking issue for it had a major role in the Philippine Economy. Before it declined its production, it gained the economy in Coconut Industry for it utilizes one of the major agricultural products which is coconut. Statement of the Problem The topic is Economic Study of the Coconut Industry in Misamis Oriental. It had a thesis statement which stands to the tremendous effects of Coconut Industry in Misamis Oriental to the Philippine Economy.

The said statement was broken down to three guide questions; what is the status of Coconut industry in Misamis Oriental? , what are the effects to the economy? , and to what extent does the effects of Coconut Industry affect Misamis Oriental? Significance of the Study The importance of this study is to obtain a status report of the Coconut Industry in Misamis Oriental. It shows that the industry affected the investments and exports which led to the down pouring of the economy. The researcher finds it important for further background of the said topic since he took up Agricultural Economics and it can be applied for additional inputs and future references. As an agricultural student, the topic could be of great help and a good reference for further studies.

As for the teachers as well, this study could be of great aid to lectures touching up coconut industry and economics. Benefits could be obtained if one internalizes and applies what he / she learned from the study. Scope and Limitation The status, effects, and analysis of Coconut Industry were studied in this study. A small background of Coconut Production also played an important role in the study. The history of coconut industry and the strategies were of no reference in the study.

Method Used of the Study At first, the researcher chose a topic but it was not simple for it took time and proper thinking. The topic was related to his course. He then proposed three topics, still related to his course. After the researcher had formulated the proposed topics, he then chose one among the three. He passed the topic and his teacher approves it. Narrowing of the topic was next after it got approved.

After the narrowing of the topic, the researcher constructed a thesis statement out of narrowing and made three guide questions to support the topic. Gathering of resources, which is the working bibliography, was next and then note-taking follows which garners almost all of the time. I note-taking, it requires time and precise research for it contributes mostly in the body of the paper. The researcher gathered all the resources needed and proceeds to sentence outlining. Then the first draft, after the sentence outlining, was born.

The first draft was checked by the teacher and got so many corrections. The researcher then furnished the first draft and became the second draft. In making such term paper is never easy but all it takes is time, patience and commitment. DISCUSSION OF THE PROBLEM The researcher attempts to present his findings by answering the questions. They are as follows. Question no.

1 What is the status of Coconut -Industry in Misamis Oriental in year 1999 upto 2002? Coconut production constitutes one of the four major sectors of Philippine agriculture, the others being rice, corn and sugar. Coconut is planted in 2. 7 million hectares, which accounts for 23 percent of the total croplands, and 74 percent of commercial croplands. In comparison, sugar accounts for only 5 percent of croplands and 15 percent of commercial crops, while rice and corn account for 30 percent and 28 percent, respectively, of total croplands. About 85 percent of coconut production is exported in the form of copra, coconut oil and dessicated coconut.

Copra is the dried meat of the nut, with moisture removed by sun-drying, or by artificial drying. It is processed on the farm level, using simple manual tools and equipment. Coconut oil is extracted from copra through mechanical and chemical processes, using capital-intensive industrial equipment. Coconut oil is valuable as a raw material for a wide array of industrial commodities such us margarine and soap, as well as lauri c acid or glycerine-based industrial chemicals. Copra meal (or pellets) is what remains after oil is extracted from copra. Dessicated coconut is the shredded or watered white kernel of mature nuts dried to make it edible for a longer period of time.

In the period before World War II, exports of coconut products accounted for about 20 percent of total Philippine exports. It rose to 35 percent of exports in the 1950's and 1960's, and dropped to about 20 percent in the 1970's. In 1979, export earnings from coconut products amounted to $878. 35 million (coconut oil, $675. 56 million; copra, $114. 61 million; dessicated coconut, $88.

18 million), accounting for 23% of Philippine export earnings. Coconut products in the 1970's has been the country's top raw-material export, followed by mineral and forest products. Since the 1920's up to the early 1970's, about 61 percent of these exports were in the form of unprocessed copra; coconut oil and dessicated coconut accounted for about 29 percent and 10 percent, respectively, of the value of coconut exports. In the beginning of 1974 however, coconut oil has gradually accounted for the bulk of coconut-based exports. By 1979, coconut oil accounted for 77 percent of the total value; copra 13 percent; and dessicated coconut, 10 percent. Other coconut products, such as coconut shell charcoal, coir (coconut fiber), and activated carbon, have accounted for only an insignificant portion of the value of all coconut products.

Of the total value of coconut exports in the latter half of the seventies, 39 percent went to the U. S. , 46 percent to Western Europe, and the rest to the countries such as Japan and Russia. About one-third of the Philippine population depends mainly on coconut production for its livelihood. In light of this, it is obvious that the coconut industry is of crucial importance. The Philippines ranked 3 rd in world production with the aid mostly from the Coconut Production from Misamis Oriental.

Coconuts are grown as a major crop n many provinces, a total land area of more than 3 million hectares is devoted to Coconut Production from 1999 showed a decline of 9. 4 percent (1. 09 Million metric tons), this decrease in production may be due to prolonged effects of the El Nino Phenomenon (Eleazar, 2000). 1999 accounts to a total production volume of 10, 504, 036 metric tons; this figure is the lowest production. On a per island basis, Mindanao accounts to a 58. 48 percent share of the total production in 1999.

As cited, improved rainfall brought about y the La Nina may cause an uptrend in production this 2000 by as much s 45 percent. The coconut production in Misamis oriental went down y 18 percent, from 489. 28 Million nuts during the first quarter of 2001 to 401. 52 million nuts during the same period in 2002. The sizable drop in production was due to the generally lower rainfall condition during the first quarter of 2002 compared to that of the same period in 2001. Misamis Oriental suffered the biggest decline by 31 percent, while Lanao del Norte, which contributed the highest (34%) to the total nut production of Region 10, suffered only a 7 percent reduction in production.

Consequently, the decline in mature nut production reduced copra production by also 18 percent, from 121, 905 metric tons during the first quarter of 2001 to only 99, 755 metric tons during the same period in 2002. Meanwhile, the demand for green nuts or buk o grew by almost 62 percent, from 2. 038 million nuts during the first quarter of 2001 to 3. 298 million nuts in the same period of this year. Lanao del Norte supplied 75 percent of the total consumption of the region during the 2002 period. Copra and whole nut prices were relatively higher during the first quarter of 2003, compared to that of the same period in 2001.

Buying prices of copra and whole nuts were relatively higher during the first quarter of 2002 compared to that of the same period in 2001. The average farmgate prices of copra averaged P 8. 45/kg, an increase by P 3. 73 (79 percent). The decrease in Farmgate prices pushed down the total value of production for the 1 st quarter of 2002 to P 1. 106 billion which was 19 percent lower than the P 1.

377 billion in the same period last year. Millgate prices also increased toP 9. 69/kg for this year's first quarter from only P 5. 06 of the same quarter last year (63 percent). On the other hand, whole nuts were bought at P 2.

29/pc at farmgate during the first quarter of 2002, higher by P 0. 89 (93 percent) compared to P 1. 40/pc last year of the same period. At millgate, whole nuts were bought at P 2. 75, higher by P 1.

52 (124%) compared to only P 1. 23/pc of the same period last year. CAGAYAN DE ORO CITY - Manuel G. Boniao, the chairman of the Palm Oil Task Force in Region X, was considering the establishment of a palm oil refinery in Misamis Oriental even as he expressed hope that the 200-hectare palm tree plantation in Balingasag town would be successful. He said that the establishment of a palm oil refinery here would help the country's economy and help increase coconut oil production. The Philippines is now importing coconut oil products after its coconut industry, once the envy of other Asian nations, could no longer sustain the demand for the product.

Boniao said that the task force was now focusing its attention on the plantation, the Bali Palm Multi-Purpose Cooperative, in Balingasag, which was established three years ago. Studies have shown that 60 tons of fresh palm fruits can produce six to seven tons of palm oil. This is worth between P 18, 000 to P 91, 000 per hectare based on international market price of palm oil. Question no. 2 What are the effects of Coconut Industry to the economy? DTI-monitored Investments Investments poured into the region in the 1 st quarter of year 2002 amounted to P 1. 7 billion, a decrease of 25 percent, compared to the 2.

2 billion of investments generated over the same period last year. The 46 percent and 91 percent increase in Bukidnon and Misamis occidental, respectively, fell short of the huge decreases in investments in Misamis Oriental, Camiguin and Lanao del Norte. Non-BOI registered investments, comprised the bulk of investments (99 percent) for the reference period. Major investment areas were in the trading sector (business name registrations at 73 percent); agri-based sector (13 percent), services sector (5.

3 percent) and other sectors (which include bank releases monitoring) at 4 percent. Bukidnon accounted for 69 percent of the total investments generated in the first quarter 2002 with total investments valued at P 1. 1 billion mostly in the agri-based and trading sectors. For Misamis Occidental, total investments for the period reached P 299 million, which is a 91 percent increase compared to the total investments generated in the 1 st quarter of 2001 (P 156 million).

Most of these investments came from the agri-based sector (176 million). Investments in Misamis Oriental reduced by 95 percent from P 1, 099 million in the 1 st quarter 2001 to the P 53 million in the same period this year. The bulk of the decrease can be traced to the big reduction in business name registrations by about 59 percent. This brought the province's share of the total regional investments to only 3 percent. Trading activities particularly the business name registrations formed the bulk of investments in Camiguin, which is collectively valued at P 2.

6 million or almost 60% of the total generated investments of P 4. 3 million. For Lanao del Norte, total investments for the period reached P 172 million, which is a decrease by 14 percent of total investments generated in 1 st quarter 2001 (P 201 million). Most of these investments came from the trading sector (P 82 million), and in the infra and services sector, particularly construction and construction materials. SEC-Registered Investments Investments registered with the Securities and Exchange Commission-Cagayan de Oro Extension Office reached a total of P 11.

58 million during the 1 st quarter of 2002, a plunge by 92 percent compared to the P 141. 22 million recorded in the same period of 2001. The decline was due to the zero investment for business expansion compared to the P 133 million additional capital infused for business expansion during the 1 st quarter of last year. New registrations, however, posted a 41 percent increase in the 1 st quarter of this year, from P 8. 22 million in the 1 st quarter last year to P 11. 584 million this year.

For the 1 st quarter period of 2002, Misamis Oriental, particularly, Cagayan de Oro City continued to receive the biggest share of the investments (88 percent of the regional total), Lanao del Norte got a 7. 2 percent share while 4. 8 percent went to Misamis Occidental. Exports Region 10's exports decreased by 12 percent in the first quarter of 2002 compared to the same period last year. Among the reasons that can be gleaned from the data is the decrease in the export of the region's major products to Japan and Europe. The top ten export commodities contributed 85 percent to the region's export earnings and these include: canned pineapple (19 percent share); fatty alcohol (14 percent); sintered ore (11 percent); milk powder (9 percent); raw cane sugar (8 percent); portland cement (6 percent); frozen shrimps (5 percent); crude coconut oil (5 percent); desiccated coconut (4 percent); and activated carbon (4 percent).

Among the major markets, only the USA posted an increase of 13 percent. The big decreases were experienced in Japan (-30 percent) and Europe (-50 percent). Since the major exports of the region go to these countries, movements in these markets greatly influence the export performance of the region. Exports to asian markets, on the other hand, are showing strength as indicated in the increases in exports to Malaysia (2154 percent), Indonesia (149 percent), Thailand (100 percent). Exports to chinese market are also picking up at 39 percent..