Coconut productivity and profitability of two important Philippine PCA hybrids: A critical review

Severino S. Magat
Liberty H. Canja
Susan M. Rivera

CORD
Vol 23 No 1 (2007): CORD

To generate indicative information and knowledge on productivity and production economics in growing coconuts, two known hybrids of coconuts in the country are considered in this review. These are: Catigan dwarf x LAGT (PCA 15-1) hybrid; and Malayan red dwarf x BAYT (PCA 15-3) hybrid, tested earlier at the genetic and performance blocks of Zamboanga Research Center of Philippine Coconut Authority (PCA-ZRC), an intermediate growing zone of coconut, coastal-flat area of Western Mindanao. Relevant data from field establishment, maintenance and yields of palms for first 15 years from field-planting (FP) are used in this ex-ante enterprise budgeting and net present value or NPV analyses, considered as practical tools for decision-making in coconut farming and agribusiness. Depending on the planting material used and farm gate copra price levels (Php 10–24/kg), initial harvest year (4 – 5 years), average annual nut and copra yields at early full-bearing and full-bearing stages, the following profitability indices all differed between the two hybrids: annual gross returns and net returns, net present value (NPV), benefit-cost ratio or BCR, and internal rate of return (IRR %). At mature full-bearing stage, annual yields ranged 2.5 – 4.3 tons copra/ha (135 trees). Using a copra price level of Php 16/kg: the average annual net returns at full bearing stage (10-`15 years) reached PhP23,900 – 44,100 (PCA 15-1) and PhP18,500 – 72,200 (PCA 15-3) and NPV (18% interest) at PhP 20-24/kg copra of PhP 26,340 – 41,641(PCA 15-1) and PhP34,288 - 58,304 (PCA 15-3); and BCR of 1.24 and 1.48 and 1.40 – 1.68, for PCA 15-1 and PCA 15-3, respectively. Overall, varietal productivity, long-term sustainability and profitability or economic indices indicate that the logical selection option identified follows: PCA 15-3 > PCA 15-1. (PhP 48.70 = US$1). Implications on coconut planting/replanting, palm productivity and profitability as influenced by the different planting materials are discussed with respect to policies in coconut industry development.