A new business pact blossoms when China starts unloading tons of fresh young coconuts from the Philippines in a trade deal seen to boost the two country's economies.
Eng Seng Food Products, a local company operating in the Philippines's Davao region, is set to deliver around 36,000 young aromatic coconuts to Guangzhou and Xiamen in the coming days as part of the agriculture department's collaborative efforts with the Bureau of Plant Industry in promoting the country's local products.
The export of some 48 metric tons of young coconuts pushed through as a result of a contract-signing between China-headquartered firm China Artex Corporation and Eng Seng Food Products, Davao-based coconut exporter president John Tan disclosed.
Trade agreement
The business agreement was one of the 19 trade pacts inked by Philippine President Rodrigo Duterte during his state visit to Beijing for the Second Belt and Road Forum, last April. Eng Seng will export $36.5 million worth of fresh coconuts to China Artex, under the one-year agreement.
The coconut trade deal will enable local farmers in the Philippines to explore new opportunities in terms of expanding the variety of their products as a huge market in China awaits.
It will also improve their annual yield with the provision of coconut seedlings and technical assistance by the Philippine Coconut Authority (PCA) and the Department of Agriculture, who is looking into helping local coconut farmers through a long-term marketing agreement.
The green light
However, because of insufficient supply, Eng Seng Food Products said they will only ship 60 container vans per week. "Due to lack of supply we decreased our shipment to only 15 containers."
The Chinese government gave the green light for the Philippines to commence delivery after Eng Seng Food submitted the necessary papers in compliance with China's export policies that authorizes the entry of coconuts from Mindanao and Leyte.
China's interest
China has already expressed its willingness in importing fresh coconuts from the Philippines. China has a yearly demand of around 1,500 metric tons.
In a statement, Philippine Agriculture Secretary Emmanuel Piñol disclosed that the delivery will be followed by the launching of young coconuts in San Jose, California.
Coconut production is one of the major income-generating sources of the Philippines. Based on data released in December 2009 by the Food and Agriculture Organization of the United Nations (FAOUN), the Philippines is the biggest producer of coconuts the world, with an output of 19,500,000 tons.
