Department of Agriculture

PHILIPPINE COCONUT AUTHORITY

Email: pca_ofad@mozcom.com

PCA

RDEB

December 2004

GROWING OF INTERCROPS IN COCONUT LANDS TO GENERATE MORE FOOD AND AGRICULTURAL PRODUCTS, JOBS, AND ENCHANCING FARM INCOMES
Coconut Intercropping Salient Notes/Considerations

1. Efficient Agriculture and the Technology To make agriculture effective and efficient, farm diversification systems (FDS) with proper packages of farming technologies on marketable crops is a must. One of FSD is the coconutbased cropping system (CBCS), defined as a practice in coconut production in which the available farm resources like soil, water or rainfall, farm labor, agricultural inputs (seeds, fertilizers, agrochemicals) are utilized to produce both nuts, food and non-food agricultural products from the farm, in an agri-business or profitable way. In CBCS or simply coconut intercropping, integrated crop management (ICM) of the production system should be able to maintain farm productivity, profitability and sustainability of the existing stands of the coconut crop to maximize the economic yield of the farm. Speaking of the profitability in FSD, the combined coconut and intercrops, at copra price of P14/kg, the achievable net income stands at P45,000-P120,000 per ha annually. But with high value intercrops as fruit trees, coconut-fruit crop system could generate P500,000 net income/cropping year. 2. Land Resource and Intercrops Of the current coconut areas around 3.1 million ha of coconut land, about 60% of these or 2 million ha are suitable for intercropping with various recommended intercrops (cereals, vegetables, rootcrops, spices, fruits, industrial crops, and others). This is indicated in Table 1, covering most of the major coconut producing provinces.
Table 1. Potential Areas for Intercropping of Coconut Producing Provinces Region/Province LUZON Region I Ilocos Sur Ilocos Norte La Union Pangasinan Region II Cagayan Isabela Nueva Viscaya Quirino Total Coconut Area (in hectares) 858,293 13,139 1,412 1,594 732 9,401 8,162 5,800 1,265 793 304 Areas for Intercropping* (in hectares) 557,894 8,541 918 1,036 476 6,111 5,305 3,770 822 515 198 Recommended Intercrops

peanut, garlic, tobacco, pineapple

pineapple, napier corn, corn, corn forage, peanuts (legumes), cassava, banana, citrus

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Region/Province Region III Zambales Bataan Region IV-B Cavite Aurora Palawan Romblon Region IV-A Batangas Laguna Marinduque Occ. Mindoro Or. Mindoro Quezon I Quezon II Region V Albay Camarines Norte Camarines Sur Catanduanes Masbate Sorsogon VISAYAS Region VI Aklan Antique Capiz Guimaras Iloilo Negros Occidental Region VII Bohol Cebu Negros Occidental Siquijor Region VIII Leyte Biliran Southern Leyte Samar Eastern Samar Northern Samar MINDANAO Region IX Zamboanga del Norte Zamboanga del Sur Zamboanga City Basilan

Total Coconut Area (in hectares) 1,265 1,170 95 82,391 13,889 21,288 22,450 24,764 372,342 19,208 57,110 31,447 4,473 25,582 98,384 136,138 380,994 28,330 111,904 78,384 6,712 75,099 80,565 665,348 104,598 31,673 15,099 9,586 7,110 10,165 30,965 131,040 40,800 42,700 44,002 3,538 429,710 163,997 17,898 40,060 51,907 67,949 87,899 1,590,917 362,028 155,188 120,174 44,740 41,926

Areas for Intercropping* (in hectares) 823 761 62 53,555 9,028 13,837 14,593 16,097 242,023 12,485 37,122 20,441 2,907 16,628 63,950 88,490 247,647 18,415 72,738 50,950 4,363 48,814 52,367 432,476 67,988 20,587 9,814 6,231 4,622 6,607 20,127 85,176 26,520 27,755 28,601 2,300 279,312 106,598 11,634 26,039 33,740 44,167 57,134 1,034,097 235,318 100,872 78,113 29,081 27,252

Recommended Intercrops corn, corn forage, napier, legumes, mango pineapple, sugarcane, banana, corn, corn forage, legumes, abaca, fruit trees, cashew for Palawan pineapple, sugarcane, banana, corn, corn forage, legumes, abaca, fruit trees

corn, corn forage, legumes, cassava, banana, pili, pineapple, sugarcane, abaca

sugarcane, pineapple, corn, corn forage, cassava, fruit trees, bananas, legumes, mango

corn, corn forage, bananas, mango, citrus

corn, corn forage, bananas, pineapple, pili, cacao

corn, corn forage, bananas, cassava, fruit trees, coffee, cacao, abaca

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Table 1. Continued. Region/Province Region X Bukidnon Camiguin Misamis Occidental Misamis Oriental Region XI Davao City Davao Norte Compostela Valley Davao del Sur Davao Oriental Region XII Lanao del Norte North Cotabato Sultan Kudarat Sarangani South Cotabato CARAGA Agusan del Norte Agusan del Sur Surigao del Norte Surigao del Sur ARMM Maguindanao Lanao del Sur Sulu Tawi-Tawi PHILIPPINES Total Coconut Area (in hectares) 241,107 3,910 24,369 110,652 102,176 330,687 30,605 42,246 48,171 85,085 124,580 186,648 62,553 18,270 15,475 70,250 20,100 236,996 28,932 9,900 112,910 85,254 233,451 53,478 50,328 82,205 47,440 3,114,558 Areas for Intercropping* (in hectares) 156,720 2,542 15,840 71,924 66,414 214,946 19,893 27,460 31,311 55,305 80,977 121,322 40,659 11,876 10,059 45,663 13,065 154,048 18,806 6,435 73,392 55,415 151,743 34,761 32,713 53,433 30,836 2,024,467 Source: PCA-FSB (2003) Recommended Intercrops corn, corn forage, bananas, cassava, legumes, fruit trees, papaya, coffee, cacao, abaca corn, corn forage, bananas, abaca, fruit trees, pineapple, coffee, cacao

corn, corn forage, bananas, abaca, fruit trees, coffee, cacao, legumes

corn, corn forage, bananas, abaca, fruit trees, coffee, cacao, legumes

corn, corn forage, bananas, abaca, fruit trees, coffee, cacao, legumes

*Estimated at about 60-70% of the total coconut area

3. Development Stage and Suitable Intercrops Depending on the age or development stage of coconut, suitability and productivity of intercrops in coconut stands is strongly influenced by the availability of sunlight. Under the three stages (I, II and III) from field-planting up to 26-60 years old coconuts, proper intercrops had been identified (Table 2). Table 2. Growth Duration and Productivity Periods, Levels of Sunlight Transmission and Suitable Intercrops. Phase Duration Level of available sunlight/ highly suitable intercrops
(Stage)

Fieldplanting 6 years

High to Moderate/Highly Suitable Intercrops: to Cereals - corn, upland rice Legumes - cowpea, peanut, mungbean, sitao, beans Root crops - sweet potato, gabi Fruit crops - pineapple, citrus, watermelon, papaya, banana Vegetables - tomato, cabbage, eggplant, sweet pepper, hot pepper, okra
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Table 2. Continued. Phase Duration

(Stage)

Level of available sunlight/ highly suitable intercrops Moderate to Low/Highly Suitable Crops: Black pepper, cacao, coffee, tomato, vanilla, ginger, lanzones, rambutan, durian, mangosteen, gmelina tree (for wood and lumber) High/Highly Suitable Crops2: Cereals - corn, upland rice Legumes - peanut, mungbean, cowpea, beans Vegetables - tomato, eggplant, cabbage, sweet pepper, hot pepper, okra, ginger Root crops - sweet potato, gabi, cassava, ubi Beverage crops - coffee, cacao Fruit crops - lanzones, rambutan, durian, mangosteen, citrus (pomelo, calamansi) Wood and Lumber tree - gmelina Fiber crops - ramie, abaca

II

7-25 years1

III

26-60 years

Except tomato, usually the suitable crops indicated requires lower sunlight or moderate shade during the prebearing stage of the crops, thus field-establishment best done during this stage. Should more sunlight transmission to intercrops needed for normal growth and high yields, coconut leaf pruning (CLP) technique (removal of older lower leaves of the crown, maintaining the upper 19-23 leaves); allowing 0.5 meter of cut frond attached to the trunk.

4. Estimated Yield, Farm Input Cost and Net Income (per hectare/year) A guide on the achievable yield of coconut intercrops per ha or per cropping year including estimated production cost and net income is shown in Table 3. Among the intercrops which reach higher net incomes are as follows: cabbage, onion, melon, squash, eggplant, hot chili, sweet pepper, gabi, cassava, banana, citrus, durian, lanzones and coffee. Table 3. Estimated Annual Yield (t/ha), Total Cost and Net Income (P/ha) of Selected Intercrops
Intercrop Estimated Yield * (t/ha) Estimated Cost ** (P/ha) Estimated Income (P/ha)

Vegetables/Legumes Pole Sitao (sitaw) Cabbage (repolyo) Mungbean (mungo) Okra (okra) Bust Sitao (sitaw baba) Cowpea (paayap) Onion (sibuyas) Peanut (mani) Musk Melon (melon) Tomato (kamatis) Squash (kalabasa) Eggplant (talong) Bitter gourd (ampalaya/amargoso) Spice Crops Hot Chili (sili-labuyo) Sweet Pepper (sili) Black Pepper (paminta)

2-6 20-22 0.2-0.6 2-4 2-6 2.5-3.5 15-18 1.0-2.5 12-15 15-30 15-18 7-9 12-15

20,000 27,000 20,000 17,000 25,000 25,000 30,000 20,000 13,000 20,000 15,000 20,000 65,000

30,000 95,000 20,000 25,000 30,000 30,000 90,000 35,000 70,000 50,000 100,000 50,000 25,000

2-4 20-30 0.40-0.85

20,000 25,000 15,000

65,000 150,000 25,000

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Table 3.

Continued.
Intercrop Estimated Yield * (t/ha) 3-4 1.2.1.5 Estimated Cost ** (P/ha) 15,000 15,000 Estimated Income (P/ha) 20,000 20,000

Cereals Corn (mais) Upland Rice (palay tigang) Root Crops Sweet Potato (kamote) Gabi (gabi) Cassava (kamoteng kahoy) Ubi (ubi) Arrowroot (arorot) Ginger (luya) Fruit Crops/Fruit Trees Banana (saging saba) Durian1 (duriyan) Lanzones (lansones) Pineapple (pinya) Rambutan (rambutan) Citrus (Mandarin, Pomelo, Calamansi) Mango (mangga) Beverage Crops Coffee Cacao
1

6-8 10-35 15-20 12-15 8-11 6.5

15,000 15,000 15,000 15,000 12,000 20,000

35,000 75,000 60,000 65,000 35,000 40,000

37.5 19.53 (9,750 fruits) 2.5-4.0 20-30 2.5-4.0 15-20 4-6

6,800 36,800 15,000 50,000 12,000 15,000 40,000

85,000 819,800 100,000 80,000 75,000 125,000 100,000

0.9-1.2 (dry beans) 0.7-1.5 (dry beans)

75,000 18,000 55,000 30,000 Reference: Various Sources

2 3 P61,540 Year 1 P30/fruit 7-10 years fruit trees * 1 ton = 1,000 kg ** excludes overhead expenses (land charge, interest on capital)

5. Indicative Cost and Returns from the Coconut Crop The indicative farm income (profitability index) of an adult bearing coconut should be clear to anyone in coconut farming (Table 4). It is affected by yield of coconut, prices of inputs, prices of farm inputs and copra prices. With judicious fertilizer application achieving 3 tons copra/ha (3rd year) and a copra P14/kg, net income reaches P26,400/ha/yr (ROI 171%) and copra production cost down from P7.18/kg copra to P5.17 kg copra. Table 4. Indicative Costs and Returns of Bearing Mature Coconut (per ha, in PhP)
ITEM 1. Expenses a. Labor -ring weeding -fertilizer application -harvesting -piling and hauling nuts -dehusking -copra-making -transp./hauling -transp./hauling fert. b. Fertilizers Total costs Year 1 Year 2 Year 3 Year 4 (No Fertilizer Application)

2,430 329 2,430 1,080 480 720 300 70 2,943 10,782

2,430 329 3,240 1,350 640 960 400 70 2,943 12,362

2,430 329 4,860 1.890 960 1,440 600 70 2,943 15,522

2,430 -4,050 1,620 800 1,200 500 --10,600

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Table 4. Continued.
ITEM 2. Profitability index: @ 14 Php copra price -Gross value(1) -Net income -BCR(ROI %) @ PhP7/kg copra price -Gross value (1) -Net income -BCR 3. Production cost of 1 kg copra (Php) Assumptions: Note: Year 1 Year 2 Year 3 Year 4 (No Fertilizer Application)

21,000 10,218 0.95 (95%) 10,500 (-282) 0 (0%) 7.18

28,000 15,638 1.27 (127%) 14,000 1,638 0.13 (13%) 6.18

42,000 26,478 1.71 (171%) 21,000 5,478 0.35 (35%) 5.17

35,000 24,000 2.30 (230%) 17,500 6,900 0.65 (65%) 4.24

Source: Margate, Magat and Eroy (2000) Yields (4 nuts/kg copra), t/ha : year 1 @1.5; year 2 @ 2.0; year 3 @ 3.0; year 4 @2.5 (no fertilizer application, post-rehabilitation year 1

1) Non-cash and imputed costs are not included in the total cost 2) Details of estimated costs, prices and yield levels indicated in the annex 1

6. Enhancing Value of Coconut Lands by Fruit Intercropping Selection of fruit crops for intercropping in coconut lands requires a clear understanding of the crop yield, market situation and production cost and return (Table 5). Pineapple, Durian and Mango provide high net returns and benefit-cost ratio. However, pineapple intercrops, though has the highest net returns requires higher investment cost over years as new planting takes place every two years. Table 5. Average Production Costs and Returns per Hectare (PhP) of Selected Fruits, 1996-99, Philippines-Nationwide. Item Yield (kg per ha) Cash cost Non-cash cost Imputed cost Total cost Gross returns Returns above cash cost Returns above cash + noncash cost Net returns Net profit-Cost ratio (BCR) Production Cost/kg Fruit Price per kg (Php) Durian 5,959 9,975 32,552 10,294 52,822 167,074 157,099 124,546 114,252 2.13 9.08 28.04 Mango 7,686 21,371 3,730 10,279 35,382 160,864 139,493 135,763 125,482 3.54 4.64 20.93 Papaya 12,127 45,488 184 15,038 60,711 92,919 47,430 47,246 32,208 0.54 4.94 7.66 Pineapple Calamansi 38,923 36,365 720 10,099 47,185 255,761 219,988 218,661 208,562 4.41 1.21 6.57 4,328 19,702 634 9,143 29,480 40,562 20,860 20,226 11,082 0.38 6.87 9.37

Note: Source: DA-BAS (2000) 1) Cash Cost [fertilizers (organic, inorganic,foliar, soil ameliorants), pesticides, other material inputs, hired labor, land tax, land rental, transportation of inputs, fuel and oil, food expenses, repairs] 2) Non-cash Cost [ hired labor(paid-in-kind), landlords share, harvesters share] 3) Imputed Cost (operators family labor, exchange labor, depreciation, interest on operating capital, rental value of owned land).
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7. Understanding Coconut Farm Diversification Better For more detailed information (pointers) on coconut-based intercropping system (CBIS), a note paper on the subject is attached.

Drafted by:

S.S. Magat November 24, 2004 Email: ssmagat@pacific.net.ph / sev_magat@yahoo.com

c:\1-armd files\armd files (xp setup) november 2003\official\pca intercrop 2004.doc

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