MANILA – The Confederation of Coconut Farmers Organization (CONFED-CCFOP), composed of several thousand coconut farmers from across the country, has stepped forward to bid for the United Coconut Planters Bank Savings Bank, Inc. (UCPB Savings), a bank whose shares were acquired using the coco levy fund.

The Land Bank of the Philippines (LBP) is selling its ownership stake in UCPB Savings, equivalent to 97.55 percent of the latter’s total outstanding capital stock.

Land Bank has set the asking price at ₱341.14 per share for its nearly seven million (6,996,467) common shares in UCPB Savings.

During a forum over the weekend in Quezon City, CONFED-CCFOP Chief Executive Officer Charles Avila stated that their bid is backed by local and foreign entities committed to supporting coconut farmers and restoring the Philippines’ position as a leading global coconut exporter.

However, he also expressed hope that President Ferdinand R. Marcos Jr. could help “ensure the awarding, conveyance, and control” of UCPB Savings to CONFED-CCFOP.

Avila noted that at least three entities, including CONFED-CCFOP, are vying for UCPB Savings.

He stressed, “Walang pag-asa ang industriya habang ang credit facility ay wala sa magsasaka. Ngayon, kung maibabalik sa magsasaka (ang bangko), payagan ang mga magniniyog na mahawakan ito, hindi na kailangan tayong mangutang ng 5-6.”

Coco Levy and the UCPB

The Supreme Court’s ruling in G.R. No. 217965, dated August 8, 2017, states:

“The collection of what is known as the coconut levy funds all began on June 19, 1971, following the passage of Republic Act (R.A.) No. 6260, for the purpose of providing the necessary funds for the development of the coconut industry. The imposition, which was pooled into what was called the Coconut Investment Fund (CIF), consisted of a sum equivalent to fifty-five centavos (P0.55) on the first domestic sale by a coconut farmer for every 100 kilograms of copra or other coconut products. In exchange for the levy, the coconut farmer was to be issued a receipt which shall be converted into shares of stock of the Coconut Investment Company (CIC).

Playing key roles in the collection, administration, and/or use of the coconut levy funds were the Philippine Coconut Authority (PCA), formerly the Philippine Coconut Administration (PHILCOA), the United Coconut Planters Bank (UCPB), and the Philippine Coconut Producers Federation, Inc. (COCOFED). By legal mandate, COCOFED once received allocations from the coconut levy funds to finance its projects. Among the assets allegedly acquired through the direct or indirect use of the Fund was a block of San Miguel Corporation (SMC) shares of stock.

The declaration of martial law in September 1972 saw the issuance of several presidential decrees (P.Ds.), purportedly designed to improve the coconut industry through the collection and use of the coconut levy funds. Among these decrees were:

1. P.D. No. 276 – Established the Coconut Consumers Stabilization Fund (CCSF) and declared its proceeds as a trust fund to subsidize the sale of coconut-based products, stabilizing the price of edible oil.
2. P.D. No. 582 – Created the Coconut Industry Development Fund (CIDF) to finance the operation of a hybrid coconut seed farm.
3. P.D. No. 755 – Approved the acquisition of a commercial bank (UCPB) for the benefit of coconut farmers to enable the bank to efficiently implement the industry’s credit policy.
4. P.D. No. 961 (Coconut Industry Code) – Codified and consolidated all existing laws and decrees related to the coconut industry.”

In a statement, CONFED-CCFOP recalled, “After the historic victory in Court in 2012, wherein the majority of farmers and the government worked side by side for decades to obtain a clear judicial definition of the coco levy funds’ ownership, CONFED sadly had to go back to court in 2015 to restrain the government at that time from behaving like it was the absolute owner of these funds and assets, which included the United Coconut Planters Bank.”

The group emphasized that the Supreme Court upheld their petition (G.R. 217965) and restrained the administration at that time from arbitrarily using the funds.

In its letter to President Marcos Jr., CONFED-CCFOP stated:

“We are bidding to acquire the USB (UCPB Savings Bank), Mr. President, because we are its true beneficial owners as per unassailable court doctrine. We are bidding because we know what to do with it as responsible stewards of a special fund that enabled that bank to come into existence from out of the blood, sweat, and tears of the coconut farmers of this land. We are bidding to have that bank in farmers’ hands because we know there is no existing agri-bank in this country now functioning as such in a real sense, and we are committed to have our key bankers learn agri-banking from the best agri-banks in the world.”

The group further asserted, “It is now common knowledge that the world looks to the Philippines for a constant supply of coconut products that can provide so many of our necessities… All this, however, will be one big illusion unless the development of the industry includes meaningful farmers’ participation. And the latter would be empty if their own bank is not returned to them.”

Strategic Importance of the Philippine Coconut Industry

Avila underscored, “Sa buong mundo, the demand for coconut products is increasing kasi hindi lang ang paggamit ng meat, ng water, ng husk – all the other parts of coconut, malaki ang demand – hindi lang coconut oil, hindi lang the traditional food, pati non-food, pati energy, pati medicines.”

He added, “Pero, sa mga 80 bansa po na may mga niyugan, tatlo lang ang malaki talaga – iyon ang Pilipinas, ang Indonesia at India… Sa tatlo na iyan, iisa lang ang inaasahan ng mundo – ang Pilipinas lang, sapagkat ang India ay halos hindi sapat ang supply; ang Indonesia ganoon din, sila lang rin ang gumagamit. Almost 80% ng world traded na coconut products nanggagaling sa Pilipinas – number one. Number two, ay ganoon man ang demand, ang supply is dwindling sapagkat while it is shown na mga 350 million-plus trees sa Pilipinas po, giving us 15 billion – that’s every year, ang kondisyon po ng mga niyugan natin ay, officially at least 10%… ang sabi ng iba 30% senile na – hindi na namumunga ng madami.”

Avila highlighted that there are more than three million coconut farmers, making coconut farming the largest subsector in Philippine agriculture. However, he lamented that it remains the poorest subsector.

After 30 years of struggle, nagkaroon ng judicial definition kung kanino ‘yun (coco levy fund). Ang sabi ng doktrina ng Supreme Court, iyan pala ay both public and private. Bakit public, kasi resulta po ng buwis, ng taxation. Pero bakit private, sapagkat hindi para sa lahat, para lamang sa mga coconut farmers’ benefit at sa industriya. So walang absolute ownership ang government, trust ownership po lamang,” he explained, adding, “Ngayon, ito ang problema… panahon ni President Duterte ay basta kinuha niya ang bangko, minerge [merge] niya sa Landbank. Ang announcement ay merging, pero ang totoo ay buyout!”

Avila insisted, “Kung maibabalik sa magsasaka ang bangko, payagan ang mga magniniyog na mahawakan ito… maisusulong ang pag-unlad ng magsasaka at ang rehabilitasyon ng industriya ng pagniniyog.”

Former priest Ed Dela Torre, who is President of Philippine Rural Reconstruction Movement (PRRM), stressed the need for all the coconut farmers and their groups to unite to be able to really push their common interests.

He said, “Ang PRRM is designated ng Kilos Magniniyog na secretariat nila kaya ako kasama dito ngayon. Kasi ang mga leader, iba-iba pa ang posisyon, pero noong lumabas nga iyong batas, nag-usap kami, hindi maganda ang batas, pero nandiyan na eh, i-engage natin ang government.”

He added, “Kaya nag-decide kami na we will always collaborate. Kaya ang aming parehong goal, ma-develop iyong mga local farmer leaders, na hindi lang sila local, dapat maging kasama rin sila sa national voices.”

Dela Torre emphasized, “So, isang challenge sa amin rin ay i-organize further. It’s not just a matter of having a bank or getting money kung ‘di tulungang magkaroon ng pagkakaisa. Kaya, ang punto namin, mag-usap tayo dito, tumatanda na tayo pare-pareho, siguraduhin nating hindi na magpatuloy itong banggaan, kawalan ng katarungan, at tunggalian [hanggang sa mga susunod na henerasyon].

📷 Saturday News Forum