By: Joe Sprite

A small coconut farmers' cooperative had a meeting last wee to elect three board members. Aside from the election, they were talking of future plans. At present their activities had been buying copra from coconut farmers to sell to copra traders like the Millennium in Looc and the POMS at Canupao. If the cooperative will play their cards right, they will be able to undercut the countryside copra middlemen. However, they must be able to understand the finer points of copra buying.

Mature coconut sanitarily dried to a moisture content specified would command premium prices. The dreaded aflatoxin is eliminated and if the oil is extracted with care, the cake could be used for many purposes. It would be a good for coconut flour as well as animal feed ingredient. However, producing quality copra is labor intensive. Perhaps, it could be suggested to the cooperative to embark on a project study of buying mature nuts to be converted to copra as well as utilizing the by products. The husk yield coir, a fiber that was once much utilized by the Polynesians. The pith could be made into fireproof acoustical wallboards. The shell could be processed into wallboards too approximating hardwood this time. The shells from small ones would find ready market among calamay vendors. It could also be material for handicraft. The coconut water could either be converted into vinegar or made as mother liquor for growing nata de coco. In fact everything in the nut could be used.

The cooperative buying station would drive out the middlemen, who buy copra in the countryside for copra traders with international market. This may not be a problem because most of the countryside buyers are members of the cooperative. However, to be competitive, the coop buyers must know world market prices. International copra prices are dictated by many factors. First of all, the seasons. Coconut is a perennial producer. It produces all year round. What gives competition to copra are the soybean oil, peanut oil, corn oil, olive oil and sunflower oil. However, production of the mentioned oil is seasonal. If the cooperative can be able to look into the international market prices, they will know how much mark up the copra traders would impose. If the coop siphons the countryside copra supply into their storage, they will be able to drive a good bargain with the international traders because their companies impose volume quotas. Besides the cooperative, with proper study, can predict price fluctuations. They would know when to hold on to their stock because prices are rising and when to let go of their stock because prices are bound to fall. This means the coop must have internet connections.

It is also suggested that the coop will post an advisory board in front of their buying stations to inform walk in sellers of the present prices. Better still, the coop will maintain an information network via cellphones on the prevailing prices of the day. A good buyer will always have the welfare of the seller in mind. This is good public relations. The buyer may advise the seller to hold on because prices are rising or sell because prices may fall within the next few hours. This will not only give good service to coop members but will also take advantage of price fluctuations. Sooner, a coop may be big enough to break into the big time if they have enough capital and know how. Copra business is like futures trading. Even the weather factor is considered aside from international farming conditions. Failure of competing crops may raise the prices of copra. Cooperative copra buying will be a good training ground for businessmen who intend to go big time.