While the country's coconut farmers decision on how to spend the P130 billion in coconut levy funds, the Department of Agriculture (DA) has plans to establish 116 Coconut Cooperative Business Units (CBU) throughout the country to help develop the industry and raise the income of coconut farmers.

Agriculture Secretary Luis Lorenzo Jr. said 83 CBU are already operating and these have been found effective in increasing by some P9,000 annually the income of the coconut farmers.

Lorenzo said under the program, the department is promoting supplementary economic activities such as cattle raising and fattening and intercropping among the rows of coconut trees. To improve yields, the DA is also teaching and helping the coconut farmers use fertilizers in their plantations.

The DA has schedule a road show with President Gloria Macapagal Arroyo to drum up interest.

A "catch up" plan for planting and replanting, through the seed nut production and distribution, will be ate the old coconut plantations. Investment will be generated but diversified use and processing of coconut products including bio-diesel development and coco-coir development starting with the establishment of a 10-hectare demonstration area on the application of geotextiles.

The Philippines is one if the biggest producers of copra with some 2.47 million metric tons (MMT) in the year 2000. Copra production is seen to increase to 2.58 million MT in the year 2003. According to Lorenzo, the government expects productions to increase to 2.62 million MT next year.