DEMAND for coconut-based dairy alternatives such as coconut milk and coconut water continues to grow in export destinations like China, a Department of Trade and Industry (DTI) XI official said Monday, Sept. 7.
Maria Victoria Placer, DTI-XI Davao del Sur provincial director and coordinator for the Coconut Farmers and Industry Development Plan (CFIDP), said Davao Region should take advantage of this market, particularly coconut water and coconut milk.
“We see the large potential of coconut in the Chinese market considering the large population of China,” she said.
DTI XI reported positive results when it featured coconut products in Shanghai, China last year.
“Coconut milk is considered an alternative to dairy milk, since 80% of the Chinese population are lactose-intolerant,” she cited the statement of the Philippine consulate to China at the Shanghai Trade Fair.
She shared that coconut water is considered an electrolyte that athletes used during the Olympics.
Considering the large market, DTI is looking for processors who can accommodate the demand not only for China but also for other Asian countries.
The Philippines is set to serve as the Country of Honor for this year’s edition of the China-ASEAN Expo (CAEXPO), which is in its 23rd year.
Cebu, on the other hand, has been selected as the Philippines’ City of Charm, set to showcase its economy, rich culture, and strong position as a hub for trade and investment.
DTI is targeting the participation of 100 exhibitors specifically from micro, small and medium enterprises (MSMEs) across food and wellness, technology, and tourism on Sept. 17-21, 2026, in Nanning, China.
DTI reported that coconut market access has already expanded in Korea, Russia, Europe, and even Middle East countries.
At present, the agency is assisting 200 MSMEs with certification to enter the Halal market in ASEAN countries.
“Under our product enhancement program, we want to develop more crafts, not only food products, so that we can also develop more products other than the nut,” she said.
The agency is working with the Design Center of the Philippines to provide different market trends for coconut products, particularly in the export market.
Davao is still the major coconut-producing region in the country, where major processors are also found.
However, high market compliance costs and steep regulatory requirements are preventing micro and small coconut processors in Mindanao from expanding into foreign markets.
According to Placer, compliance with regulatory bodies like the Food and Drug Administration (FDA) presents a significant financial burden.
Registration fees for a License to Operate (LTO) and Certificate of Product Registration (CPR) have surged from a previous rate of ₱15,000 per product to around ₱75,000 per product.
High transport costs, farm-to-market road gaps, and strict container volume requirements limit MSMEs’ exports.
Consequently, direct export capacity remains largely restricted to medium- and large-scale enterprises capitalized above ₱100 million.
To address volume requirements, DTI is promoting a consolidation model where smaller producers aggregate products across key coconut-producing hubs in the Davao Region, including Davao del Sur and Davao Oriental collectively meet buyer quotas.
The announcement comes ahead of the inaugural Coconut Philippines Mindanao 2026 Trade Fair, scheduled for September 10–13 at Ayala Malls Abreeza, Davao City.
Organized under the Coconut Farmers and Industry Development Plan (CFIDP) alongside the Mindanao Trade Expo Foundation Inc., the four-day event aims to connect over 100 farmer organizations, cooperatives, and MSMEs across Mindanao with institutional buyers, targeting ₱30 million in combined cash, booked, and negotiated sales.
