Coco Technologies Corporation joins Business Call to Action expanding its innovative line of coco husk-based products manufactured by low-income farmers

Manila, 22 February 2017 – Coco Technologies Corporation (Coco Tech), a pioneer in the Philippine coconut fiber industry, has joined Business Call to Action (BctA) with a pledge to increase production of its innovative products derived from coconut husks by P150,000,000 while doubling the number of its subcontractor producer households to 2,500. The company has committed to commissioning 24,000 low cost mattresses, 50,000 sheets of low-cost fiber board and 24,000 bags of organic fertilizer each year by 2020.

Launched in 2008, the BCtA aims to accelerate progress towards the Sustainable Development Goals (SDGs) by challenging companies to develop inclusive business models that engage people with less than US$8 per day in purchasing power as consumers, producers, suppliers and distributors. It is supported by several international organizations and hosted by the United Nations Development Programme (UNDP).

Coconut is one of the most important crops in the Philippines: the country is the second largest coconut producer in the world. Yet Philippine upland coconut farmers are among the country’s poorest people. Few have secure tenure over the land on which they cultivate or receive any support from the government.

As the Dean of Bicol University’s College of Agriculture, Dr. Justino Arboleda wanted to understand why his province, Bicol, was the second poorest in the Philippines despite its rich abundance of coconut trees. Determined to remove his province from the list of the country’s poorest, Dr. Arboleda found a way to maximize the region’s most abundant resource. Without external funding, he took a huge risk, leaving his stable academic career to establish his own company, which pioneered the manufacture of coco fiber products for preventing soil erosion.

Coco Tech developed technologies and an inclusive business model focused around the production of coconut waste materials by independent subcontractors in impoverished farming communities. It established a central coconut fiber processing plant and trained poor farming households to make twine and weave nets in their homes. These nets are delivered to road construction and mining projects to prevent the erosion of soil.

“With an average of 8 billion husks being thrown out every year, we saw a real opportunity to provide additional income for rural communities,” said Coco Tech CEO Justino Arbolita. “Coconut fiber production reduces agricultural waste while increasing the incomes of the country’s poorest farming families and of course, preventing erosion, which destroys ecosystems”.

The company has actively promoted its technology to both the private sector and the government. Now, 25 years after the company’s founding, coconut husk-derived erosion-control nets are required in government and private construction.

As part of its expansion plan, the company’s current initiative involves developing new coco-husk based products such as fiber boards for housing and coco-fiber mattresses. In addition, Coco Tech has begun to formulate an organic fertilizer that is effective and affordable for small-scale farmers to use over the long term.

“Coco Technologies’ inclusive model is building rural communities’ resilience by finding innovative uses for agricultural by-products that can be manufactured by poor farming families,” said Paula Peleaz, Programme Manager of the Business Call to Action. “The company provides a prime example of how inclusive businesses can lead the way to sustainable development in the Philippines.”

Coco Tech is not only planning to increase production of its product line but has also opened up the technology to other companies and farm cooperatives by teaching and encouraging them to copy its inclusive business model.

For further information:
Business Call to Action: Aimee Brown at aimee.brown@undp.org
Coco Technologies Corporation: Justino R. Arboleda at justinarboleda@gmail.com

Membership in Business Call to Action does not constitute a partnership with its funding and programme partners, UNDP or any UN agency.

About Business Call to Action (BCtA): Launched at the United Nations in 2008, Business Call to Action (BCtA) aims to accelerate progress towards the Sustainable Development Goals (SDGs) by challenging companies to develop inclusive business models that offer the potential for both commercial success and development impact. BCtA is a unique multilateral alliance between key donor governments including the Dutch Ministry of Foreign Affairs, Swedish International Development Cooperation Agency (Sida), UK Department for International Development, US Agency for International Development, and the Ministry of Foreign Affairs of the Government of Finland, and the United Nations Development Programme — which hosts the secretariat. For more information, please visit www.businesscalltoaction.org or on Twitter at @BCtAInitiative.

About Coco Technologies Corporation: Coco Tech is a bio-engineering company that uses recycled fiber from coconut husks to produce products such as erosion control logs, erosion control nets, coco peat, eco-blocks, charcoal briquettes, eco-friendly horticultural & garden products, and eco-friendly pet products. It is a leading manufacturer of coconut-based products in the Philippines that exports to Europe, Japan and Canada. The company started out by developing a technology and products to prevent soil erosion using erosion control-materials coming from coconut husk waste. The company distributes coconut fibers to poor coconut farmer households who are trained to make twines and weave nets through manual techniques within the comfort of their homes. For more information about Coco Tech and its innovative product line, visit: http://cocotechcorp.com.