Coconut Workers Own San Miguel Corp.

There are 3 million hectares planted to coconut trees, the second largest agricultural area after rice fields (4 million hectares). The coconut industry employs about 3.4 million Filipinos. Some 18 to 20 million more Filipinos depend on the industry for their livelihood, according to the United Coconut Associations of the Philippines (UCAP). About 90 percent of those employed in the coconut industry are small farmers, who earn P10,000 a year or P25 a day. 

Coconut farmers are among the most exploited segments of Philippine society. Driven to squalor by Marcos cronies who thrived on the so-called coconut levies, the coconut farmers represent the oldest sector of the domestic economy. In 1642, the Spanish colonial government forced each Filipino to plant 200 coconut trees, because Spanish shipbuilders had a large need for charcoaled coconut shells and coconut husks. Coconut products have gradually become the country's top export, accounting for 35 percent of all exports in the 1950s and 1960s. In the 1970s, coconut products were the country's leading exports of raw materials. New economic policies initiated under the Aquino administration led to a slow-phased shift to industries, which eventually put the coconut industry at the tailend of government priorities. In 2001, coconut exports represented only 1.6 percent of the country's total exports.

In 1971, the dictatorial government of the late President Ferdinand Marcos established the Coconut Investment Fund (Cocofund) by imposing a levy of P15 per 100 kilograms of copra for nine years between 1973 and 1982. Supposedly, the fund should serve as subsidy to coconut products for domestic consumption. However, the cocofund, which amounted to a total of P9.695 billion by August 1982, was turned into a private fund used to finance three financial institutions, including the United Coconut Planters Bank (UCPB). The cocofund was also used to acquire the majority shares of San Miguel Corporation, the country's largest food and beverage conglomerate. A known Marcos crony, Danding Cojuangco, still retains the chairmanship of both UCPB and San Miguel until today. The fund, which is estimated at over P100 billion today, has yet to be transferred to the accounts of the coconut farmers.