DAVAO — The Department of Agriculture Davao Region, through its Agribusiness and Marketing Assistance Division, has opened discussions with Borneo New Energy Company to explore market opportunities for coconut shells as an alternative energy resource. The talks signal a potential new income stream for coconut farmers across the region.
A New Market for Coconut By-Products
Representatives Lian Sheng Wang and Kiing Teck Wee of Borneo New Energy Company met with DA-11 officials to assess the availability and volume of coconut shells in the Davao Region. The company expressed strong interest in purchasing these by-products for energy production, viewing them as a renewable fuel source.
The initial plan requires approximately 100 metric tons of coconut shells, though the final volume will depend on further assessment of supply potential. This demand, if realized, would transform what is currently treated as waste into a valuable commodity for farming communities. The discussions form part of broader efforts to identify additional markets for agricultural by-products.
Tapping a Cooperative Powerhouse
To gauge supply capacity, DA-11 is coordinating with the Katipunan Small Coconut Farmers Multipurpose Cooperative in Panabo City, Davao del Norte. The cooperative manages around 2,350 hectares of coconut plantations and counts approximately 800 farmer-members within its network.
The cooperative produces an estimated 400 to 500 metric tons of coconut monthly, providing a substantial potential supply base. Officials are now evaluating how many shells can be recovered and consolidated for the proposed market. This assessment will determine whether the partnership can move forward at the scale Borneo New Energy requires.
From Expo to Export Opportunity
The initiative is a direct offshoot of the SIE Sabbah International Expo 2026, which connected local agricultural commodities with international and private-sector buyers. That event opened doors for Davao's coconut industry to showcase its potential beyond traditional products like copra and oil.
Through its Agribusiness and Marketing Assistance Division, DA-11 continues to facilitate market linkages between farmers' organizations and prospective buyers. The agency is exploring value-adding opportunities that can generate additional income streams for coconut-producing communities. The Borneo discussions represent one tangible outcome of these sustained efforts.
Promoting Sustainable Utilization
The potential collaboration aligns with the government's push for sustainable agricultural resource management. Coconut shells, often discarded or burned in the field, can be converted into clean energy when processed properly. This reduces environmental impact while creating economic value from what was previously considered low-value material.
For farmers, selling shells to an energy company provides a supplementary income source without disrupting their primary coconut harvest. The arrangement encourages more efficient use of the entire coconut palm, maximizing returns from existing plantations. It also supports the circular economy model that DA-11 promotes across the region.
A Boost for Coconut Communities
If the partnership materializes, coconut farmers in Davao del Norte and surrounding areas stand to benefit from a steady buyer for their shells. The cooperative's existing infrastructure and membership base make it an ideal partner for consolidating supply and ensuring fair distribution of benefits among members.
The discussions remain in the assessment stage, with both parties evaluating the logistics and economics of the proposed arrangement. DA-11 officials expressed optimism that the collaboration could serve as a model for other agricultural by-product markets in the future. The region's coconut industry now awaits the outcome of these promising talks.
