An analysis of the coconut sugar production in Misamis Oriental highlights a persistent gap between the sector’s market potential and the value captured by smallholder farmers. This Policy Note finds that farmers remain largely confined to labor-intensive upstream activities, while cooperatives dominate processing and marketing, constraining farmers’ income potential and pricing power. The Note also identifies structural barriers—including climate risks, aging farmers, limited equipment, and rigid payment systems—that limit deeper participation in the value chain. To address these challenges, the authors recommend reforming the recovery-rate payment scheme, strengthening cooperative governance, and investing in shared processing facilities, technological upgrades, and expanded market channels to promote more inclusive and resilient growth.
