Impact assessment of the makapuno comprehensive technology development and commercialization program

Makapuno is an elite type of coconut high commercial value as compared to the normal coconut. Exploiting such opportunity of high commercial value, coupled with the efforts in increasing makapuno yield, is one away of addressing the productivity concerns of the industry. Moreover, there is a great demand for makapuno but supply is limited. A wide demand and supply gap exists in such a way that the industry creates a huge employment and income-generating opportunities for its stakeholders. In line with this, DOST-PCARRD [Department of Science and Technology-Philippine Council for Agriculture, Forestry and Natural Resources Research and Development, Los Baños, Laguna, Philippines] instigated the Makapuno Comprehensive Technology Development and Commercialization Program (MCTDCP). Utilizing the embryo culture technology, the program was carried out to study the makapuno population in the Philippines, establish culture laboratories and demonstration farms, and mass propagate makapuno seedlings. Development programs are implemented with the primary objective of magnifying or realizing the potentials of a certain commodity or industry. Therefore, impact assessments are done in order to weigh whether the returns on investment for a particular project are worthwhile. Additionally, it serves as a tool in measuring whether the targets of a program were met. Hence, this study was performed to document the economic, social, and environmental impacts of the MCTDCP on the various stakeholders involved in the production of makapuno seedlings and nuts in the Philippines. The impact assessment model adopted by this study was the framework developed by the Australian Centre for International Agricultural Research (ACIAR) which combines both qualitative and quantitative approaches. Impact assessment is based around mapping of inputs through outputs, to outcomes, impacts, and finally benefits. The program was able to establish six satellite laboratories and demonstration farms during the program duration. In effect, job provisions for technicians, laboratory aides, and farm laborers were created. ECM [embryo-cultured macapuno] seedlings production exhibited a fluctuating trend for all laboratories throughout the program duration in such a way that the increase in seedling supply remained below the existing demand. In terms of the percentage survival on the number of embryos that germinated, the large viability among laboratories suggest that site-specific problems may exist. The adopters- the ECM seedlings buyers- were concentrated in areas near the existing ECM laboratories. The common cited reasons for planting ECM were the following: high percentage of makapuno nuts, huge profit potential, additional income and good technological features. Financial analysis showed that all the laboratories recorded net losses during the program duration. Break even analysis showed that the laboratories were producing way below the break even amount which reinforces the net losses incurred. In terms of seedling supply with the project, the percent contribution was estimated to be 57% per year on the average. With regard to the supply of makapuno nuts, an average annual growth rate of 85% within the stated period was recorded with the project. Unequal access to the technology proved to be a negative social impact since the technology requires high capital outlay, small-scale farmers were at a disadvantage which ultimately defeats the objective of the program. No changes in the environmental elements were observed. The expected economic impacts included increase in income of stakeholders amounting to twice as much net income generated out of the normal coconut, and decrease in price of ECM seedlings and makapuno nuts. However, these estimates were not realized by the program due to high operating costs of ECM laboratories, low survival rate of ECM seedlings and high seedling price. The economic analysis showed that the value of total benefits accruing from the project was not enough to totally cover both the operating and project costs. The project registered a negative Net Present Value (NPV) at 12% discount rate. Similarly, the B/C ratio [benefit/cost] was computed to be less than one. In addition, the IRR or the earning power of the investment within the project was also found to be relatively low (10.7%). However, sensitivity analysis show that the improvement in seedlings survival rate significantly increased the NPV, IRR and B-C ratio values. Other areas for improvement include sources of good quality embryos, personnel and financial support, laboratory self-sufficiency, implementation of laboratory protocols and nursery management techniques, affordability of ECM technology and seedlings, and a linkage between public and private sectors. To fully realize the potential of the industry, an organized market should be established. The private sector can help in the marketing of nuts and processing of makapuno. Thus, participation from potential adopters, government and private entities will ensure successful ECM technology commercialization.