The International Labour Organization (ILO), through its Inclusive, Competitive, and Responsible Digital Philippines (Digital-PINAS) programme, presented a transformative vision for the coconut industry at the World Coconut Congress 2025 in Manila. During a session on Environmental and Social Challenges in the Coconut Supply Chain, the ILO highlighted how artificial intelligence (AI) and circular economy principles can revitalize the sector, turning it into a pillar of sustainable and inclusive growth.
Smallholder coconut farmers, especially in island economies like Siargao, remain vulnerable to poverty, climate shocks, and weak value chains. Although coconut farming covers more than half of Siargao’s land, copra remains the main output, over 80 per cent of by-products are wasted, and farmer incomes remain below the poverty threshold. Meanwhile, tourism in the area is booming, with over 529,000 visitors in 2023, yet coconut communities capture minimal benefits from this growth.
The ILO introduced a circular economy model tailored for island contexts, where every part of the coconut is transformed into value-added products such as virgin coconut oil, soap, candy, coir, vinegar, and eco-friendly goods. This whole-nut approach aims to create multiple income streams for farmers and entrepreneurs. Complementing this, AI-powered SCORE training under Digital-PINAS helps coconut micro, small, and medium enterprises (MSMEs) professionalize operations, reduce waste through resource planning, strengthen local procurement links with hotels, resorts, and local governments, and unlock digital marketing and translation tools for local enterprises.
The town of Del Carmen in Siargao, home to the Philippines’ largest contiguous mangrove forest and a Ramsar Wetland Site, is leading the shift toward a circular coconut economy. Former mangrove cutters have become conservation rangers, while community enterprises produce eco-friendly alternatives to mangrove charcoal. With support from SCORE training and Digital-PINAS, Siargao is being positioned as a lighthouse model demonstrating how circular, AI-enabled economies can foster climate resilience, inclusive livelihoods, and sustainable tourism in small islands across Southeast Asia.
The ILO encouraged collaboration among government, private sector, and international development stakeholders to scale up this model. The goal is to unite coconut and tourism actors under a shared vision of a zero-waste, digitally enabled economy that empowers workers, farmers, women, and youth. The presentation emphasized that AI is designed to empower workers, not replace them.
