An ILO programme pioneers a circular, AI-powered transformation of the coconut industry, adding value and positioning island communities like Siargao as models of inclusive, climate-resilient growth in the Philippines.
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.
Speaking at the session on Environmental and Social Challenges in the Coconut Supply Chain, the ILO highlighted how artificial intelligence (AI) and circular economy principles can turn the coconut sector from dying into a pillar of sustainable, inclusive growth.
Coconut communities at a crossroads
Smallholder coconut farmers, particularly in island economies like Siargao, remain vulnerable to poverty, climate shocks, and weak value chains. Despite coconut farming covering more than half of Siargao’s land area, copra remains the main output, with over 80 per cent of by-products wasted and incomes below the poverty threshold.
Meanwhile, tourism is booming with over 529,000 visitors in 2023. Yet, coconut communities capture little benefit from this growth.
Workers position the coconut seedling on the ground© Clemente Ian Depaz/ ILO
Workers position the coconut seedling on the hole, using a measuring stick for proper depth, alignment and orientation
A circular and digital opportunity
The ILO’s presentation introduced an island-ready circular economy model, where every part of the coconut is transformed into value. From virgin coconut oil and soap to candy, coir, vinegar, and eco-products, this whole nut approach creates multiple income streams for farmers and entrepreneurs.
Complementing this, AI-powered SCORE training is being piloted under the Digital-PINAS to help coconut MSMEs:
- Professionalize operations with 5S, OSH, and quality assurance tools.
- Reduce waste through AI-assisted resource planning.
- Strengthen local procurement links with hotels, resorts, and LGUs.
- Unlock digital marketing and language translation for local enterprises.
Siargao as a lighthouse model
The town of Del Carmen, home to the Philippines’ largest contiguous mangrove forest and now a Ramsar Wetland Site, is leading the shift toward a circular coconut economy. Former mangrove cutters are now conservation rangers, while community enterprises are creating eco-friendly alternatives to mangrove charcoal.
With support from SCORE training and Digital-PINAS, Siargao is being positioned as a lighthouse model showing how circular, AI-enabled economies can build climate resilience, inclusive livelihoods, and sustainable tourism in small islands across Southeast Asia.
Partnerships for Impact
The ILO invited stakeholders from government, private sector, and international development to collaborate in scaling up this model. The aim is to unify coconut and tourism actors under a shared vision of a zero-waste, digitally enabled economy that empowers workers, farmers, women, and youth.
“AI does not replace workers, it empowers them,” the presentation emphasized.
