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`Alternatives mooted to raise coconut farmers' income

Vinson Kurian

THIRUVANANTHAPURAM, July 20

THE average farmgate price of $250 per tonne for coconuts does not provide the farmer sufficient incentive to remain invested in the industry, says the findings of an international study conducted to quantify the market demand for high-value coconut prod ucts.

Results of the study made available to Business Line by the Jakarta-based Asian and Pacific Coconut Community (APCC) observes that about 96 per cent of the world coconut production was sourced from small holdings. Assuming an average area of one hectare per farmer, an average yield of one tonne of copra per hectare and an average farmgate price of $250 per tonne of copra, the annual income per year from coconut is not attractive enough a proposition for the farmer to pursue with his trade.

The study carried out by Mr T.K.G. Ranasinghe, a Sri Lankan consultant, identifying specific local and foreign market conditions, sought to make demand projections for coconut products over the next 5-10 years and concluded that it was imperative to iden tify alternative or complimentary products to copra which could offer coconut farmers higher incomes.

The consultant's initial report (1999) has listed 12 marketable high-value products from coconut. Five of these products (desiccated coconut, milk/cream, milk powder, fresh coconut and coconut water) would compete among themselves for the raw material us ed in producing traditional copra and coconut oil products.

The other seven products, however, do not need to look to the same raw material for sustenance; in fact, six of these (nata de coco, coir fibre, new fibre products, fibre dust, shell charcoal and activated carbon) are instead sourced from coconut parts w hich are normally discarded as waste or utilised marginally. Its gelatinous meat rules out Makapuno coconut from being copra material and is instead processed into a high-value dessert accepted the world over.

The first five products in the above list would generate more income per hectare compared to copra and six others could augment incomes tremendously. Thus, different product combinations could be used to generate higher incomes for the coconut farmer and the coconut industry, the study observes.

# For dessicated coconut, Europe has become the largest consumer followed in that order by the Americas and the Asia-Pacific. For milk/cream, the Asia-Pacific has proved the largest market followed by the Americas and Europe. And, while Europe consumes m ore milk powder than Asia-Pacific, it also accounts for about six times the combined consumption of other regions vis-a-vis fresh coconuts.

The US led other regions in the consumption of the Makapuno coconut dessert, the pattern of which varied depending on the presence of localised Asian populations. For coconut water, the Asia-Pacific shared the top position with the Americas and Europe fo llowed close behind. For nata de coco, Asia-Pacific is the largest consumer, followed by the Americas and Europe and the localised Asian population once again dictated the consumption levels in those areas where they formed the predominant population.

For coconut coir, Europe came first, followed by the Americas and other countries while for coir dust, Europe came up trumps once again with the Asia-Pacific, the Americas and Africa making up the rear. The Asia-Pacific led in consumption of both shell c harcoal and activated carbon followed by Europe and the Americas in both cases.