Global trends and new opportunities for the coconut industry

Coconut is grown globally over an area of 12.23 million ha producing 11.04 million MT (copra equivalent) in 93 countries in the world. The 15 member countries of the Asian and Pacific Coconut Community (APCC) account for a major share of area and production occupying 10.7 million ha (87%) and 9.2 million MT of copra equivalent (82.81 %). Indonesia, Philippines and India are the major producers of coconut in the world. The area and productivity of coconut are almost at a standstill at the global level during past 5 years (2003-2008). However, there has been an increase in nut production in some APCC member countries. The major coconut products traded in the world market are coconut oil, desiccated coconut, coconut milk, cream and milk powder, shell charcoal, activated carbon, coir and coir products. Meanwhile, tender coconut water as sports drink/energy drink, virgin coconut oil (VCO), coconut flour, and oleo chemicals are some of the emerging products. Nata de coco, coconut vinegar, coconut syrup based products have also entered the international market. In terms of value added products and by-products traded globally, exports in the last 5 years showed an increasing trend especially for coco cream, desiccated coconut, coco chemicals, activated carbon and coir and coir products. The APCC member countries are the main source for the export of copra, desiccated coconut, shell charcoal, coco chemicals and coir products though coconut oil, copra meal and activated carbon are also exported but in small quantities form outside the APCC region. Opportunities for market expansion for coconut products are seen in the following products: (i) Virgiln coconut oil (VCO), (ii) Fresh and tender coconut, (iii) Coconut flour; (iv) Biofuel, oleo chemicals and fatty acids, (v) Desiccated coconut; (vi) Coconut cream, milk and powder, (vii) Nata de coco, (viii) Coconut sap-based products, (ix) Coconut shell charcoal, (x) Coconut activated carbon, (xi) Coconut water vinegar, and (xii) Coir fiber. A few strategies for coconut development were proposed to meet the above demand: (i) New planting/replanting of senile palms; (ii) Quality planting materials and low cost input management; (iii) Good agricultural practice and coconut-based farming system, (iv) Transfer of technology and capacity building, (v) Product diversification and value addition, (vi) Product quality improvement and quality standards, (vii) New market and expansion of the market and (viii) Policy support and investments conducive to industry development and business growth.