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Coconut

The origin of the coconut is a subject of controversy. Most authorities claim it is native to South Asia, while others claim its origin is in northwestern South America. The coconut is the most extensively grown nut in the world and it is used for many food and non-food purposes. The coconut palm is grown throughout the tropical world as well as in Hawaii, Florida, Oman and along the coasts of United Arabic Emirates and Saudi Arabia. About 96% of the crop is grown by more than 10 million families, low on resources sharecropping on smallholdings under 4 ha. More than 80 million people depend directly on coconut and it’s processing for their livelihood.

Did you know…

  • If you were to become stranded on a desert island populated by palm trees, you could survive purely on the tree and coconut alone, as they provide all basic needs such as food, drink, shelter, fuel, furniture, medicine and decorative materials

Most important export countries

  1. Philippines
  2. Indonesia
  3. Malaysia
  4. Sri Lanka
  5. Vietnam

Most important production countries

  1. Philippines
  2. Indonesia
  3. India
  4. Brazil
  5. Thailand

Production chain

Various products are made of coconuts, such as copra (dried coconut meat), virgin coconut oil (VCO) and desiccated coconut (DC). The 12 million hectares of the crop grown globally produces 10 million tons in copra, which is almost 6 million tons in oil equivalent. The Philippines, Indonesia and India produce around 70 percent of this total.

Problems

Coconut workers often work under unsafe conditions with numerous occupational hazards. Additionally, low income for small-scale farmers is an issue, as most of the profits end up in the hands of traders and exporters instead of the farmers’. In countries like the Philippines and Indonesia, old processing technology and infrastructure are still in use. Smallholder farmers do not have the capabilities and capital to invest. Access to lucrative markets for coconut products is controlled by large companies whose local monopoly of processing enables them to pay a low price for the supply of fresh nuts. Desiccated coconut production generates waste that pollutes the air and water. Emission of harmful gases due to the use of fuel oil, firewood and coconut shells/husks is the primary source of air pollution in desiccated coconut mills. The main pollutants of concern are carbon dioxide carbon monoxide, nitrogen dioxide, hydrocarbons, dust and fly ash. This not only affect workers and nearby inhabitants, but also the surrounding environment. Furthermore, waste water treatment is practically neglected, only 2% of oil mills apply complete water treatment.

Major Chain Issues

In the coconut sector, Fairfood International has identified the following major chain issues:

Major chain Production stage
Insufficient Market-related infrastructure Production
Corruption Whole Chain
Water Mismanagement and Contamination Production
Unhealthy and unsafe working conditions Production
Air Pollution Processing
Insufficient Income and Income insecurity Production

Solutions

The guide below shows certification schemes whose standards indicate a match with some or all of Fairfood’s researched major issues for this commodity. To learn more about the schemes, click on their logo.


Global Gap
Naturland
IMO Fair for Life

Production
Production
Production
Customised sustainability initiatives
In addition to making use of standards and certification schemes, major issues in this commodity could also be addressed in a customised manner. The box below outlines a few examples of initiatives that deal with sustainability issues in this particular sector. Companies could join some of the platforms or roundtables mentioned below. These could serve as a stepping stone to increased sustainability. Other initiatives, in the form of corporate programmes and chain partnerships, could serve as inspiration for replication by other companies within the sector. To learn more about any of the initiatives, click on their logo. 

Corporate program
 In 1994 Kokonut Pacific introduced a technology that enables farmers to process and add value to coconuts on their farms. Instead of shipping dried coconut flesh (copra) to a processing plant, Kokonut Pacific’s Direct Micro Expelling (DME) system allows for the small-scale, local production of coconut oil. The company also developed a certificate assuring fair prices, long term contracts and access to relevant information. The cooperation with small businesses guarantees high quality oil, sustainable production and the safeguarding of renewable resources. Additionally, the farmers are assisted in accessing markets. Priority issues are addressed and verified by this initiative.