The ‘Coconut Crisis’ – A possible way out

“The time for action is now and the securing of a remunerative price for the producer as happens now, is fundamental to maintaining the long-term health and sustenance of an industry in which all the players have a stake.”
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Dr. U. Pethiyagoda


(February 14, Colombo, Sri Lanka Guardian) The coconut industry, it seems, is often in a state of crisis. The current one is characterized by high nut prices for the consumer, a difficulty for Desiccated Coconut producers to competitively meet their forward commitments, uncertainties for Oil Millers with consequent calls for increased oil imports or imports of fresh nuts. Only the producers are happy, who at long last, receive a remunerative price for their produce.

A primary reason for these periodic crises is the fact that coconut yields are extremely weather (principally rainfall) sensitive. Global supply positions, with their consequent influences on the local situation, are affected by such additional factors as cyclones, hurricanes, floods and other calamities in the major producing countries. The fact that reproductive processes are continuous in the coconut palm, with successive development stages displaying varying sensitivities to climatic factors, renders crop prediction and forward planning possible only to a limited extent.

If we look at the yield data for the past ten years (1992-2001) it is seen that Sri Lanka’s production ranged between an estimated 2164 million (1993) and 3096 million nuts (2000) averaging about 2600 million (CDA) . An oscillation of about 30 to 50% between years is a fair assumption.

The approximate distribution of consumption is as follows:

Domestic about 2000 million
Desiccated Coconut about 500 million
Oil Milling about 380 million
Fresh nut exports about 5 million
Total: Approximately 2885 million

In several years, there is a shortfall in production, which it can be assumed, is largely absorbed by the oil-milling sector and adjusted by imports of vegetable oils. A certain cut back in DC exports is also a likely adjustment.

The major proportion of the nuts consumed locally is used for coconut milk extraction (only a small proportion being used in the freshly grated form). It has been shown that the domestic process of hand squeezing is highly inefficient, leaving about 30% to 40% of the fat (CRI Annual Report 1998), all of the protein and all of the fibre unrecovered and in the refuse (polkudu).

The proximate composition of fresh coconut kernel is:
Moisture 44.0%
Fat 38.2%
Carbohydrate 9.7%
Protein 4.6%
Fibre 2.3%
Minerals 1.2%
Total 100.0% (Figures for Sri Lanka in Thampan, 1981)

The protein and fibre in coconut kernel is considered to be of excellent dietary quality. The main interest domestically is however in the fat.

Consideration of our consumption pattern suggests an interesting arithmetic. Assuming that a means could be evolved to ensure a 100% extraction of fat into coconut milk, a saving of 1/3 rd of the nuts consumed domestically or nearly 700 million nuts is theoretically possible. This comfortably exceeds the estimated requirement of the desiccated coconut industry! Even a modest degree of success will impact significantly. One method developed, most conspicuously by the traditional Jaffna housewife is the practice of grinding the grated coconut whole and presumably adapting culinary tastes to accommodate this eminently reasonable and economical practice. Modern day kitchen accessories should bring this within reach of many more. For those less endowed, the ubiquitous grinding stone (miris gala) will serve.

Effecting a saving in the way in which coconut is used is infinitely simpler and more practical than achieving an equivalent increase in nut production. Both can also go hand in hand.

The more practical answer is of course centralized processing. Several countries have already embarked on this on a large scale and technologies, equipment, packaging materials and marketing methods are widely known and practiced. Sadly, Sri Lanka has lagged behind.

The advantages of such an enterprise are many. By centralization, vast economies are possible in operation. Integrated processing will provide many product options. Grated coconut, coconut cream, coconut milk, defatted coconut meal, superior grades of oil, high grade charcoal from shell, ‘Sports drinks’ ‘nata de coco’, fodder yeasts, potassic fertilizer from coconut water and several more products of secondary and tertiary processing have proven to be feasible.

But within our "crisis" situation, one of the most attractive results will be that it will release enough nuts for all, even in relatively ‘lean years’ and put an end to the ‘infighting’ that is a characteristic feature of the local coconut scene where producers, DC and oil millers and exporters vie with each other for the larger share of a limited cake.

The required investment is not astronomical. Of course, there are logistic and other problems. But the rewards are so tempting and the technology is so available that it will be a great pity if this path is not most seriously considered. Most of the presumed problems are solvable - if the will can be marshaled.

Even if other local entrepreneurs are too timid or unsure, the DC millers may see this attempt as being very much in their permanent and long term interests and may wish to employ the device of a voluntary cess on exports which has been so successfully operated to set up their irrigated plantation in the Mahaweli. The time for action is now and the securing of a remunerative price for the producer as happens now, is fundamental to maintaining the long-term health and sustenance of an industry in which all the players have a stake.

( The writer is former director of Coconut Research Institute in Sri Lanka)