Dear Vinay Chand
I read your post on market opportunities with great interest, but was on holiday in Tasmania at the time it arrived and I have the opportunity to respond only now.
It is indeed encouraging to see some promising developments that might result in an increased flow of income to the coconut small-holder. Taking your items in order:
1. I was made aware of the increasing interest of China in coconut fibre while in the Philippines in 2006. Mr Edmundo Lim, a business consultant and ex-trade representative for Philippines in China has developed a good market for geo-textile forms of coconut fibre. This products is integral to the Integrated Coconut Community Centre concept of Mr Lim of which there is a pilot scheme at Oroquieta in northern Mindanao, supported by some funding from AusAID. Whole fruit are delivered to the Centre from participating shareholders, predominantly small-holders, and the products generated include: fibre mats woven into a geo-textile form for landscape protection where there is road-building or other disturbance of the soil, and also to arrest desertification, in China; the shell is converted to charcoal. The pith from the husk has the juice mixed with it and other additives to create a potent organic fertiliser; the kernel is either dried to produce "white copra" for export to India; or the oil is extracted by a process that enables labelling as VCO. The residue from oil extraction is sold as stock feed.
2. The Hong Kong investor that you mention will provide further stimulus to the demand for husk products. In 2006 the price paid to the small-holder for "raw" husk by fibre processors was very low but it seems likely as the market strengthens, that this will improve.
3. The biofuel scene is highly variable, depending on the market price of diesel. It is extremely valuable on a "cottage" scale in very isolated places like Tuvalu. In Solomon Islands the more remote islands would find small-scale technology appropriate. I have reservations about the industry as a whole switching to biodiesel for export instead of oil. There is pressure to terminate the export of copra but local attempts till now to produce oil on a medium scale have been fraught with logistical problems - storage tanks, suitable presses, transport to an export location and so on.
4. Transferring the wonderful coconut juice from its natural container to a Coke bottle or a tetra-pak makes me shudder, but I have no idea how well the small-holder would fare from such developments. In Brazil I understand that production comes from large plantations where the flow of product from field to factory is straight-forward.
5. Coconut husk has been a convenient fuel for millenia. Does the ITC project envisage methane producton from husk? The Solomons production base is so fragmented that it would require great efficiencies of transport of the raw products for large-scale processing to be feasible.
6. Virgin oil is a bright spot on the horizon for a small number of producers and even a trebling in five years would not make a huge impact for the industry generally. However, increased dissemination of the encouraging health research results in "high-prestige" institutes should have a strong impact on demand for VCO and also RBD oil for frying and other edible forms in industrialised countries. The results with respect to Type 2 diabetes and obesity from the Garvan institute in Sydney should be promulgated as much as possible.
Post script. I have been trying to develop an edible kernel product for some years, just in the home kitchen. If the kernel is sliced out with the testa intact and diced into pieces 6mm thick and up to 30mm long, then frozen, defrosted and hot-oil-dried until light brown in colour, the product is very pleasant to taste and chew, high in protein and fibre as well as retaining its oil. When stored in a paper container it has an indefinite shelf life but leaks oil into the paper. A thin coating of chocolate keeps the oil in and adds another flavour. I would hope that this product has potential as it delivers not only the now-redeemed (in the eyes of health-conscious people) coconut oil but the other nutrients as well. It offers a means of delivering the maximum benefit of coconut kernel in a form that can be stored at least for weeks before consumption. It could be popular in-country as well as for export.
Mike Foale
phone 0409 34 24 36 and 61 7 54 35 28 92