Coconut-based industries need to diversify<\/p>\n
JAKARTA (JP): Indonesia, currently the world's second largest
\nsupplier of coconut oil and copra meal, could expand its coconut-
\nbased industries even further, an analyst says.<\/p>\n
P.G. Punchihewa, the executive director of the Asian and
\nPacific Coconut Community (APCC), said that Indonesia has the
\npotential to expand and diversify its coconut-based industries
\ngiven that its 3.69 million hectares of coconut-grown areas
\nproduced only US$294.5 million in revenues in 1994, contributing
\n0.74 percent to the country's total export revenues that year.<\/p>\n
This is much lower than the Philippines, which, in the same
\nyear, used 3.09 million hectares of land grown with coconuts to
\ngenerate $719.64 million in revenues from coconut-based
\nindustries.<\/p>\n
According to APCC statistics, Indonesian exports of coconut
\noil in 1994 reached 392,872 tons, second after the Philippines,
\nwhich exported 852,300 tons.<\/p>\n
Meanwhile, Indonesia's exports of copra meal that year reached
\n367,359 tons, ranking second after the Philippines, which
\nrecorded 568,723 tons.<\/p>\n
"APCC's 13 member countries currently produce almost 90
\npercent of the world's production of coconuts which reached
\n51,281,450 nuts in 1994," Punchihewa said.<\/p>\n
APCC's member countries are Fiji, India, Indonesia, Malaysia,
\nMicronesia, Papua New Guinea, the Philippines, the Solomon
\nIslands, Sri Lanka, Thailand, Vanuatu, Vietnam and Western Samoa.<\/p>\n
Punchihewa said that Indonesia can expand its coconut-based
\nindustries as the fruit can be made into both edible and inedible
\nproducts.<\/p>\n
Indonesia's production of coconut in copra equivalent,
\naccording to the APCC, fluctuated only slightly in the 1990-1994
\nperiod. In 1990, for example, Indonesia's production of 2.33
\nmillion tons of copra equivalent increased by 6.29 percent to
\n2.47 million tons in 1991.<\/p>\n
In 1992, production went down by 0.12 percent and increased
\nagain by 5.27 percent in 1993. In 1994, coconut production
\nreached 2.63 million tons of copra equivalent, or up by 0.98
\npercent from the previous year.<\/p>\n
About 40 percent of Indonesia's production of coconut is used
\nto make edible products such as fresh coconut for consumption and
\noil, including the traditionally-manufactured cooking oil locally
\nknown as minyak klentik.<\/p>\n
The remaining 60 percent is used for such industrial purposes
\nas copra (59 percent) -- a kind of dried coconut meat used for
\nmaking coconut oil -- and for desiccated coconut (one percent).<\/p>\n
Diversification<\/p>\n
About 80 percent of the copra produced is used for domestic
\nconsumption and the remaining 20 percent for exports. Meanwhile,
\n40 percent of the desiccated coconut is used for domestic
\nconsumption and 60 percent for exports.<\/p>\n
Punchihewa pointed out that with only 565 coconut oil
\nfactories in 1992 producing an annual rate of 1,095,978 tons,
\nIndonesia can diversify its products and increase its production.<\/p>\n
According to official statistics, Indonesia's consumption
\nlevel for coconuts in copra equivalent fluctuated over the 1990-
\n1994 period.<\/p>\n
Consumption in 1990, when Indonesia had a population of 179.38
\nmillion people, reached 1.9 million tons of copra equivalent, and
\nwent up by 2.2 percent to 1.94 million tons in 1991.<\/p>\n
In 1992, consumption dropped 8.28 percent before going up by
\n21 percent in 1993. In 1994, when the country's population
\nreached 192.22 million, the consumption level went down 10.82
\npercent to 1.92 million tons of copra equivalent.<\/p>\n
The provinces which contribute the most coconuts in Indonesia
\nare Riau (12.43 percent) and North Sulawesi (11.03 percent). The
\nisland of Sumatra produces 32.82 percent of Indonesia's total
\nproduction, Java 23.64 percent and Sulawesi 23.62 percent.<\/p>\n
Punchihewa said that unlike palm oil trees, which are grown by
\nlarge estates, coconuts are grown by individual farmers without
\nrigid management programs.<\/p>\n
"Usually coconuts are grown on areas or plantations covering
\nless than one hectare," he said.<\/p>\n
This -- and the fact that coconut oil has to compete with
\nother types of vegetable oils such as palm, soya, granola and
\nsunflower -- has caused coconut-based industries in Indonesia to
\ngrow at a slow pace.<\/p>\n
"Indonesia can try to diversify its coconut-based products to
\nrugs, carpets, yarn and mats, as has been done in India," he
\nsaid. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/coconut-based-industries-need-to-diversify-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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