Significant increase in earnings expected from coconut products

Jan 21, 2019 News

– some local manufacturers challenged to access raw products due to increased demand

Earnings from the local coconut industry are expected to significantly increase within the next three to five years owing to the international demand for coconut and its by-products. In 2017, Guyana earned over US$7.5M from the export of dry nuts, bottled coconut water, virgin coconut oil among other by-products.

Some of Louisa Mancey’s coconut-based product.

This is according to Dr. Oudho Homenauth, Chief Executive Officer of the National Agricultural Research and Extension Institute (NAREI), who related that Government as well as local and foreign companies have been investing in the sector.
“The coconut industry is of paramount importance not only to the Ministry of Agriculture but to the country as a whole… We expect within the next three to five years it would be one of the leading contributors to the economy from the agriculture standpoint…It doesn’t mean that it would surpass rice and sugar…And, that is why the Ministry, through its agencies including NAREI, GSA, New GMC and the Hope Estate, has been putting a lot of emphasis on this sector,” Dr. Homenauth said.
Even though emphasis is seemingly being placed on large investments and exports, contributions of cottage industry to the sector cannot be understated. Many private individuals are engaged in value addition ventures that result in them vying for by-products of coconut, Dr. Homenauth added.
Louisa Mancey, a small business owner, is sometimes challenged to secure virgin coconut oil- the main raw material needed to produce her line of skin care products. Since, the establishment of her business in 2014, Mancey has found it difficult to maintain a steady supplier, owing to other large and small scale competitors.
Nonetheless, she has been able to produce 300 bars of soap monthly to supply to several supermarkets in Georgetown and on the East Bank Demerara. The soap, branded Naked Skin Soap, is just one of her many beauty care items. The others include: shampoo bars; lip balm; hair and skin oils; bead soap; and beard balm.
According to Mancey, “We produce handmade hair and skin care products from local natural materials…We use only the best quality ingredients that that are nourishing and safe for your skin…And, coconut oil makes up about 95 percent of the raw materials…the other ingredients may be lemon grass or hibiscus…we also source raw materials from the US.”
Mancey’s company is on a mission to become the premium skin and hair care producers in the Caribbean. She is cognizant that this is a long-term goal of the company that may take many years to materialize. However, access to a ready supply of coconut oil may be the first step in overcoming several hurdles she faces.
NAREI and other key stakeholders in the industry are aware of many challenges affecting farmers as well as processors. As such, following a series of stakeholder consultations a National Coconut Development Roadmap was created. It was launched in October 2016. The document has been accepted by the Ministry of Agriculture as a guide to coconut development in Guyana.
Development of this crucial industry requires the establishment of new and resuscitation of abandoned and semi-abandoned estates. Significant strides have been made in this regard thanks to the EU funded project that is currently being implemented by International Trade Centre (ITC) and CARDI.
Dr. Homenauth stated, “When we did our initial survey a few years ago we were able to account for about 24,000 acres on the ground…That would include estates that are abandoned or semi-abandoned by the owners mainly in the Pomeroon and the East Coast Demerara…Within the last year or two we have seen increasing acreages…That would include new and some of the abandon estates by at least 1,500 acres and that continue to increase…We are projecting another 5,000 acres in another two to three years…Now that is telling us that there is a demand for this commodity.