Exporter of dried coconuts seeks regular suppliers

Jan 13, 2020 News

Even with the promised prosperity of the oil and gas, many local businessmen are determined to maximise opportunities within the agriculture sector. Increased production of other crops, including coconuts and high valued produce, agro-processing, and access to export markets have made this sector more attractive.

Mr. Shook Shivmangal

In fact, accessing quality crops has seen swift competition between huskers, agro-processors, exporters and vendors. Farmers have been taking advantage of this situation by setting favourable prices for their produce, especially those in high demand like coconuts.
Mr. Shook Shivmangal, Chief Executive Officer of Compass International, has been exporting coconuts from Guyana to the Dominican Republic since 2006. His company pioneered the exporting of large quantities of dried coconuts. Owing to the growing competition to access dried nuts, Compass International is trying to source suppliers with contractual obligations.
According to Mr. Shivmangal, “I have never signed a contract with any supplier guaranteeing supply or cost per nut.
But, I believe that Guyana’s export of dried coconuts and other by-products could increase significantly if farmers and processors develop a new business culture, which includes supplying produce based on contractual arrangements.”
Initially, the businessman procured his nuts from mainly Pomeroon and Wakenaam. However, he was forced to expand his suppliers’ list to include farmers operating on the East Coast Demerara and Berbice.
Although, the uncertainties of coconuts supply and price linger, Mr. Shivmangal has been able to load about five to six containers comprising over 200,000 dried coconuts weekly from January 1 to December 31. His company used to export about eight containers weekly. The market still exists for the eight containers but his company is facing competition from processors, water coconut vendors as well as other large-scale buyers.
He explained, “We are aware that there are other players in the market. But farmers need to understand the difference with one time or two time big buyers and a consistent market. We cannot blame them if they want to earn extra when the opportunity arises but what happens throughout the year.
To supply the overseas market, our nuts have to be a particular circumference. I have shared this with suppliers, who have been trying to get the right size. Our nuts go through a process at our warehouse located at Le Ressouvenir, East Coast Demerara. We have 14 persons employed in the process.
Compass International has intentions of expanding their operations in Guyana to add value to the dried nuts. The businessman is eyeing coconut flour production. He is in the process of securing land. However, he is hoping that the Ministry of Agriculture or the National Agriculture Research and Extension Institute (NAREI) to expose farmers to business training.
Dr. Oudho Homenauth, Chief Executive Officer of NAREI is optimistic that supplies to the company will increase given increasing local production of the nuts.
The CEO 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…To date, we have approximately 28,000 acres under cultivation in Regions One, Two, Three, Four, and Five. Clearly, we are on target for achieving our projection of 5,000 acres within another two to three years. This is because there is a demand for this commodity.”
In light of the international demand for coconut and its by-products, local and foreign companies as well as Government have been investing in the sector. In 2017, the country earned in excess of US$7.5M from the export of dry nuts, bottled coconut water, virgin coconut oil among other by-products.
Earnings from this industry are expected to significantly increase within the next three to five years.
“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.

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