LAGOS STATE COCONUT DEVELOPMENT AUTHORITY

(LASCODA)
THE COCONUT TREE: ECONOMIC
BENEFITS IN NIGERIA

Presented By
Dapo OLAKUKEHIN
GM, Lagos State Coconut Development Authority (LASCODA)
During
The Coconut Value Chain Stakeholders’ Forum
Organised By
Federal Ministry of Agriculture and Rural Development (FMARD)
Held On
September 6th, 2021
@
Nigeria Institute of Oil Palm Research (NIFOR), Benin City, Edo State Nigeria
 CONTENT

INTRODUCTION COCONUT PRODUCTION

1 8 POTENTIAL IN NIGERIA
BREAKDOWN OF THE COCONUT
2 TREE 9 ECONOMIC BENEFITS OF
COCONUT PRODUCTION
3 GLOBAL COCONUT PRODUCTION
1 LAGOS STATE AND COCONUT
0 PRODUCTION
4 GLOBAL MARKET OUTLOOK
1 FUCNTIONS AND OBJECTIVES OF
1 LASCODA
5 GLOBAL COCONUT EXPORTS 1
2 ACHIEVEMENTS OF LASCODA
6 GLOBAL COCONUT DEMAND GAP
1 BOTTLENECKS SURROUNDING
THE DEVELOPMENT OF THE
7 COCONUT PRODUCTION IN INDIA 3
COCONUT VALUE CHAIN
 INTRODUCTION
Coconut is the most versatile tree in the world and is known as “the tree of life”. It is a
tree that is cultivated for its multiple utilities, mainly for its nutritional and medicinal values.
The various products of Coconut include tender Coconut water, copra, Coconut oil, raw
kernel, Coconut cake, Coconut toddy, Coconut shell and wood-based products, Coconut
leaves, coir pith etc. Its parts are used in some way or another in the daily life of the people
in the traditional coconut growing areas.
DIRECT PRODUCTS
BREAKDOWN OF THE COCONUT TREE

LEAVES ROOTS TRUNK HUSK SHELL MEAT WATER

1. Brooms 1. Dye 1. Furnitures 1. Coir 1. Arts and Crafts 1. Coconut Oil 1. Coconut Honey
2. Cooking Skewers 2. Mouth wash 2. Building struts 2. Peat 2. Charcoal 2. Coconut Sugar 2. Coco Sauce
3. Baskets 3. Chewing Stick 3. Drums 3. Fibre 3. Activated carbon 3. Coconut Flour 3. Lemonade
4. Mats 4. Medicinal uses 4. Containers 4. Mats 4. Shell Powder 4. Coconut Milk
5. Tooth pick 5. Mulch 5. Canoes 5. Brushes 5. Bowls 5. Coconut Butter
6. Roofing Thatch 6. Fire wood 6. Strings 6. Cups 6. Tooth paste
7. Trays 7. Sap 7. Ropes 7. Lamp Holders 7. Gurudi
8. Bags 8. Mattresses 8. Spoons 8. Coconut Flakes
9. Draperies 9. Fishing nets 9. Jewelleries 9. Coconut Chips
10. Fuel 10. Pen Holders
11. Slippers
12. Hydroponics
BREAKDOWN OF THE COCONUT TREE
 GLOBAL COCONUT PRODUCTION

Coconut trees are grown in tropical countries mainly for the high oil content of the endosperm (copra),
which is widely used in both food and non-food industries (e.g. margarine and soaps). Large production
areas, in particular, are found along the coastal regions in the wet tropical areas of Asia in the Philippines,
Indonesia, India, Sri Lanka and Malaysia. In these countries millions of people make a living from the
coconut palm and its many products. Indonesia is the world's leading coconut producer and in 2018,
Indonesia produced about 18.55 million metric tons of coconuts. That year, India was the third largest
coconut producer in the world, accounting for around 11.71 million metric tons of global production
volume.

In Nigeria, Coconut Production has been increasing by 1.7% since 2014 (FAO, 2019) and there is
probability that this percentage of increase might have increased due to the renewed interest at various tiers
of Government.
 Coconut Production Levels by Country
RANK COUNTRY COCONUT PRODUCTION (MT)
1 Indonesia 18,555,371
2 Philippines 14,726,165
3 India 11,706,343
4 Sri Lanka 2,623,000
5 Brazil 2,346,750
6 Vietnam 1,571,709
7 Papua New Guinea 1,221,080
8 Mexico 1,158,471
9 Thailand 885,751
10 Myanmar 557,240
11 Tanzania 546,301
12 Malaysia 519,153
13 Bangladesh 466,975
14 Dominican Republic 403,492
15 Ghana 394,883
16 Solomon Islands 386,258
17 China 383,123
18 Vanuatu 374,628
19 Nigeria 285,200
20 Jamaica 249,900
Source: Food and Agriculture Organization Corporate Statistical Database
 GLOBAL MARKET OUTLOOK

 According to Globe News Wire; "Coconut Products Market: Global Opportunity Analysis and Industry Forecast,
2019-2026" report, the global coconut products market size was at $11.5 billion in 2018 and is anticipated to reach
$31.1 billion by 2026, with a CAGR of 13.6% during the forecast period. The market is expected to exhibit an
incremental revenue opportunity of $19.7 billion from 2018 to 2026.

 The market growth is propelled by the rise in demand for Coconut water as an energy drink. Active and health-
conscious consumers have shifted their preference toward natural alternatives to caffeinated and sugar-based energy
drinks. Hence, the demand for coconut water as a natural energy drink is growing rapidly due to its nutritional
properties such as electrolytes and nutrients, which is expected to drive the Coconut products market growth.

 Increase in use of Coconut-based products in food and beverage applications is expected to drive the market for
Coconut products in the future. Coconut products are widely used as ingredients in variety of processed food
products such as cookies, cakes, pies, soups, salads, milkshakes, and ice cream.
 GLOBAL MARKET OUTLOOK Contd.

 With growth in consumption of processed food products, owing to the rise in urban
population, the demand for coconut products is expected to grow at a significant rate in
near future.

 The coconut products market is segmented on the basis of type, application, form, and
region. Based on type, the coconut products market is categorized into coconut water,
coconut oil, coconut milk, dried coconut products, and others.

 Coconut oil is widely used in cosmetics industry and is one of the prime products in
hair care, thus is expected to influence the overall coconut products industry.
 GLOBAL COCONUT EXPORTS
 According to Global Trade 2020, Global exports stood at 555K tonnes in 2018, surging by 49% against the previous
year. Overall, the total exports indicated resilient growth from 2007 to 2018: its volume increased at an average
annual rate of +7.3% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations
being recorded throughout the analysed period. The pace of growth was the most pronounced in 2018 with an
increase of 49% against the previous year. In that year, global coconut exports reached their peak and are likely to
continue its growth in the immediate term.

EXPORTS BY COUNTRY

 Indonesia was the largest exporter of coconuts in the world, with the volume of exports amounting to 290K tonnes,
which was near 52% of total exports in 2018. Thailand (70K tonnes) took the second position in the ranking,
followed by Viet Nam (57K tonnes). All these countries together held near 23% share of total exports. The
following exporters - Cote d'Ivoire (23K tonnes), Malaysia (19K tonnes), the Netherlands (16K tonnes), Mexico
(14K tonnes), Guyana (12K tonnes) and India (11K tonnes) - together made up 17% of total exports.
 GLOBAL COCONUT EXPORTS
IMPORTS BY COUNTRY

 Thailand (210K tonnes) and Malaysia (199K tonnes) were the largest importers of coconuts in 2018, reaching
approx. 31% and 30% of total imports, respectively. China (60K tonnes) ranks next in terms of the total imports
with a 9% share, followed by the U.S. (5.7%). The United Arab Emirates (27K tonnes), the Netherlands (19K
tonnes) and Singapore (11K tonnes) followed a long way behind the leaders.

 In value terms, coconut production stood at $36.3B in 2018 estimated in export prices. Overall, the total output
indicated a mild expansion from 2007 to 2018: its value decreased at an average annual rate of -0.1% over the last
eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout
the analyzed period. Based on 2018 figures, coconut production increased by +35.7% against 2016 indices. The most
prominent rate of growth was recorded in 2009 when production volume increased by 50% y-o-y. In that year, global
coconut production reached its peak level of $49.4B. From 2010 to 2018, global coconut production growth
remained at a lower figure.
 GLOBAL COCONUT DEMAND GAP
 In 2018, the global Coconut production was recorded at 61.1 million metric tons valued at 11.5 Billion Dollars. The
demand for Coconut is on the rise and it is expected that the demand could rise to 167.3 million metric tons by 2026.
This means that there is a gap of 106.2 million metric tons.
COCONUT PRODUCTION DEMAND GAP
120

100
Production in Mill.MT

80

60

40

20

0
2015 2016 2017 2018
Year

PRODUCTION IN MILLION METRIC TONS DEMAND IN MILLION METRIC TONS

 COCONUT PRODUCTION POTENTIAL IN NIGERIA

 In Nigeria, about 20 States currently produce Coconut in commercial quantity. Lagos State alone has a
potential of having over 10 million Coconut trees with a potential of having 800million nuts per annum
which can be valued at ₦80 Billion. With value addition i.e. further processing into finished products
such as Coconut oil, Sugar etc, the value could be tripled to a sum of ₦240 Billion worth of transactions
annually.

 Accounting for an average of 20 producing States equally producing from 10 million Coconut trees each,
Nigeria as a whole could be looking at ₦4.8 Trillion annually from Coconut based transactions only.

IS THIS POSSIBLE?
 COCONUT PRODUCTION POTENTIAL IN NIGERIA

 Land mass requirement

 200 Coconut Trees = 1 Ha
 10million Coconut Trees = 50,000Ha
 20 States = 200million Coconut Trees
 200million Coconut Trees = 1million Ha

1. AS AT NOW, THE LAND UNDER CULTIVATION FOR COMMERCIAL COCONUT PLANTATION

IS LESS THAN 50,000 HECTARES, CAN WE INCREASE THIS AND HOW?
2. CAN WE GET 1 MILLION HECTARES IN NIGERIA DEDICATED FOR COCONUT
PLANTATION?
3. CAN WE PLANT 200 MILLION COCONUT TREES IN NIGERIA?
 ECONOMIC BENEFITS OF COCONUT PRODUCTION

Apart from sustainably contributing to the GDP of Nigeria, the benefits accrued from the establishment of
200 million Coconut trees includes but not limited to;

 Establishment of over 5million direct jobs and 10million indirect employment opportunities

 Attract foreign investment into the Coconut Subsector as a result of available raw materials

 Boost the local economy of Coconut growing communities across the Country

 Ensure infrastructural development of host communities and their environments

 Rank Nigeria 4th among Coconut producing countries

 Enable export opportunities

 Provide raw materials for Coconut processing enterprises.

 LAGOS STATE AND COCONUT PRODUCTION

In the early 1990s, the Government of Lagos State recognised the stagnation and shortfall in Coconut
production, and the potentials in the Coconut sub-sector for increased income generation as a crop for local
processing, and also as a foreign exchange earner. As a result, a Bench Mark Survey on Coconut Production in
Lagos State was conducted in 1995, to identify the challenges responsible for this situation, as well as, possible
solutions.

The 1995 survey involved many Agencies and Institutions including: Nigerian Institute for Oil Palm Research
(NIFOR); Raw Materials Research and Development Council (RMRDC); Lagos State MOAC; Agricultural
Development Project (ADP); Ministry of Commerce, Industry and Tourism; Directorate for Food, Roads and
Rural Infrastructure(DFRRI); Centre for Rural Development at Lagos State University (CERUD); and
Nine(9)LGAs within Lagos State.
 LAGOS STATE AND COCONUT PRODUCTION

The major constraints identified by the survey as hindering the development of the Coconut industry in Lagos State,
included:
 Advancing age of palms with declining levels of production;
 Minimal use of Coconut production inputs;
 Inadequate rural infrastructure in Coconut growing areas;
 Absence of policy and institutional support for Coconut production, processing, utilization and commercialization;
 Poor utilisation of Coconut products in Lagos State and;
 Absence of Coconut plantation rehabilitation efforts.

Following the results of this survey, the Executive Council of Lagos State Government articulated the Lagos State
Government Policy on Coconut Production. Subsequently in 1996 the establishment of the Lagos State Coconut
Development Authority (LASCODA) was approved, so as to implement the policy, remove the constraints identified in
the benchmark survey, and promote Coconut development within the State. LASCODA commenced operations in
1998.
 BOTTLENECKS SURROUNDING THE
DEVELOPMENT OF THE COCONUT VALUE CHAIN

Some of the major constraints hindering the development of the Coconut

industry in Nigeria:
1. Advancing age of palms with declining levels of production;
2. Minimal use of Coconut production inputs;
3. Inadequate rural infrastructure in Coconut growing areas;
4. Absence of policy and institutional support for Coconut production,
processing, utilization and commercialization;
5. Poor utilisation of Coconut products in Lagos State and;
6. Absence of Coconut plantation rehabilitation efforts’
 BOTTLENECKS SURROUNDING THE DEVELOPMENT OF THE
COCONUT VALUE CHAIN

8. Challenge of Coconut not being a staple diet of Nigerians.

9. Challenges of logistics on moving Coconut from farms to processors with
Customs and other Security Agencies.
10. Inadequate supply of Coconut input for processing
11. Challenge of financial institution in financing Coconut based business due
to the long gestation period of the tree crop and ROI.
12. Unavailability of locally made improved varieties for production.
13. Poor funding to Coconut based Research
14. Lack of clear cut National Policy on Coconut leading to giving Coconut the
narrative of a marginal crop.
 SOME SOLUTIONS TO BOTTLENECKS SURROUNDING THE
DEVELOPMENT OF THE COCONUT VALUE CHAIN

 Continuous research on improved varieties with lesser gestation period by NIFOR and other research institutes,
including but not limited to specific area like tissue culture for rapid and massive seedlings production
 Encourage intercropping with other arable crops such as pineapple, cotton, maize etc. to ensure quick ROI.
 Rebrand Coconut to attract the youths in investing in the Value Chain.
 Provide an enabling environment for Public Private Partnership with the private sector and other individuals.
 Encourage planting of Coconut tree in our homes and environment.
 Institutional collaboration for the provision quality inputs to Coconut Value Chain Actors,
 Increase in sensitization on the health, economic and environmental benefits of Coconut
 Partner with NAADI (Nigeria Agribusiness and Agro-Industry Development Initiative) of the Value Chain
Development
 Conduct a baseline study of the entire value chain to understand the operations within the Coconut Industry to
ensure ease of doing business.
 Rehabilitation of the Coastal line through partnership with the private sector.
 Establishment of a standard operating procedure on the importation of Coconut.
 2016 & 2017 PRODUCTION OF MAJOR COCONUT PRODUCING COUNTRIES IN
AFRICA

555,836

600,000 555,734

500,000 380,380

383,960
400,000 283,744
248,394
288,615
300,000
242,406
142,439

200,000 91,627
140,838 74,951
124,382 55,434
74,113
100,000 56,478 2016

2017
0
Tanzania Ghana Nigeria Mozambique Ivory Coast Kenya Madagascar Guinea

2017 2016
 OTHER BASIC FACTS INVESTORS MAY NEED TO KNOW….
 5000 coconuts or average of 50 trees yield 1 metric ton copra
Tips on
Agronomic  8000 coconuts or average of 80 trees yield 1 metric ton of crude oil.
Practices
cont’d
 1000 coconuts or average 10 trees yield 140 litres coconut water.

 1000 coconuts or average of 10 trees yield 127 to 182 kg desiccated coconut.

 Yield varies between 3500 and 6000 nuts/ha/year due to a number of factors.

 One tree may yield on average 70-100 nuts to a maximum of 150 nuts per year.

 The kernel (copra, coco-water and shell) comprises 65 per cent of total weight, while the

husk contributes 35 per cent.

 UNLOCKING COCONUT POTENTIALS

KEY INVESTMENT SUGGESTED EXPECTED OUTCOMES FOR

CHALLENGE INTERVENTIONS INVESTORS

INFRASTRUCTURE AND
TECHNOLOGY
- ACCESS TO AGRICULTURAL LAND
- PROVISION OF ENABLING LAW ON
LAND MGT PRACTICES - COMPLETE START ON – AND
-PROVISION OF INFRASTRUCTURE AND OFF – SITE INFRASTRUCTURE
REAL ESTATE - AFFORDABLE ACCESS TO LAND
-LINKAGE WITH LOCAL AND AND BUILDINGS
INTERNATIONAL RESEARCH INSTITUTES
UNLOCKING COCONUT POTENTIALS

KEY INVESTMENT SUGGESTED EXPECTED OUTCOME

CHALLENGE INTERVENTIONS FOR INVESTORS

- SUBSIDIES -LOWER START-UP COST

- FISCAL INCENTIVES - GREATER ACCESS TO
FINANCING - AFFORDABLE FINANCING AFFORDABLE AND
(NIRSAL, BOI AND BOA) LONG TERM FINANCING
- AGRI BUSINESS DEPT OF
MIN .OF AGRIC
 UNLOCKING COCONUT POTENTIALS

EXPECTED
KEY INVESTMENT SUGGESTED
OUTCOME FOR
CHALLENGE INTERVENTIONS
INVESTORS

- EXPANSION OF COCONUT
PLANTATIONS
SECURING - COMMUNITY-BASED OUT-GROWER
- GUARANTEED
PRODUCTS
SUPPLY AND DEMAND FOR COCONUT

SCHEMES
SUPPLIES AND - COCONUT INDUSTRIAL ESTATES
-
-
SUBSIDIZED INPUTS
ACCESSIBILITY TO REAL TIME AND QUALITY AGRICULTURAL

DEMAND - ONE STOP COCONUT MARKETS

-
EXTENSION SERVICES
ACCESSIBILITY TO AIR AND SEA PORTS
- PROVISION OF AGRICULTURAL
EXTENSION SERVICES
 UNLOCKING COCONUT POTENTIALS

KEY INVESTMENT EXPECTED

SUGGESTED
OUTCOMES FOR
CHALLENGE INTERVENTIONS
INVESTORS

- SHARED SERVICES AND

- ACCESS TO
POLICY AND ADMINISTRATIVE INCENTIVES OPERATING BUSINESS
REGULATORY IMPROVED EASE OF DOING
BUSINESS
AND AGRO-SPECIFIC
SERVICES
SPECIFIC AREAS OF COCONUT BASED INVESTMENT
OPPORTUNITIES IN LAGOS STATE

 Dedication of 1000 Hectares of Land for Commercial

Coconut Plantation to be blocked into 100 plots
 Product Document for the establishment of 10MTPA
Coconut Husk Processing Factory in Badagry
 Coconut Seedlings Production to meet the proposed 10
million Coconut Trees in the next 5 years
 Collectors for Coconut based Arts and Crafts