Does the coconut industry have a sustainable future?

Over 90% of coconut production comes from developing nations. Indeed, Indonesia, India and the Philippines are by far the world’s biggest producers and exporters. The Philippines, where we source around half of our coconut products from, produced 14.49 million tonnes of coconuts in 2020. The global market for coconut production is forecast to grow from USD 11.6 billion in 2020 to USD 23.39 billion in 2027. Given that most coconuts are produced on small plantations, this begs the question: does the coconut industry have a sustainable future?

Understanding the basics of the coconut industry

The coconut and the coconut tree are used in multiple ways and exported for many different reasons, from foodstuffs to gardening supplies. The trees don’t require any nasty pesticides to thrive, so are often naturally organic. With so much of the tree being used, and farming happening on such a small localised scale, it’s easy to think that the coconut is naturally sustainable. And in many ways it is.

Unfortunately, precisely because coconut tree production happens across a vast number of different local communities, the sustainability issue is an uneven picture. Some communities are adopting (and being supported to adopt) more sustainable practices whilst others aren’t. This fragmentation is very difficult to oversee and to manage for the future on anything more than a piecemeal scale. So it’s tricky to give a definitive answer to the question of sustainability overall.

There are no overarching guidelines or bodies that determine sustainability across all coconut supply chains. However, government backed bodies like the Philippine Coconut Authority go some way to creating community programmes designed to enhance the livelihoods of farmers, through farmer cooperatives or training programmes. The (ICC) The International Coconut Community is is an intergovernmental organisation with circa 20 members from coconut producing countries. The vision of the ICC is to improve the socio-economic welfare of farmers and other industry stakeholders. While these types of bodies aim to help communities and enhance socio-economic status, they do not necessarily focus on the environmental impact of coconut farming.

Impact on the environment

When it comes to looking at the impact of coconut tree production on the environment we predominantly need to look at two considerations: water consumption and carbon footprint. Herbicides and pesticides are generally not needed, so this is a big tick for the environment. Nonetheless, as consumers you can contribute to improving sustainability by only choosing organic coconut products.

Generally speaking, coconut trees are produced on a small scale, farmed by many independent locals who are responsible for their own crop. There are some issues here. For example, many coconut trees are ageing and these need replacing, ideally with shorter trees which will make it easier for farmers to harvest the nut and tap the inflorescence. There have been some major projects focused on this issue over the last few years, as corporations and governments seek to bolster their stock of young coconut trees.

In terms of water consumption, coconut production has a moderate impact. 2,687 litres of water are needed to produce 1 kg of coconuts. Water isn’t an endless resource, so this is important. However, for context, and one of the huge drivers of the vegan movement, producing animal products takes much, much more water.

Then there’s the carbon footprint of coconut production. Again, this is generally speaking quite moderate. It’s actually really difficult to work out, again as it varies so much across the globe. It’s important, for sustainability, that coconut products are made close to plantations, in order to minimise the carbon footprint. However, temperate climates cannot grow coconuts, so you will always see a carbon footprint from sea freight as the coconut is traded globally across many countries.

Impact on ecosystems and wildlife

Generally speaking, coconut plantations are actually good for local ecosystems. They can stabilise soil, for example. Importantly, coconuts are vegan and there is no harm to animals. Unfortunately, some local coconut producers do use monkeys to harvest coconuts and these practices can be barbaric. However, if you choose coconut products from The Coconut Company, we assure you that we have full visibility of our supply chain and monkeys are not used at all.

Deforestation could become a problem as coconut production grows to meet global demand. With growing populations and a push towards veganism, this is something that needs to be addressed.

Impact on local communities

In many ways, coconut farming is a positive thing for many South East Asian communities. Independent farmers can earn a living from their crop. If they supply reputable factories, then steps to support local communities should be part of the supply process. For example, our supplier of coconut sap based products has built a local kindergarten and also provides medical supplies to their farmers. This is in addition to a fair price. Additionally, many of our factories have programmes in place to help in typhoon hit areas, such as providing basic medical relief and food to hard hit areas. However, again these kind of programmes are patchy across the industry and depends on very local conditions and the ethics of everyone within the supply chain.

Health and safety can be an issue. Coconuts falling are a risk and also farmers have to climb their tall trees usually twice daily to collect sap. There is a move to replace ageing trees with lower varieties but without widespread training and support to local communities, this is difficult to achieve across the board.

Importantly, given that the vast majority of coconut production is in developing countries, for the industry to be sustainable, steps must be taken to eliminate worker exploitation and human rights concerns. 

So, what’s the bottom line?

As you can see, it’s very difficult to definitively say whether coconut production is sustainable as it depends on so many local factors that vary enormously. The industry as a whole is moderately sustainable, but there are certainly areas for improvement.

Importantly, consumers need to look to the individual supply chains of their chosen coconut products. Generally speaking, choosing organic coconut products will ensure local ecosystems aren’t damaged by harsh pesticides and herbicides, and also that these chemicals don’t harm labourers. Choosing coconut products from us ensures you are choosing foodstuffs which support local communities in The Philippines, with fair wages and community support. In short, you need to look at the ethics and values of the individual company, and feel confident that they have good visibility and ethics throughout their own supply chain. We at The Coconut Company strive to fully understand our supply chain and to visit each factory annually at least to ensure we see each site and view workers conditions. We aim to purchase from factories that have a transparent environmental and sustainability policy. They must also share the same view that farmers rights are important their community should be invested in and no animals must be used in the supply chain.

In summary, more needs to be done to create overarching sustainable practices across the global coconut industry. At the moment, with fragmentation through smallholders who lack technical knowledge and business skills and finance, it makes economies of scale in a sustainable way very difficult. Again, it is important to choose coconut products from companies that support wider sustainability in the coconut industry, know their suppliers well and crucially visit them regularly to see first hand what is happening on the ground.

Shop for sustainable coconut products from The Coconut Company.