The world is threatened with coconut deficit
The demand for the goods with coconut ingredients is growing five times faster than the output of coconut plantations.
The output of coconut plantations grows 2 percent per annum, while the demand for the goods with coconut ingredients increases five times faster. According to the experts of Food & Agriculture Organization (FAO), the old palms cannot bring the harvest they used to. The governments of countries as well as local producers are developing plantation modernization plans to avoid deficit.
Asian-Pacific region supplies 85 percent of coconut raw material in the world, which is an important income item for local producers. Coconut production is the main export sector in the Philippines: just during the tree quarters of this year coconut shipments from the country have grown by 10 percent and amounted to 1 billion dollars. The well-being of every fifth resident of this island state depends on the coconut harvest. However, foreign intermediary companies receive the greater share of the profit, while the producers lack enough funds for modernization of the plantations.
Although the palms are capable of producing crops during 50-100 years, they yield the biggest number of coconuts during the first 30 years. Since the age of the majority of the plants in the region is 50-60 years, they cannot produce enough to satisfy growing demand. In Indonesia, which is the largest manufacturer of the coconut oil in the world, the palms are more than fifty years old.