THE Coconut Industry Board (CIB) is pushing to increase coconut production by 100,000 plants or six million nuts annually, even while local private interests express demand for 10 times that amount over the next two years.

Each plant on average can produce 60 to 100 coconuts per year. A coconut is sold for $27.50, according to information from the Ministry of Agriculture. At 60 coconuts per plant, Jamaica could realise an estimated $165 million per 100,000 plants.

It takes four years for a plant to fully develop and start bearing fruit, so the revenue impact may not be actualised until the fifth year of the programme.

Last year Jamaica produced 94.8 million nuts, generating revenues of over $2.6 billion.

Dr Derrick Deslandes, senior director, Centre of Excellency at the Ministry of Agriculture, told the Business Observer that the investment in coconut water comes at an opportune time because the world demand for coconut water, seen as the new replacement fluid, is set to increase.

He said with PepsiCo and Coca-Cola entering into the market for coconut water, there are many opportunities for expansion.

Moreover, one of the island’s largest food processors, GraceKennedy has indicated that it has the capacity to absorb output from an additional 10,000 acres under cultivation. An acre can accommodate 60 to 100 trees, which means that the conglomerate has the capacity to additionally take on up to 100 million nuts annually.

“We are growing more coconuts in a time when more people want coconut water,” Dr Deslandes said. He noted that the initiative will require the investment of the larger food processors locally.

Coconut water is seen as a natural alternative to sports beverages, energy drinks and flavoured water. The water is high in potassium, packed with electrolytes and is fat free. Natural coconut water is also low in sugar.

The Ministry of Agriculture and the CIB are encouraging local farmers and processors to engage with the industry in increasing the production of coconuts which can open the door to new opportunities in the US$19-billion global market for sports recovery drinks.

So far, one major international player, Vita Coco, realised US$20 million from the sale of coconut water in 2009 according to Forbes.com. Coconut water also represented 60 per cent of the US$10-million revenue of ONE beverages, a Brazilian company. Dr Deslandes said Pepsi and Coke are initially targeting Brazil as a source for the coconut water, but he believes as local production increases Jamaica can capture a portion of the overseas market.

Farmers who have available land for coconut production are being given incentives through the CIB in the form of grants, technical assistance, fertiliser and coconut seedlings to produce more coconuts. The CIB will provide the grants free for four years and assistance in planting the seedlings, once the farmer prepares the land for planting and registers each year with the CIB as a coconut farmer. To qualify, the farmers must have at least 1.5 acres of land to accommodate a minimum of 125 coconut seedlings.

Coconut cultivation can be a good investment as all parts of the plant can be used, which contributes to its value-added potential. Basil Been, director of research at the CIB noted that the coconut plant can be used in many different ways to generate earnings for farmers, including making earrings and beads, cocopeat, mats, and fences. Additionally, the coconut can be used to make busta candy. He said this can generate additional local sales in tourist areas.

“If you package it nicely you can sell it to tourists. Look how many tourists come to Jamaica every day. If we can get one out of every 10 tourists who come on the cruise ships to buy coconut products it will make a difference,” Been said.

Additionally, once the coconut tree is fully grown it requires little care from the farmer. It can be used as an intercropping plant, acting as a windbreaker for smaller more susceptible plants such as banana in times of hurricanes. One tree can produce coconut every month for up to 80 years.

“There are a lot of problems, but there are also tremendous opportunities as well. We need a new breed of coconut growers who are doing it because it is profitable, not because you can’t find anything else to do,” Been said.

Been said the CIB is embarking on a programme to increase the level of awareness about the process of producing coconuts to yield more varieties. An estimated 8,000 coconut farmers produce approximately 3.5 million coconut plants over 15,000 hectares locally.

Farmers are encouraged to grow the Maypan variety of coconut plants as this has been shown to be more resistant to heavy winds and rainfall. The fruits are also larger and produce more water per nut than other varieties, a fact which the ministry said is important to processors of the coconut water.