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Oilseed & nut

Coconut: what can it become?

A tree crop whose kernel, husk and shell can each become a different product.

  1. Raw coconut
  2. Processing
  3. Value-added products
  4. Packaging
  5. Markets
  6. Customers

Many smallholders sell coconuts or copra with little processing, while husks are often discarded as waste. Careful drying protects the quality of copra, because poor drying can cause harmful moulds. Value can be created from the kernel (oil, desiccated coconut), the husk (coir) and the shell (charcoal).

What can coconut become?

Copra

Dried coconut kernel, the usual raw material for oil and a common product sold by small farmers.

Processing
Harvest fully mature nuts, remove the kernel and dry it well in the sun, a kiln or a hot-air dryer. Drying is the step that most affects quality.
Equipment
  • Splitting tools
  • Drying platform or kiln
  • Hot-air dryer
  • Sacks
Packaging
Clean, dry sacks that allow air movement.
Storage
Store only well-dried copra, off the ground and away from pests and damp. Poorly dried copra can grow moulds, including aflatoxin-related moulds.
Customer types
  • Oil millers
  • Traders
  • Aggregators
Distribution
Sold to traders, aggregators or oil mills.
Possible business models
  • Own drying unit
  • Buy-dry-resell
  • Contract drying for farmers

Coconut oil

Oil extracted from dried copra or from fresh coconut meat.

Processing
In the dry process, copra is cleaned, crushed, heated and pressed, and the crude oil is filtered and refined. In wet processes, fresh grated meat is processed directly, and the oil can be used for cooking without chemical refining.
Equipment
  • Cleaning area
  • Crusher or grater
  • Press or expeller
  • Filter
Packaging
Clean, food-safe bottles or containers, sealed and labelled.
Storage
Keep sealed, cool and away from light and heat.
Customer types
  • Households
  • Food makers
  • Soap and cosmetic makers
  • Retailers
Distribution
Sold in shops and markets, to food and cosmetic makers, or to wholesalers.
Possible business models
  • Own small oil unit
  • Contract pressing for farmers
  • Buy-process-resell

Desiccated coconut

Dried, shredded or grated white coconut kernel, used in food.

Processing
Use fully mature kernels. Remove the brown skin, sterilize, shred or grate, and dry. Good desiccated coconut is crisp, white and fresh-tasting.
Equipment
  • Dehusking and splitting tools
  • Paring tools
  • Sterilizing equipment
  • Grater or shredder
  • Dryer
Packaging
Clean, sealed, food-safe packs that keep out moisture and pests.
Storage
Dry, cool storage away from damp and pests.
Customer types
  • Bakeries and confectioners
  • Households
  • Retailers
Distribution
Supplied to food makers and shops, or through wholesalers.
Possible business models
  • Own small processing unit
  • Supply to food makers
  • Buy-process-resell

Coir fibre from husks

Fibre taken from the coconut husk, used for mats, nets, brushes and fillings.

Processing
For white fibre, husks are retted in water for months and beaten. For brown fibre, dry husks are crushed and defibred mechanically.
Equipment
  • Retting pits or tanks
  • Beating tools
  • Defibering machine
  • Drying area
Packaging
Bales or bundles kept dry.
Storage
Dry storage, off the ground and covered.
Customer types
  • Mat and rope makers
  • Brush makers
  • Upholstery and craft makers
Distribution
Sold to local fibre users and craft makers, or through traders.
Possible business models
  • Own fibre unit
  • Supply to craft makers
  • Buy-process-resell

Coconut shell charcoal and other shell uses

Charcoal and other products made from the hard coconut shell.

Processing
Shells are burned incompletely in pit or drum kilns to make charcoal. Charcoal can be made into activated carbon, and shells are also used as filler or fuel.
Equipment
  • Drum or pit kiln
  • Collection bins
  • Sacks
  • Protective gear
Packaging
Dry bags or sacks; keep charcoal covered.
Storage
Store dry and covered, away from fire risk.
Customer types
  • Households
  • Small industries
  • Craft makers
Distribution
Sold locally as fuel or to buyers of charcoal.
Possible business models
  • By-product sales
  • Own charcoal unit

The customers, routes to market, business models and many practical tips on this page are suggestions, not findings. Know something better? Suggest an improvement →

Business opportunities around coconut

Sources and further reading

The handling, processing and storage information on this page draws on the sources below. The lists of customers, distribution routes and business models are practical suggestions, not findings from these sources. Links open in a new tab.

Examples describe possibilities, not guaranteed results. Prices, demand and rules vary by country and season — verify locally.