SlideShare a Scribd company logo
1 of 11
Kenya’s coconut
value chain
April 2024
The Kenyan coconut value chain
The coconut value chain in summary
Low
productivity
of current
coconut
trees
Low and
variable
production
Poor
harvesting
practices
(immature
nuts)
Limited
investment
in
processing
Lack of
investment
in hybrid
varieties &
production
Limited access to
quality genetic
materials
Climate
variability
(drought) a
growing problem
Coconut as an oil crop in Kenya
Coconut dominates Kenyan oil crop
production, but not edible oils production.
91,627 92,322
92,569
109,889
110,013
86,554
71,722
81,667
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2016 2017 2018 2019 2020 2021 2022 2023
Key oil crop production in Kenya, MT
Coconut Ground nuts Canola Sunflower Sesame
126,882MT
- -
6,000
6,000
6,000
6,000
6,000
-
50,000
100,000
150,000
200,000
250,000
2016 2017 2018 2019 2020 2021 2022
Key edible oil production in Kenya, MT
Other Maize Germ Coconut Sunflower seed Cotton seed
Source: AFA (2024) Source: KNBS (2023)
57,000 MT
Key opportunities in the Kenyan
coconut value chain
Potential impacts from transformation
of Kenya’s coconut value chain
Farmer incomes
Local varieties & good practices: On
existing acreage, aggregate profits of
up to KES 91 billion (USD689m).
Hybrid varieties & good practices:
On existing acreage, aggregate profits
of up to KES 321 billion (USD2.4bn).
On additional 100,000 acres,
aggregate profits of up to KES 497
billion (USD3.8bn).
Job creation
Medium to large processors will each
employ 200-400 people, so attracting a
few investors in different product
segments could create thousands of
jobs.
Expanding production by 100,000 acres
could create the equivalent of 27,000
additional full time casual labourers.
Trade balance
Import substitution opportunities e.g.:
Partial replacement of wheat flour with
coconut flour in bread processing:
USD210m.
Export promotion opportunities e.g.:
Two more medium/large virgin coconut
oil processors could generate a further
USD18.6m of oil, largely for export, if
operating at full capacity.
Key drivers of demand growth
The global coconut products market is estimated to grow from USD4.96 billion in
2024 to USD 7.98 billion in 2029.
Global demand for
coconut food products is
being driven by the rise
in lactose and gluten
intolerance and diabetes
across human
populations.
Propagation of almost all
seedlings in Kenya can
be optimised with coco
peat. There is large and
growing demand from
the horticulture
industry, and those
adopting sustainable
farming practices.
More efficient energy
sources, including
through coconut
briquettes and biochar
could both reduce
energy costs and
negative environmental
and health impacts.
Sources:
Mordor
Intelligence,
2024.
How could National and County
Governments drive the
transformation of the coconut
value chain?
What could the
Government do
to promote the
coconut value
chain?
1. Offer incentives to attract investors to
process coconut into a broader range of
products e.g. coco peat, coco coir,
coconut flour.
2. Support (a) existing tree rehabilitation to
triple yields and (b) promote mass
seedling plantation, using optimal genetic
material.
3. Attract private investors to invest in
commercial multiplication of hybrid
seedlings such as recently registered
Indian hybrid “Sampoorna” variety.
4. Prevent harvesting of immature fruits as is
done in other crops such as macadamia.
Kenya’s Coconut Value Chain by Gatsby Africa

More Related Content

Similar to Kenya’s Coconut Value Chain by Gatsby Africa

Similar to Kenya’s Coconut Value Chain by Gatsby Africa (20)

6. Mr. Rakesh Trivedi.presen.sep19.indo.pptx
6. Mr. Rakesh Trivedi.presen.sep19.indo.pptx6. Mr. Rakesh Trivedi.presen.sep19.indo.pptx
6. Mr. Rakesh Trivedi.presen.sep19.indo.pptx
 
Palm oil
Palm oilPalm oil
Palm oil
 
#128 'Overview of Indian Oilseed Sector Short term and Long term Demand - Sup...
#128 'Overview of Indian Oilseed Sector Short term and Long term Demand - Sup...#128 'Overview of Indian Oilseed Sector Short term and Long term Demand - Sup...
#128 'Overview of Indian Oilseed Sector Short term and Long term Demand - Sup...
 
Anchoring Growth: Unleashing the Wonders of African Cassava
Anchoring Growth: Unleashing the Wonders of African CassavaAnchoring Growth: Unleashing the Wonders of African Cassava
Anchoring Growth: Unleashing the Wonders of African Cassava
 
Seed systems and rice seed capital in Africa
Seed systems and rice seed capital in AfricaSeed systems and rice seed capital in Africa
Seed systems and rice seed capital in Africa
 
Virgin coconut oil machine
Virgin coconut oil machineVirgin coconut oil machine
Virgin coconut oil machine
 
Soybean sub sector paln_RED
Soybean sub sector paln_REDSoybean sub sector paln_RED
Soybean sub sector paln_RED
 
GREEN GRAMS MARKETING CONSULTATIVE MEETING
GREEN GRAMS MARKETING CONSULTATIVE MEETING GREEN GRAMS MARKETING CONSULTATIVE MEETING
GREEN GRAMS MARKETING CONSULTATIVE MEETING
 
Innovative Technology Systems Inc. Corporate Presentation
Innovative Technology Systems Inc. Corporate PresentationInnovative Technology Systems Inc. Corporate Presentation
Innovative Technology Systems Inc. Corporate Presentation
 
Book on bakery products (4th revised edition)
Book on bakery products (4th revised edition)  Book on bakery products (4th revised edition)
Book on bakery products (4th revised edition)
 
Crops.pdf
Crops.pdfCrops.pdf
Crops.pdf
 
Business opportunities in food processing sector .pptx
Business opportunities in food processing sector .pptxBusiness opportunities in food processing sector .pptx
Business opportunities in food processing sector .pptx
 
Strategic analysis
Strategic analysisStrategic analysis
Strategic analysis
 
Insights from the transformation of dairy in India
Insights from the transformation of dairy in IndiaInsights from the transformation of dairy in India
Insights from the transformation of dairy in India
 
Strategic analysis
Strategic analysisStrategic analysis
Strategic analysis
 
Coconut project looking for Co-Founder as the Investor
Coconut project looking for Co-Founder as the InvestorCoconut project looking for Co-Founder as the Investor
Coconut project looking for Co-Founder as the Investor
 
How sustainable is today's cocoa?
How sustainable is today's cocoa?How sustainable is today's cocoa?
How sustainable is today's cocoa?
 
WAXY CASSAVA AGREEMENTS AT CIAT
WAXY CASSAVA AGREEMENTS AT CIATWAXY CASSAVA AGREEMENTS AT CIAT
WAXY CASSAVA AGREEMENTS AT CIAT
 
Nic Richards Presentation
Nic Richards PresentationNic Richards Presentation
Nic Richards Presentation
 
#141 "India's Demand Supply of Edible Oils with Special Reference to Scope fo...
#141 "India's Demand Supply of Edible Oils with Special Reference to Scope fo...#141 "India's Demand Supply of Edible Oils with Special Reference to Scope fo...
#141 "India's Demand Supply of Edible Oils with Special Reference to Scope fo...
 

Recently uploaded

Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
Aurelien Domont, MBA
 
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
Khaled Al Awadi
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metrics
CaitlinCummins3
 
Presentation4 (2) survey responses clearly labelled
Presentation4 (2) survey responses clearly labelledPresentation4 (2) survey responses clearly labelled
Presentation4 (2) survey responses clearly labelled
CaitlinCummins3
 
Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.
Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.
Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.
daisycvs
 
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODFRATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
CaitlinCummins3
 

Recently uploaded (20)

PitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsPitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for Startups
 
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
 
(推特)Twitter账号批发(自助购买网址🎉top233.com🎉)
(推特)Twitter账号批发(自助购买网址🎉top233.com🎉)(推特)Twitter账号批发(自助购买网址🎉top233.com🎉)
(推特)Twitter账号批发(自助购买网址🎉top233.com🎉)
 
NFS- Operations Presentation - Recurrent
NFS- Operations Presentation - RecurrentNFS- Operations Presentation - Recurrent
NFS- Operations Presentation - Recurrent
 
How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?
 
Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.doc
Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.docGuide to Networking Essentials 8th Edition by Greg Tomsho solution manual.doc
Guide to Networking Essentials 8th Edition by Greg Tomsho solution manual.doc
 
بروفايل شركة ميار الخليج للاستشارات الهندسية.pdf
بروفايل شركة ميار الخليج للاستشارات الهندسية.pdfبروفايل شركة ميار الخليج للاستشارات الهندسية.pdf
بروفايل شركة ميار الخليج للاستشارات الهندسية.pdf
 
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
 
Global Internal Audit Standards 2024.pdf
Global Internal Audit Standards 2024.pdfGlobal Internal Audit Standards 2024.pdf
Global Internal Audit Standards 2024.pdf
 
wagamamaLab presentation @MIT 20240509 IRODORI
wagamamaLab presentation @MIT 20240509 IRODORIwagamamaLab presentation @MIT 20240509 IRODORI
wagamamaLab presentation @MIT 20240509 IRODORI
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metrics
 
The Risks of Ignoring Bookkeeping in Your Business
The Risks of Ignoring Bookkeeping in Your BusinessThe Risks of Ignoring Bookkeeping in Your Business
The Risks of Ignoring Bookkeeping in Your Business
 
Presentation4 (2) survey responses clearly labelled
Presentation4 (2) survey responses clearly labelledPresentation4 (2) survey responses clearly labelled
Presentation4 (2) survey responses clearly labelled
 
Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.
Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.
Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.
 
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODFRATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
RATINGS OF EACH VIDEO FOR UNI PROJECT IWDSFODF
 
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfProgress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
 
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Harare
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In HarareTop^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Harare
Top^Clinic ^%[+27785538335__Safe*Women's clinic//Abortion Pills In Harare
 
How to refresh to be fit for the future world
How to refresh to be fit for the future worldHow to refresh to be fit for the future world
How to refresh to be fit for the future world
 
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdf
 
Elevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesElevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO Services
 

Kenya’s Coconut Value Chain by Gatsby Africa

  • 2. The Kenyan coconut value chain
  • 3. The coconut value chain in summary Low productivity of current coconut trees Low and variable production Poor harvesting practices (immature nuts) Limited investment in processing Lack of investment in hybrid varieties & production Limited access to quality genetic materials Climate variability (drought) a growing problem
  • 4. Coconut as an oil crop in Kenya
  • 5. Coconut dominates Kenyan oil crop production, but not edible oils production. 91,627 92,322 92,569 109,889 110,013 86,554 71,722 81,667 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2016 2017 2018 2019 2020 2021 2022 2023 Key oil crop production in Kenya, MT Coconut Ground nuts Canola Sunflower Sesame 126,882MT - - 6,000 6,000 6,000 6,000 6,000 - 50,000 100,000 150,000 200,000 250,000 2016 2017 2018 2019 2020 2021 2022 Key edible oil production in Kenya, MT Other Maize Germ Coconut Sunflower seed Cotton seed Source: AFA (2024) Source: KNBS (2023) 57,000 MT
  • 6. Key opportunities in the Kenyan coconut value chain
  • 7. Potential impacts from transformation of Kenya’s coconut value chain Farmer incomes Local varieties & good practices: On existing acreage, aggregate profits of up to KES 91 billion (USD689m). Hybrid varieties & good practices: On existing acreage, aggregate profits of up to KES 321 billion (USD2.4bn). On additional 100,000 acres, aggregate profits of up to KES 497 billion (USD3.8bn). Job creation Medium to large processors will each employ 200-400 people, so attracting a few investors in different product segments could create thousands of jobs. Expanding production by 100,000 acres could create the equivalent of 27,000 additional full time casual labourers. Trade balance Import substitution opportunities e.g.: Partial replacement of wheat flour with coconut flour in bread processing: USD210m. Export promotion opportunities e.g.: Two more medium/large virgin coconut oil processors could generate a further USD18.6m of oil, largely for export, if operating at full capacity.
  • 8. Key drivers of demand growth The global coconut products market is estimated to grow from USD4.96 billion in 2024 to USD 7.98 billion in 2029. Global demand for coconut food products is being driven by the rise in lactose and gluten intolerance and diabetes across human populations. Propagation of almost all seedlings in Kenya can be optimised with coco peat. There is large and growing demand from the horticulture industry, and those adopting sustainable farming practices. More efficient energy sources, including through coconut briquettes and biochar could both reduce energy costs and negative environmental and health impacts. Sources: Mordor Intelligence, 2024.
  • 9. How could National and County Governments drive the transformation of the coconut value chain?
  • 10. What could the Government do to promote the coconut value chain? 1. Offer incentives to attract investors to process coconut into a broader range of products e.g. coco peat, coco coir, coconut flour. 2. Support (a) existing tree rehabilitation to triple yields and (b) promote mass seedling plantation, using optimal genetic material. 3. Attract private investors to invest in commercial multiplication of hybrid seedlings such as recently registered Indian hybrid “Sampoorna” variety. 4. Prevent harvesting of immature fruits as is done in other crops such as macadamia.

Editor's Notes

  1. Value chain headlines Coconut is grown in six (coastal) counties: Kilifi, Kwale, Lamu, Tana River, Mombasa and Taita Taveta. Kilifi and Kwale are the largest producing counties which account for 88% of Kenya’s production. There are an estimated 73,991 hectares planted to coconut in Kenya. Farmers currently earn around KES 220,000 per acre from coconut. With better genetic material and good agronomic practices they could earn up to KES 1.7m per acre. Officially there were USD1.4m of coconut product imports into Kenya and USD55.3m of coconut product exports from Kenya in 2022. There are over 50 existing coconut processors operating in Kenya. Among their key challenges, processors report lack of access to consistent supply of sufficient, quality raw materials. The quality of raw materials (e.g. immature nuts and variable kernel weights) makes Kenya’s processing inefficient which undermines international competitiveness. A Nuts and Oil Crops Development Bill, 2023, would create a new Nuts and Oil Crops Board that would be responsible for the regulation and promotion of coconut. Lamu and Kilifi Counties have specific KPIs relating to coconut in their County Integrated Development Plans. Key challenges Low productivity: Average yields are 30 to 80 nuts per tree (Finyange et al, 2019). Low and variable production: 81,667 MT of nuts were produced in 2023. Poor harvesting practices: There is widespread harvesting of immature nuts for water. Farmers could get higher prices for mature nuts and processors would benefit from better material and therefore greater efficiency. Limited investment in processing: Most existing processors are small, operate well below capacity and face significant constraints in accessing finance for growth. (Far superior) hybrid varieties are not available commercially (for farmers to buy and plant) in Kenya.
  2. Due to its high price point, coconut oil is a niche edible oil product that cannot make a significant contribution to import substitution. Sunflower and canola were identified as the most viable crops that could contribute to edible oils import substitiution, particularly in the short term.
  3. Individual farmer profit Local varieties & good practices: KES 497,250 per acre per year. Hybrid varieties & good practices: KES 1,757,250 per acre per year.
  4. Coconut food products can be specified as Virgin Coconut Oil - VCO and Coconut Flour
  5. Requested incentives from potential investors: Lower production costs Increased production volumes (raw material supply) and more structured markets - liberalisation of the seed import process to access hybrid seeds and expand the production base Tax holidays and/or subsidies Policy interventions to support local manufacturing. Greater clarity on the Carbon credit framework in Kenya (applications, duration, implementation mechanisms etc)