The global coconut industry is in systemic decline, affecting 11 million smallholder producers across 90 countries, with the Asia-Pacific region—where 80% of the world's coconut production occurs—being hit the hardest (Coconut Knowledge Center, n.d.). This decline has been caused by several factors:
The low price of coconut and limited coconut farms combined with the social, financial, and logistical challenges, hampers coconut producer’s ability to meet the global market demand, leading to low profitability.
Aging coconut plantations, as the crops pass their peak productivity, they yield fewer nuts. The essential process of replanting, which should take place every few decades, has stalled, driven by the low profitability of coconut farming (Dialogue Earth, 2023).
The coconut industry is actively confronting these challenges by working to sustain the commodity and strengthen the resilience and livelihoods of smallholder producers. This vision is central to World Coconut Day 2024, celebrated on September 2 under the theme "Coconut for a Circular Economy: Building Partnerships for Maximum Value." The theme emphasizes the crucial role of sustainable practices and collaboration in maximizing the economic, social, and environmental potential of coconuts.
This year’s theme calls for supporting coconut producers, promoting the efficient use of resources, and fostering global cooperation to ensure the industry's sustainability and growth. In celebration, we spotlight Jane Dunlop, CEO of āluān, one of the businesses using our traceability solutions, KoltiTrace MIS, and selling their products on Indonesia's first eCommerce platform for traceable and ethical goods, KoltiTrace SHOP.
Join us as we explore Jane’s insights and the approaches āluān is taking to achieve a sustainable coconut supply chain, showcasing the impactful partnership between our organizations and their commitment to building a circular economy in the coconut industry.
Q: Before we dive into the World Coconut Day topic, can you tell us the story behind your founding āluān?
Jane Dunlop (JD): My journey to founding āluān in Sumatra began with a deep connection to nature and a desire to explore opportunities beyond New Zealand, where I was raised on a farm. Everything changed when my now mother-in-law suggested a volunteer opportunity that led me to work with Indigenous peoples in Borneo. After completing my degree, my husband and I seized the chance to study in Singapore, eventually leading us to work in Aceh, Sumatra, following the tsunami and conflict. It was here that we truly understood the importance of the region's ecosystem, home to tigers, orangutans, rhinos, and elephants. Our work focuses on supporting local and Indigenous communities in pursuing sustainable, long-term commercial strategies to protect these ecosystems. This passion ultimately led to the creation of āluān.
I also run the EcosystemImpact Foundation in the same area, where we employ 70 full-time community rangers to safeguard critically endangered species like sea turtles and songbirds from poaching. Together, āluān and the Foundation ensure a long-term presence that drives systemic change.
In Sumatra, industrial activity poses the greatest threat to ecosystems. By investing in alternatives, such as replanting coconuts for small producers, this approach allows us to transform the economic foundation of an entire landscape, making a lasting impact on both the environment and the local economy. It's about redefining the industry to protect nature and uplift communities, moving beyond charity business models (Information sourced from the interview with Jane Dunlop on Investment Reports: https://www.investmentreports.co/interview/jane-dunlop-922).
Q: In what ways does Aluan's business model stand out?
JD: Āluān was established with a vision to create a sustainable business model that benefits both the environment and local communities. What sets us apart is our commitment to empowering smallholder producers who, though individually may seem small, collectively form a powerful network. We partner with around 500 smallholder producers, investing in their lands and adding value by processing high-quality coconut oil at the source. Our approach involves producing virgin coconut oil through a centrifugal process that preserves the oil's raw, cold-pressed nature to maintain its nutrients.
Our business model is grounded in nature-based solutions, working directly with organic-certified smallholders. By reducing the number of intermediaries in the supply chain, we ensure that producers retain more value from their produce and maintain high quality through our involvement in every production step. Additionally, we are dedicated to a replanting program in Sumatra and operate with a conservation-focused approach, including a foundation dedicated to protecting endangered species.
More importantly, we offer the highest quality traceable coconut oil with traceable ingredients from the origin, utilizing Koltiva's traceability solution, KoltiTrace MIS, to ensure transparency and quality. From my experience at one of the events in Europe, there was a huge interest in our product because we are traceable. Working with a company like KOLTIVA, we have set full traceability so that when somebody buys our product, they can trace it all the way back to the farm and the producers where our product has come from. That really brings the work that we're doing on the ground to the buyer. It's huge, you know; if we don't know where our product comes from, how can we tell the impact that it has had?
Q: What steps do you believe consumers should take to identify products that are genuinely natural and sustainable?
JD: Identifying truly natural and sustainable products can be challenging for consumers. We address this through certifications like organic and wildlife-friendly, and partnerships with companies like Koltiva, which enable our coconut oil and other products to be traced from our farms to consumers. There's a growing trend towards direct traceability, which I believe will become more prevalent as you can identify exactly where your product came from and determine whether it was responsible for deforestation. (Information sourced from the interview with Jane Dunlop on Investment Reports: https://www.investmentreports.co/interview/jane-dunlop-922)
Q: Now, let's talk about World Coconut Day. What are your thoughts on the theme of World Coconut Day 2024: "Coconut for a Circular Economy: Building Partnership for Maximum Value"?
JD: The coconut sector is currently inequitable and inefficient, with near-zero traceability. Coconut producers in Indonesia are among the poorest and largely rely on producing copra, which is then processed into coconut oil in industrial hubs far from their farms.
Circularity presents the most promising opportunity for the coconut sector. It involves supporting producers by understanding their challenges and investing in replanting coconut trees. This approach includes establishing value-added processing facilities near the farms, ensuring these facilities are operated by local people, and providing meaningful employment opportunities close to home.
It also means creating short supply chains with as direct and close relationships as possible so that everyone involved knows each other and the product's origins. Traceability is crucial for proving that products are not associated with deforestation and often overlooked, for fostering personal connections with the producers who supply our products.
At its core, it's about returning to basics and operating more harmoniously with nature. It's about giving back from where we take, valuing relationships, and practicing reciprocity.
Q: How do you see this theme influencing the coconut industry, and what steps is your company taking to align with this vision?
JD: At āluān, we're developing a circular business model to address these challenges. This involves:
Adding value by processing fresh coconuts at origin into the highest quality coconut oil.
Replanting old coconut trees across all 500 of our smallholder supplier farms.
Partnering with offtakers committed to insetting, where they purchase coconut oil and reinvest in the supply chain.
Pursuing Verra Nature Credits for third-party validation of our impact, ensuring offtakers can trust the positive effects on producer productivity, regenerative agriculture, conservation, and community benefits.
Operating both a company and a foundation in the same region, with 70 people in each organization. The foundation focuses on community ranger programs to protect and restore species on the brink of extinction, while the company invests in smallholder producers and produces high-quality coconut oil.
Circular business models enable us to heal or regenerate our planet - which is what we Circular business models allow us to heal and regenerate our planet, which is crucial for both people and the environment.
Q: Last question, how do you see our solutions helping you achieve your vision?
JD: Traceability with Koltiva is a crucial part of this circular vision. Our products come with a QR code that customers can scan easily and trace back to the GPS location of the farm and producer from which the raw material originates. This transparency is essential not only for building trust with our customers and stakeholders but also for demonstrating that our products are free from deforestation and support ethical practices. It brings everything to life and connects off-takers to our business, the environment, and the people involved.
Regulatory changes, such as the EUDR and CSRD in Europe, are driving corporate action at scale and pace to ensure that products are not associated with deforestation and have a positive impact on producer and the environment.
This partnership is crucial for achieving our goal of transforming the coconut industry into a force for good, benefiting both the planet and the people who depend on it. Koltiva’s traceability system is the essential component that seamlessly connects local efforts with global impact.
As we celebrate World Coconut Day, let's reaffirm our commitment to a sustainable and equitable coconut industry. Through partnerships like the one between us and āluān, we can leverage technology and innovation to drive transparency, traceability, and ethical practices. By supporting businesses that prioritize sustainability and social impact, consumers can play a crucial role in shaping a better future for the coconut industry and the communities it supports.
Let's work together to promote regenerative agriculture, empower smallholder producers, and ensure that the coconut sector continues to thrive for generations to come. Want your business to be like āluān? Talk to our expert today and learn how our solutions can help you achieve your sustainability goals.
Resources:
Coconut Knowledge Center. (n.d.). Coconut Knowledge Center Infographic. Retrieved from https://coconutknowledgecenter.com/wp-content/uploads/2016/05/CKC-Infographic-V01-ENG.pdf
Dialogue Earth. (2023). Revitalising Coconut Farming in Southeast Asia. Retrieved from https://dialogue.earth/en/food/revitalising-coconut-farming-in-southeast-asia/
Investment Reports Co. (n.d.). Interview: Jane Dunlop. Retrieved from https://www.investmentreports.co/interview/jane-dunlop-922
KSAPA. (2024). Challenges and Transformations of the Global Coconut Value Chain. Retrieved from https://ksapa.org/challenges-and-transformations-of-the-global-coconut-value-chain/
NDTV Profit. (n.d.). World Coconut Day: Date, History, Significance, How to Celebrate. Retrieved from https://www.ndtvprofit.com/trending/world-coconut-day-date-history-significance-how-to-celebrate-bqc
Writer: Gusi Ayu Putri Chandrika Sari, Social Media Officer at Koltiva
Editor: Boby Hermawan, Head of Digital Marketing at Koltiva
About Writer:
Gusi Ayu Putri Chandrika Sari, serving as Koltiva's dedicated Social Media Officer, brings an impressive six-year track record in communications, bolstered by a profound enthusiasm for sustainability, technology, and agriculture. Her extensive experience in communications has honed her skills in crafting compelling narratives and engaging content across various digital platforms.
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