The global coconut market has experienced rapid growth, driven by its extensive use in the cosmetic, food and beverage, and pharmaceutical industries. Indonesia, the world's largest producer, contributes a significant 27% share of global production (IUCN: 2022), amounting to approximately 17.19 million metric tons annually, followed closely by the Philippines and India (Statista, 2023). However, this surge in demand has led to the expansion of coconut plantations, often at the expense of forested areas, causing biodiversity loss and ecosystem disruption. The International Union for Conservation of Nature (IUCN) highlighted that in 2018 alone, around 9,159 hectares in Indonesia were at risk of deforestation due to coconut farming, exacerbating climate change by reducing carbon dioxide absorption capacity.
Beyond environmental concerns, the economic vulnerability of smallholder coconut producers presents a significant challenge. Research published by IntechOpen on Agricultural Value Chains reveals that in regions like North Sulawesi and Riau, the socioeconomic status of many coconut farmers falls below the poverty line, earning less than US$ 200 per capita annually.
These farmers often lack access to essential resources such as quality seedlings, sustainable farming tools, and financial services. Moreover, limited market access and dependency on middlemen force them to sell their produce at low prices, perpetuating financial instability. The absence of adequate training and education on sustainable farming practices further hinders their ability to enhance productivity and adopt eco-friendly techniques. Addressing these intertwined issues of poverty and environmental degradation requires comprehensive and sustainable solutions, underscoring the need for a concerted effort to support and transform the coconut sector.
Companies like KOLTIVA are at the forefront of transforming the coconut industry by providing comprehensive support to businesses and their producers. KOLTIVA's initiatives ensure that coconut producers receive training, coaching, and certification in sustainable agriculture, enabling them to increase their income by producing higher-quality products and investing in sustainability. Additionally, KOLTIVA's state-of-the-art traceability platform, KoltiTrace MIS, offers coconut enterprises detailed insights by tracking production from seed to table. The platform's dashboards present a holistic view of all monitored aspects, including producers' demographics, productivity, training progress, transactions, coconut seedlings, and environmental and social metrics.
It also supports full mapping capability, including all farm polygons, producer and processor locations, buying stations, and other actors in the respective landscapes. Protected and other restricted areas are displayed, and alert notifications for producers overlap with those are possible to allow monitoring of zero deforestation or zero natural ecosystem conversion commitments, such as NDPE.
The platform features specialized mobile applications for field implementation, KoltiTrace MIS (FarmXtension), with the support of field agents, it conducts surveys for data collection, including producer information, to the comprehensive polygon mapping repository that allows businesses to cross-reference survey data, facilitating the monitoring of planting activities such as harvest volume, tree condition, issue distribution with detailed severity levels, and overall plot condition. These robust data enable companies to make well-informed decisions, develop effective strategies, and take precise actions.
Leading the way in agricultural innovation, KOLTIVA proudly introduces the FarmCloud application for the coconut producers, designed specifically to support coconut producers in adopting sustainable practices and enhancing their productivity. This advanced mobile application is part of the KoltiTrace MIS suite, offering coconut producers a comprehensive tool for farm management, agricultural practices training materials, and productivity monitoring.
Equipped by the responsible eWallet feature, KoltiPay enables coconut producers with secure, efficient, and convenient financial transactions. They can securely receive ePayments during crop transactions, eliminating the need for cash transactions and ensuring transparent payments. Additionally, producers can use KoltiPay to purchase essential inputs such as coconut seedlings and agricultural tools, promoting efficient farm management. By enhancing financial inclusion and operational efficiency, KoltiPay also facilitates access to financial services like savings, supply chain financing, and crop insurance, empowering producers to build financial resilience.
KOLTIVA also expands market access for rural kiosks, enabling them to market agri-input products to both registered and non-registered producers in nearby areas. Through the FarmRetail application, kiosks can manage their online shops, update stock levels, manage profit and loss records, and handle transactions similar to a point-of-sale (POS) system. They gain instant access to purchase products from reliable distributors.
To streamline supply chain operations, FarmGate empowers buying stations, collectors, and traders to improve their efficiency and profitability. The app ensures that stakeholders can manage their operations with greater transparency and control, supporting the sustainable growth of the coconut industry. This integration ensures that all data related to transactions, inventory, and coconut movements is recorded and accessible in the KoltiTrace dashboards.
Fachreza Hidayat, Head of Sector Palm Oil, Coconut, & Landscapes elaborates, "We are working hand in hand to support companies and processors to build traceable supply chains so that they can better understand the needs of their producers and develop initiatives to support their livelihoods and produce sustainable coconut products. Together with our partners, we are developing initiatives that directly support producers with the skills and resources to produce high-quality coconut so that they can secure better access to markets."
Strengthens its commitment to responsible coconut production, Manfred Borer, the CEO and Co-Founder of KOLTIVA, reiterates, "We have been working with leading agribusinesses worldwide, spanning 61 countries and dealing with more than 54 sectors, including the coconut industry in Indonesia. As a leading player in the traceability platform for the global coconut supply chains, we understand that achieving transparency and traceability is crucial, yet integrating technology from plantation to processing remains a formidable task. This multi-stakeholder joining forces with Sustainable Coconut Partnership (SCP) marks our dedication to helping coconut businesses elevate environmental responsibility standards while enhancing coconut producers' livelihoods worldwide."
Borer further elaborated, stating, "Moreover, we uphold fair trade principles and ethical sourcing as our commitment to building traceable and resilient supply chains. These principles drive our efforts not only to meet market demands but also to foster positive impacts on the communities and ecosystems where we operate."
The Sustainable Coconut Partnership (SCP) offers industry-wide best practices and impactful programs to tackle the multifaceted challenges of coconut sustainability. It facilitates its members in constructive and collaborative sectoral impact and dialogue projects to develop tools that enhance transparency and sustainability assurance. Additionally, it fosters collaboration, creating the largest private-sector professional community focused on improving producer livelihoods and enabling large-scale sustainable coconut production.
On this collaboration, SCP Executive Director, Gregory Bardies, says, "I warmly welcome KOLTIVA to our mission of fostering a responsible and resilient coconut sector. The world needs more digital smart agribusinesses helping producers in the transition to sustainable production and increasingly traceable and sustainable sourcing practices and KOLTIVA is a proven enabler of that in a number of supply chains."
Resources:
IUCN NL. (2022). Guide for value chain management in the protein transition: Coconut [Factsheet]. Retrieved from https://www.iucn.nl/app/uploads/2022/10/Factsheet-Coconut_IUCN-NL-2022_Guide-for-value-chain-management-in-the-protein-transition.pdf
Kairupan, A. N., Kindangen, J. G., Joseph, G. H., Hutapea, R. T. P., Malia, I. E., Paat, P. C., Polakitan, D., Polakitan, A., Markus Rawung, J. B., Lintang, M., Sondakh, J. O. M., Layuk, P., Tandi, O. G., Salamba, H. N., Kario, N. H., Lase, J. A., & Barlina, R. (2023). Value chain implementation in rural-scale integrated coconut farming system in North Sulawesi Province, Indonesia. Retrieved from https://www.intechopen.com/chapters/86285
Statista. (2024). Coconut production worldwide in 2022, by leading country. Retrieved from https://www.statista.com/statistics/1040499/world-coconut-production-by-leading-producers/
Writer: Vega Welingutami, Senior Public Relations and Event Officer
Editor: Daniel Prasetyo, Head of PR and Corporate Communication
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Vega Welingutami is a seasoned Public Relations & Event expert with a strong background in the tech industry, particularly in AI companies, Logistics, Transportation, and Entertainment sectors. With extensive experience in creating impactful event conferences, Vega excels in engaging stakeholders and media to maximize the reach and success of each event. Vega's proficiency in public relations plays a pivotal role in her media approach at Koltiva. Vega's expertise extends to crafting comprehensive media strategies to generate extensive coverage and buzz around events. By leveraging her deep understanding of the media landscape, she develops tailored communication plans, coordinates press releases, and facilitates media engagement before, during, and after events. This strategic approach helps maximize exposure and generate positive brand associations for all involved parties.
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