The coconut industry is facing significant sustainability challenges that threaten its long-term viability. In 2018, The International Union for Conservation of Nature (IUCN) reported that around 9,159 hectares of land in Indonesia were at risk of deforestation due to coconut farming, worsening the climate crisis by reducing the forest's capacity to absorb carbon dioxide, a major contributor to global warming (IUCN: 2022).
In addition to environmental impacts, the complex value chain of coconut processing, where smallholders engage only in minor farm-level processing, leaves them earning the least profit (ksapa: 2024). Research on agricultural value chains reveals that many coconut producers in regions like North Sulawesi and Riau live below the poverty line, with incomes less than Rp3,000,000 per capita annually (In Tech Open:2023). This shows that the current structure of the coconut industry disproportionately affects smallholders, trapping them in cycles of low income and slow economic growth. The dual challenge of environmental degradation and economic instability threatens both the industry's sustainability and producers' livelihoods. Without intervention, the long-term viability of the coconut sector and smallholder producers remains at risk. Systemic changes are needed to promote both environmental conservation and fair economic opportunities for smallholders.
In response to these challenges, partnerships such as the Sustainable Coconut Partnership (SCP) have emerged as a vital force in transforming the coconut industry. SCP is a global platform dedicated to promoting coconut sustainability. It is a multi-stakeholder initiative focused on creating a responsible and resilient coconut industry, addressing the long-term sustainability challenges faced by millions of coconut producers worldwide (SCP:n.d.). This initiative aligns with the need to empower producers by offering education, tools, and resources to optimize their operations and meet growing global demand.
As a leading force in the transformation of the coconut industry and a proud member of SCP since January 2024, we are excited to be a sponsor of the Sustainable Coconut Roundtable 2024. This is an opportunity to significantly contribute to the development of a more resilient and sustainable coconut sector. This endorsement not only underscores our commitment to sustainability but also positions Koltiva at the forefront of innovation in the industry, leading the charge for a positive transformation.
We are committed to driving transformative change in sustainable coconut production. Through our expertise and solutions, including KoltiTrace and KoltiSkills, we actively collaborate with producers, governments, the private sector, NGOs, and donors to enhance sustainability, productivity, and traceability across the sector. KoltiTrace strengthens supply chain transparency, while KoltiSkills equips producers with the knowledge and tools they need for long-term success. Our focus is on empowering stakeholders with practical solutions that drive competitiveness and sustainable growth. By leveraging these tools for meaningful engagement and collaboration, we aim to shape the future of the coconut industry, positioning ourselves as key players in advancing innovation and building valuable partnerships.
The upcoming Sustainable Coconut Roundtable 2024, scheduled for September 26-27, 2024, at the Sheraton Manila Hotel, Philippines, will serve as a platform for industry leaders to address these pressing issues. The event's theme, 'Nurturing Sustainable Coconut Markets to Meet a Growing Demand,' reflects the shared commitment to fostering sustainability across the global coconut industry.
As we continue to lead the way in transforming the coconut industry, we invite attendees of the Sustainable Coconut Roundtable 2024 to engage with us and explore collaboration opportunities. Our Head of Sector Palm Oil, Coconut, & Landscapes, Fahreza Hidayat, and Head of Markets, Olivier Barents, will be attending the event, showcasing how our solutions drive long-term sustainability from seed to table.
Learn more from them about our commitment to sustainable coconut production, which includes providing comprehensive support to businesses and their producers through innovative technology solutions. Our KoltiTrace MIS platform offers comprehensive insights into the coconut supply chain, supporting zero-deforestation efforts by monitoring production and identifying protected areas. Additionally, our FarmCloud mobile app empowers producers with tools for sustainable practices and productivity, while KoltiPay facilitates secure electronic payments, enhancing farm management and financial resilience. We also expand market access through FarmRetail and streamline operations with FarmGate, fostering efficiency across the industry.
Let's shape a sustainable future together! Collaborate with us to drive innovation and resilience in the coconut sector. Reach out today to explore how our solutions can empower your business and communities.
Resources
Ksapa. (2024). Challenges and transformations of the global coconut value chain. Retrieved from Challenges and Transformations of the Global Coconut Value Chain (ksapa.org)
IUCN NL. (2022). Guide for value chain management in the protein transition: Coconut. 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
Aurore, G., Christine, B., & Sylvain, L. (2023). Coconut processing technologies for a more sustainable coconut sector. In IntechOpen. Retrieved from https://www.intechopen.com/chapters/86285
Sustainable Coconut Partnership. (n.d.). About us. Sustainable Coconut Partnership. Retrieved from https://www.coconutpartnership.org/about-us#:~:text=The%20Sustainable%20Coconut%20Partnership%20is,for%20millions%20of%20coconut%20producers.
Writer: Kumara Anggita, Content Writer
Editor: Daniel Prasetyo, Head of PR and Corporate Communication
About Writer
Kumara Anggita, serving as Koltiva's dedicated Content Writer, brings a wealth of experience from her six-year tenure in journalism in the fields of humanities and lifestyle, as well as her role as a writer in the tech industry. Her deep-rooted passion for gender equality and sustainability spurred her to enhance her reporting and storytelling skills through the EmPower Media Bootcamp by UN Women. Now, Kumara utilizes her platform to advocate for sustainable practices and gender equality through her compelling writing.
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