Coconut: The Tree of Life
Introduction to Coconut
The coconut (Cocos nucifera) is regarded as the “tree of life”. This is evidenced by the many benefits it brings to human health and wellbeing. Studies indicate that coconuts were originally domesticated in Malesia, with strong evidence supporting its origins in Malaysia prior to the widespread dissemination and cultivation of the crop throughout the Tropics. The coconut seed itself can survive for up to 110 days floating on water before eventually landing ashore to germinate.
Various products derived from coconuts have a string of proven and potential health benefits, which has led to a tremendous increase in the popularity of coconut and its by-products in recent years, especially Virgin Coconut Oil and Coconut Water. After mother’s milk, coconut is the second richest source of monolaurin known to mankind. Monolaurin is the key antimicrobial element in a Mother’s immune system support, vitally passed from mother to child during infancy, and is an essential ongoing supplement for the human diet.
Research has shown that this monolaurin, as well as other compounds found in coconut, have the potential to treat — or reduce the symptoms of — a range of infections, diseases, and other ailments including; infections caused by Staphylococcus aureus, HIV/AIDS, and Alzheimer’s. Studies are continuing in these areas, as these coconut-derived compounds will prove to be vital to global health and wellbeing, especially as infectious diseases continually develop resistance to traditional antibiotics. Coconut Water has found tremendous success globally as a healthy beverage option that possesses restorative properties following physical activity thanks to its high content of essential vitamins and minerals.
As well as being excellent for human health, the coconut is also great for the environment, as the palm possesses a carbon sequestration capacity of up to 120 MT of CO2 per annum, well above the capability of degraded forests found in Malaysia.
Opportunity
Global consumption of coconut products is increasing at a rate of 10% per annum, whilst production is increasing at a mere 2% each year. This Coconut Conundrum has the potential to threaten global supplies of new staples such as Coconut Water and Virgin Coconut Oil (VCO), as well as long-standing essentials such as Coconut Milk, Desiccated Coconut, and Coconut Oil (CNO). The UK alone saw 64% and 67% increases in demand for Coconut Water and Coconut Milk respectively in 2015.
Unbeknownst to many consumers, Coconut Milk and Desiccated Coconut are key ingredients to many everyday items found on supermarket shelves throughout the world, from confectionary and cakes, through to Ready-To-Eat meals and snacks.
One of the major threats to global coconut supply is the lack of availability of superior elite-hybrid planting materials. As stated by the UN’s Food and Agriculture Organisation (FAO) in 2013, Asia Pacific’s aging coconut palms pose a significant threat to ongoing availability of whole coconuts for the downstream processing sector. Tall coconut palm varieties can take up to eight years to begin producing – small farmers cannot withstand such an extensive period without income. These small farmers produce more than 90% of whole coconuts globally, which leaves downstream processors with an inconsistent, unruly, and uncertain future supply.
Advantages
One of our key competitive advantages is our Chairman and Chief Executive Director, Dr. Gurmit Singh PhD, FISP, JSM’s, extensive, proven experience in developing elite, high-yielding hybrid coconut varieties (including the immensely popular and impossible to procure MATAG), as well as his decades long track record in establishing Hybrid Coconut Seed Production Units (HCSPU) and world-beating Coconut Plantations.
Malaysia’s agroclimatical conditions and best-in-class plantation agriculture expertise allows us to reach average yields in excess of 500% higher than the Asian Pacific Coconut Community’s (APCC) smallholder average of 5,200 coconuts per hectare.
As with Cocoa, there is a flourishing downstream processing sector which is dependent on imports to survive, as well as a shortfall in local supply and demand exceeding one billion coconuts. This massive local shortage alone gives the guarantee of secure offtakers and price premiums.