MSc

Coconut (Cocos nucifera) is one of the most useful tropical palms, almost all
parts of which have various uses in both household and industrial sectors. In spite of
the diverse value addition technologies developed by research institutions, the level
of adoption was found to be low. A study entitled ‘Value Chain Analysis (VCA) of
coconut based food products’ was taken up in order to identify the value chains, price
spread, profitability and marketing efficiency of coconut based value added food
products using the value chain analysis framework. The study also focused on the
constraints faced by various chain players and measures for improving the
performance of the chains.
The study was conducted in Thrissur district of Kerala, and the four products
selected for the study were coconut oil, Virgin Coconut Oil (VCO), desiccated
coconut and coconut chips. Focus group discussions were held to identify the key
chain players involved in the value chain. Survey method was used for the primary
data collection. Expert opinions were also used for arriving at conclusions.
The value chain map of each product was prepared including the product and
byproduct flows. The main chain players involved were farmer/farmer cooperative,
village traders, copra traders, processors, wholesalers, retailers, exporters and
consumers. Coconut oil value chain involved almost all chain players. But for
coconut chips large buyers like wholesalers were not present. The analysis of
marketing cost showed that the costs involved were very less where the unnecessary
middlemen were least involved or absent. Price spread analysis has shown that VCO
has the lowest producer’s share in consumers’ rupee (24.04 per cent) whereas the
producer’s share in consumer’s rupee was the highest in coconut oil (71.04 per cent).
The index of Modified Marketing Efficiency (MME) was worked out which showed
that coconut chips was the least efficiently marketed value added product (0.23).
Low market price increased labour charges, increased cost of production and
labour shortage were the major problems faced by the farming community. Product
specific constraints faced by manufacturers were also studied. Unavailability of
sufficient quality raw nut and copra was a major constraint faced by the
manufacturers. Financial constraints, adulteration and price fluctuations were the
major constraints faced by the wholesalers. High price of the product was the major
constraint faced by the consumers of coconut products.
Adulteration was also
identified as a major constraint faced by the consumers of coconut oil.
Ensuring continuous and large scale supply of raw nuts to the manufacturers
is the primary need for the promotion of value addition in coconut. The
manufacturers should adopt large scale of production with modern technology and
the traders should ensure the quality standards of the products which would in turn
enhance the marketing opportunities.