Value chain management of virgin coconut oil- a case study on golden vintage farmers industry, Koratty, Thrissur district

Abstract

This study was initiated to analyse “Value Chain Analysis of Virgin Coconut Oil” particularly in Thrissur district. The focus of the study was to, identify various components in value chain of coconut, linkages among different actors in coconut production and benefit distribution to them, the procurement, processing and marketing operation of virgin coconut oil in Thrissur district and understand the different cost and returns involved in the each step of the value chain of virgin coconut oil. The sampling frame taken for the analysis is 15 Farmers, 1 Processing units, 1 private agent and 10 Consumers. The data were generated by individual interview using structured questionnaires. This was supplemented by secondary data collected from different published and unpublished sources. The main market participants for virgin coconut oil value chain in the District during the survey period were farmers, processors, agents and consumers. Besides, a significant amount of virgin coconut oil produced is channeled directly to consumers from processors. The virgin coconut oil marketing performance was also measured using marketing margins complemented with analysis of costs and gross profits generated by different value chain actors. From the study conducted, the major problems of the production identified in the study are no availability of raw materials, packing materials, high labour cost, lack of promotional activities and high transportation cost. The general survey realized on the need of a special package of program to overcome these problems, which include linkage of processing unit with krishi bhavan to get more raw materials, direct their efforts towards promoting their product and produce variety of products from coconut. Based on the study results, interventions demanded to raise marketable supply of virgin coconut oil produced are recommended