Increased Revenues from the Coconut Industry
Ghana is boosting its agricultural exports, such as coconuts. Coconuts are seen as a cash crop that presents a lot of opportunities for Ghana, mainly due to its various by-products. The coconut is a very versatile fruit, as its oil, water, milk, and flesh can be used not only in the food industry, but also in the cosmetic and energy industry. These by-products make coconuts a very lucrative investment for farmers. It was estimated by the Ghana Export Promotion Authority (GEPA) that the revenues from the coconut industry will reach 2.8 billion USD by 2021.
Coconut production and export in Ghana have increased significantly over the last few years. As of 2018, the coconut production hovered around 224 million fruits, equal to approximately 380K tons. Around 80% of the coconuts are produced by small-holder farmers. One acre of coconut trees has an estimated annual return of 1.5K - 2.2K USD, according to Patrick Deegbee from Wad, an exporter of organic coconut strips. The government has recently started supporting these small farmers under the Planting for Export and Rural Development (PERD) initiative by providing them with hybrid coconut seeds, which lead to improved yield. Around 80,000 seedlings have been distributed free of charge. The export of desiccated coconuts totaled 1.4 million USD, but most coconuts are consumed domestically or used in other sectors.
Organic Coconuts
Most coconuts in Ghana are organic, as most trees grow in the wild. The trees are not treated with pesticides or any other chemical substances. Not all companies are certified organic, however, as that is often a costly process. Companies that do receive their organic certification, such as Wad, often see higher revenues for their coconuts.
Wad only exports dried organic coconut strips, as fresh coconuts are too delicate to export. The organic coconut strips undergo a meticulous process to ensure quality. All actions are performed manually. The coconuts are first cracked with a hammer to remove the husk. Then the coconut is sliced manually, washed, and placed in a dehydrator. After the coconut strips are sufficiently dried, they are cooled, packaged and exported. No preservatives or sweeteners are added, as the coconut strips are already high in flavor due to the manual dehydration process.
The coconut strips are mainly exported to Switzerland, the US, Japan, and other European countries. Due to their high quality and organic status, they are often consumed as a luxurious snack. Coconuts from Ghana are currently priced higher than coconuts from Thailand or Vietnam, mainly due to a lack of economies of scale. However, the prices in Ghana are very stable and production is expected to increase, according to Wad. To boost the country’s coconut industry, the Ghanaian government organizing The International Coconut Festival in Accra (September 24-26).