Guyana eyeing local, Caribbean markets for bottled coconut water

As Guyana seeks to make its coconut industry competitive regionally and globally, efforts are being focused on updating technology, making innovative investments, and instituting market-led developments with a keen eye on the potential for bottled coconut water products.

On Monday, farmers, investors and exporters met agricultural officials to discuss these activities, especially the establishment of a multi-million-dollar coconut water bottling plant at Hope, East Coast Demerara. Jamaica is currently taking the lead with bottled coconut water in the Caribbean, and is already exporting its products to the USA and Canada. 

However, for Guyana, both the local and Caricom markets have potential. And with 24,000 hectares of land under coconut cultivation, Guyana produces 92 million coconuts per year. 

On the other hand, the industry is faced with numerous challenges, including difficulties to secure markets that provide returns that compensate for the relatively high cost of production. This has resulted in a significant decline in production, and a number of estates becoming abandoned. 

Recognising these constraints, government intervened in the industry, starting with a revitalisation plan crafted in 2008. This precipitated the sudden rise in production and exports of coconuts and coconut-related products and the many market opportunities, locally and internationally. 

The plan, Agriculture Minister Robert Persaud reminded, focused on all areas: technical assistance, infrastructure, and investments in technology.  As the minister said, there is a need to look at getting more out of coconuts than just exporting the raw nuts. Guyana has also since linked with its international partners, specifically the United Nations Food and Agriculture Organisation (FAO) and the Indian government, in its efforts to make the local coconut industry more vibrant and active, so it can compete both regionally and internationally. 

An Indian expert has been working with local stakeholders over the past six months; a de-husker has been acquired, and a coconut plant nursery has been revitalised at Hope. 

Now the state is moving ahead with investments in the bottling plant. But despite this, Minister Persaud indicated, there is need for more work and support from the private sector, as the government can only be a facilitator of developments to drive the industry. 

A consultant reported in a study that, while there are 24,000 acres under cultivation, only 60 percent are producing. Coconut estates are still active in Regions One, Two, Three, Four, Five and Six, but Regions Two and Five are the most productive, accounting for 34,000 and 24,000 nuts annually. While the study looked, too, at prices offered at the farm-gate and at the retail levels, it found that 82 per cent of persons consuming coconut water are men over the age of 25 years. It concluded also that 98 per cent of the persons who consume coconut water as a refreshing beverage are unaware of its health values. The study confirmed that the local market for bottled coconut water is untapped, and 97 per cent of the persons interviewed never heard of this product. 

In Guyana, Phoenix Enterprise was the first to produce bottled coconut water, starting production in 2004. However, demand for the product has outstripped the company’s supply. On the supplier side, Virgin Caribbean is the largest producer, and all of its chilled coconut water, produced in the Pomeroon, is sold in Trinidad. 

Based on these realities and other options explored, Hope Estate is recognised as an ideal location for a coconut water bottling project. At Hope, there are existing shallow wells, good access road, good electricity, buildings in place and a year-round supply of fresh water from the conservancy; but a few other facilities will be required, and the established nursery will also need to be expanded.