How does a coconut go ‘round? : A case study of the Philippine coconut industry

Abstract: Problem of the Study: Non-traditional, value-added coconut products, such as Virgin Coconut Oil, Coco Water and Coco Sugar, have increased tremendously the last few years and the end-consumer pay a high price in retail for these considered luxury products. However, there is no abundance or indulgence in the life of the farmers and small producers in the Philippines at the other end of this global billion-dollar industry. Purpose of the Thesis: The purpose of this study is to describe, analyse and define the export network, and the roles of the actors, of the value-added coconut products in the Philippines as well as locate the origin of the single or combined problems that have led to struggling industry suppliers, and through that identify possible solutions which can increase the economic viability of the suppliers. Methodology: This study has been conducted as a case study, where the empirical findings was collected during an 8 weeks long field trip to the Philippines. A qualitative approach was adapted in order to create a deeper understanding of the problem and abduction made this possible. Six semi-structured interviews and one in-depth interview were executed. The majority of the data was collected through these interviews, although participating observation was also an important source of information along with secondary data. The validity and reliability has been secured by carefully explaining the methodology of the study, interviewing several different actors, following a interview guide and by separately interpreting the the primary data before comparing them with each other. Conclusions: The study showed that the Philippine coconut industry network is far from centreless. The government and MNCs play the biggest roles in the network, meanwhile the farmers and small producers have a very small part in the export activities of value-added coconut products. In order for the existing inequalities within the network, in both influence and profit shares, to be resolved farmers and small producers need increased support to be able to engage in value-added production, reach collaborative advantage and get access to direct export channels.