APFED Booklet on Good Practices and Innovative Activities 2005 ...

Award
Solomon Islands
2006
Rehabilitating a Rural Economy with Virgin Coconut Oil
Production
2006 2007 2008 2009
Project Site Location Malaita, San Cristabel and Santa Isabel
Background - Problems Addressed and Policy Responses
Many tropical coastal communities face the threat of rising
sea levels, along with social issues. One, Solomon Islands,
has experienced much social unrest. In an attempt to
improve the socio-economic conditions of the population, a
local church-linked company joined hands with an Australian
technology company in a joint venture utilizing its Direct
Micro Expelling (DME) virgin coconut oil (VCO) technology
to form KPSI.
Coconut shells used for making by-products
Project Outline - Objectives and Activities
KPSI has improved the livelihoods of the rural population by more effectively utilising their coconut
resources through the production of export-quality VCO, which can also be used as local transport fuel
in farms. KPSI integrates marginalised rural populations into the formal economy by providing a full
administrative framework for the DME system, finding committed families in rural areas, providing a credit
mechanism, training staff and farmers, supervising construction and organising oil collection, quality
control and export within full Organic Certification protocols.
Impacts and Achievements
The project has enabled farming communities to produce pure VCO, providing rural populations with a
meaningful job, regular income and enhanced QOL*. Fourteen DME units have been installed in three island
provinces and the HQ, warehousing and bulk storage has been set up in Honiara. Organic Certification was
issued to 255 growers covering 2,622.75 Ha. over 86,000 litres of VCO have been produced since June
2004 (as of 2006) based on an averaged 10-unit output, with 80% being exported, for an income of over
164,000 AUD. Multiplier effects include the emergence of rural markets in the project areas.
* QOL: quality of life
Future Challenges
Some of the challenges are scaling up and replication of the project in other small island nations, while
also maintaining demand for Virgin Coconut Oil. Despite the clear benefits, it requires strong-minded
entrepreneurs to set up production centres and run them for a community, which has proved too difficult
for some people. Further, although donor-assisted at the project outset, up-front equipment costs are high
for subsistence farmers, thus a clearer support mechanism is needed to maintain the substantial benefits.
General Information
Name of the Implementing Organisation:
Kokonut Pacific Solomon Islands Ltd (KPSI)
Type of Organisation: Private Company
Contact: Colin Dyer
PO Box 1675, Honiara, SI
Tel: +677 28027 Fax: +677 28026 E-mail: colindyer@solomon.com.sb
Website: http://www.kokonutpacific.com.au
Project Reviewer (NetRes / Collaborators) that monitors the project:
Shashi Kad, Institute for Global Environmental Strategies (IGES) E-mail: apfed@iges.or.jp
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