Abstract:
The coconut industry occupies an extremely important
position in the economy of Sri Lanka. Among the extraordinary number
of products derived from the coconut palm>copra, coconut oil, fresh
coconuts, desiccated coconut, coir and shell products have high
economic significance both in local and export markets.
This study has examined some marketing trends in some
component parts of the coconut industry. First. a descriptive analysis
of the trends and fluctuations in production. processing. pricing
and marketing of the major coconut products was undertaken using
the national statistics for the country for the period 1950-1981. The
aim was to examine major causes of the fluctuations to see which if
any are amenable to policy changes. Parallel analysis has been
undertaken of kernel products and the by-products.
In this study "naive" multivariate supply functions were
used to account for annual fluctuations and longer trends in copra and
coir fibre supply seperately. The empirical results on copra supply
show that a narrowing of the price ratio. between Colombo Retail Price
of Fresh Coconuts and Average F.O.B. (Colombo) Price of Coconut
Kernel Products would increase the copra supply. Extensive fertilizer
distribution policy combined with improved irrigation or moisture
retention practices has been highlighted as a strategy towards increasing
the copra supply. HmJever the implementation of such practices will
depend to a great extent on ensuring that coconut producers obtain a
remunerative price for their product.
Empirical results on coir fibre supply highlight the
necessity of paying attention not only to increasing nominal money
values, but also to increasing the real values of fibre products.
compared to escalating import prices. The study reveals the necessity
for higher attention to be paid for the coconut by-products sector
which has been neglected over the past period.
