Coconut at a Crossroads: Tackling Supply Chain Challenges with 4× Higher Yields and Scalable Regenerative Solutions
- Carlene Darius
- Oct 9
- 8 min read
Executive Summary
Global coconut oil demand is rising over 10% annually, while production grows only 2–3%, constrained by aging palms, climate pressures, and limited infrastructure, leaving smallholders unable to meet demand (The Coconut Cooperative, 2016).
Over 90% of trees in major Asia-Pacific producing countries are 30+ years old, yielding barely 40 nuts per year versus 120–150 from young palms, highlighting the urgent need for replanting, regenerative practices, and collaborative partnerships to secure supply and improve smallholder livelihoods (Department of Agriculture Philippines, 2025).
Our Senior Manager of Agriculture & Environment, Andre Mawardhi, joined the panel “The Boiling Point: Expert Insight on Navigating the Looming Social and Supply Crisis in Asia.” Andre presented findings from Koltiva’s Meta-Analysis on Low Carbon and Regenerative Agriculture for Coconut, which reviewed over 200 studies and 24 field programs. The research revealed some interesting findings related to regenerative practices, including can boost yields up to fourfold, increase profits by 355%, and cut costs by 60%, highlighting their power to build a more resilient and sustainable coconut industry.
Global demand for coconut oil continues to rise by more than 10% annually (The Coconut Cooperative, 2016), as consumers increasingly seek plant-based and sustainable alternatives. Yet, production is growing at only 2–3% per year, a widening gap constrained by aging trees, climate change, and limited infrastructure. At current yields, smallholder coconut producers are unable to keep pace with the increasing global demand.
Low yields, aging palms, and insufficient replanting have locked millions of smallholders into a cycle of declining productivity and poverty. Over 90% of coconut trees across the eight major producing countries in the Asia-Pacific are now more than 30 years old, with replanting rates falling drastically short of what’s needed to rejuvenate the sector (Sustainable Coconut Partnership, 2025). Once the economic backbone of rural communities, these aging palms now produce barely 40 nuts per year, far below the 120–150 nuts from younger, well-managed trees (Department of Agriculture Philippines, 2025). The consequence is a steep decline in yield per hectare, threatening livelihoods, supply stability, and the long-term resilience of the coconut sector.
The industry stands at a turning point. Indonesia alone has more than 3.27 million hectares of smallholder coconut farms (BPS STATISTICS Indonesia, 2024), a reflection of both the immense challenge and opportunity ahead. To secure the sector’s future, stakeholders must act now: the path forward demands large-scale replanting, adoption of regenerative farming, and digitally traceable supply chains.
Koltiva is helping make this transformation possible. Through integrated technology, end-to-end traceability, and on-the-ground expertise, we empower coconut businesses to turn a looming replanting crisis into a regenerative, transparent, and profitable supply chain, laying the foundation for a sustainable coconut future.
Table of Contents
Stakeholder Partnerships Turn Industry Pain Points into Partnership Opportunities
The coconut sector faces urgent pressures. Aging palms, shrinking yields, and intensifying climate pressures are creating urgent challenges for both supply security and smallholder livelihoods. Addressing these issues requires more than incremental efficiency gains; it demands large-scale replanting, regenerative farming practices, and inclusive frameworks supported by strong partnerships.
Fragmented production systems, limited access to finance, and inadequate technical support prevent smallholders from renewing old plantations or adopting modern practices. At the same time, buyers and processors struggle to access reliable data on farm origins, land boundaries, and environmental compliance critical for meeting regulations. Without accurate geolocation, traceable transactions, and transparent producer data, the value chain remains exposed to inefficiency, market exclusion, and sustainability risks.
At the 2025 World Coconut Congress and Sustainable Coconut Partnership Roundtable, Koltiva, represented by Luca Fischer (Senior Head of Markets, Indonesia) and Andre Dani Mawardhi (Senior Manager, Agriculture & Environment), emphasized the need for coordinated action among producers, governments, and the private sector.
As Luca Fischer noted: “Replanting is critical, but it’s not happening fast enough. Producers often can’t afford it; many are aging with no succession plan; and access to finance remains limited. If we want long-term supply security, the private sector must step in—not just with funding, but with smarter partnerships among all stakeholders.
Collaborative frameworks, combined with digital transparency platforms, are emerging as essential tools to link producers, buyers, and regulators. The goal: future-proof the coconut economy while respecting human rights, improving producer incomes, and avoiding deforestation.
Technology and Transparency: Transforming the Coconut Industry
Technology has become the great equalizer in global agriculture. Digital tools now enable the mapping of thousands of farms, the recording of every transaction, and the precise tracing of commodities. In the coconut industry, these technologies enable the connection of environmental and social data across complex supply chains.
At Koltiva, we see technology not as an end, but as an enabler of transformation. Through our integrated platform, connecting producers, traders, processors, and buyers, we enable every stakeholder to collect, verify, and share data seamlessly. Farm boundaries are digitized, transactions are logged, and sustainability indicators are monitored in real time.
This digital backbone ensures that every coconut entering the supply chain can be traced back to a verified, responsible source. More importantly, it helps businesses shift from reactive compliance to proactive sustainability management. To move from commitments to measurable change, the coconut sector needs clear, actionable steps that connect producers, buyers, and regulators in practical ways. At the intersection of technology and transparency, Koltiva delivers field-to-market solutions that make sustainability tangible. By combining on-ground coaching, inclusive digital systems, and data-driven market access, we help the coconut industry translate sustainability ambitions into measurable outcomes.
Building Smallholder Capacity Through Field Coaching
Field coaching remains a cornerstone of transformation. Koltiva’s Agronomists work side-by-side with producer groups providing hands-on guidance in pruning, spacing, soil health, pest control, and intercropping. Training is delivered in manageable, crop-calendar-aligned sessions, and every practice change is tracked. This ensures that capacity-building efforts translate into sustained yield improvements, climate benefits, and increased producer resilience.
Inclusive and Transparent Supply Chain Platform
Traceability is rapidly becoming a market requirement. Emerging digital MIS platforms now map farms, capture harvest data, and log transactions from the buying post to the processor. Our traceability platform, KoltiTrace, for instance, is one such solution enabling “seed to table” traceability, linking farm profiles, plot maps, harvest volumes, and payments into one integrated data-sharing ecosystem. By making data transparent and verifiable, the platform strengthens trust across the supply chain, ensuring smallholders are recognized and rewarded for sustainable practices.
Pathways to Premium Markets
With global buyers enforcing zero-deforestation and fair-labor standards, access to premium markets depends on verified compliance. Systems aligned with frameworks like the Sustainable Coconut Charter enable proof of good practices, land legality, and chain-of-custody to accompany the product. KoltiTrace and our extension services, KoltiSkills support producer readiness for audits, ensuring compliance data accompanies every shipment. This empowers producers to access higher-value markets while promoting sustainable, traceable, and profitable coconut supply chains.
Collaboration for Impact: Insights from the SCP Event
The 2025 Sustainability Coconut Partnership (SCP) event brought together leading stakeholders from across the industry—producers, processors, traders, brands, and solution providers—to align on a shared vision for a sustainable coconut sector.
During the discussions, one message echoed clearly: no single company can achieve sustainability alone. The transformation of the coconut industry requires collective action, transparent data sharing, and coordinated investments in producer capacity and replanting initiatives.
Furthermore, the event also underscored the importance of aligning supply-side strategies with regional cooperation to accelerate sustainable growth, as highlighted at the World Coconut Congress 2025 in Manila. Industry leaders called for a next-generation assurance system and updated partnership charter principles to strengthen transparency, accountability, and cross-sector collaboration.
As these insights translate into actionable priorities for the sector, Koltiva’s participation at the SCP event reinforces our commitment to driving collective solutions. By sharing experiences from other commodities and showcasing how traceability can be implemented at scale, we support the industry in shaping practical pathways toward a resilient, farmer-centered coconut economy. From farm mapping to digital monitoring and transparent reporting, Koltiva continues to build bridges between sustainability goals and real-world implementation.
Case Study: Koltiva’s Meta-Analysis Concludes 4× Yield and Significant Profit Growth from Regenerative Coconut Practices
A highlight at the Manila events was Koltiva’s evidence-based perspective on regenerative agriculture, presented by Andre Dani Mawardhi. Our 2024 meta-analysis project, commissioned by the Sustainable Coconut Partnership, found that bundled regenerative practices can significantly increase yields, improve producer incomes, and reduce emissions per ton of copra.
Key findings from the Meta Analysis include:
Cover cropping: Increased productivity by an estimated 50 nuts per palm per year while reducing weed growth by up to 90%.
Enhanced fertilizer management: Boosted producers profits by approximately 355% through optimized application practices.
Intercropping and replanting: Delivered wide-ranging benefits, from significant yield improvements to greater resilience against climate and market shocks.
Beyond these highlights, the study systematically reviewed more than 200 scientific studies and 24 programs across low carbon and regenerative agriculture initiatives, providing one of the most comprehensive assessments yet of low carbon and regenerative coconut agriculture. We identified five categories of project approaches and developed case studies to evaluate their costs and benefits. The analysis demonstrated that replanting with improved coconut varieties could raise yields dramatically, with some hybrids producing over 21,000 nuts per hectare annually—four times the output of typical smallholder farms. Biochar production and application also emerged as a promising pathway, offering additional revenue through carbon credits valued at USD 120–200 per tCO₂e.
Intercropping and agroforestry showed the strongest potential for financial resilience, delivering returns of up to 189% while diversifying producer incomes and reducing vulnerability to market and climate shocks. Meanwhile, water management techniques such as drip irrigation, alongside integrated pest management, provided measurable gains in yields and cost reductions. Integration of livestock was another notable strategy, cutting weeding costs by up to 60% and offering financial returns exceeding 100%.
The evidence is clear: the farming practices discussed can deliver strong farm-economy gains of higher yields and better financial returns with intercropping and cover cropping standing out for their multiple benefits and broad applicability. However, our research also emphasizes that most available evidence comes from controlled agronomic trials, and further validation is required in real-world smallholder conditions. Results from one region may not directly translate to another, underscoring the need for locally tailored bundles of practices.
At the same time, there is no one-size-fits-all recipe—programs need bundles of practices tailored to local conditions and what’s practical for producers. The bottom line is to pair proven regenerative practices with digital traceability and smart co-investment, then measure what changes so improvements are real and repeatable: higher yields, better incomes, and lower emissions.
The future of coconuts depends on collaboration. Join the conversation and explore how regenerative practices and digital traceability can transform supply chains, empower producers, and secure market access. Talk to our experts to discover how these solutions can work for your business and help you stay ahead of evolving sustainability and compliance requirements.
Author: Carlene Putri Darius, Marketing Communication
Editor: Daniel Agus Prasetyo, Head of Public Relations and Corporate Communications
About the author:
Passionate about sustainability and innovation, Carlene Putri Darius integrates her expertise in technology, marketing, and strategy to promote responsible and inclusive growth. With over three years of experience in consulting, branding, and digital communications, she crafts narratives that connect innovation, sustainability, and social impact for international audiences.
Resources:
Badan Pusat Statistik (Statistics Indonesia). (n.d.). Planted area of smallholders’ estates by type of crop. https://www.bps.go.id/en/statistics-table/2/NzcwIzI%3D/planted-area-of-smallholders-estates-by-type-of-crop
Department of Agriculture (Philippines). (2025, June 19). Philippines accelerates coconut planting to regain global lead. https://www.da.gov.ph/philippines-accelerates-coconut-planting-to-regain-global-lead/
KOLTIVA and Sustainable Coconut Partnership. (2024). Research on Low Carbon and Regenerative Agriculture in Coconut [Final report].
The Coconut Cooperative (2016, December 31). Sustaining the Coconut Industry Into the Future. https://thecoconutcoop.com/sustaining-the-coconut-industry-into-the-future/
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