The introduction of a subsidy on copra in late 2022 to address the low copra price is positively impacting the total copra, crude oil (CNO) and copra meal production for Vanuatu’s domestic and export markets.
While people were busy during festive season, on Christmas day, Coconut Oil Production Santo Ltd (COPSL), a recipient of the government support, amongst five others, was busy loading 7 x 20ft CNO, destined for Asian markets. That is a total of 161 tons of Crude Coconut Oil.
Supply from the islands have increased particularly from Malo, Ambrym, Malekula, and Santo where Big Bay, amongst East and South Santo, recorded a supply for that shipment of 300 copra bags in a single consignment.
Maspet Cooperative on Malo continues to a major supplier from Malo whereas small quantities are picking up from Penama and Torba.
The production of 161 tons of CNO produced 73tons of copra meal, an important feed resource for the domestic livestock industries.
General Manager Jeffrey Homal, said, "The company has the capacity to double the production in a month with the subsidy, however the monthly international shipping schedules to Luganville do not allow that to happen".
The Director of Industry, Noel Kalo in an exchange with the GM said, "It’s important that total value production is achieved as directed by the National Industry Development Strategy as it generated a lot of economic benefits in the process as compared to raw copra exports - employments are created, increase in VAT, fees and charges from related business activities, produces raw materials for domestic industries like cosmetic and beauty care industries, generates incomes to rural communities and produces copra meal an important feed resource in the livestock industry and most importantly produces crude oil which can be refined into biodiesel for electricity generation".
The Director highlighted that the Minister of Tourism, Trade, Commerce and Ni-Vanuatu Business, Matai Seremaiah intends to review the copra subsidy structure in 2023 to ensure that farmers equitably benefits from the subsidy by geographical locations and distance to markets as compared to the current structure".
On 25 January 2023, COPSL will be exporting another 161tons of CNO and is expected to be consistent in the first quarter of 2023.
Photo supplied Caption: Bags of copra meal ready for export.