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Coconut Sector Strategy

Solomon Islands
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United
Nations.

ITC, Palais des Nations, 1211 Geneva 10, Switzerland (www.intracen.org)

Views expressed in this document are those of the authors and do not necessarily coincide with
those of ITC, UN or WTO. The designations employed and the presentation of material in this paper
do not imply the expression of any opinion whatsoever on the part of the International Trade Centre
concerning the legal status of any country, territory, city or area or of its authorities, or concerning the
delimitation of its frontiers or boundaries.

Mention of firms, products and product brands does not imply the endorsement of ITC.

This document has not been formally edited by the International Trade Centre.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Acknowledgements

To the more than 100 sector stakeholders that participated in the Strategy Design including Malaita,
Guadacanal and Western province farmers, provincial Authorities, processors, support Institutions and
Government Representatives.
A special acknowledgement is awarded to the Solomon Islands Coconut Industry Secretariat members
:Cornelius Donga, Alfred Ramo, Jack chotu, Vernon Smith, Willie Tollie, Stephenson Talogwari, Titus
Sura, Dr. Judson Leafasia, Bevan Vollrath and to Mr. Hernan A. Manson and Mr. Antony Sandana from
the International Trade Centre.

In addition, special thanks go to the following individuals and institutions:


Solomon Islands Coconut Secretariat Members:
Cornelius Donga (Chair) Ministry of Commerce, Industry, labour and Immigration
Alfred Ramo Commodity Export Marketing Authority
Jack Chottu Private Sector
Farmer
Vernon Smith Private Sector
Processor
Willie Tollie Private Sector
Farmer
Stephenson Talogwari Ministry of Foreign Affairs
Titus Sura Ministry of Agriculture and Livestock
Dr. Judson Leafasia (Chair until March 2010) Ministry of Rural development
Permanent Secretary to Deputy Prime Minister
Bevan Vollrath (Vice Chair until June 2010) Private Sector
Processor

Committee supporting members:


Alfred Maesulea (retired) Ministry of Agriculture and Livestock
Patteson Harisi Private Sector Shipper
Belani Tekulu Private Sector Buyer / Exporter

Malaita Province Coconut Committee Members:


Robert Kaua Deputy Provincial Secretary
Michael Maeliau Private Sector Farmer
Tony Uania Provincial Member
Labu Toitoona Ministry of Agriculture Extension Officer
Job Kabui Private Sector
Joses Naumai Private Sector Farmer
Peter Mana Private Sector- Processor
Stephen Tolinao Private Sector

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Western Province Coconut Committee Members:

IODINE.PANASASA CIO-IDD
JOEL BILLY FARMER
JOHN TAUPA LILO PROCCESSOR
FREDLY NITALO FARMER/TEACHER
RICHARD BULEHITE PROV/AGRICULTURE
PETER QAQARA FARMER
VERONIKA.TANITO PROCCESSOR
JESCA.THEOKHERRAGUA FARMER

Guadalcanal Province Coconut Committee Members:


Sophia Chottu (Chair) Solomon Islands Career Development Centre (Private Sector)
Jacob Gala Private Sector- Farmer
Stephen Ngele Provincial Speaker
Barney Paulson Private Sector- Farmer
Ana Luvu Ministry of Finance
Nathaniel Haamarasi Ministry of Agriculture and Livestock
Annie Maedia Solomon Islands Grass Root Women Association (Private Sector)
Selina Beato Solomon Islands Grass Root Women Association (Private Sector)
Remondo Kapini Private Sector- Farmer
Jacinta Haamarasi Solomon Islands Grass Root Women Association (Private Sector)
Cecil Beato Private Sector- Farmer

International Trade Centre


Hernan A. Manson (Team Leader) Associate Adviser for Value chain and Strategy Development

Antony Sandana Senior Commodities Officer

Paul Roughan National Consultant (ITC)

Vinay Chand Senior Consultant on Coconut sector (ITC)

Collaborating Institutions
The Coordinating Committee would also like to provide its reconnaissance for the inputs and resources
provided by the following institutions:
Dr. Abdoul Aziz Mbaye
EU Delegation Jenny Brown
Peter Reddish
UNDP Janet Funa

Asian & Pacific Coconut Community (APCC) Romulo N. Arancon (Jr.)


Vinesh Prasad
South Pacific Community
Shane Tutua

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

The present strategy has been put together by the stakeholders of the coconut sector and
institutions of the Solomon Islands.

With support from:

All ACP Agricultural Commodities Programme

Financed by the European Commission

In collaboration with:

The International Trade Centre (ITC)

For information on the methodology used for the development of this strategy, please
contact:
International Trade Centre
Division of Country Programmes
Export Strategy
Tel: +41 22 730 0111
Fax: +41 22 730 0575
Web: http://www.intracen.org
E-mail: exportstrategy@intracen.org

The designations used and the presentation in this report do not imply an expression of an opinion on
behalf of the ITC about the legal status of the countries, territories, cities or areas, about their legal
authority, or about the delimitation of their borders or territorial limits. This report was not officially edited
by the ITC

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

DVD video of:


Coconut sector strategy
Solomon Islands

DVD instructions:
Open the Video_TS folder from your CD drive, double-click the file VTS_01_1.VOB to play the video file on
your computer.
Compatible with VLC Player and Windows Media Player

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Vision for the Coconut Sector

To have a modernized Coconut industry by 2020 that is able to contribute


significantly to national peace, unity and economic development for
prosperity of our people.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Contents

COCONUT SECTOR STRATEGY .......................................................................................................................................I


SOLOMON ISLANDS...............................................................................................................................................................I
VISION FOR THE COCONUT SECTOR ........................................................................................................................ VI
NOTE TO THE READERS AND PURPOSE OF THIS DOCUMENT ..................................................................... X
MESSAGE FROM THE MINISTRY OF COMMERCE, INDUSTRY, IMMIGRATION AND LABOUR ........ XI
MESSAGE FROM THE MINISTRY OF AGRICULTURE AND LIVESTOCK ..................................................... XI
MESSAGE FROM THE SOLOMON ISLANDS COCONUT SECRETARIAT .................................................. XII
MESSAGE FROM COMMODITY EXPORT MARKETING AUTHORITY .......................................................... XII
MESSAGE COCONUT FARMERS OF SOLOMON ISLANDS ............................................................................. XII
1. INTRODUCTION ............................................................................................................................................................. 1
THE STRATEGY DEVELOPMENT PROCESS ......................................................................................................................................... 1
2. NATIONAL SETTING .................................................................................................................................................... 2
COUNTRY OVERVIEW................................................................................................................................................................................. 2
DEVELOPMENT, SOCIETY AND ECONOMY .......................................................................................................................................... 3
3. IMPORTANCE OF COCONUT SECTOR TO SOLOMON ISLANDS............................................................ 4
4. CURRENT INDUSTRY SITUATION ......................................................................................................................... 8
W ORLD PRODUCTION ............................................................................................................................................................................... 8
THE COCONUT SECTOR IN SOLOMON ISLANDS ............................................................................................................................... 8
REGIONAL CHARACTERISTICS ..............................................................................................................................................................12
CONSTRAINTS AFFECTING VALUE CHAIN ACTORS ........................................................................................................................13
5. STRATEGIC OPTIONS AND TARGET MARKETS: ........................................................................................ 14
OVERALL NATIONAL PRIORITIES.........................................................................................................................................................15
4 STRATEGIC OBJECTIVES AND IMPLEMENTATION FRAMEWORK .................................................... 18
STRATEGIC OBJECTIVES ........................................................................................................................................................................18
INPUTS AND CAPACITY FRAMEWORK .................................................................................................................................................18
PRIORITIES FOR IMPLEMENTATION ....................................................................................................................................................19
THE STRATEGY DESIGN AND IMPLEMENTATION MECHANISM ...................................................................................................20
STRATEGIC OBJECTIVES ............................................................................................................................................... 22
DETAILED IMPLEMENTATION PLANS ....................................................................................................................... 29
IMPLEMENTATION PROGRESS ..............................................................................................................................................................47
ANNEXES ................................................................................................................................................................................ 48
ANNEX 1: CABINET NOTE .......................................................................................................................................................................49
ANNEX 3: SOLOMON ISLANDS COCONUT INDUSTRY SECRETARIAT (SICIS) CODE OF PRACTICE ...........................54
ANNEX 2: SICIS WORK PLAN ...............................................................................................................................................................55
COORDINATOR ...........................................................................................................................................................................................56
OFFICE MANAGER .....................................................................................................................................................................................57
ANNEX 4: REFERENCES .........................................................................................................................................................................65

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Abbreviations
The following abbreviations are used:
AACP All ACP Agricultural Commodities Programme
ACP African Caribbean Pacific
AFT Aid for Trade
ASYCUDA Automated System for Customs Data
Aus AID Australian Aid Agency;
ACIAR Australian Center for Agricultural Research;
ADB Asian Development Bank
CCST Commodity Chain Stakeholders Team
CSP Country Strategy Report
CDF Community Development Fund
CIA U.S. Central Intelligent Agency
CDC Commodity Dependent Countries;
CDS Community Development Scheme;
CROP Council of Regional Organization of the Pacific;
DSAP Development Sustainable Agricultural Programme
EC European Commission
EPA Economic Partnership Agreement;
EU European Union;
FSM Federated States of Micronesia
FAO Food & Agriculture Organization of United Nations
GDP Gross Domestic Product;
GNP Gross National Products
HTFA High Temperature Forced Air;
HDI Human Development Index;
IFAD International Fund for Agriculture Development
ITC International Trade Center;
IMF International Monetary Fund;
IOs International Organizations
MORDI Mainstreaming Rural Development Innovations Programme
MDG Millennium Development Goals;
MSG Melanesian Spearhead Group;
MCPD Multi country Programme Document;
NZ New Zealand;
NZ Aid New Zealand Aid Agency;
PACER Pacific Agreement on Closer Economic Relations
PICs Pacific Island Countries
PNG Papua New Guinea
PIFS Pacific Island Forum Secretariat;
PICTA Pacific Island Countries Trade Agreement;
RAMSI Regional Assistance Mission to the Solomon Islands
RoO Rules of Origin
RPFS Regional Programme for Food Security
SPs Special Products
SDT Special and Differential Treatment
SPS Sanitary and Phyto-sanitary system
TA Technical Assistance
UNCTAD United Nations Conference for Trade and Develpment
USA United States of America;
VAI Vulnerability and Adaptation Initiative
WTO World Trade Organization

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Note to the readers and purpose of this document


As part of the EU funded All ACP Agriculture Commodities Programme (AAACP), the Solomon Islands
government undertook the development of a Sector wide holistic strategy for Coconuts and Coconut
value added products.
The initiative was led by Private sector and involved more than 100 stakeholders including farmers,
processors and support institutions from the Western, Malaita and Guadalcanal Provinces. The Ministries
of Agriculture and Livestock, Commerce, Industry, Labour and Immigration, Rural Development and
National Planning and aid coordination were equally involved. The main technical agency providing
support to the Solomon Islands Government for participatory strategy design was the International Trade
Centre (ITC).
The emphasis on the Coconut sector came out of the ACP Secretariat Pacific Kick-Off Workshop held in
Apia, Samoa in February, 2008, where the European Union sought to determine the type of external
assistance necessary to help build the capacity of commodity dependant stakeholders in the Pacific
region.
In this meeting regional and national delegates prioritised the main sectors and countries of intervention.
For Solomon Islands, Coconut was prioritised given its high market potential, the deep impact in rural
areas, the need to support farmer communities diversify from Copra and the low level of external support
provided to the sector.
Under the ACP programme, South Pacific Community (SPC) provided support to ITC and the sector
stakeholders for the development of this strategy.
The Strategy development process has already shown impact through the establishment by Government
of a Solomon Island Coconut Sector Industry Secretariat (SICIS) composed of Stakeholder elected
members representing private and public institutions. This is the first time a national private public body
composed of actual beneficiary representatives (including farmers) has been given the mandate by
Government to represent a sector. Since 2009 the SICIS has worked on a voluntary basis to lead the
strategy development process and plan for implementation using ITCs market-led participatory
approach.
The strategy focuses on capitalising in existing opportunities for improved income generation for the rural
areas as well as in promoting investment for the development and strengthening of the processing and
value added industries.
The strategy is aligned to the National Coalition for Reform and Advancement (NCRA) policy statement
and to the Agricultural Development Plan. It is also in line with the Enhanced Integrated Framework
Diagnostic Trade Integration Study and contributes to the nations achievement of the Millennium
Development Goals.
The purpose of this document is to guide and support the development of the Coconut industry by
providing a plan and a management framework that articulates value chain actors, private sector,
existing resources, development activities and donor support.
The parties concerned in the design and in implementation are farmers, private sector enterprises,
processors, buyers, policy makers, government and support institutions.

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Message from the Ministry of Commerce, Industry, Immigration


and Labour

Solomon Islands wealth has long been described in terms of its potential and for too long this potential
has not been reached. This has held true for the wealth potential of our vast coconut crop. However after
more than a century of turning coconuts into copra, it is well past time to move beyond copra and reap
the wealth that new products and new uses can unlock from the tree of life. It is for this reason that I
have pledged the full support and resources of the Ministry for Commerce, Industry, Immigration and
Labour, and for this reason that I have great satisfaction in this the final product
This critical document while the culmination of the strategy development process, represents only the
beginning of the long task of renewing and re-invigorating our coconut industry. As Minister for
Commerce, Industry, Immigration and Labour, I commit the capacity and staff of the Ministry going
forward into the full implementation of this strategy of key national importance.

Message from the Ministry of Agriculture and Livestock

The development and launch of the Coconut Sector Strategy opens a new chapter in the development of
the Solomon Islands Coconut Industry and brings a lot of hope to our rural farmers.
The industry is now to be led by the beneficiaries themselves.
As the Minister of Agriculture of the New Government, I fully support the Coconut Strategic Plan. Our
Governments policy statement fully recognizes and supports the need to urgently develop the Coconut
Industry. This is also further translated through the Ministry of Agriculture and Livestock development
policies.
With the coconut Strategic Plan at hand, I humbly ask the Government, my Minister Colleagues, donor
and implementing partners to support the Secretariat and the Implementation of the strategy in order to
achieve its development objectives and impact.
I would also like to thank ITC for their invaluable contribution and support as well as the European
Delegation for bringing the strategy development to Solomon Islands and for financing its
implementation.
Finally I wish to commend the work of the Coconut Secretariat for their tireless effort in putting together
the plan and their commitment to oversee its implementation.

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Message from the Solomon Islands Coconut Secretariat

The Coconut Secretariat has great pride in the finalisation of this Strategy document for many reasons. It
represents the confidence of government and donor partners not only in the industry, but in the ability of
industry to participate in a coordinating role with government. As such it represents the best opportunity
for a truly transformative national development, and for the improvement in lives and futures of the rural
majority of the country.
The commitment shown by all stakeholders has been huge and welcome and we look forward to
continuing this important work with them all.

Message from Commodity Export Marketing Authority


Having a national coconut plan in place puts all relevant coconut industry stakeholders in perspective
towards strategizing the available options and achieving a more focused implementation process.
CEMA sees the important contribution of the coconut and cocoa industry in sustaining and improving the
livelihood of the rural people over the years. Especially given the economic benefits these industries
have made to the family units. Unlike logging the entire family directly participate in generating income
through engagement in activities in these two industries.
CEMA will continue to play its role in facilitating all relevant stakeholders participating in whatever
development along the value chain for these two industries.

Message Coconut Farmers of Solomon Islands


The Coconut Farmers have been working in their plantations for the last century in good and bad times,
prosperous times and times of poverty. Still we persevere. It is our sincere hope that through the
implementation of this strategy help is on its way and development reaches rural populations.
It is our vision and belief that: The Coconut Industry will be the uniting feature of the lives of the people
in the whole of Solomon Islands, families working together, earning their livelihood through this industry.
With the development of this Industry our children will be able to attend School and University. This
Industry will unite the whole of Solomon Islands together.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

1. Introduction
Solomon Islands is classified a Least Developed Nation (LDC) under UNDP terminology with more than
seventy five percent (75%) of its labour force is engaged in subsistence farming and fishing. Eighty five
percent (85%) of the total population (a total of 595,613 in 2009) live in the rural areas scattered across
992 islands in its archipelago.
Over the last decades, Solomon Islands economy and people have been dependent on agriculture for
growth and subsistence. During the period 2001 to 2006, the main income earners for the economy were
Timber, Fisheries, Palm Oil, Cocoa and Copra.
As it is well known, Solomon Islands went through approximately 3 years of Social unrest staring in 1999.
The tensions affected severely the lives of Solomon Islanders and the economy and placed the country
in a donor aid dependency situation.
In 2010, 7 years after the conflict slow recovery has been seen and in the case of Coconut, Cocoa and
Palm Oil volumes and income contribution have still not regained previous levels (CEMA).
One of the main elements hampering economic development is related to lack of private sector
investment, lack of trust among actors, infrastructural limitations as well as high cost and
underdeveloped maritime transport services. In fact, most manufactured goods and petroleum products
must be imported.
Despite the above constraints, several opportunities for economic development and improvement of the
livelihoods of Solomon Islanders exist in Agriculture and Agro-processing.
The present strategy constitutes a tool for Government and Solomon Islanders to better capitalize on
existing market opportunities and align support services and donor aid to ensuring the Coconut sectors
vision can be achieved.
This strategy is looking into capitalizing on the undoubted opportunity and potential for the coconut
sector. It is anticipated that the implementation will benefit Solomon Island people as a whole together
with the processing sector and more than 40,000 farmers.

The strategy development process


More than 100 sector stakeholders representing private sector, rural communities, Government support
Institutions, Buyers and Ministries have developed this strategy in a participatory way using the value
chain approach. A total of Nine official Stakeholder workshops were conducted at national and provincial
levels and coordination meetings were held monthly since 2009.
The strategy has for the first time united different actors under the same roof to strategically decide on
sustainable and viable alternatives to produce and sell coconut products.
Overall agreement was achieved at a national level through a shared vision of the main development
priorities. Additionally and under the national framework, refined options were identified and adapted by
the provincial value chain actors including Guadalcanal, Western and Malaita provinces.
It is important to highlight that the scope of the present strategy is National and many of its components
are of common importance across all provinces.
A paramount objective was to seek the integration, representation and priorities of rural farmer
communities in order to achieve better decision making and more successful implementation results.
This was done through the EU funded All ACP Agriculture Commodities Programme (AAACP) with the
leadership from the Ministry of Commerce, Industry, Labour and Immigration in cooperation with the
Ministry of Agriculture and Livestock.
The target clients of the strategy are expected to be private sector including farmer associations,
Government Institutions; Business and Trade support organizations; development agencies and funding
partners.
Results are already being evidenced as the strategy development has enabled the creation and
appointment by Cabinet of a sector specific platform (Solomon Islands Coconut Secretariat) for public-
private partnership for decision making.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

2. National Setting
Solomon Islands represent a unique configuration of geography, population and history all of which play
an overarching importance in the trajectory of development and policy. This national setting is outlined
as the starting point for understanding the demands which any effective national strategy must respond
to.

Country overview

Dispersed, archipelagic, and indigenous


1000 islands dot an expanse stretching 1600 km between eastern- and western-most inhabited points.
85% of the population lives in more than 5000 villages throughout the archipelago, and hold legal
authority through traditional rights, of a similar proportion of the land and coastal sea.

Extremely diverse, young and rapidly growing


There are more than 70 indigenous languages with hundreds of dialects, contained with all three Pacific
peoples (Melanesian, Polynesian and Micronesian) in 540,000 people. A recent survey estimated
223,603 children under 15 from a total of 533,671 people (41.9%) and the current population doubling
time is under 30 years.

Rural Economies
The rural majority sustains itself from the resources in its various traditional territories, with limited
reliance on national and global integration, and maintaining the status of these polities as the
predominant basis for societal relations, rather than a 'public' or civil society as assumed by notions of
democratic statehood.

Dual economy
The majority of human consumption of basic items of food and shelter in the country is grown, caught or
otherwise sourced within customary lands and seas. While poorly monetized, this represents the bulk of
the national economy. Government and urban dwellers have a higher dependence on monetized trade
which is captured more readily in national accounts statistics. This cash economy functions with heavy
reliance on the outside world, exporting commodities and primary products, while importing food and
manufactured goods. These two elements subsistence and cash form a dual economy, albeit one
that is continuing to mix at higher and higher rates.

Government
The Solomon Islands became a British protectorate in 1899 and gained Independence in 1978 within the
British Commonwealth. The Queen of England still remains the Head of State but is represented by a
Governor General appointed by the Queen upon the recommendation of the Prime Minister.
Government is Parliamentary democracy. Parliament is unicameral composing of 50 Members.
Cabinet is appointed by the Governor General upon the advice of the Prime Minister.

Cash economy dependent on international trade


Solomon Islands as a lesser developed nation, and more than 75% of its labour force is engaged in
subsistence and fishing. Most manufactured goods and petroleum products must be imported.
Until 1998, when world prices for tropical timber fell steeply, timber was Solomon Islands main export
product, and, in recent years, Solomon Islands forests were dangerously over harvested. Other
important cash crops and exports include copra and palm oil. In 1998 Ross Mining of Australia began
producing gold at Gold Ridge on Guadalcanal. However in the wake of the civil violence in June 2000,
exports of palm oil and gold ceased while exports of timber fell.
Solomon Islands' fisheries also offer prospects for export and domestic economic expansion. However, a
Japanese joint venture, Solomon Taiyo Ltd., which operated the only fish cannery in the country, closed

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in mid-2000 as a result of the ethnic disturbances. Though the plant has reopened under local
management, the export of tuna has not resumed. Negotiations are underway which may lead to the
eventual reopening of the Gold Ridge mine. The major oil-palm plantation has reopened under a new
company.
Tourism, particularly diving, could be an important service industry for Solomon Islands. Growth in that
industry is hampered, however, by lack of infrastructure and transportation limitations.

Development, society and economy

Economic transition and rural development


As a primarily subsistence economy, the bulk of human welfare and economic production is in the
subsistence sector, loosely defined as production and consumption which are closely linked and often
practiced entirely within the production unit. In the Solomons this means that the bulk of food and shelter
needs are sourced from agricultural, silvicultural, arboricultural and fishing systems that are practiced
and maintained by families and villages. As more than 85% of Solomon Islands land and coastal sea
remains within the domain of customary authority and tenure, such subsistence livelihoods are possible
with only limited reliance on cash and the monetized market. However, these cycles of production and
consumption are rapidly moving into greater intersection with the cash economy, through population
growth, social change, urban drift and regional natural resource depletion.
This economic transition has been approached by successive governments as a rural development
issue, whereby policy goals have emphasized the creation of cash income options in rural areas,
composed of people governing and managing themselves, in territories under customary tenure.
Sustainable cash incomes have remained difficult to achieve due to poor infrastructure, low commodity
prices and difficulties in introducing higher value products. Commodities (copra and cocoa in that order)
remain the main route to cash incomes for the rural population, and there is continued strong interest in
enabling this to be diversified. The current NCRA policy augments this approach to livelihood creation
1
with the goal of creating growth centres in the rural areas, to act as stimulus points within the rural
terrain, and hopefully provide some of the infrastructural services needed to unlock the export production
potential inherent in the majority of the country outside of urban areas.

Conflict, post-conflict and recovery


The most notable recent episode of history has been the 1998-2003 national civil unrest called the
tensions in which major governmental institutions were rendered inoperable and violence led to the
largest internal displacement (estimated 20,000 people) in the entire Pacific region. The Solomon
Islands Government was insolvent by 2002. Since the RAMSI intervention in 2003, the government has
recast its budget. It has consolidated and renegotiated its domestic debt and with Australian backing, is
now seeking to renegotiate its foreign obligations. Principal aid donors are Australia, New Zealand, the
European Union, Japan, and the Republic of China.
Despite the presence now of the regional peacekeeping force RAMSI, Solomon Islands social service
institutions and policy processes remain affected by the effects of this period and face significant
challenges have been compounded by the impacts of both the global economic crises and successive
natural disasters.
The need to build peace between and within communities is a major concern of national authorities, and
is closely linked with the focus on rural development. It is recognised that livelihood opportunities,
employment and cash incomes in the rural areas are key to reducing urban drift and hence the potential
for a resumption of civil conflict around the capital.

1
NCRA Policy Statement Document

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3. Importance of Coconut sector to Solomon Islands

Coconut is a central feature of an integrated livelihood system for the overall majority of Solomon
Islanders, particularly people in rural areas. Coconut is a common food item for Solomon Island cultures,
and copra is the most widespread cash crop in the country. There is a large standing volume of trees,
comprising a mix of older large plantations and more evenly age-distributed smallholder planting.
Coconut distribution and significance
Half the cultivated land in the Solomon Islands is planted with coconuts. It is difficult to estimate
production because coconuts are spread over many islands and a great deal of production goes un-
harvested and likely to remain that way because some are in uninhabited areas and due to difficulties of
access. As such, there is a large reserve of untapped assets.
Table 1: Estimated standing hectarage Source: CEMA 2010

Province Hectarage % HA Prod. 1984) % Prod. Yield* Planted


Western 14,454 25 13,816 32 0.96 2,093
Isabel 5,230 9 2,969 7 0.57 817
Central 7,909 13 9,073 21 1.15 1,287
Guadal 12,758 22 7,324 17 0.57 1,824
Malaita 11,980 20 5,575 13 0.47 1,980
Makira 3,555 6 2,662 6 0.75 540
Temotu 3,032 5 1,167 3 0.38 470
Solomons 58,918 100 42,586 99 0.69 9,011
Coconut Development Project Survey, MAL, 1984/85
* Yield = tonnes of copra per hectare
The smallholder plantings are estimated to make up the larger proportion of the total planted area, and
are set to be the predominant arrangement for any expansion in the future, due to the phasing out of the
large plantation system.

Livelihoods contribution of Copra


Coconuts are by far the most important crop grown in the country in terms of area. Coconut trees provide
essential food and nutrition as well as cash income.

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Table 2: Comparison of Copra, cocoa and logging exports Source: World Bank 2009

Although timber, fisheries, oil palm and cocoa earn an often higher level of export income, coconuts
directly and indirectly affect a far larger part of the population and are crucial for the poorer sections of
the population. Logging while a significantly higher source of export earnings, cannot be easily compared
to copra and cocoa because of the large social and environmental externalities associated with it as well
its unsustainability.
The World Bank Sources of Growth briefing papers highlight some major advantages offered to the
coconut industry by smallholders:
All production is now undertaken by small holders and it has several attractions for smallholders.
Coconut is a low maintenance, low technology crop with favourable growing conditions in SI.
Harvesting intensity can be readily adjusted to market conditions with any labour hire falling, along
with area harvested, when prices are depressed. The lack of other opportunities in rural SI and the
corresponding low opportunity cost of labour, has meant that copra production has remained a
relatively attractive cash crop option for small holders. The product is also less susceptible to
deterioration in storage than cocoa beans.
(World Bank 2009)
This combination of overall scale and wide distribution across households affords the coconut industry
the most important potential for equitable and sustainable growth in the national economy.

Rationale for sector approach and strategy


During the aftermath of the Social unrest, several studies funded by international organizations were
carried out. The focus of the studies was on recommendations on how to recover the Solomon Island
economy.
The International Trade Center was selected by the EU to play a leading role in a program that targets
agricultural commodity sectors in APC countries. At a workshop in Samoa in May of 2009, the
delegation of the Solomon Islands called for the program to support a participatory stakeholder approach
to design a comprehensive strategy for development of their coconut sector. Following a consultation
and briefing mission held in Honiara in July of 2009, a strategy development coordinating committee
composed of public and private representatives was formed. Under the proposed ITC intervention,
overall sector stratify design and implementation activities will be supported within the country by the
coordinating committee and by the operation sector strategy support team.

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Given the fact that 75% of Solomon Islands labour force is related to subsistence farming and
agriculture, the Coconut sector has huge impact on the rural population and together with Cocoa has
constituted one of the main elements for rural income generation throughout the past decades. In fact,
household needs and other necessary items are met through the sales of Coconut and Cocoa which are
the main cash crops.
Coconuts are, however, overwhelmingly a smallholder crop. Former plantation production in the Solomon
Islands has diminished in importance to almost negligible proportions. Instead a classical commodity
approach dominates requiring a long value chain that specialises in collection, aggregation, transport and
selling. Traditional commodity production leads to very low returns and no capital formation. Farmers
make a meagre US$ 14 from a FOB value of US$ 220 and world market price of US$ 450. With exports
around 40,000 tons, which amounts to an annual FOB value of just under US$ 9 million per annum.
Elsewhere, coconut producers have taken important strides in adding value through by-product utilisation
as well as higher value products. India, Indonesia, Malaysia, Philippines, Sri Lanka and Thailand are
producing more coconut milk and Brazil has pioneered tender coconut water. Husk utilisation is being
driven by a growing market for peat and mulch and for coir in China. Coconut shell charcoal production
continues to grow to feed the demand for activated carbon.
Bringing these best practice experiences to help develop the industry in the Solomon Islands is
technically possible but requires a change in mind set from commodities to products. Instead of being
limited by freight of bulky low value commodities, the country could focus on catering to local markets
and exporting low volume, high value products. Moreover, by concentrating on village based systems,
gains could be shared widely and more equitably.

Anticipated impacts of sector improvement


The sector representatives of Western, Malaita and Guadalcanal Provinces agreed on the importance of
activating the coconut sector for achieving national unity and development given that the populations that
live in the rural areas depend entirely on agriculture and fishing for their livelihoods.
It is anticipated that by revitalizing the Coconut industry and providing viable alternatives for value
addition at national and rural levels substantial impact will be achieved:
85% of the population will directly benefit and volatile dependency on Copra exports will be
reduced
Increasing income earnings of rural communities and providing more employment opportunities
for men and women
Value addition: Empowerment of rural economic centres and promotion of investments
Import substitution particularly for fuel (USD 700 million per year), food, animal feed and soap
Electrification of rural areas (oil as fuel for generators)
Promotion of other sectors such as livestock (development of animal feed)
Diversification away from timber and reduction of forest depletion

National policy settings


The table below is a summary of the main strategy contributions to achieving the goals and opportunities
defined by the Solomon Island Government through The National Coalition for Reform and Advancement
(NCRA) Government Policy Statement of October 2010. The relevant areas in the NCRA are quoted in
the table with their respective index numbers.

6
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Table 3: The National Coalition for Reform and Advancement Government Policy Statement & the strategy contributions to
implementing it

3.2 Empowering Solomon Islanders

2.2.1 Providing Contribution of sector to food security and economic security


Security

3.2.2 Creating and Advance living standards and quality of life through increased coconut sector
promoting contribution to Solomon Islanders
opportunities

3.2.3 Private sector Strategy emphasis on capitalizing on rural based economic wealth generation
investment
opportunities

4.3 Economic Reforms

4.3.2 Private sector Strategy anchored on private sector led growth for wealth creation and poverty
led growth reduction

4.3.3 Growth centres Strategy is promoting economic growth centres through market options as well as
reinforcement of rural economic communities in rural areas
Strategy is also advocating for infrastructure and commercialisation structures

4.3.4.4 Wage and Contribution of sector to export promotion and diversification away from logs
salary

4.3.4.5 The Capacity Strategy implementation framework is a tool for aid coordination and resource
of Development mobilisation
planning

5. Major Sectors

5.1.1 Real Sector Strategy main thrust is to strengthen marketing and financial arrangements for
Review revitalization of commodities that the rural sector will substantially benefit from.

5.1.2 Agriculture Rehabilitate Coconut and improve domestic and export marketing infrastructures
Establishment of more copra milling facilities in rural areas, to facilitate the
production of coconut oil, biofuel, animal feed and other downstream products for
export.

5.1.6 Manufacturing Strategy contributing to Stimulate the expansion and diversification of the
manufacturing sector for economic growth.
Provision of appropriate investment incentive for manufacturer and exporters.

6. Service Sectors

6.22 Port Extra port, transport and support service infrastructure


Infrastructure
Development

7. Governance

Promotion of One Strategy implementation mechanism is an efficient and effective coordination


stop agency approach platform to ensure government policies are aligned with private sector needs.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

4. Current Industry Situation


The current coconut industry situation for Solomon Islands is dominated by a high reliance on copra
exports which face high risks due to the price-taking nature of the industry.

World Production
An estimated 70 billion coconuts are produced in the world today with Asia and the Pacific regions
accounting for over 80%. The Pacific alone accounts for 3.6 billion coconuts per annum. Roughly 40% of
global production is used to produce copra and then coconut oil and meal. Another 33% are consumed
fresh and 9% as drinking nuts.
Although world production of milk now probably accounts for nearly 800 million coconuts, commercial
utilization is still dominated by copra production for oil. Leading world producers of coconut oil include the
Philippines, India, Indonesia, Malaysia and Sri Lanka.

The coconut sector in Solomon Islands


Solomon Islands is not excepted from many of the challenges faced by Pacific island states.
In Solomon Islands, as indeed in several coconut rich Pacific countries, copra continues to dominate
trade mainly due to prohibitive freight inefficiencies, the lack of bulking capacity and weak sector
coordination.
Currently the main destination of copra exports is Philippines. This introduces considerable strategic risk
to Solomon Islands because of the high dependency on this market. Anecdotal evidence suggests that
international trader buyers are topping up their own copra with cheaper good quality imports from
Solomon Islands.

Production entities
Production entities are those entities in control of coconut supply, and the supply of basic processed
coconut product where that is traded (e.g. copra).
These entities, while at the producer end at the base of the value chain, are critical components of sector
function and will mediate the responses of the sector to both price and regulatory signals.
Three classes of production entity are important for planning purposes:
Stands Actual productive coconut stands which may be exclusive or shared. The tenure of the land
planted but more importantly the rights to them, are important factors for planning effectively for changed
production regimes.
Production groups the people who produce the product and their organisation. The role of coconut in
the livelihood mix of production groups will determine the price response of such groups, as well as the
ability of groups to adopt particular technologies or production arrangements. The availability of other
livelihood options is also critical, since price elasticity of supply will depend on the return of coconut
based production relative to other options.
Processing units the infrastructure which is used for basic processing of the coconuts. In the case of
copra, equipment necessary is widely available, but hot air dryers of a specific quality may not be. Virgin
coconut oil requirements are even more specific and limit the participation of many production groups in
this segment.
The two different social settings of plantings have strong implications for the production responses of the
overall national planted stand, with each exhibiting different profiles. These differences are summarized
in Table 3.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Table 4: Characteristic differences of two major modes of coconut plantings

Smallholder Plantation
Description Stands planted by families or individuals, Stands established by plantation
usually on customary land, with access companies in the past, normally on
to nuts for production sometimes cycled alienated land. Now often accessed by
over time. These stands are also usually multiple individuals or families or by
accessed for subsistence use. some sort of organization company,
cooperative etc and linked to a central
processing facility (drier, wharf etc).
Size of stand One hectare to tens of hectares. Up to several thousand hectares of
contiguous plantings.
Producer A stand may be shared amongst several Often accessed by multiple groups or
arrangements individuals, with access cycled over time. families or by some sort of organization
company, cooperative etc, which
operates a linked processing facility.
Current uses Copra, VCO, subsistence Copra, subsistence
Price response Highly dependent on labour returns of Less dependent on relative returns of
of stand copra relative to other products available copra to other products, because of
to the producers (e.g. cocoa, marine sunken investment and better production
products, other uses of labour). efficiencies.

Product segments
Copra
Although direct consumption of fresh nuts is very important nutritionally, coconuts are of commercial
value primarily as copra.
Copra earnings are the most important source of cash for a majority of farmers in the country. The
production of copra is price elastic and increased rapidly from 15,000 tons in 2003 to 39,000 tons in 2008
and declined to 25,000 tons in 2009. (See Table 1 below). Despite the official statistics, private sector
buyers estimate that the figures are inconsistent and might be overstated.
The production in 2010 is estimated to be at around 20,000 tons.
Production
Statistical data showed that copra production increased from 19 metric tonnes in 1946 to a peak of
41,900 tons in 1985. Following the 1985 peak, copra exports fluctuated between 20,000 tons to 30,000
tons, a trend which reflects no growth over the past 25 years.
Figure 1: Copra Production 1946 - 2009

45000
40000
35000
Metric tone

30000
25000
20000
15000
10000
5000
0
1 2 3 4 5 6 7 8 910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061626364
MT 1 1 4 1 1 1 1 1 2 1 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 2 2 2 2 2 3 2 3 3 2 4 4 3 2 2 3 2 2 2 2 2 2 2 2 2 2 1 1 1 1 2 2 2 2 3 2
Year 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2

Solomon Islands coconut industry development trends also showed a shift taking place between the
plantation and smallholder sector contribution. Statistical data from government sources and CEMA

9
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

showed production share contribution by smallholders went from 50% level in1946 to 100% in 2010.
This provides strong indication that smallholders have become the sole survivor to maintain the industry
following the many challenges the industry has been through. Given this situation, there is strong
justification for the focus of development assistance to lie in strengthening the smallholder sector for
future industrial development.
Since Plantations at Yandina in the Russell Islands stopped crushing nearly 10 years ago, there has
been limited downstream processing of copra. There have been a number of unsuccessful attempts to
rehabilitate defunct mills as well as plans for larger operations and one or two active units. There is minor
vertical diversification in the shape of soap production on the main islands from small scale coconut oil
units and horizontal diversification in the form of small scale minor production and export of virgin
coconut oil.
The custom in the Solomon Islands is for small farmers to join a group often based on family or clan
basis with the lead farmer having smoke or heat drier facilities. It is not unusual to have up to 25 farmers
working in collaboration with those using the drier paying for the service. The largest is a cooperative in
the north of Malaita which has a system of 7 estates with up to 350 farmers and 368 ha in each estate
although that includes landless farmers. The average price for coconuts at present varies between
Sb$0.20 - $0.30 per nut. The lower figure appears to be more common with a few virgin oil operators
sometimes paying the higher one.
Export market chain
Most copra is sold to traders which ply the islands transacting purchases and often providing their own
transport to Honiara. Some are indigenous traders, usually around 2 or 3 on main islands. These local
traders, as well as agents acting for main export traders based in Honiara, have a variety of packaging
and transport arrangements with producers, and aggregate up to 36 jute sacks containing just under 90
kg each which is an average truck load for shipment but there are no minimum or maximum limits.
Honiara wharf rates for copra during the period of strategy development and finalisation varied
significantly between around SBD 1.90 and SBD8.00 per kg.
Inter-Island traffic is provided by local shippers to Honiara, with no exports from any other point today.
There is some competition between them but the level of traffic determines whether it is 2 or more
shippers. Rates are standardised, usually on a provincial sub-regional basis and depend on distance
between the pickup region and the capital. They range from SBD20 to SBD40 per sack, translating to a
freight cost of 22c-44c per kg.
Truckers may collect from more than one copra seller to gather a full load. They are very efficient and
can load from the truck to the ship within 15 minutes. There is choice for producers on buyers and for
buyers on shippers and for both on contracted truckers but rates and prices do not vary much. Payments
are normally on a cash basis. Transport to inter island shipping points is paid for by the trader or shared
between trader and producer and sometimes paid entirely by the producer. The local freight is normally
undertaken by contracted road hauliers in small trucks averages at Sol$ 20 per sack. The sacks have to
be normally purchased at Sol$ 2 per sack from the buyer although they can sometimes be provided by
the buyer or agent for the main traders.
The number of main buyers in Honiara has dwindled to between two and three. Chek Al Ming of Agricom
and Chris Holland of Holland Commodities form this small group. All three are competent experienced
traders and shippers. They buy at the port in Honiara but also have agents in the provinces who buy on
their behalf. They all operate under similar constraints and do not appear to compete in price, with only
temporary differences in prices offered on the Honiara wharf. The three have their warehousing and
make their own loading arrangements. One has equipment to help load ships.
International trade and exports
The main destination of copra exports appears to be Philippine buyers. They are reported to be topping
up their own copra with imports from the Solomon Islands to use underutilised crushing capacity. Most
copra produced globally is crushed for oil in producing countries, with Philippines and Indonesia leading
exporters of oil.
Traders finance the working capital of the value chain through a system of buyers who, in turn, finance
trucking and shipping. Practically all coconut products produced make their way to Honiara or Noro for
international shipment.
Exports of copra increased from 15,000 tons in 2003 to slightly above 40,000 tons in 2008 (See Figure 3
prepared by CEMA showing price elasticity and volumes).

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Figure 2: Value and Volume of Copra Exports 2001-2009

(SI$'000)
MT
45000 180000
40000 160000
35000 140000
30000 120000
25000 100000 Vol
20000 80000 Val
15000 60000
10000 40000
5000 20000
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009

The main producers of copra have the provinces of Malaita, Guadalcanal and Western each contributing
to about 22% of total exports of 25,000 tons (see Fig 4 and 5).
The main destination of copra exports currently is Philippines which is reported to be topping up its own
copra with imports from the Solomon Islands and the Pacific island Nations to use underutilized crushing
capacity. Most copra produced globally is crushed for oil in producing countries, with Philippines and
Indonesia leading exporters of oil.

Virgin coconut oil


The virgin oil producers are linked to a buyer who helped provide technology and training and markets
jointly. The system generates a low level of throughput usually not more than 100 tons per annum for any
one province and often half that figure. However, the value density of the product is quite high
throughout the value chain, with current (2011) village prices in excess of $20 per kilo.

Green coconut
Honiara is the major local market for fresh (green) coconuts, with product being sourced from the
immediate environs along the coastal road running to the east and west of the capital. The fresh
coconuts are harvested by hand by tree climbers husked at collection points in the plantation, then
transported in bulk (2-3t truck loads) to the Honiara main market. The product from plantations in the
immediate vicinity of Honiara may be sold directly to the public at roadside stalls bordering the source
plantations for the nuts. Current retail prices range from $1.50-$4.00 per nut, with the lower price for
roadside plantation sales and the higher for sales in the main market or smaller urban markets.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Regional characteristics
Production in the country over the period 2001-2009 has been dominated by Malaita and Central
provinces.
Figure 3: Medium Term Provincial Contribution

CUMULATIVE PROVINCIAL PRODUCTION 2001-2009 Makira Temotu Western


8% 2% 19%
Malaita Choiseul
16% 6%
Isabel
Guadalcanal 4%
27%

Central
18%

Cumulative production figures in Figure 3, over 2001-2009 provide an indication of the productive
capacity of different provinces. Guadalcanal, Western, Central and Malaita provinces together produced
80% of the total copra crop for this period, with the other four provinces making up the remaining 20%.
Annual breakdowns in Figure 4, however reveal a decline in the share due to Central Province from its
peak in 2002 following due to a long running industrial dispute in the large Russell Islands plantation.
Current production is dominated by Malaita, Guadalcanal and Western Provinces, together accounting
for almost 70% of production.
Figure 4: Variations in Provincial Contributions 2001-9

Annual Copra Contribution by Province


100%
% of Natioanl Copra Production

90% Temotu
80%
Makira
70%
60% Malaita
50% Guadalcanal
40%
Central
30%
20% Isabel
10% Choiseul
0%
Western
2001 2002 2003 2004 2005 2006 2007 2008 2009

Guadalcanal
The largest island in the country with a population of 78,229, is credited with being the largest producer
of copra. Honiara offers a good market for coconuts, in particular drinking nuts, and this leads to a higher
price than in other provinces. However, lower freight rates compensate and there is major copra
production as well as some oil and downstream soap making. The island has a limited road structure
with much of the island not covered. The nuts supplied to Honiara largely come from the coconuts grown
by the roadside.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Western province
Is the largest province in the country, 8,573 kms bordering Papua New Guinea. It records the second
highest production of copra. The density of population is low and the province is made up of 81,214
people spread over 36 islands. Movement of coconuts is difficult and any coconut development has to be
based on one of the plantations or at a village scale. There is considerable copra being produced, more
than enough for oil crushing.
Malaita
Is the most populous island of the Solomon Islands, with 159,921 people or more than a third of the
entire national population. There are large concentrations of coconuts, particularly in the north where
there is a Farmers Association representing over 2,500 farmers and farm labourers and 2,700 hectares
of mainly coconuts. The concentration of coconuts, road access and population makes the province
ideal for coconut processing on an industrial scale.

Constraints affecting value chain actors


Farmer constraints
Since the coconut industry relies on copra, focus of farmers has been limited to copra production and
very little on other diversified products.
The main constraints voiced by farmers in the participatory workshops were:
Limited access to inputs such as drying nets, fuel drums and equipment imply a major setback
on the majority of potential producers located in remote parts of the country.
The low scale production restricts the farmers to proactively respond to higher prices and to
increase volumes. Also, uncertainty of shipping schedules does affect farmers commitment to
deliver as well as their consistency of production.
Farmers perceive there is no transparent market for their produce and their main buyers an
uncoordinated network of traders do not provide enough cash advances, price information or
coordination for collection times.

Also farmer communities sometime produce Copra at a loss and are subject to the fluctuations in Copra
price.
Farmers also are unaware of markets, quality improving techniques and rural processing technology for
diversification of products. Farmers also stated that agents do not encourage quality and are ready to
buy any type of copra even if it is wet. There is very little trust between farmers and agents/buyers and
often there is cheating on both sides.
Farmers also expressed that they had no access to capital for them to start bulking operations and buy
from other farmers.
Finally farmers have stated that there is no price incentive or perceived economic rewards for them to
become further committed to buyers or to deliver better quality.

Trader constraints
Traders provide transport and transact funds between exporters and producers or farmers. The primary
constraints for this part of the value chain relate to infrastructure and appropriate liquidity.
Uncoordinated shipping service is hindering consistent market access to production sites. This was in
line with a more general challenge stated by traders was the poor infrastructure roads, bridges, jetties
that hinder access to markets.
Lack of proper stocking and warehousing is also affecting the quality of production.
Traders lack of affordable credit facilities to source advance funds for purchasing. Together with a highly
fluid commodity-type marketplace, a lack of trust and scarce capital to provide advances have resulted in
severe price and trading practice disruption.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Processor constraints
Supply constraints related to the senility of coconuts but most importantly to depressed collection and
drying in the country is one of the major constraints. In other words they can source enough quality copra
for them to operate.
Processors also face huge competition at the wharfs from the 3 established traders exporting Copra to
Philippines.
They complain there is no proper quality grading system in place and that there is no effective policing.
There is a lack of trust between processors, buyers and farmer suppliers and many of the transactions
are done on a spot basis in the wharfs affecting processor margins and sourcing practices. Cost of
transport is also a big issue.
Uncoordinated shipping service is the second biggest limitation affecting consistency of supply.
Processors have also stated that there operational costs are too elevated and that they have no market
information or knowledge on appropriate new technology for downstream value addition and product
development.
Finally more developed processors complain about the high cost of energy and the lack of Government
incentives to add value.
Exporter and export Agent constraints
The greatest challenge is to get the volume for export at the export port from the fragmented smallholder
production scattered throughout the country.

5. Strategic Options and target markets:


The current total commercial value of coconuts has been estimated to an annual value of US$15 million
2
or Sol$ 112 million per year .
The above income, low as it may be by international comparison, represents the easiest cash income for
farmers.
With prices in the world markets fluctuating this limited cash flow is volatile and puts farmer communities
in a vulnerable position.
While examining market potential and setting up priorities, stakeholders agreed that the overall direction
for the Industry was towards increased value addition at national and rural levels.
Linkages were examined with existing and future industries such as bakeries, ice cream manufacturers,
soap manufacturers, fuel importers, Solomon Islands Electricity Authority and the hospitality industry.
Having the above in mind, stakeholders reinforced the importance of COPRA as a source of income to
the rural population.
Although village level processing and diversification away from COPRA is part of the strategy, it was
acknowledged that the first priority would be twofold:
1. Increase the value received out of COPRA by improving COPRA quality and
shipping/commercialization practices.
2. Increase the local markets for all Coconut products by strengthening the local processing
sector.

In line with the above and towards the short term and medium term the strategy identifies two main
markets:

2
In 2009 nearly 30,000 of copra exports have been reached, accounting for 200 million coconuts and an export value of Sol$ 82
million or US$ 11 million. The export value of VCO, accounting for under 3 million coconuts, is around US$ 75,000 or Sol$ 560,000.
The value of oil being produced is negligible. No value can be ascribed to the substantial number of nuts being consumed fresh
although 25% of them may be sold at around Sol$ 900,000.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Import substitution and development of domestic market particularly in the areas of food related
ingredients (coconut flour, desiccated coconut, cooking oil), soap, animal feed and fuel.
Export development particularly for oil, animal feed, coir products, pith, charcoal and coconut
milk.

In the longer term it is clear that maximisation of coconut product revenue would be through production
and commercialisation of a portfolio of products as opposed to one or two.
Examples such as milk could generate a very substantial impact. Also, the country has annual imports of
around Sol$ 700 million of diesel and any reduction of that by using purified coconut oil would be very
3
valued .
After prioritising market demand and stakeholder needs a list of priority products was defined at national
and provincial level.

Overall National Priorities


In particular stakeholders have agreed to focus on the options below for developing the industry. They
were selected based on commonalities in all provinces and based on market potential.
Although no firm estimate of national or regional production of coconuts is available, an estimate of
above 370 million per annum is not unreasonable. Roughly 200 million nuts are processed and exported
as copra, fresh consumption accounts for around 65 million nuts and the balance is for coconuts left on
the ground or eaten by pigs.
In the mid-term, the options below would allow the commercialization and processing of the estimated
370 million nuts and would be able to contributing approximately USD 210 million dollars per year to the
economy (FOB).
1. Production of crude coconut oil for
a. Export sale in bulk
b. RBD processing for cooking oil
c. Blending with diesel for ships and electricity generators
2. VCO and coconut flour
3. Husk utilization for coir and pith
4. Shell utilization for energy, charcoal and activated carbon
5. Production of higher value lower volume coconut milk for export

Based on the national framework, provincial coconut committees selected their own options in
consultation with their stakeholders.

3
The recent hike in energy prices drew renewed attention to use of coconut oil as a diesel fuel. Malaysia already requires use of
palm oil to make up 5% diesel in the country, the European Union also requires 5% vegetable oils additive and in the USA far
higher mixes are common using maize and soya oils. One small unit in the Solomon Islands is reported to be doing the same.

15
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Western Province Strategic Priorities

Table 5: Western Province Strategic Priorities and Options


Product option Market Identified outcomes Timeframe

Crude Coconut Oil Export Improved diets Short Term


through High potential to increase income in Villages (2010-2012)
Papua by raising Copra price
New Establishing Oil extraction processing farmer
Guinea associations
Self-employment and social cohesion
Charcoal Local Value addition at village level Short Term
briquettes Markets Basic need for rural communities (2010-2012)
Self-employment and social cohesion
Export
Virgin Coconut Oil Local Import substitution Mid Term
Markets Functional at village processing units (2010-2014)
Self-employment and social cohesion
Export

Malaita Province Priorities and Options

Table 6: Malaita Province Strategic Priorities and Options


Product option Market Identified outcomes Timeframe

Refined Oil for Local Import Substitution for Cooking Oil Short Term
Human Market Improved diets (2010-2012)
Consumption High potential to increase income in Villages by
Export to raising Copra price
Pacific Establishing Oil extraction processing farmer
Island associations
countries Self employment and social cohesion
Soap and washing Local Import substitution for washing products Short Term
products Markets Basic need for rural communities (2010-2012)
Village processing possible
Self employment and social cohesion
Virgin Coconut Oil Local Mid Term
and flour Markets (2012-2014)
Export
Animal Feed Local Import substitution for animal feed and animals Mid Term
meals Markets Reduction of cost of raising livestock and (2010-2014)
Export boosting of livestock sector development
Functional at village processing units
Value addition through mixture with other
ingredients
Self employment and social cohesion
Milk processing Export Industrialization and Job creation in Malaita Long Term
plant (2012-2020)

16
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Guadalcanal Province Priorities and Options


Table 7: Guadalcanal Province Strategic Priorities and Options
Product option Market Identified outcomes Timeframe

Refined Oil for Local Import Substitution for Cooking Oil Short Term (2010-
Human Market Improved diets 2012)
Consumption High potential to increase income in
Export to Villages by raising Copra price
Pacific Establishing Oil extraction processing
Island farmer associations
countries Self employment and social cohesion
Charcoal Local Value addition at village level Short Term (2010-
briquettes Markets Basic need for rural communities 2012)
Self employment and social cohesion
Export
Tender Coconut Export Contribution to farmers Mid Term (2012-
Water Self employment and social cohesion 2014)
Industry development
Coir and Coir Export Industrialization and Job creation in Long Term (2012-
products Guadalcanal 2020)

17
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

4 Strategic Objectives and Implementation Framework


This Strategy is a comprehensive response to addressing the critical factors that impact on the
development of the Solomon Island Coconut industry. It seeks to reduce the gap in performance of
support Institutions, private sector and Government based on the above stated market opportunities.
The Strategy is proposing a holistic approach that will lead to a successful implementation and
articulation of the entire chain. These changes will require sustained commitment for significant results,
but fundamental steps can be undertaken immediately.
A central feature of Strategy implementation is the Solomon Islands Coconut Secretariat (SICS) which
will serve as a key coordinative and oversight body for the Strategy.

Strategic objectives
The Implementation Plan comprises 6 strategic objectives which target key factors for transformation of
the sector. The 6 main Strategy objectives are listed below:
1. Create a Coconut Strategy implementation and coordination body that is self sustaining by
end 2011
2. Consistently improve the quality of market, production and business feasibility Information to
enable stakeholders to effectively plan for sector diversification and development
3. Increase collection and supply of coconuts by 30% by 2012
4. Develop finance mechanisms to enable Strategy implementation and investment by all
stakeholders by 2015
5. Develop a coconut processing industry for value added and diversification of coconut
products by 2015
6. Improve support services to respond to sector needs by 2015

For each of the six objectives a detailed implementation plan with sub-objectives, activities, identified
implementing partners and resources needed, has been developed.
It is also very important to highlight that each of the above objectives and their related activities will have
to be validated and adapted to the actual implementation needs of the selected locations at provincial
and communal levels.

Inputs and capacity framework


Complementing the strategy objectives and associated outputs, is an inputs and capacity framework to
ensure that the necessary capacities to sustain the strategy and the sector as a whole, are developed in
a purposeful manner through Strategy activities. The capacity framework is composed of two sets of
elements:
a) Sub-strategy streams
b) Implementation activity types

Each sub-strategy stream is characterised by a field of action and associated capacities, implementation
partners and priority competencies. The sub-strategy streams are:
1. Implementation coordination sub-strategy
2. Information development sub-strategy
3. Producer organisation sub-strategy
4. Policy and institutional development sub-strategy
5. Market development and product identification sub-strategy
6. Production transformation sub-strategy

These streams will form the conceptual backdrop infrastructure for the SICS to guide how it allocates
attention and coordinative capacity within the implementation process.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Each implementation activity type is characterised by the class of action, the actor undertaking it, and the
implementation arrangements involved. In this regard, activities undertaken by a ministry as part of its
normal work would comprise a separate implementation activity type from a project activity. Five
implementation activity types are identified for the inputs and capacity framework:
1. Core SICS functions undertaken by the SICS staff or members
2. Contracted or purchased services
3. Partner operational contributions made available to the Strategy as part of normal
activities/resource of the partners.
4. Partner operational contributions which are mobilised from partners as an additional activity (e.g.
project or TA)
5. Other activities which do not fit into the above categories.

Priorities for Implementation


An overall prioritisation of the objectives was undertaken by the Coconut Secretariat and the main priority
area is in Objective 1. If the Secretariat is not properly resourced and supported by government and
technical partners it will not be able to perform its implementation management and sector representation
tasks.
Following the strengthening of the Secretariat the Strategy needs to be implemented and driven through
objectives 3 and 5. The latter means that this Strategy is giving priority to the business sector and the
capitalization of market opportunities implying improved coordination between production and
processing.
Provision of support to the actual needs of business and private sector ventures is the relationship and
linkage that needs to be established with the remaining objectives 2, 4 and 6.
The diagram below has been developed by sector stakeholders and explains the interaction between
objectives for implementation.
Figure 5: Schematic representation of Strategy Objectives

Objective 2
Market intelligence and planning for
Commercialisation

POLICIES & Resources


SUPPORT Objective 4
Objectives 3,5
Organise PRODUCTION &
Finance
Objective 1 NEEDS
PROCESSING
SECTOR GOVERNANCE and Policy

Capacity
Building

Objective 6
Support Services
Technology/ Agronomic Support

The model above requires a change in mindset by both government and implementing partners because
it implies that the priority does not lie in strengthening support services and government but in
empowering business ventures of all sizes and scales in the coconut sector. This obviously includes
farmers and farmer groups wanting to do business and add value as well as mid-sized and large
enterprises.
This does not obviate the improvement of support services, but requires that they need to be aligned and
strengthened appropriately in order to be responsive to the specific needs of the commercial ventures.

19
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Implementation will then take the form of several pilots and will be led by private sector and supported by
the Coordinating bodies (Secretariat and Provincial committees). As agreed with stakeholders, the
implementation pilots can be related to community based operations of all sizes and scope as well as to
larger scale processing activities.
The Secretariat will have to receive bidding from private sector actors interested in investing into Coconut
in order to assess the commercial viability and the impact before negotiating support with implementing
institutions, Government and funding partners.
Finally it must be made clear that implementation will be gradual and will be limited to the Secretariats
operational capacity to respond and provide support to the pilots. In the short term (2011-2013) it is
envisaged that 2 to 3 different pilots are selected by the Secretariat through detailed feasibility studies
including target markets, human and community assessment as well as capacity, overall feasibility and
impact.

The Strategy design and implementation mechanism


One of the major challenges identified by stakeholders is that many of the Strategy objectives and
activities require close collaboration among different Ministries, agencies, implementing partners and
sector stakeholders.
If this challenge is not addressed through a practical and functional mechanism, Implementation will
either be a failure or result in an isolated group of fragmented activities. In line with the above, the need
to align all the various ongoing initiatives and to have a legitimized body representing beneficiary needs
and the Strategy itself was determined as the upmost priority.
In the participatory workshops, sector stakeholders decided to be represented through a National
Coconut Sector Secretariat that became official after appointment by Cabinet in March 2010. In support
of the National Secretariat and to ensure reach in the rural areas, it was agreed that the Malaita,
Guadalcanal and Western province stakeholder representatives also organized themselves into
coordinating committees. The diagram below shows the recommended implementation framework
structure as well as their relationship with the Strategy objectives.

Figure 6: Coconut strategy implementation schematic

20
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

The National Coconut Industry Secretariat will manage overall support to the implementation of the
Strategy and will ensure coordination with Government and donor agencies as well as with stakeholders.
It is expected that it reports on a quarterly basis to the Cabinet through the Ministries of Commerce,
Industry, Labour and Immigration and Agriculture and Livestock.

21
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Strategic Objectives

22
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 1: Create a coconut Strategy implementation and coordination body


that is self-sustaining by end 2011

The centrality to the Strategy, of an effective and sustained secretariat function cannot be overstated.
Coordination, advocacy and leadership of the Strategy will depend crucially on a secretariat that has
strong legitimacy, clear effectiveness and comprehensive capacity.

This objective sets out components of such a capability and describes the activities necessary for their
realisation.

There are three sub-objectives in this objective, focusing respectively on:


Secretariat legitimacy and effectiveness to ensure that it has the capacity to garner support from
both sector actors as well as implementation partners
Communication and coordination to ensure that Strategy visibility and coordination is sufficient
to the task of timely execution and appropriate modification
Establishment of partnerships enabling access to networks, capabilities and resources
necessary for the completion of activities specified in the Strategy

Sub Objectives in the Anticipated results from development Timing


Implementation plan: activities
1a. Establish and develop an Secretariat operating by end of 2010, End 2010-mid
effective Coconut with Budget allocation for functioning the 2011
Secretariat with nation- secretariat with the authority, budget and
legitimacy to represent the sector and
wide legitimacy
implement Strategy
1b. Promote and communicate Awareness raised to stakeholders on the From end 2010
coconut sector Strategy intent and modalities of the coconut onwards
with national and provincial sector Strategy. This awareness to serve
as a base for specific cooperative
stakeholders
actions by actors at different points on
the value chain, and by support service
providers and policy entities.
1c. Establishment of effective A set of effective functional relationships From beginning
partnerships with between partners possessing 2011 onwards
implementation partners complementary capacities needed for
successful implementation of the
Strategy, together with the structuring
elements needed to sustain this set.

23
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 2: Consistently improve the quality of market, production and business


feasibility information to enable stakeholders to effectively plan for sector
diversification and development

Actors throughout the value chain are hampered by an inability to plan meaningfully at both operational
and strategic timescales. This is due to systemic weakness in information dissemination from market and
marketing agents to producers, and from producers to traders, processors and end markets.

Market intelligence is prioritised in the first sub-objective as it has both immediate and strategic impacts.
In the immediate term, improved market and production information is key for increased sector revenue,
while in the longer term it provides the basis for sector planning and option development.

Improved information dissemination is the other sub-objective, emphasising the importance of timely and
accurate information to enable sector wide coordination and stakeholder cooperation in support of the
Strategy.

Sub Objectives in the Anticipated results from development Timing


Implementation plan: activities
Set up an efficient market This will provide information on existing or End 2010-mid
intelligence service and link potential markets and this information should 2011
potential buyers with producers help in the decision on what products to
and processors produce, what quantity to produce who will
produce it.
Improve dissemination of This will ensure Strategy awareness and sector From end 2010
information to all stakeholders potential dissemination leading into increased onwards
investment by private sector

24
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 3: Increase collection and supply of coconuts by 30% by 2012


This objective is core to the strategy in ensuring that a stable and reliable supply of coconuts is available
to fuel a diversified coconut industry.

The sub-objectives recognize the crucial importance of production organization to improved national
production from the national coconut estate. To that end, the sub-objectives set out to foster the
operation of effective producer and farmer associations, provide suitable technical support including
training, and implement methods for effective bulking and production to enable greater participation in
price setting in the market. The final sub objective is concerned with developing accurate and timely
information on the production base of the coconut industry in terms of both physical and biological
aspects as well as social and organizational ones. This has been identified as crucial to allow longer term
planning for the industry by developing a reliable and authoritative understanding of the physical and
human base for coconut production in the country.

Sub Objectives in the Anticipated results from development Timing


Implementation plan: activities
Support commercially driven Growers and producers organised in such a way End 2010-mid
associations based on farmer as to constitute working units for production, 2011
group common interests planning and further commercial processing
actions.
Provide practical training to Improved producer skills and competence for From mid 2011
farmers to meet demand and creation of quality products. onwards
quality
Implement innovative pricing Producers to experience enhanced participation Pilots initiated
and bulking system to boost in price determination process to from mid 2011
collection and income onwards
Organise farmers based on Farmers should be able to better utilise existing Late 2011
production model and market land and maximise their production and supply
demand to expand or constraints will be resolved.
revitalise their current
plantation output.
Devise and implement a supply- This will enable farmers to better plan their Early 2011
side research and information production particularly to meet market demands
programme to improve the or the production of new products.
accuracy and coverage of
information on the production
base

25
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 4: Develop finance mechanisms to enable Strategy implementation and


investment by all stakeholders by 2015

This objective is based on recognition of the crippling effects of long term underinvestment in the sector
as a whole as well as the risks from under-resourcing the strategy. This objective aims to secure and
mobilize adequate financial resources for the immediate and short term implementation of the strategy as
well as institute new mechanisms to permit appropriate financial resource needed to catalyse the
ongoing development of a diversified industry. A key enabling sub-objective which needs to be
accomplished early in strategy implementation timeline regards mobilisation of donor funding for
implementation of the strategy itself.

Sub Objectives in the Anticipated results from development activities Timing


Implementation plan:
Undertake Financial needs and Government and Financial Institutions will have full End 2010-
supply assessment knowledge of the financial needs across the value mid 2011
chain. This will lead to improved finance supply
Develop appropriate and adapted Farmers/associations should have more access to From end
finance mechanisms targeting finances enabling them to expand their operations. 2010
farmers through commercially onwards
driven associations
Develop mechanism for provision Processors should have more access to finance for From end
of finance for working capital and sourcing, marketing and product development 2011
processing equipment. onwards
Investment promotion The coconut sector should be an attractive sector for From mid
particularly foreign investment. 2012
onwards
Mobilise Donor funding for More donors should fund various sectors of the From
Strategy implementation coconut sector and the Strategy pilots will be beginning
implemented. 2011

26
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 5: Develop a coconut processing industry for value added and


diversification of coconut products by 2015

Together with Objective 3, this lies at the heart of the strategy, and is the key basis for ongoing
contribution of the coconut industry into the future of Solomon Islands. There are three sub-objectives in
this objective.

The first is allied with the introduction and implementation of appropriate processing technologies for the
creation of diversified and increased-value products by the industry. The second focuses on the
institution of systemic elements of quality maintenance to ensure that such diversified products are
competitive and compliant in the global market. The third has been formulated to ensure that industry
wide learning processes are in place to ensure that the necessary knowledge and practice base for a
diversified industry are in place for continuous improvement.

Sub Objectives in the Anticipated results from Timing


Implementation plan: development activities
Develop appropriate product The participants at various levels End 2012-mid 2013
processing technology and of the products chain should be
provide support to existing able to use the most appropriate
processors technology in terms of efficiency,
costs and skills requirements
Improve quality Testing and That products will meet the From end 2012 onwards
standards standards required by markets
Institute learning and training The processing stage of the Beginning 2011
processes for the processing coconut industry will expand
industry

27
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 6: Improve support services to respond to sector needs by 2015

The long term success of the coconut industry in Solomon Islands will rely on a reshaping of the
operating environment for the entire industry. This objective focuses on the key aspects of the operating
environment for coconut value chain actors at all points. The first sub-objective deals with policy and
regulatory alignment so as to support the actions of the private sector in diversifying and driving
improved quality. The second deals with the building blocks of infrastructure which underwrite the
viability and the cost effectiveness of more complex and specialised product value chains as they
emerge from the implementation of this strategy.

Sub Objectives in the Anticipated results from Timing


Implementation plan: development activities
Align policy and regulatory The sector should be operating Mid 2011 and ongoing
framework and Improve PPP with the support of the
government
Improve infrastructure (cost of This should support the industry From end 2011 onwards
energy, transport and to function to its full potential in
communication) the country

28
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Detailed implementation plans

29
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 1: Create a coconut Strategy implementation and coordination body that is self sustaining by end 2011

1a Establish and develop an effective Coconut Secretariat with nation-wide legitimacy


substrategy Im plem entatio Im plem entation Project ID (if Prim ary Lead
Activity Description remarks1 remarks2
stream n activity type1 activity type2 any) Beneficiaries Institution

Cabinet Cabinet endorsement in December 2011 of the coconut Strategy and IC-Implementation Core inputs by SICS Partner (additional) ITC funded Strategy Entire sector
endorsem ent of implementing framew ork; identification of the Secretariat as the Strategy coordination sub- members Development
Strategy, Secretariat implementation body; allocation of the Secretariat 2011 launch budget. strategy Project
and Budget
SICS
Detailed specification Finalisation of a detailed terms of reference for the Secretariat, including: IC-Implementation Core SICS decision Partner (additional) inputs by ITC funded Strategy Entire sector SICS
of Secretariat Mission, objectives and responsibilities w ithin the SI Government system coordination sub- making and national TA Development
suitable for m odular Oversight relationships and a monitoring and evaluation framew ork integrated strategy substantive inputs Project
resourcing w ith SIG w ith SI Ministerial reporting and budgeting cycles
core funding Detailed role descriptions for subsidiary bodies, and an annual plan and budget
for 2011.
Position descriptions and standard requirements for recruitment of TA including
a local roster mechanism
Establishm ent of Identification of focal points and backup names for the secretariat at the IC-Implementation Core coordination and Partner (normal) nominations and Area & SICS
sustainable provincial level, and w ithin each key line ministry. Based on provincial and coordination sub- decision making by liaison by line provincial
netw orks across ministerial response, draft a pilot project for the engagement of one provincial strategy SICS ministries and associations
provincial and extension service in the Strategy provincial authorities
sectoral areas

Creation of targeted Appointment of a sub-committee for each Strategy objective to lead in the IC-Implementation Core appointment of Partner (normal) consent of line Entire sector SICS
subsidiary bodies implementation of the Strategy, w ith appointment decisions prioritised coordination sub- subcommittees and ministries and
according to objective. These subcommittees to include ex-officio members to strategy standing rules agencies for staff
assist w ith w orkload, and improve liaison w ith stakeholders and w ith sourcing involvement in
information. subcommittees
Establishm ent of An outreach and reporting framew ork w ill be detailed, identifying outreach IC-Implementation Core SICS deliberation Partner (additional) Project funded TA Secretariat and Entire sector SICS
reporting and modalities, resource requirements, partners and cycle times. This framew ork coordination sub- and decision making for development of Strategy
consultation cycles w ill guide identification of suitable dissemination partners and be strategy ME and reporting Strengthening
operationalised through short media releases, television and SIBC broadcasts, framew ork Project
as w ell as short reports, w orkshops and meetings as identified to be
strategically significant.
Secretariat core Identify and recruit through a public competitive process a professional IC-Implementation Core SICS interview ing Contracted commercial Entire sector SICS
functionality coordinator and Secretariat manager for the day to day activities of the coordination sub- and selection advertising services
secretariat. strategy processes
Provide professional training to the Secretariat and subsidiary body members IC-Implementation Partner Project funded none na Entire sector Project
to equip them w ith detailed know ledge of SI national policy processes and how coordination sub- (additional) materials office
donors operate w ithin Solomon Islands, so as to enable them to operate strategy development and
effectively in assessing options and deciding on options. training materials
development
Establish a simple TA roster facility to enable consistent and timely advisory IC-Implementation Core SICS decision Partner (additional) project funded TA to Secretariat and Entire sector SICS
backup from a pool of competitively identified technical specialists. coordination sub- making and develop roster Strategy
strategy substantive inputs procedures and Strengthening
systems Project

Develop a national Explore through detailed discussions, the financing of the Secretariat using a IC-Implementation Core SICS liaison and Partner (normal) Substantive inputs Entire sector SICS
core funding m odel threefold approach: Ministry of Commerce; Copra Exporters and other private coordination sub- facilitation of from key
sector actors; and Donor funding. strategy partners stakeholders

30
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

1b Promote and communicate coconut sector Strategy with national and provincial stakeholders
substrategy Im plem entatio Im plem entation Project ID (if Prim ary Lead
Activity Description remarks1 remarks2
stream n activity type1 activity type2 any) Beneficiaries Institution

Prom otion and Develop a campaign to promote the coconut Strategy and use appropriate ID-nformation Core none Entire sector SICS
visibility cam paign communication media to emphasise its effects on improving employment, development sub-
economic, environmental, social benefits for the country. strategy

Targets for promotional campaign: farmers and producers, the public and ID-nformation Core Entire sector SICS
donor partners. development sub-
strategy
As part of the dissemination and aw areness Strategy create a Coconut ID-nformation Core Contracted w ebsite design and Secretariat and Entire sector SICS
Secretariat w ebsite. development sub- production service Strategy
strategy contract Strengthening
Project

Use existing radio, local media and new spapers to communicate progress to ID-nformation Core Contracted SIBC radio magazine Entire sector SICS
stakeholders and raise aw areness on Strategy content. Establish a 15 minutes development sub- format for strategy
program on SIBC to update stakeholders of the Strategy implementation strategy updates
process.

Governm ent Organize a half day w orkshop w ith strong facilitation and high visibility every PID-Policy and Core Partner (normal) Engagement by line Entire sector SICS
coordination and quarter w ith all Permanent Secretaries to communicate on progress of Strategy institutional ministries permitting
engagem ent implementation and priorities. development sub- PS presence and
strategy involvement

Take advantage of provincial meetings to update provincial authorities and ID-nformation Core Partner (normal) Engagement by Area & SICS
stakeholders on Strategy progress, and develop a basis for demand from the development sub- provincial authorities provincial
provinces for continued Strategy implementation. strategy associations

Policy integration, Organize quarterly stakeholder meetings and forums to discuss and present PID-Policy and Core Partner (normal) stakeholder Entire sector SICS
planning and implementation progress. institutional attendance and
progress reporting development sub- support
strategy
Target coconut association Strategy and purpose to contribute to Medium Term PID-Policy and Core Secretariat liaison Partner (additional) coconut strategy- Coconut policy Entire sector SICS
Development goals as w ell as MDGs. institutional and advocacy w ith MDG integration mainstreaming
development sub- development project activites project
strategy planning department

31
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

1b Promote and communicate coconut sector Strategy with national and provincial stakeholders

substrategy Im plem entatio Im plem entation Project ID (if Prim ary Lead
Activity Description remarks1 remarks2
stream n activity type1 activity type2 any) Beneficiaries Institution

Partnership m atrix Develop a partnerships matrix identifying competency areas for contribution to IC-Implementation Core Partner (additional) project funded TA to Secretariat and Entire sector SICS
Strategy execution, together w ith the names of immediate, short- and medium- coordination sub- develop full Strategy
term potential partners. This matrix to serve as a priority list for strategy partnerships scheme Strengthening
communications, reporting and updates. for the strategy Project

Establish Identify and approach candidate partner organisations w ith specific offers of IC-Implementation Core Partner (normal) Partner engagement Entire sector SICS
partnerships partnership tow ards implementation of the Strategy. These w ould include local coordination sub- for exploratory
business houses, NGOs and donor organisations. strategy discussions

Establish MOUs, partnership agreements and sponsorship deals w ith selected IC-Implementation Core Other Partner specific Secretariat and Entire sector SICS
partners, and as w ell as prepare donor proposals. coordination sub- responses and Strategy
strategy actions Strengthening
Project
Cabinet Cabinet endorsement in December 2011 of the coconut Strategy and IC-Implementation Core inputs by SICS Partner (additional) ITC funded Strategy Entire sector
endorsem ent of implementing framew ork; identification of the Secretariat as the Strategy coordination sub- members Development
Strategy, Secretariat implementation body; allocation of the Secretariat 2011 launch budget. strategy Project
and Budget
SICS
Detailed specification Finalisation of a detailed terms of reference for the Secretariat, including: IC-Implementation Core SICS decision Partner (additional) inputs by ITC funded Strategy Entire sector SICS
of Secretariat Mission, objectives and responsibilities w ithin the SI Government system coordination sub- making and national TA Development
suitable for m odular Oversight relationships and a monitoring and evaluation framew ork integrated strategy substantive inputs Project
resourcing w ith SIG w ith SI Ministerial reporting and budgeting cycles
core funding Detailed role descriptions for subsidiary bodies, and an annual plan and budget
for 2011.
Position descriptions and standard requirements for recruitment of TA including
a local roster mechanism

Establishm ent of Identification of focal points and backup names for the secretariat at the IC-Implementation Core coordination and Partner (normal) nominations and Area & SICS
sustainable provincial level, and w ithin each key line ministry. Based on provincial and coordination sub- decision making by liaison by line provincial
netw orks across ministerial response, draft a pilot project for the engagement of one provincial strategy SICS ministries and associations
provincial and extension service in the Strategy provincial authorities
sectoral areas

32
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

1b Promote and communicate coconut sector Strategy with national and provincial stakeholders
substrategy Im plem entatio Im plem entation Project ID (if Prim ary Lead
Activity Description remarks1 remarks2
stream n activity type1 activity type2 any) Beneficiaries Institution

Creation of targeted Appointment of a sub-committee for each Strategy objective to lead in the IC-Implementation Core appointment of Partner (normal) consent of line Entire sector SICS
subsidiary bodies implementation of the Strategy, w ith appointment decisions prioritised coordination sub- subcommittees and ministries and
according to objective. These subcommittees to include ex-officio members to strategy standing rules agencies for staff
assist w ith w orkload, and improve liaison w ith stakeholders and w ith sourcing involvement in
information. subcommittees

Establishm ent of An outreach and reporting framew ork w ill be detailed, identifying outreach IC-Implementation Core SICS deliberation Partner (additional) Project funded TA Secretariat and Entire sector SICS
reporting and modalities, resource requirements, partners and cycle times. This framew ork coordination sub- and decision making for development of Strategy
consultation cycles w ill guide identification of suitable dissemination partners and be strategy ME and reporting Strengthening
operationalised through short media releases, television and SIBC broadcasts, framew ork Project
as w ell as short reports, w orkshops and meetings as identified to be
strategically significant.
Secretariat core Identify and recruit through a public competitive process a professional IC-Implementation Core SICS interview ing Contracted commercial Entire sector SICS
functionality coordinator and Secretariat manager for the day to day activities of the coordination sub- and selection advertising services
secretariat. strategy processes

Provide professional training to the Secretariat and subsidiary body members IC-Implementation Partner Project funded none na Entire sector Project
to equip them w ith detailed know ledge of SI national policy processes and how coordination sub- (additional) materials office
donors operate w ithin Solomon Islands, so as to enable them to operate strategy development and
effectively in assessing options and deciding on options. training materials
development
Establish a simple TA roster facility to enable consistent and timely advisory IC-Implementation Core SICS decision Partner (additional) project funded TA to Secretariat and Entire sector SICS
backup from a pool of competitively identified technical specialists. coordination sub- making and develop roster Strategy
strategy substantive inputs procedures and Strengthening
systems Project

Develop a national Explore through detailed discussions, the financing of the Secretariat using a IC-Implementation Core SICS liaison and Partner (normal) Substantive inputs Entire sector SICS
core funding m odel threefold approach: Ministry of Commerce; Copra Exporters and other private coordination sub- facilitation of from key
sector actors; and Donor funding. strategy partners stakeholders

33
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

1b Promote and communicate coconut sector Strategy with national and provincial stakeholders
substrategy Im plem entatio Im plem entation Project ID (if Prim ary Lead
Activity Description remarks1 remarks2
stream n activity type1 activity type2 any) Beneficiaries Institution
Creation of targeted Appointment of a sub-committee for each Strategy objective to lead in the IC-Implementation Core appointment of Partner (normal) consent of line Entire sector SICS
subsidiary bodies implementation of the Strategy, w ith appointment decisions prioritised coordination sub- subcommittees and ministries and
according to objective. These subcommittees to include ex-officio members to strategy standing rules agencies for staff
assist w ith w orkload, and improve liaison w ith stakeholders and w ith sourcing involvement in
information. subcommittees
Establishm ent of An outreach and reporting framew ork w ill be detailed, identifying outreach IC-Implementation Core SICS deliberation Partner (additional) Project funded TA Secretariat and Entire sector SICS
reporting and modalities, resource requirements, partners and cycle times. This framew ork coordination sub- and decision making for development of Strategy
consultation cycles w ill guide identification of suitable dissemination partners and be strategy ME and reporting Strengthening
operationalised through short media releases, television and SIBC broadcasts, framew ork Project
as w ell as short reports, w orkshops and meetings as identified to be
strategically significant.
Secretariat core Identify and recruit through a public competitive process a professional IC-Implementation Core SICS interview ing Contracted commercial Entire sector SICS
functionality coordinator and Secretariat manager for the day to day activities of the coordination sub- and selection advertising services
secretariat. strategy processes

Provide professional training to the Secretariat and subsidiary body members IC-Implementation Partner Project funded none na Entire sector Project
to equip them w ith detailed know ledge of SI national policy processes and how coordination sub- (additional) materials office
donors operate w ithin Solomon Islands, so as to enable them to operate strategy development and
effectively in assessing options and deciding on options. training materials
development
Establish a simple TA roster facility to enable consistent and timely advisory IC-Implementation Core SICS decision Partner (additional) project funded TA to Secretariat and Entire sector SICS
backup from a pool of competitively identified technical specialists. coordination sub- making and develop roster Strategy
strategy substantive inputs procedures and Strengthening
systems Project

Develop a national Explore through detailed discussions, the financing of the Secretariat using a IC-Implementation Core SICS liaison and Partner (normal) Substantive inputs Entire sector SICS
core funding m odel threefold approach: Ministry of Commerce; Copra Exporters and other private coordination sub- facilitation of from key
sector actors; and Donor funding. strategy partners stakeholders

Policy integration, Organize quarterly stakeholder meetings and forums to discuss and present PID-Policy and Core Partner (normal) stakeholder Entire sector SICS
planning and implementation progress. institutional attendance and
progress reporting development sub- support
strategy
Target coconut association Strategy and purpose to contribute to Medium Term PID-Policy and Core Secretariat liaison Partner (additional) coconut strategy- Coconut policy Entire sector SICS
Development goals as w ell as MDGs. institutional and advocacy w ith MDG integration mainstreaming
development sub- development project activites project
strategy planning department

34
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

1c Establishment of effective partnerships with important implementation partners


substrategy Im plem entatio Im plem entation Project ID (if Prim ary Lead
Activity Description remarks1 remarks2
stream n activity type1 activity type2 any) Beneficiaries Institution
Partnership m atrix Develop a partnerships matrix identifying competency areas for contribution to IC-Implementation Core Partner (additional) project funded TA to Secretariat and Entire sector SICS
Strategy execution, together w ith the names of immediate, short- and medium- coordination sub- develop full Strategy
term potential partners. This matrix to serve as a priority list for strategy partnerships scheme Strengthening
communications, reporting and updates. for the strategy Project

Establish Identify and approach candidate partner organisations w ith specific offers of IC-Implementation Core Partner (normal) Partner engagement Entire sector SICS
partnerships partnership tow ards implementation of the Strategy. These w ould include local coordination sub- for exploratory
business houses, NGOs and donor organisations. strategy discussions

Establish MOUs, partnership agreements and sponsorship deals w ith selected IC-Implementation Core Other Partner specific Secretariat and Entire sector SICS
partners, and as w ell as prepare donor proposals. coordination sub- responses and Strategy
strategy actions Strengthening
Project

35
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 2: Consistently improve the quality of market, production and business feasbility information to enable stakeholders to effectively plan for sector diversification and development
2a Set up an efficient market Intelligence service and link potential buyers with producers and processors
Im plem ent
Im plem entation ation Project ID (if Prim ary Leading
Activity Description substrategy stream rem arks1 rem arks2
activity type1 activity any) Beneficiaries Institution
type2
Marketing Subscribe to international coconut forums that provide market information ID-nformation development Core none Entire sector SICS
inform ation service (such as the Asia Pacific Coconut Community)(other information services sub-strategy
sources)

Devise a monthly bulletin system to integrate and report information from ID-nformation development Partner Outreach, Sector Entire sector Project office
existing sources w ithin the country. Link this monthly bulletin system to sub-strategy (additional) communication and communication
the promotion and visibility campaign in Sub-objective 1b. dissemination actions and coordination
as part of project
communication and
information
dissemination project
Market research for Explore new market opportunities to diversify aw ay from copra Core coordination of Entire sector SICS
diversification production by : component activities

Undertaking practical market research to understand specifications, MD-Market development Partner ITC TA Market Entire sector Project office
potential volumes and buyer requirements. and product identification (additional) information
sub-strategy project

Identifying potential products and associated production parameters MD-Market development Partner ITC TA Market Entire sector Project office
based on market demand, apparent short term capabilities and production and product identification (additional) diversification
possibilities. sub-strategy project

Carry out feasibility studies for the identified market opportunities in the MD-Market development Partner Scoping actions in Market Entire sector Project office
Strategy. and product identification (additional) diversification project diversification
sub-strategy project
Explore business viability, compliance, technology requirements, MD-Market development Partner Scoping actions in Market Entire sector Project office
projected volumes and delivery mechanisms. and product identification (additional) diversification project diversification
sub-strategy project
Product m arketing Explore possibility of organising buyer seller meetings in Solomon Islands MD-Market development Partner ITC TA Market Exporters Project office
and in buying countries to identify short term sales opportunities and and product identification (additional) diversification
longer term interest in sourcing from Solomon Islands. sub-strategy project

Explore w orking w ith regional trade bodies and mechanisms to position MD-Market development Partner (normal) PITIC or similar trade Exporters ITC or other
Solomon Islands coconut products consistently w ithin their promotion and product identification mission assistance multilateral
programmes. sub-strategy organisation

36
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

2b Improve dissemination of information to all stakeholders


Im plem entation Im plem ent Project ID (if Prim ary Leading
Activity Description substrategy stream rem arks1 rem arks2
activity type1 ation any) Beneficiaries Institution
Inform ation In line w ith Strategy aw areness and communication plan, use public ID-nformation development Other Activity type varying Grow ers/farmers Project office
dissem ination media such as radio, to distribute information on price sub-strategy w ith partner
actions

Initially explore the potential and effectiveness of the proposed system ID-nformation development Partner Market information pilot Market Grow ers/farmers Project office
w ith copra price information sub-strategy (additional) project information
project
Market and Explore possibility of SMS communication platform betw een farmers and ID-nformation development Core Partner Scoping by Grow ers/farmers SICS
production buyers sub-strategy (normal) telecoms
inform ation system s . partners
eg Telekom
and
beMobile

Provide an exchange platform through information dissemination that w ill ID-nformation development Partner Market information pilot Market Domestic traders Project office
include all buyers and provide advance information on quantities, sub-strategy (additional) project information and/or
collection times and price project transporters

Introduce an area-volume and logistics projection to provide basis for PO-Producer organisation Partner Area production Area production Domestic traders Project office
planning throughput and infrastructure issues for area associations sub-strategy (additional) organisation project organisation and/or
project transporters

37
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 3: Increase collection and supply of coconuts by 30% by 2012

3a Support commercially driven associations based on farmer group common interests


Implementati Implementatio
substrategy Primary Leading
Activity Description on activity remarks1 n activity remarks2 Project ID (if any)
stream Beneficiaries Institution
type1 type2
Characterising Undertake a national and provincial mapping of existing associations and ID-nformation Partner Provincial committee Partner Area production Area production Entire sector Provincial or
product associations characterize them based on common interests development sub- (normal) leadership and (additional) organisation project organisation project area
strategy coordination associations

Map farmers that w ill be part of association, organise area meetings PO-Producer Partner Area production Area production Area & provincial Project office
(w orkshops) to discuss and understand how to implement the organisation sub- (additional) organisation project organisation project associations
commercially driven production and processing (optimisation model used strategy
by farmers association)

National coordination Encourage existing associations to develop commercial links w ith buyers PO-Producer Partner Associations engagement Area production Area & provincial Provincial or
betw een area and w ith coconut industry secretariat SICS organisation sub- (normal) organisation project associations area
associations strategy associations
Set up a commercially driven national sector association w ith a trading PO-Producer Partner National sector association Area production Entire sector Project office
system that w ill purchase coconuts and processed products (copra, organisation sub- (additional) organisation project
charcoal etc) strategy
Explore viability of trading arm and need for service provision to farmer PO-Producer Core Entire sector SICS
associations (collection, market information, input supplies, finance) organisation sub-
strategy
Pilot commercial driven production and processing models that PO-Producer Partner Pilots suggested by Core Selection and Area production Area & provincial Project office
associations select to adapt (Pilot projects to be locally initiated rather organisation sub- (additional) associations and coordination of pilots by organisation project associations
then from funding partners including SICS). strategy resourced through SICS
projects
Developm ent of Associations / agencies to provide services to farmers such as PO-Producer Partner Associations Partner Additional resources for Area production Grow ers/farmers Provincial or
different equipment and tools, training at the village level, primary producing organisation sub- (normal) decisionmaking on (additional) service provision organisation project area
association/agency operations, management and record keeping, extension and agronomic strategy priorities and modalities through Area production associations
m odels support, finance and collection of products. organisation

Decide on required numbers of members and villages based on business PO-Producer Core Decisions made on basis Partner (normal) Associational inputs and Area & provincial SICS
demand volumes and products organisation sub- of national models and engagement associations
strategy local information
Organise farmers to meet market demand and product standards. PT-Production Partner Provincial committee Core National coordination bu Area production Grow ers/farmers Provincial or
transformation sub- (normal) leadership and SICS organisation project area
strategy coordination associations
Each province to trial a product model w ith an identified buyer w ho is PT-Production Partner Provincial committee Partner Commercial actors Product trialling and Grow ers/farmers Provincial or
w illing to place secured orders over a specific time frame. transformation sub- (normal) leadership and (additional) partnering via purchase development project area
strategy coordination agreements associations

38
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

3b Provide practical training to farmers to meet demand and quality


substrategy Implementati Implementatio Primary Leading
Activity Description remarks1 remarks2 Project ID (if any)
stream on activity n activity Beneficiaries Institution
Through the Extension officers and the sector association, make available PT-Production type1
Partner type2
Targeted training activities Partner Sector association Area production Grow ers/farmers Provincial or
training on equipment and technology, identified products, production transformation sub- (normal) conducted by Extension (additional) inputs to curriculum , organisation project area
models strategy Officers standard incorporation associations
and coordination

Invite coconut sector experts from other countries, particularly India and PT-Production Core Coordination, prioritisation Partner (normal) ITC, ILO and other Other SICS
provide practical training for Agriculture extension officers, Secretariat transformation sub- and facilitation by SICS multilateral partner
field offices and farmers in processing to support new alternatives strategy engagement

Develop training for farmers in the field using value chain approach and PT-Production Partner Product trialling and Grow ers/farmers Project office
practical hands on methods. transformation sub- (additional) development project
strategy
Train farmers to explore and adopt methods for producing new alternative PT-Production Partner Additional content delivery Contracted Contracted training Product trialling and Grow ers/farmers Project office
products at village level. transformation sub- (additional) by Agriculture Extension providers development project
strategy service and RTCs under
Product trialling and
development project
Train associations to Identify appropriate technologies and experience for PT-Production Partner Capacity building of Core Oversight of capacity Product trialling and Area & provincial Project office
potential replication transformation sub- (additional) associations under building delivery development project associations
strategy Product trialling and
development project

3c Implement innovative pricing and bulking system to boost collection and income
Arrange meetings betw een buyers and stakeholders to discuss business MD-Market Core High level liaison and Partner Multilateral trade Entire sector SICS
models and the methods of product delivery according to buyer development and facilitation by SICS (additional) missions
requirements. product identification
sub-strategy

Develop an agreement w ith farmers and buyers (domestic or overseas) MD-Market Core Scoping, preparation and Other Combination of inputs Grow ers/farmers SICS
that w ould include a long term relationship w ith flexible prices based on development and negotiation throughout the form buyers/market and
market product identification strategy process, w ith producers/farmers w ith
sub-strategy initiation according to details developed
viability and fit w ith overall according to need and
strategy situation
Based on target markets and projected requirements introduce a quality PO-Producer Core High level liaison and Other Combination of inputs Grow ers/farmers SICS
price incentive mechanism through farmer associations and traders organisation sub- facilitation by SICS from regulatory
strategy authorities, production
associations, and
according to
buyer/market
requirements

39
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

3d Organise farmers based on production model and market demand to expand or revitalise their current plantation output.
substrategy Implementati Implementatio Primary Leading
Activity Description remarks1 remarks2 Project ID (if any)
stream on activity n activity Beneficiaries Institution
Conduct farmer-village census to identify production units, existing ID-nformation Partner Production Partner (normal) Provincial committee Production Entire sector Project office
associations and potential situations in w hich associations could be development sub- (additional) charecterisation pilot and support and coordination characterisation
formed. strategy full project pilot and full project

Analyse feasibility of federating associations and agencies across the PO-Producer Contracted SICS contracted Entire sector SICS
w hole sector. organisation sub- consultant
strategy
Develop specific subplan establishing production volume and quality PO-Producer Partner Part of Market Core Intgration of subplan Market Area & provincial Project office
profiles for target products, and setting association performance criteria organisation sub- (additional) diversification project across other sub- diversification associations
to meet these. strategy strategy streams project

3e Devise and implement a supply-side research and information programme to improve the accuracy and coverage of information on the production base
Draw up a supply-side information needs specification and conduct a ID-nformation Contracted SICS contracted Core SICS Entire sector SICS
desk review to assess the current availability of information together w ith development sub- consultant
its limitations (currency, coverage, accuracy, reliability) strategy
Design a supply side information development plan to provide improve ID-nformation Core Entire sector SICS
information progressively over the course of the 3 year Strategy development sub-
strategy
Distribute information gathering components to different competent ID-nformation Core SICS task allocation Other Combination of partner Entire sector SICS
agencies (implementation partners, NGOs, contracted agents) for development sub- according to relationships, project and sub -project
implementation. strategy resources and capabilities activities to develop
specified information

40
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 4: Develop finance mechanisms to enable Strategy implementation and investment by all stakeholders by 2015
4a Undertake Financial needs and supply assessment
Implementatio Implementat Primary
substrategy Leading
Activity Description n activity remarks1 ion activity remarks2 Project ID (if any) Beneficiari
stream Institution
type1 type2 es
Commission research into financial needs and flow s at different points in ID-nformation Partner TA funded under Partner Participation and facilitation Financial Entire sector Project office
the value chain, starting w ith farmers and their production model. development sub- (additional) donor or multilateral (normal) by provincial committees, mechanisms project
strategy partner project financial sector partners

Establish and update a database on value chain entities, w ith financial, ID-nformation Partner TA funded under Partner Commitments to information Production Entire sector Project office
production, area and logistical information associated w ith each. development sub- (additional) donor or multilateral (normal) provision and updating to characterisation pilot
strategy partner project the database and full project
Institute a financial supply information system to relay data to participants in ID-nformation Partner Financial component Sector Entire sector Project office
the value chain. development sub- (additional) to Sector communication and
strategy Communication and coordination project
Coordination Project
Provide an succinct annual report identifying a) know n stakeholders PID-Policy and Partner Financial component Core SICS publicity and advocacy Entire sector Project office
financial needs b) gaps in information and quality issues, c) capacity needs institutional (additional) to Sector using the repot
priorities for the government extension, private sector associations and development sub- Communication and
information agents involved in financial factors for the coconut sector. strategy Coordination Project

4b Develop appropriate and adapted finance mechanisms targeting farmers through commercially driven associations
Ongoing negotiation SICS to negotiate w ith commercial banks to revive the coconut sector by PT-Production Core High level Entire sector SICS
of opportunities for harmonizing the banks lending policy. transformation sub- negotiations as part
im proved financial strategy of a clear sectoral
services strategy

Identify traders, buyers along w ith Donors w ho w ould be w illing to fund PT-Production Core Develop netw ork of Partner As part of product trialling Product trialling and Grow ers/far SICS
village production using SICS data base to match buyers and traders able transformation sub- potential (additional) and development project development project mers
to co finance or cooperate w ith donors actions in sectors financial needs. strategy collaborators in this
area
Develop accurate Commission rapid case study research to identify risk factors facing ID-nformation Contracted Partner Financial Entire sector SICS
understanding of producers and their production models, product chain actors and trading development sub- (additional) mechanisms project
financial needs, entities prior to the export point. The research to recommend potential points strategy
opportunities for of intervention to respond to these risks.
intervention and
m ethods for Conduct rapid research project to assess possible sources and ID-nformation Partner Financial Grow ers/far Project office
overcom ing financial mechanisms for accessing and mobilising collateral to enable increased development sub- (additional) mechanisms project mers
risks and lim itations commercial lending. This project to explore replication of successful CBSI strategy
scheme for farmer financing.
Scope the essential elements for a successful coconut financial support PT-Production Contracted Entire sector Min
scheme to support farmer associations utilising sector specific export transformation sub- Commerce
funds to create a revolving fund to finance the sector. strategy

41
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

4c Develop mechanism for provision of finance for working capital and processing equipment.
Implementatio Implementat Primary Leading
Activity Description substrategy stream remarks1 remarks2 Project ID (if any)
n activity ion activity Beneficiarie Institution
Investigate potential for soft loans for operations at different trading levels, PT-Production transformation Partner Financial Grow ers/farm Project office
SICS recommend processors to gain access to soft loans. Applications if sub-strategy (additional) mechanisms project ers
viable must be paid in full and funds to be repaid over a period of time
depending on production output.
Include in the governments budget, funds for equipment to be provided PID-Policy and institutional Core Area & SICS
through associations to other processors through SICS based on their development sub-strategy provincial
financial needs and supply/throughput. associations

Investigate the role and feasibility of a reciprocating trust fund mechanism PID-Policy and institutional Partner Strategy further Domestic Project office
for industry development to be implemented at association level. development sub-strategy (additional) development project traders and/or
transporters

4d Investment promotion
Develop detailed recommendations regarding role and needs for medium PID-Policy and institutional Partner Strategy further Entire sector Project office
and long term sector investment. development sub-strategy (additional) development project

Conduct advocacy of Solomon Islands Government integration of the PID-Policy and institutional Core Entire sector SICS
recommendations into the development planning of the coconut sector and development sub-strategy
the rural sector in general.

4e Mobilise Donor funding for Strategy implementation


Developm ent of a Develop a Coconut Strategy funding plan and identify donor agencies that IC-Implementation Core Partner Secretariat and Entire sector SICS
national strategy for can provide resources. coordination sub-strategy (additional) strategy
donor involvem ent in strengthening
coconut sector Develop policy draft proposal, setting out the role of donor financing in IC-Implementation Core Partner project
Secretariat and Entire sector SICS
Strategy- emphasizing the need for local ow nership and solution design coordination sub-strategy (additional) strategy
approach for integration of the coconut sector Strategy into broader strengthening
national development planning settings. project
Multi donor facilities Explore in discussion, the possibility for donor funding of initial soft loan PT-Production transformation Core Entire sector SICS
for provision of fund, and sector development trust fund to develop demand-driven value sub-strategy
effective support added products including a flexible TA provision fund w ith performance-
including TA, based measures to ensure capacity development outcomes.
m onitoring and
evaluation of TA and Explore potential application for donor support in the area of monitoring, ID-nformation development Core Entire sector SICS
scaling up of pilots evaluation, capacity development, scaling up, and piloting of identified sub-strategy
priority projects

42
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 5: Develop a coconut processing industry for value added and diversification of coconuts products by 2015

5a Develop appropriate product processing technology and provide support to existing processors
Im plem enta
Im plem entatio Prim ary Leading
Activity Description substrategy stream rem arks1 tion activity rem arks2 Project ID (if any)
n activity type1 Beneficiaries Institution
type2
Scoping of Identify available processing technologies for product development PT-Production Partner Partner Product trialling and Entire sector Project office
technological and considering buyers requirements. transformation sub-strategy (additional) (normal) development project
process options for
Give recommendations to the industry stakeholders on the types of PT-Production Partner Core Product trialling and Entire sector Project office
industry
technologies that is seen to be appropriate based on the R&D and market transformation sub-strategy (additional) development project
diversification
demand of the end products produced.
Identify resource people to be trained practically on operations, PT-Production Partner production Processors Project office
management and coconut processing based on the industry transformation sub-strategy (additional) diversification
requirements. project
Early activation of Revitalise existing coconut processing plants and foster through PT-Production Partner Single action project Entire sector Project office
processing potential government incentives the creation of new processing facilities transformation sub-strategy (additional)

Based on feasibility studies from objective 2 identify suitable sites and PO-Producer organisation Core Partner Area & SICS
farmer communities for processing and value addition projects. sub-strategy (normal) provincial
associations
Introduction of new Establishment of new technology units and improve existing units, PT-Production Partner Contracted production Processors Project office
processing transformation sub-strategy (additional) diversification
technology project
Identify professional personal support and financing for management and PT-Production Partner production Processors Project office
operations of new or existing dow nstream processing plants. Establish a transformation sub-strategy (additional) diversification
transparent system for assigning such support to plants. project
Training and capacity Organise industrial placements for identified staff as appropriate PT-Production Core Partner Domestic SICS
developm ent for (Malaysia and Brazil for w ater). transformation sub-strategy (normal) traders and/or
product com pliance transporters
and process Contact Australian, NZ companies or Min of Commerce and Trade MD-Market development and Core Partner Entire sector SICS
im provem ent regarding markets and equipment training to meet the buyers product identification sub- (normal)
requirements. strategy

43
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

5b Improve quality Testing and standards


Im plem entatio Im plem enta Prim ary Leading
Activity Description substrategy stream rem arks1 rem arks2 Project ID (if any)
n activity type1 tion activity Beneficiaries Institution
Together w ith the other processing sectors lobby government for the PT-Production Core type2 Processors SICS
establishment of an accredited testing laboratory that w ill be able to transformation sub-strategy
respond to the coconut sector needs.
Provide basic training to exiting processors on HACCP and quality PT-Production Partner Contracted Sector export Entire sector Project office
compliance. transformation sub-strategy (additional) support project

5c Institute learning and training processes for the processing industry


In cooperation w ith suitable research partners create a coconut product PT-Production Partner Partner Single action project Processors Project office
development facility able to be train processors and conduct research transformation sub-strategy (additional) (normal)
based on industry needs.
Encourage processing ventures and sites at urban and village level and PT-Production Core Partner Processors SICS
provide practical training to farmers. transformation sub-strategy (normal)

Initiate a pilot project to create data collection processes and mechanisms PT-Production Partner Production Entire sector Project office
for production, processing, transport etc at different points on the value transformation sub-strategy (additional) characterisation
chain. pilot and full

44
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 6. Improve support services to respond to sector needs by 2015

6a Align policy and regulatory framework and Improve PPP


Im plem entatio Im plem entatio Prim ary Leading
Activity Description substrategy stream rem arks1 rem arks2 Project ID (if any)
n activity type1 n activity type2 Beneficiaries Institution

Practical Commission a series of short evaluations of the operation of the ID-nformation development Partner Strategy further Entire sector Project office
Investigations into commodities regulatory framew ork and related donor intervention in SI and sub-strategy (additional) development project
effective sector identify threats and opportunities w hich are impinging on implementation of
regulation and the Strategy, including an analysis of small business registration and
support in Solom on Company Act regulations on SMEs in the coconut sector.
Islands
Scope the potential for a domestic farmers' price stabilisation program MD-Market development Core Contracted Area & provincial SICS
commodity indexing and subsidy support based on production volumes. and product identification associations
sub-strategy
Coconut sector Map past and current national policy and determine w hat needs to be PID-Policy and institutional Core Contracted Entire sector SICS
m ainstream ing into changed to enable the sector for grow th. development sub-strategy
national developm ent
planning Identify the parameters for government and private sector integrated PID-Policy and institutional Core Contracted Entire sector SICS
partnership and unilateral involvement w ithin the coconut industry, and development sub-strategy
prepare a framew ork document articulating this.
Develop a plan for the role and support of government institutions based on PID-Policy and institutional Contracted Partner Strategy further Entire sector SICS
market requirements and the overall strategic role of the sector in national development sub-strategy (additional) development project
sustainable development.
Establishm ent of Establish a consultation and coordination mechanism w ith the private PID-Policy and institutional Core Partner (normal) Entire sector SICS
policy liaison and sector for information prior to overseas trips by SIG, CEMA and other development sub-strategy
advocacy bodies, to ensure that opportunities and cross-linkage are not lost.
m echanism s
SICS private sector member or ex-officio Secretariat attendees to attend all PID-Policy and institutional Core Entire sector SICS
external coconut related sector meetings and w orkshops conducted by development sub-strategy
Government or other actors.
Prioritised policy Advocate policies to prioritise communication infrastructure linking rural PT-Production Core Partner (normal) SICCI Entire sector SICS
advocacy areas producers to processors and markets. transformation sub-
strategy
Consistently champion policy to prioritise transports, communications and PID-Policy and institutional Core Entire sector SICS
market infrastructure related to economic development under SIG development sub-strategy
development Budget.

45
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

6b Improve infrastructure (cost of energy, transport and communication)


Im plem entatio Im plem entatio Prim ary Leading
Activity Description substrategy stream rem arks1 rem arks2 Project ID (if any)
n activity type1 n activity type2 Beneficiaries Institution
Direct transport Commission short study into the economics of local boat builders and ID-nformation development Contracted Domestic traders Min
enhancem ent actions operators to assess viability of certified contracts to build inter island sub-strategy and/or transporters Commerce
trading boats funded through SICS or a sector infrastructure facility.
Netw orking w ith shippers to schedule service trips to encourage PT-Production Partner infrastructure Domestic traders Project office
confidence to run service trips. transformation sub- (additional) coordination and and/or transporters
strategy planning project
Creation of a body able to use market information platform to inform charter PT-Production Partner infrastructure Domestic traders Project office
shipping services to provide regular supply chain betw een rural centres transformation sub- (additional) coordination and and/or transporters
and market place. strategy planning project
Interm ediate Explore revitalising existing CEMA w harves and infrastructure. PT-Production Core Partner infrastructure Domestic traders SICS
m echanism s for transformation sub- (additional) coordination and
transportation strategy planning project
im provem ent
Advocate use of current infrastructure or micro-project funds to build local PT-Production Partner (normal) Partner infrastructure Entire sector Min
w harfs to encourage ship traders to do intermediary stops based on transformation sub- (additional) coordination and Commerce
identified sourcing areas. strategy planning project
Establish local w harves netw ork to build and manage the use of local PT-Production Partner (normal) Partner infrastructure Domestic traders Min
jetties for trading: this to cover regular maintenance. transformation sub- (additional) coordination and infrastructure
strategy planning project
Infrastructure policy Explore using the value chain approach to plan programming and capacity PID-Policy and institutional Core Partner (normal) Other SICS
in CEMA, Agriculture extension and ministry of Commerce. development sub-strategy
SICS to link w ith SIG infrastructure Ministry in identifying sites for PT-Production Core Entire sector SICS
establishing of roads, bridges, w harves and airstrips. transformation sub-
strategy
Coordination of rural transportation processor end user Include PID-Policy and institutional Core Partner (normal) Entire sector SICS
Media services (modern telecommunication technology) development sub-strategy

Integrate renew able energy considerations into potential plant operation PID-Policy and institutional Core Partner production production Entire sector SICS
scoping in rural sector. development sub-strategy (additional) diversification diversification project
project

46
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Implementation progress
The Coconut Industry Secretariat has started to implement key activities already. Progress completed in
2010 is as follows:

Objective 1:
Coconut sector Strategy endorsed as priority for government and included in the NCRA policy
statement
Cabinet endorsement of National Coconut Secretariat
Provincial endorsement of Western, Malaita and Guadalcanal Coordinating Committees
Debriefing of Provincial and National Authorities and advocating for Coconut sector priority
4 Strategy dissemination workshops undertaken in provinces with farmers
Launch event and endorsement of Strategy Document by 2010 Government
Secretariat Terms of Reference prepared for submission to cabinet in January 2011

Objectives 2 and 6
National Secretariat members including farmers participated in Asian Pacific Coconut Community
Cocotech meeting in Thailand and successfully presented the Strategy and represented the
Solomon Islands
Secretariat produced a conference report with information on coconut processing technology, target
markets and rural value addition. Report available in CEMA library and presented to stakeholders in
provincial workshops.

47
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Annexes

48
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Annex 1: Cabinet note

49
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

50
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

51
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Annex 3: Solomon Islands Coconut Industry Secretariat (SICIS) Code of Practice


Purpose
The SI Coconut Secretariat has a crucial and unique role in leading the revitalization of the coconut industry
in Solomon Islands. As a body comprising commercial actors within the industry, the Secretariat walks a
difficult line between the overall good of the industry and potential benefits at the level of individuals or
individual business entities. The presence of industry and profit motive is critical to driving this Strategy
forward, but so is the credibility and legitimacy of the body, for the progression of the strategy.

This Code of Practice is designed to set out a set of standards that members of the secretariat and staff are
required to agree to abide by, and in so doing insure that the integrity of the Secretariat and ultimately the
Strategy, is sufficient to support the strategic goal of industry revitalization.

Principles
1. Transparency The principle that all decisions and behaviour be openly known and able to withstand
public scrutiny.
2. Good faith dealings The principle that decisions are made and are able to be defended as being done in
good faith expectation that they are for the advancement of the coconut industry.
3. Enhancement of Secretariat standing and reputation That actions and decisions always work to enhance
the good name and reputation of the secretariat.

The specific code should be read in context of these principles so they are upheld to the extent possible by a
course of action.

Code of Practice
1. Disclosure of competing or conflicting interests All interests in relation to the coconut
industry should be disclosed to the Secretariat as a whole at the outset, or as early as
possible in the case of new or emerging ones.
2. Prohibitions The following practices are prohibited for Secretariat members and the
Secretariat as a whole:
a. Procurement from family or business associates Family and business associates
of Secretariat members must not be suppliers of services or goods to the Strategy or
the Secretariat, even if they are able to competitively provide them.
b. Use or divulgence of commercially sensitive information Commercially sensitive
information confidentially available to the Secretariat must not be used to
commercial advantage by members of the secretariat, either directly or via
associates or family.

3. Representations and announcements All communications with the media or official


communications with other sector actors should be conducted by the Chair of the SI
Coconut Secretariat or consistent with guidelines or decisions made by the Secretariat in
meeting.
4. That any member whose direct interest is to be discussed in the Secretariat meeting should
abstain from the meeting so as not to influence any decision by the committee.
5. Should any member be directly involved in a pilot project selected by the Secretariat, his or
her membership will be revoked and a replacement be made with a new member.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Annex 2: SICIS work plan


Vision
To have a modernized Coconut industry by 2020 that is able to contribute significantly to national peace,
unity and economic development for prosperity of our people.

Mission
To provide leadership, strategic oversight and management for the modernization and
diversification processes in the SI coconut industry.

To champion the coconut industry within SI government and to potential industry partners.

To model support effective sector governance by modelling responsible and effective behaviours
to stakeholders.

Objectives
1. Oversight of the effective execution of the Strategy, including as a priority Objective 1 of the
Strategy Implementation Plan.

2. Continuous strengthening of the secretariat in support of its mission.

3. Amendment, revisal and modification of the Strategy in light of industry development and
external factors.

4. Maintenance of strategic responsiveness to key stakeholders including SIG and industry.

Membership
Cornelius Donga (Chair) Ministry of Commerce, Industry, labour and Immigration
Alfred Ramo Commodity Export Marketing Authority
Jack Chottu Private Sector Farmer
Vernon Smith Private Sector Processor
Willie Tollie Private Sector Farmer
Stephenson Talogwari Ministry of Foreign Affairs
Titus Sura Ministry of Agriculture and Livestock
Representatives of Western, Guadalcanal and Malaita Province coconut committees.

Accountability relationships and reporting


SICS is ultimately accountable to the people of Solomon Islands who are part of the coconut industry.
The primary mechanisms for this accountability are through the elected government of the country and
through the organised stakeholders associated with the Strategy.
All specific reporting activities of the secretariat and substituent projects and programmes of the Strategy
are subject to this overall accountability pattern. As such, this pattern will be one of the main bases for
negotiating and implementing reporting requirements arising from partnerships under this Strategy.
Reporting will always be provided in the first instance to the Ministry of Commerce and the Provincial
committees.
At a minimum reports on activities, progress and challenges Solomon Islands Government via Ministry of
Commerce on a quarterly basis and as required by the Minister for Commerce.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Provincial coconut committees will be reported to on a monthly basis for activities directly targeted and
involving their provinces and as requested by committees. Quarterly reports will also copied to
committees.
Other supporting partners will be reported to as agreed and consistent with these guidelines.
Secretariat composition

Coordinator
The coordinator will be a senior, professional, full time appointment of the secretariat. For rapid
implementation, in the initial stages (up to end of Q2 2011), a 50% position may be considered in order
to ensure that high level capacity building abilities are available to support both the SICS and the office
manager positions.

Position purpose
Playing a coordinating role in the Strategy projects, activities and programmes through the facilitation of
reporting, overseeing implementation and channelling information to the SICS for appropriate and
effective decision making.

Reporting
The coordinator will report on a biweekly basis to the SICS or more often as required by circumstances.

Tasks
1. Institution of monitoring and reporting plans for all projects, programmes and activities of the
Strategy, including financial and performance aspects.

2. Preparation of internal reporting and other key information flows amongst Strategy components.

3. Weekly briefings (written always and verbal if required) to the SICS.

4. Validation of minutes kept by the Office manager.

5. Preparation of quarterly reports for validation and endorsement of SICS.

6. Oversight and weekly task planning of the office manager.

7. Maintenance of the consultants roster, oversight of all TA inputs and monitoring for satisfactory
capacity building outcomes.

8. Preparation of documentation supporting execution of the Implementation Plan (ie plan elements
to concept notes to TOR for designs)

Required attributes
1. Experience of project coordination in Solomon Islands

2. Full fluency in SI Pijin

3. Evidence of high degree of success at facilitation and support of of task forces and committees
in Solomon Islands

4. Demonstrated high level of analytic, presentation and writing skills (a presentation will be
required at the interview)

5. Tertiary qualification and at least 5 years experience in Solomon Islands or other Melanesian
country

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Office manager

Position purpose
Maintenance of an efficient and professional Secretariat office in support of overall Secretariat
effectiveness.

Reporting
The office manager will prepare a weekly operational report to the coordinator.

Tasks
1. Manning of the Secretariat office, including maintenance of daily communications via email,
phone and reception of visitors

2. Maintenance of meeting minutes and circulation of agendas of SICS.

3. Maintenance of regular information updates (bulletins, updates etc) to stakeholders via email or
print.

4. Liaison and logistical arrangements in support of SICS and Coordinator activities, including
travel, per diem, meeting catering, venue and other similar arrangements.

5. Maintenance of basic financial records and collation for reporting purposes.

Required attributes
1. 5 years experience in an office management role

2. Well presented with professional demeanour

3. Evidence of effectiveness at logistical arrangements

Management responsibilities
The Secretariat will be responsible for overall Strategy Implementation, according to the:
Implementation Plan

Substrategy streams

Implementation Activity types

SICIS Committee Implementation Plan


1. Create a Coconut Strategy implementation and coordination body that is self sustaining
by end 2011
Sub Objectives in the Implementation plan: Anticipated results from development
activities
Establish and develop an effective Secretariat operating by end of 2010, with
Coconut Secretariat with nation-wide Budget allocation for functioning the secretariat
legitimacy with the authority, budget and legitimacy to
represent the sector and implement strategy
Promote and communicate coconut sector Awareness raised to stakeholders on the
strategy with national and provincial coconut sector strategy
stakeholders
Establishment of effective partnerships with To establish coordination between implementing
important implementation partners partners on the implementation of the strategy

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 2: Consistently improve the quality of market, production and business feasibility
Information to enable stakeholders to effectively plan for sector diversification and development
Sub Objectives in the Implementation plan: Anticipated results from development
activities
Set up an efficient market Intelligence This will provide information on existing or
service and link potential buyers with potential markets and this information should
producers and processors help in the decision on what products to
produce, what quantity to produce who will
produce it.
Improve dissemination of information to all This will ensure strategy awareness and sector
stakeholders potential dissemination leading into increased
investment by private sector

Objective 3: Increase collection and supply of coconuts by 30% by 2012


Sub Objectives in the Implementation plan: Anticipated results from development
activities
Support commercially driven associations based We organise the farmers to be able to meet the
on farmer group common interests requirements and demand of the markets,
Coconut supply and consistency enables the
industry to grow.
Provide practical training to farmers to meet The farmers capacity to produce quality products
demand and quality will improve leading into increased revenue
Implement innovative pricing and bulking system This should enable farmers to participate in the
to boost collection and income price determining process. Farmers should not
just be price takers
Organise farmers based on production model Farmers should be able to better utilise existing
and market demand to expand or revitalise land and maximise their production and supply
their current plantation output. constraints will be resolved.
Devise and implement a supply-side research This will enable farmers to better plan their
and information programme to improve the production particularly to meet market demands
accuracy and coverage of information on the or the production of new products.
production base

Objective 4: Develop finance mechanisms to enable strategy implementation and investment by


all stakeholders by 2015
Sub Objectives in the Implementation plan: Anticipated results from development
activities
Undertake Financial needs and supply Government and Financial Institutions will have
assessment full knowledge of the financial needs across the
value chain. This will lead to improved finance
supply
Develop appropriate and adapted finance Farmers/associations should have more access
mechanisms targeting farmers through to finances enabling them to expand their
commercially driven associations operations.
Develop mechanism for provision of finance for Processors should have more access to finance
working capital and processing equipment. for sourcing, marketing and product
development
Investment promotion The coconut sector should be an attractive
sector for particularly foreign investment.
Mobilise Donor funding for strategy More donors should fund various sectors of the
implementation coconut sector and the strategy pilots will be
implemented.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Objective 5: Develop a coconut processing industry for value added and diversification of
coconut products by 2015
Sub Objectives in the Implementation plan: Anticipated results from development
activities
Develop appropriate product processing The participants at various levels of the products
technology and provide support to existing chain should be able to use the most appropriate
processors technology in terms of efficiency, costs and skills
requirements
Improve quality Testing and standards That products will meet the standards required
by markets
Institute learning and training processes for the The processing stage of the coconut industry
processing industry will expand

Objective 6: Improve support services to respond to sector needs by 2015


Sub Objectives in the Implementation plan: Anticipated results from development
activities
Align policy and regulatory framework and The sector should be operating with the support
Improve PPP of the government
Improve infrastructure (cost of energy, transport This should support the industry to function to
and communication) its full potential in the country

SICIS Committee Sub-strategy Streams


The role of Sub-strategy Streams:
Sub-strategy Streams map activities according to their input requirements so as to complement the
ObjectiveSub-objective-- Activity formulation which emphasises the linkage between activities and
outputs.
Implementation plan input side Implementation plan output side
Input Sub-strategy Sub-
Activity Activity Objective
requirement stream objective

The implementation plan is output based and comprises actions arranged by the objective they are
meant to fulfil. While this allows clear understanding of the intended results of activities, it does not clarify
the linkage between inputs required for successful activity completion. The capacities required for these
activities to be successfully completed will depend on the input requirements of the activities rather than
by the objective they are meant to serve.
Sub-strategies streams have been identified according to the type of activity, associated inputs and
required capacities, as well as likely implementation partner competencies. In this way, Sub-strategy
streams are a way to arrange activities according to what they will demand of the Secretariat
and Implementation partners, and provide an opportunity for the Committee to allocate its capacity in an
anticipatory way, so that:
a) Secretariat subsidiary bodies are formed and implementation partners engaged with on the basis
of their ongoing contribution to the programme, rather than on an activity by activity basis.

b) A strategic view is available, over the Strategy timespan, of capacity requirements and hence
capacity building needs. This will allow capacity outcomes to be more effectively evaluated in the
M&E process.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

c) Operating relationships between the Secretariat and implementation partners have the
opportunity to co-develop through a range of similar operational activities promoting stable and
efficient arrangements rather than repeated negotiation and exploration.

Description of Sub-strategy Streams


Proposed sub-strategy streams have been demarcated according to the technical competencies and
sector aspects that will need to be emphasized by activities. Six of these sub-strategy streams are
outlined in Table 1.

Table 8: proposed sub-strategy streams

IC Implementation coordination sub- Secretariat capacity development


strategy Legitimacy and support actions
Systems for management of TA
Purpose: Effective implementation of overall strategy Creation and maintenance of
partnerships with other entities
Policy dialogue
ID Information development sub- Information collection activities
strategy Research programmes
Internships, training and other actions
Purpose: Develop accurate information with good to build information capacity of sector
nationwide coverage on issues key to the Partnerships to achieve better
coconut industry renewal/revitalisation information
Creation/support of research
programme with local institutions
PO Producer organisation sub- Identification of priority producer
groups and units
strategy
Planning of interventions to assist in
Purpose: Facilitate organisation of producer entities so Farmer associations
as to enable improved production Area and province level association
development
PID Policy and institutional Policy development processes
development sub-strategy Donor engagement
Negotiation with banks etc
Purpose: Creation/transformation of institutions and Creation of sector wide strategy and
policies (both government and institutional policy for SIG endorsement
eg banks and donors) so as to enable Investment policy
effective support of the sector Creation and operation of funding
mechanisms
Creation of lab facilities in support of
production
MDP Market development and product Identification new products
identification sub-strategy Trade facilitation
Representation of COCOSI in trade
Purpose: Identify potential new products/markets with shows
viable demand and which are feasible for SI Scoping requirements and feasibility
producers to supply of new products

PT Production transformation sub- Development of infrastructure


strategy Introduction of new equipment and
capital
Purpose: Transformation of production chain in order Training in support of new production
to create new products in response to chains and processes
identified and desirable demand Institution of new market linkage
systems (information dissemination,
transport infrastructure, coordination
of inputs)

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Implementation arrangements for Sub-strategy Streams


The Terms of Reference for the Secretariat will provide for one subcommittee assigned responsibility to a
given Substrategy Stream. This assignment will comprise:
- Responsibility for particular actions and performance targets within the Implementation Plan
- Reporting requirements regarding performance, effect and projected resource envelope
- A workplan and resource allocation within the overall Implementation Plan, including an
allocation of TA

In responding to this assigned responsibility, the subcommittee or similar subsidiary body will have:
- A set of priority stakeholders to whom reporting is targeted
- One or more implementing partners with which they normally work and have an ongoing
relationship
- A set of key contacts within industry, government and donor
- A set of competency attributes to be developed and enhanced as a core output for any TA
4
assigned to assist them, with a Results Based component of the contract dependent on the
outcome of an annual Evaluation of subcommittee capacity.

SICIS Committee Implementation activity types


Five different types of Implementation activities will be managed by SICS. While sub-strategy streams
are topically defined (ie by the part of the sector dealt with or the technical nature of the work required),
implementation activity types are defined by the actor conducting the task. This typology provides
guidance on the implementation requirements determined by the actor involved with a task, rather than
the topical content of the task itself. Five types can be identified here:
1. Core SICS functions undertaken by the SICS staff or members

2. Contracted or purchased services

3. Partner operational contributions made available to the Strategy as part of normal


activities/resource of the partners.

4. Partner operational contributions which are mobilised from partners as an additional activity (e.g.
project or TA)

5. Other activities which do not fit into the above categories.

4
The results-based component of any TA contract will comprise not less than 20% of the contract, and be payable on a finding of
satisfactory capacity development outcome by the annual M&E process. This is one of three TA innovations within the
implementation plan; the other two being firstly the adoption of a local TA Roster capable of providing on call support to the
secretariat; and secondly the specification of an ongoing training programme for the Secretariat in programme management,
comprising both set modules and on demand ad hoc responses to need and inquiries.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Table 2 provides illustrations of each of the implementation activity types:

Table 9: Examples of implementation activities

Implementation Examples of this type of implementation activity


activity type
Core SICS functions Normal SICS activities
Coordination of activities
Members register
Stakeholder information
Market liaison
Policy advocacy
M&E for strategy
Facilities managed
Local TA facility and roster
On call support facility
Partners
Partner agreements
Potential partner register
Contracted or Projects
purchased projects or Eg: Pilot Quality improvement Pilot
services Eg: Production profiling Pilot
Programmes
Eg: provincial rehabilitation programme
Services
Eg: Training package for SICS members in SIG policy cycles and donor
methods
Eg Publication of brochures or leaflets for SICS dissemination
Partner operational Staff duties
contribution (normal Eg Ministry of Commerce staff duties allocated in support of SICS.
operations) Project cooperation
Eg Bureau of Social and Economic Reform (BSER) support of SICS
through project inclusion for donor negotiations.
Partner operational Project
contribution Eg: Donor funded pilot project or full sized project.
(additional operations) TA
Eg: Market opportunity identification by ITC consultant

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Figure 2: Example of matrix for mapping Implementation Activity Types to the Substrategy Streams

Sub-strategy Streams
MDP Market
Implementation IC developme PT
ID PID Policy and
activity type Implementati PO Producer nt and Production
Information institutional
on organisation product transformatio
development development
coordination identificatio n
n
Core SICIS Monthly Compilation of Monthly Preparation of Representati Hosting of
functions coordination quarterly newsletter to annual coconut on of SI production
meetings coconut export provincial strategy position coconut chain planning
statistics from committees document for industry at and scoping
CBSI policy processes regional workshop for
trade shows Malaita
Province.
Contracted or Training University or RTC Consultant ITC Solomon
purchased projects course fees for research contracted to contracted to draft commissioni Island firm
or services secretariat institute hold annual translation ng of funded under
members in contracted to producer document linking consultancy micro project
donor policy conduct planning Coconut Strategy to identify scheme to
and modalities coconut workshop for to policy platform lead buyers audit and trial
producer and Western of incoming for SI an organic oil
production Province administration coconut coir and copra
mapping of product cake scheme
Guadalcanal with Small
Malaita
Partner operational Integration of Monthly SIBC West Ministry of Inclusion of SICHE
contribution Coconut program on Guadalcanal Education and SICS and incorporation
(normal Strategy into coconut Coconut Human Resource strategy on of oil press
operations) World Coconut strategy Association Development investment maintenance
Day activities monthly page of module in
by CEMA meeting website of School of
promoting regional Industrial
SICS and trade Design
strategy promotion
organization

63
COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Partner operational Solomon Ministry of Ministry of Ministry of Solomon Commercial


contribution Islands Agriculture Commerce Education and coconut bank Coconut
(additional Chamber of extension project to Human Resource specific Loan Scheme
operations) Commerce service support development technical targeting copra
and Industry revitalization provincial assistance producers
coconut project funded coconut project by
investment under donor farmer regional
kiosk in 2011 bilateral secretariats technical
Trade Show program organization

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Annex 4: References
Asian Development Bank (ADB) Key Indicators of Developing Asia and Pacific Countries 2008.
All ACP Agricultural Commodities Programme Report of the Regional Consultative Kick-ff Workshop
Pacific-Region, 27-29 February 2008 Apia, Samoa.
Briguglio,L.(1995) Small Island Developing States and Their Economic Vulnerabilities. World
Development, 23 (9): 1615-32.
Coordination Unit, AACP Agricultural Commodities Poverty Profiles for the Pacific Region Countries,
February 2008.
Coordination Unit, AACP Agricultural Commodities Agricultural Activities for the Pacific Region
Countries, February 2008.
Coffee: Executive Brief, September 2008, http://agritrade.cta.int/en/content/view/full/2509.
ESCAP Economic and Social Survey of Asia and the Pacific 2008, Pacific Islands, Briefing Notes for
the Launch in Suva, March 2008.
Food and Agriculture Organization (FAO) Discussion Paper to United Nation Development Assistance
Framework (UNDAF) for the Pacifc Sub-region, 25 October 2007.
Food and Agriculture Organization (FAO) Tenth FAO Round Table Meeting For Pacific Island Countries
on WTO and Regional Trade Agreements an Provisions, Wellington, New, 17-21 September 2007.
Food and Agriculture Organization (FAO), The Impact of Policies on Household Livelihood and Food
Security, http://www.fao.org/docrep/003/X6092E/X6092e08.htm.
Food and Agriculture Organization (FAO) Regional Programme for Food Security (RPFS) in Member
Countries of the Pacific Island Forum May 2002.
Food and Agriculture Organization (FAO) Commodities and Trade Technical Paper #7, Small Island
Developing States Agricultural Production and Trade, Preferences and Policy,; 2005.
Fleming, Euan, (2005), Agricultural Productivity Change in Pacific Island Countries.
Fleming E. and Lummani, J., 2001. Technical efficiency of smallholder cocoa and copra producers in
Papua New Guinea, Occasional Paper7, ACIAR Project on Understanding the Smallholder Cocoa and
Coconut Sector in Papua New Guinea, Cocoa and Coconut Research Institute, Keravat.
Fiji Times Online- Fixing the copra industry; http;//www.fijitimes.com/story.aspx?id=107923.
Gujadhur, Shyam K. International Trade Centre; International Trade Forum; Influencing Market
Standards: A Voice for Developing Countries.
Hakin M A. (2004), Microcredit and Agriculture: How to make it work.
International Trade Centre/ UNCTAD/WTO/FAO Trade Opportunity Scan for the ACP Pacific Group of
Countries, February (2008).
Kirchbach, Friedrich von. Minouni, Mondher., (2003) - Market Access Barriers: A growing Issue for
Developing Country Exporters? International Trade Centre, International Trade Forum Issue
2/2003.
Lebot, Vincent. (2001), Export Diversification in Pacific Island Countries; The Development of Non-
Traditional Agricultural Products.
Mian-Ying, Wang. West Brett J. Jensen, Jarakae C. Nowicki, Diane. Chen SU, Palu K Afa. Anderson,
Gary. Morinda Citrifolia (Noni): A literature review and recent advances in Noni research, University of
Illinois College of Medicine, Department of Pathology.
McGregor, Andrew M. (2007), The Export of Horticultural and High-value Agricultural Products from the
Pacific Island, Pacific Economic Bulletin Volume 22 Number 3 October 2007.
Pacific 2020; Challenges and Opportunities for Growth May 2006.
Rao, Gyaneshwar. Lending Trends in the Sugar Cane Sector University of the South Pacific.
Sharma, K L. (2006) Food Security in the South Pacific Island Countries with Special Reference to the
Fiji Islands June 2006.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

Srivivasan, T.N (1986). The Costs and benefits of Being a Small, Remote, Island, Land Locked, or Mini
State Economy. Research Observer, 1 (2): 205-15.
SPC Land Resource Division http://www..spc.int/lrd/index.htm.
Taporaie, Amos Wama. UNCTAD, DITC, Commodities Branch, UNCTAD, Geneva; Pacific Island
Countries: commodity dependency, trade and development prospect.
Thornton, Pamela. The World Price of Cocoa.
Trade Competitiveness Map, http://www.intracen.org/appli/TradeCom.
US Department of State, Bureau of East Asian and Pacific Affairs, Background Note: Papua New
Guinea, http://www.state.gov/r/pa/ei/bgn/2797.htm.
World Bank; Regional Engagement Framework FY2006-2009 for Pacific Islands 2005.
World Bank and the Pacific Islands: (2008) Background information Note for the Pacific Kick-Off
Workshop of the All ACP Agricultural Commodities Programme (AAACP) Samoa, February 27-
29 2008.

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

National Coconut Strategic Coordinating Committee of Solomon Islands


National workshop
Heritage Park Hotel
Honiara
No. Name of Participants Sector Organization
1 Benjamin Faamauri Private Sector Place Makers Hardware
2 Joses Naumai Farmer Malaita Province
3 Augustine Rose State Owed Enterprise Commodities Exports Marketing Authority
4 Ezekiel Maeroa Farmer Aruligo Plantation
5 Noel Roposi Government Ministry of Agriculture and Live Stock
6 Nathniel Hamarasi Provincial Government Ministry of Agriculture Guadalcanal
Province
7 Jimi Saelea Government Ministry of Agriculture Research Division
8 Patteson Arish Mane Private Sector Segeo Primary Products
10 Allen Takanunu Provincial Representative Ministry of Agriculture Western Province
11 Iodine Panasasa Private Sector Western Province
12 Vincent Ganny Private Sector Western Province
Naxwell Qilapuda Private Sector Western Province
13 Belani Tekulu Private Sector Purple Investment
14 Gabriel Hiele Government Ministry of Agriculture RDP
15 Labu Toitona Provincial Representative Ministry of Agriculture Malaita Province
16 Jack Ooi Government Ministry of Foreign Affairs
17 Jack Chottu Farmer Guadalcanal province
18 Yannick Gueho Private Sector
19 Tele Barlett Private Sector Bulk Shop
20 Michale Hoota Government Ministry of Agriculture - Extension
21 Lawrence Kaoro Government Ministry of Agriculture Extension
22 Tony Uania Government Malaita Land Purchase Corporation Malaita
Province
23 Robert Kaua Provincial Government Malaita Province
24 Silas Talota Provincial Government Malaita Province
25 Rev. Micheal Maeliau Farmer Malaita Province
26 John Kwaita Private Sector El-Shadai Enterprises
27 Stephen Tolinao Private Sector Malaita Province
28 Cornelius Henson Government Agriculture Curriculum Development
29 Bevan Volrath Private Sector Solomon Tropical Products
30 Natalina Hong Government Ministry of Rural Development
31 Job Kabui Private Sector North Malaita Estate
32 Nichola Kaua Government Ministry of Planning
33 Moses Haganitoto Government Ministry of Planning
34 Leliana Feresua Private Sector Small and Medium Enterprises Development
Council
35 Moses Garu Government Ministry of Agriculture Planning
36 Eric Maefelo Government Ministry of Commerce FID
37 John Rohi Government Ministry of Finance and Treasury
38 John Roughphan Civil Society Solomon Islands Development Trust
39 Benjamin Inokuru Government Ministry of Commerce

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COCONUT SECTOR STRATEGY: SOLOMON ISLANDS

40 Joshua Bulolo Government Ministry of Rural Developemnt


41 Chris Resana Government Ministry of Rural Development
42 Frank Tabai Private Sector
43 Alan Agasi International Organization UNDP
44 Jacob Gala Government Ministry of Commerce
45 Stephenson Talawari Government Ministry of Foreign Affairs
46 John Halisi International Organization World Vision
47 Delmary Sonitavea
48 Ruth Moore Government Ministry of Finance and Treasury
49 Baranbas Anga Government Ministry of Commerce
50 Douglas Rika Private Sector Solomon Soaps Limited
51 Joseph P Hereoau Government Ministry of Commerce
52 Vernon Smith Private Sector Coconut Bio Energy Blue Lagoon Soaps
53 James K Faiau Political Representative Constitutional Development Officer
564 Titus Sura Government Ministry of Agriculture - Planning
55 Colin Dyer Private Sector Kokonut Pacific (SI)
56 Harry Aru Farmer Farmer
57 Patteson Siliota State Owned Enterprise Commodities Exports Marketing Authority
58 Schola Aitora Commodities Exports Marketing Authority
59 Alfred Maesulia Government Ministry of Agriculture
60 Cornelius Donga Government Ministry of Commerce
61 Dr. Judson Leafasia Government Ministry of Rural development
62 Edward Kingmele Government Ministry of Agriculture
63 Willie Toli Private Sector W & Enterprises
64 Frank Manioli Government Ministry of Agriculture and Lands

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