Indonesian coconuts crowd out local supplies


SM Amin

Indonesia is accused of dumping coconuts in the Malaysian market, leading to planter like Ismail in Bagan Datuk, Perak, dumping his crop. – The Malaysian Insight pic by Hasnoor Hussain, February 27, 2019.

COCONUT plantation smallholders are pleading with Putrajaya to control the number of imported fruits, as locals pick the cheaper Indonesian variety over the locally planted ones.

As a result, many have been forced to reduce their prices, even if it means making losses or risk having to dump their produce at plantations and warehouses.

Plantation owner Abdul Rahman Husin said Indonesian coconuts are currently selling at between 80 sen and RM1 a fruit, compared with the local fruits at RM1.20 and RM1.50.

“We’re left in a sad state because now, we have to bring down our prices to be the same as imported coconuts,” said the 45-year-old farmer from Sabak Bernam.

However, the cost of producing the coconuts, which Rahman said are of higher quality than the Indonesian version, remains high.

“Our coconuts are fresh and the coconut milk is fattier,” he said.

Rahman said in the past, the demand for local coconuts would peak during festive seasons but last year’s Hari Raya season was quiet.

“Last year, we had to throw away more than 10,000 coconuts which had gone bad. I lost between RM7,000 and RM8,000.”

Plantation owner Abdul Rahman Husin, 45, says last Raya, demand for coconut milk was so bad he had to destroy his stock. – The Malaysian Insight pic, February 27, 2019.

The glut of local coconuts, as consumers take to the cheaper Indonesian imports, has been blamed on a lack of policies to control pricing and the volume of imports, said the Consumers’ Association of Penang (CAP).

CAP president SM Mohamed Idris said figures from 2016 showed that Indonesia produced 183 million tonnes of coconut but only consumed 1.8 million tonnes domestically.

The remainder was exported, much of which went to Malaysia, he said.

Mohamed said Malaysia produced 646,932 tonnes of coconut in the same year and required only an additional 110,000 tonnes to meet local demand.

“It is very dangerous for the country to move ahead without a long-term plan, especially with regard to food security,” he said.

Lack of policy and aid

There are currently two species of coconuts cultivated in the country – the matag which has a shorter maturity period and the Malayan tall or tall coconut.

The matag coconuts can be harvested within two years, whereas the tall coconut species require at least four years before they reach maturity.

However, cultivating the matag coconuts require higher costs as they need greater care and larger amounts of pesticides and fertilisers.

Another smallholder, Mujahid Mokhtar, said many farmers are keen to switch to cultivating the matag coconuts but lacked the confidence as it required a higher capital.

The government should conduct training courses and equip the smallholders with knowledge required to plant the crops, he said.

Workers loading coconuts into a lorry at a plantation in Bagan Datuk, Perak. The fruits are sold to vendors who extract the milk. – The Malaysian Insight pic by Hasnoor Hussain, February 27, 2019.

Silver lining

While the oversupply of local coconuts has been a source of despair for local producers, Norismaliza Mad Ali, 32, said her coconut milk business has been a main beneficiary.

An oversupply of coconuts means cheaper prices.

“It’s great for us as we get them cheap,” she said.

“Apart from selling coconut milk, the coconuts are dried and the shells made into toasted shredded coconut.

“The fibre is made into sofa cushions. We diversify as much as we can to reduce the risk of losing money.”

However, she said the large numbers of discarded local coconuts are a waste and hopes the government will control the imports.

“It’s sad to see the state of the plantation owners, their earnings have now dropped so much.” – February 27, 2019.


Sign up or sign in here to comment.


Comments