Coconut Sector of Tonga: Scenario Analysis, Comparative Trade Dynamics, and Challenges Confronted

Abstract

Coconut economy of Tonga has been experiencing a crisis with respect to production sphere, palm senility, natural calamities, value addition, farm gate prices, stable domestic market, export orientation, stakeholder synergy and convergence. This is in contrast to the earlier scenario, way back in the 1970s through 1990s, during which coconut sector has dominated the export scenario in Tonga with copra making providing a robust livelihood security to the people. Above all, the emerging market and trade related challenges in the liberalized regime are difficult to cop up. On the other hand, coconut sector in Tonga still has the potential to provide year round security. There exists a fairly good domestic market for coconut and coconut products. The health benefits of coconut oil as cooking oil is popular by now. There is a potential to change the consumer perception in this regard and there by entering into a huge domestic segment. Similarly, by effectively popularizing the benefits of products like Virgin Coconut Oil (VCO), there is huge scope to enter into the segment of domestic health care. For the coconut sector of Tonga, we need to have a very well chalked out domestic market orientation coupled with a unique strategy to enter the niche export segments.