Economics and market potential of value-added products from coconut processing waste

Abstract:

The challenge of coconut processing waste is straightforward: roughly half the weight of every nut ends up as husks, shells, and water that most small processors simply discard. This research assessed the production economics and market potential of eight value-added products derived from coconut processing waste in Ben Tre and Tra Vinh provinces, Vietnam’s Mekong Delta, during 2022–24. Data were collected from 48 processing enterprises through structured interviews, supplemented by market surveys at 12 wholesale and retail outlets. Production costs, revenues, and benefit-cost ratios were calculated for each product. Virgin coconut oil generated the highest revenue (86.4 million VND t⁻¹) and the best B:C ratio (1.77), followed by coconut flour (B:C 1.71) and shell charcoal (B:C 1.60). Coir fiber and coir pith compost had moderate profitability but high production volumes. The combined market potential for all eight products was estimated at 2, 340 billion VND annually for the Mekong Delta region. Shell powder and coconut vinegar had the lowest B:C ratios (1.64 and 1.69, respectively) but showed growing export demand. These results indicate that integrated coconut waste valorization can generate substantial additional income for processing enterprises while reducing environmental waste.