F&B giants kickstart industry’s first sustainable coconut charter

17 Nov 2020 --- Industry heavyweights including AAK, FrieslandCampina, Harmless Harvest Thailand, Nestlé and Unilever have joined Barry Callebaut to sign the coconut industry’s first sustainable coconut charter. 

With support from the United States Agency for International Development (USAID) Green Invest Asia, the charter aims to improve farmer livelihoods, lessen the carbon footprint of coconuts, prevent deforestation and boost supply to meet rising global demand.

“The US government prioritizes working through the private sector to catalyze market reform and reduce greenhouse gas emissions that warm our climate,” says Dr. Steven Olive, mission director of USAID’s Regional Development Mission for Asia.

“Guiding tools, such as this charter, create a landscape approach for sustainability in Asia. USAID stands ready to scale this initiative and look forward to more signatories joining,” he continues.

“The charter is an important milestone on the way to improving coconut cultivation and farmer livelihoods. I am pleased we have succeeded in bringing together key players and stakeholders at one table. This is a challenge that must be tackled together to be successful.”

Public-private partnership to implement the charter
The charter is implemented by a public-private partnership (PPP) between seven corporates Barry Callebaut, Bunge, FrieslandCampina, Jacobs Douwe Egberts, Procter and Gamble, and Nestlé.

The wide usage of coconuts in the F&B sector, alongside other industries, has driven rapid growth of the global coconut market. Meanwhile, GIZ (German Development Agency) will implement the charter to improve sustainability in the Philippines’ coconut supply chain.

Mathieu Chaumont, director of sourcing at Harmless Harvest, a US-headquartered company that sells organic coconut water, stresses that regenerative agriculture is needed to improve soil quality for coconut farming and combat global warming. 

Impact of potential supply chain disruptions
Coconut consumption continues to grow globally, increasing its profile as a safe food alternative, but year-on-year rising demand risks emptying shelves of hundreds of coconut and coconut-oil-based products. 

The wide usage of coconuts in the F&B sector, alongside other industries, has driven rapid growth of the global coconut market. 

“Any supply chain disruption could affect hundreds of products spanning food to pharmaceuticals,” Barry Callebaut underscores.

The new charter outlines focus areas, principles and sustainability program goals in coconut supply chains. It also aims to harmonize buyers’ requirements for supply chain partners.

Plant-based revolution fuels appetite for coconuts
In line with the “Plant-Forward” theme – a Top Trend for 2021 pegged by Innova Market Insights – coconuts have grown increasingly popular in plant-based formulations this year.

As coconut consumption rises in line with its diversification, environmental sustainability is not the only concern at the top of mind. Harmless Harvest announced its expansion with a full suite of plant-based coconut yogurt alternative products earlier this year. The products are marketed as rich in medium-chain triglycerides (MCTs) from coconuts, made using a traditional yogurt process to include live and active cultures for gut health.

Similarly, Danone released new plant-based versions for its Activia and Danio yogurt brands in the Netherlands last March, which include a coconut-based variety.

As coconut consumption rises in line with the diversification of this category, environmental sustainability is not the only concern at the top of mind. 

Thai supplier Theppadungporn Coconut Co., a manufacturer and distributor of Chaokoh coconut milk, recently signed a memorandum of understanding with local suppliers and farmers for monkey-free coconut cultivation.

Edited by Benjamin Ferrer