Competitiveness of Coconut Wine Value Chain in the Coconut Industry in Kenya

Abstract

The coconut palm (cocos nucifera) is known for two main products, i.e. the nuts and coconut wine or toddy. Unlike the other coconut products, coconut wine or toddy production is not driven by the number of coconut trees but by a deliberate business decision by the coconut farmer. The key products under the toddy value chain include fresh wine or coconut juice, fermented wine, coconut sugar, vinegar, etc. The coconut wine value chain in Kenya has been operating under inappropriate policy and institutional and legal framework, especially by classifying it as an illicit brew, despite it not being a brew but rather a harmless and natural coconut palm sap. These legality issues caused low level of toddy value addition business development resulting to insignificant processing capacity for coconut wine. So far, the revenue generated from the coconut wine value chain translates to over 60% of the coconut sub sector value.

Looking at the domestic beer market in Kenya, the current breweries cater for about 60% of it, leaving a whole 40% of the market in the hands of unscrupulous traders who sell health threatening alcoholic drinks that either kill them or make them blind. Scientific research has shown that, the Citrate-phosphate-dextrose solutions (cpds) in coconut wine are propanol, isoamyl, ethanol, butanol and acetic acid. Also, the volatile compounds (vola) levels are less than 600mg/l which is considered the threshold in wine. Coconut wine has no traces of methanol; hence it is very safe to drink. Coconut wine equally meets Kenya Bureau of Standards for Fortified wines, i.e. KS112:2007; Table wines, i.e. KS 05-609:1990 and Sparkling wines, i.e. KS 05-1121:1994. Coconut wine is therefore safe, suitable, and available and has the potential of taking care of the 40% of the Kenyan alcoholic beverages’ domestic market if well supported and developed.

Kenya Coconut Development Authority (KCDA) is the leading agent in the promotion and regulation of the coconut industry in Kenya. The Authority has put in place working systems for controlling and managing coconut wine business in consultation with County governments, Public health, Nacada and Kenya Bureau of Standards. It has also developed specific standards for toddy and set special bars called ‘Mangwe’ for coconut wine. These programmes are aimed at translating the coconut wine value chain into more tangible benefits in terms of direct and better incomes to the majority of Kenyans living within and without the coconut growing areas thus making the toddy value chain even more lucrative. Given this background, this discourse delves into issues, policies and programmes that if considered can propel the toddy value chain to great heights.

Key Words:

Kenya coconut wine value chain; toddy value addition; Kenya Coconut Development Authority (KCDA)