Maximizing sustainability of value added coconut sector with respect to the activated carbon industry in Sri Lanka
Abstract
Coconut sector serves the local consumption through its produce and also forms the giant supply base for numerous industries. The highly demanded value added coconut products have potential for bringing in high export earnings to the country. This potential of coconut products must be exploited fully in order to sustain the value chain of coconut, which would otherwise be replaced eventually with some less value adding sector. Activated carbon, which is a bi-product of coconut, in the value chain of coconut sector has high value adding capability to the coconut shell. The research explores whether the full potential for activated carbon industry is utilized, by analyzing the current status of activated carbon industry in Sri Lanka and the gaps perceived in the social, environmental and economic domains. These gaps have been brought to light as economic values starting from the macroeconomic level to the grass root functioning level. The analysis was carried out separately under the two key areas of utilization of coconut shells and processing of coconut shells into activated carbon. These are the critical areas of concern in the industry. Thereafter, an integrated model of social, economic and environmental factors is proposed which incorporates solutions to fill the identified gaps, and cascade down to four action levels, namely, Strategic, Managerial, Operational and Functional levels.
Primary data was collected using purposive sampling using questionnaires for carbon manufacturers and Coconut Development Authority (Coconut Development Authority) and field visits to gather qualitative data, basically to gain access to qualitative data. Secondary data was gathered through the monthly reports, records and publications of the Coconut Development Authority and Coconut Research Institute, Company annual reports, Sustainability reports, Research articles, and websites.
The findings indicated that the activated carbon industry in Sri Lanka does not utilize its full potential in resource consumption and bi-product processing and hence the sustainability is threatened. The proposed recommendations to ensure sustainability include strengthening the supplier-manufacturer links, economical usage of shells through improved networks and regional processing of shells to charcoal, being farmer-centric by offering reasonable prices and sharing the economic benefit with the community.