An Evaluation of the Relative Profitability of Coconut Farming in Guyana

This study examined the average profitability of coconut farming in Guyana, as this is a major crop associated with agricultural diversification and improving the level of food security in Guyana, both through the provision of income for improved access to food for farmers, as well as providing food products for the Guyanese households. The main objective of the study was to compare the average profitability of the two main producing agro-climatic zones of Guyana the coastal area or Regions versus the riverain or Pomeroon area (in Region 2). The study also sought to discover the factors that determine the average profitability of the coconut farming. Primary data were collected from 201 coconut producers from the two major producing areas. A regression model was used to discover the factors that significantly determine the profit per acre of coconut farming. The results indicated that the variety of coconut grown and the total labour cost were the most significant variables in determining the average profitability of coconut production. The age of the farmer and his/her educational level also tended to affect the average profitability of the farms. The Chow test carried out indicated a structural difference between the two areas of coconut production with respect to the average profitability of coconut production, whereby the tall variety of coconut was present on a significantly greater number of farms in the Coastal area, than in the Pomeroon area, which had farms with higher average profitability and dwarf varieties. These dwarf varieties allowed a wider range of coconut products including coconut water. These results help to explain the developments in the coconut industry in Guyana where the Pomeroon is now touted to become “the coconut capital of Guyana”, and coconut water the “national drink”.