Kiribati Launches Virgin Coconut Oil Initiative to Strengthen Outer Island Livelihoods

September 4, 2026
Group of people standing on a decorated stage with green balloons and banners.

H.E. President Taneti Maamau (center) with government representatives and partners at the VCO initiative launch in Tarawa.

UNDP

Tarawa, Kiribati – The Government of Kiribati has launched a new initiative to boost production of virgin coconut oil from one of the country’s most important natural resources, with a focus on creating livelihoods and income opportunities for outer island communities.

The launch was attended by His Excellency Taneti Maamau, President of the Republic of Kiribati, alongside government representatives, community leaders and development partners.

Funded by the people and Government of India through the India-UN Development Partnership Fund, administered by the UN Office for South-South Cooperation, the US$900,000 Virgin Coconut Oil (VCO) for Outer Islands Income and Livelihoods in Kiribati Project will establish two climate-resilient processing facilities on Nonouti and Teraina and strengthen local skills to produce and market higher-value coconut products.

Coconuts have long been part of the economy, culture and everyday life of Kiribati. For many outer-island families, copra remains an important source of income. Yet high transport costs, limited processing equipment, technical capacity and access to reliable markets have constrained opportunities to process coconuts locally and grow local enterprises.

Woman in traditional dress with flower crown at a microphone podium on stage.

Hon. Tangariki Reete speaks at the launch of the VCO initiative

UNDP

Speaking at the launch, Minister for Tourism, Commerce, Industry and Cooperatives, Hon. Tangariki Reete, said the project supports Kiribati’s efforts to diversify its economy and strengthen the coconut sector.

“This project is part of translating key government policy documents into actions on the ground that are articulated in the Kiribati 20-Year Vision and the National Development Plan (2024–2027). The project’s contribution seeks to build a wealthy, healthy, and peaceful nation. Not only that but it also facilitates value addition and product diversification.”

She said capacity building and viable investment in the coconut industry remained a priority as Kiribati looks to diversify beyond copra and create greater value from the sector.

The new facilities will build on existing VCO processing centres in Abemama, Tabiteuea South and Butaritari, bringing the total in Kiribati to five.

Over 18 months, the project will strengthen skills in safe and high-quality VCO processing, train local trainers, build capacity to operate and maintain equipment, and support value addition, branding, packaging and market development.

Women and young people will be supported as producers, entrepreneurs, workers and leaders across the coconut value chain. The project will also promote community ownership, locally maintainable technology and climate-conscious practices to help sustain benefits beyond its lifespan. 

Photograph of a man wearing a flower garland, speaking at a podium with a blue banner behind.

H.E. Suneet Mehta, High Commissioner of India, delivers remarks at the launch

UNDP
Photograph of a man in a colorful shirt at a podium with a blue poster backdrop.

UNDP Pacific’s Patrick Tuimalealiifano speaks at the VCO project launch.

UNDP

High Commissioner of India, H.E. Suneet Mehta, said the project provides an opportunity for more of the economic value generated from coconuts to remain within Kiribati.

“By processing coconuts locally, a greater share of the value generated from this resource will remain within Kiribati. It will create opportunities for farmers and suppliers, small businesses, women and young people, and communities in the outer islands.”

“We believe that solutions work best when they are locally owned, locally managed and designed around local requirements.”

The project will also support knowledge exchange between India and Kiribati in areas including appropriate technology, value addition, quality standards and enterprise development.

UNDP Pacific Team Leader for Inclusive Growth, Patrick Tuimalealiifano, said ensuring the initiative responds to the priorities and realities of the two islands would be central to its success.

“Success will depend on sustained cooperation, from government, island councils, communities, producers, development partners and the private sector. It will also depend on listening carefully to the people of Nonouti and Teraina and ensuring that the facilities, training and business models respond to their needs and can be sustained locally.”

Implementation will be nationally led, with the Ministry of Tourism, Commerce, Industry and Cooperatives as the Implementing Partner and Kiribati Copra Development Limited providing technical support. UNDP will provide technical assistance, project assurance, fiduciary oversight and reporting support.

The initiative contributes to the Kiribati 20-Year Vision and National Development Plan 2024–2027, as well as national priorities to strengthen the coconut sector and expand opportunities for value addition.

For more information please contact:

Risiate Biudole, Communications Analyst, UNDP Pacific Office, risiate.biudole@undp.org