The 7,182 tons of dried coconut produced for fiscal year 2008, which ended September 30, is only the third time since records began being kept in 1951 that Marshall Islands copra makers have passed the 7,000-ton mark.
Local officials said the combination of high world market prices coupled with improving outer island government shipping service generated the high production. But the copra mill operator is concerned that it may be forced to reduce the price paid early next year, which could lead to lower production levels.
This past year was the third highest 12-month total ever behind 1970 (7,348 tons) and 1995 (7,728 tons), reported the Tobolar Copra Processing Authority.
A year ago, the copra mill was paying 15 cents a pound for copra, but that was increased to 22 cents earlier this year.
The two top-producing atolls are Arno, which accounted for 1,141 tons, and Ailinglaplap, close behind at 1,109 tons.
The national government provided a $1.2 million subsidy in FY2008 to the copra mill to help keep prices high, but dropped the amount to $500,000 for fiscal year 2009, which started October 1.
Jerry Kramer, CEO of Pacific International Inc., which operates the Tobolar mill for the government, expressed concern that the combination of the recent world market price decline for coconut oil coupled with the lower government subsidy may force the mill to drop the price paid to Marshalls copra makers early next year.
