Abstract:
The desiccated coconut industry is one of the main export-oriented food processing
industries in Sri Lanka. The European Union and the United States of America are the
main markets for Sri Lankan desiccated coconut, followed by countries like Canada, Asia,
and the Pacific Rim. The main objectives of this study were to identify the trade barriers
for exporting. This study utilized primary and secondary data. The primary data were
collected through a questionnaire-based survey, and the secondary data were gathered
from the reports of the Coconut Development Authority and also using the Trade Map.
The main export barriers under the main five categories were figured out through the
discussion with exporters, and officials of the Marketing Development and Research
Division of Coconut Development Authority. Accordingly, a questionnaire was
developed and 50 desiccated coconut exporting and manufacturing companies were
interviewed. Descriptive analysis and bivariate correlation analysis were done.
Descriptive analysis reveals that there are a high price and export volume fluctuation over
years and a variety of destinations that export desiccated coconut in Sri Lanka. According
to the correlation analysis, the resource barriers, product barriers, process barriers, and
market barriers showed a significant negative correlation with the average income,
whereas the knowledge barriers and market barriers show a positive significant
relationship with the average income. Further, the resource barriers and market barriers
were negatively correlated with the cost of production and the product barriers were
positively correlated. Based on the findings, the government should intervene in
providing technical knowledge and trade facilitation to improve production.
Keywords: Desiccated coconut, Trade barriers, Export market, Sri Lanka
