CNMI can earn up to $12M from untapped coco-peat industry

03/17/25 - A privately owned global import manufacturer of high-quality coconut materials wants to export coconut peat from the CNMI and believes it could be an up to $12 million industry for the local economy. 

Coconut peat, which is also known as coir, is a material made from the fibrous husk of coconuts and is used by leading potting and gardening soil users, manufacturers, and distributors.

iCoir Product Group by Genius Industries, Inc. president David Shoup said raw as well as value-added coconut materials have rapidly become vital to U.S. agriculture sectors and that necessitated him visiting Saipan for 14 days from Feb. 15 to 28.

“As the popularity of coconut husk materials increased, commonly known as coco-peat, over the prior 15 years, poor material quality, price fixing, and racketeering among suppliers of West Asia have increased. To avoid the current price fixing, poor quality and racketeering, U.S. end-users and distributors are seeking to source coconut materials from Southeast Asia, where export laws are more friendly to U.S. coconut peat buyers. To meet current and future U.S. demands for the coconut substrate, U.S. buyers of coconut peat prefer first to source from U.S. suppliers as the Northern Mariana Islands under the protection of U.S. federal laws,” he said.

If it prospers, Shoup said they could possibly expand to Guam.

“The CNMI region is considered the project’s first phase region to scale coconut material production exports, before possibly including the Guam region, although, the known increase in rhinoceros coconut beetles is an export concern,” he said in an email.

During his visit to Saipan, Shoup—after the obligatory tour of the island’s war monuments and historical sites to familiarize himself with the island’s history, culture, and people—attended short meetings with Department of Commerce and Economic Recovery Corps representatives to learn about the U.S. territory’s coconut material export possibilities.

He also met with Department of Commerce Secretary Remedio C. Mafnas, Department of Lands and Natural Resources Secretary Sylvan Igisomar, Saipan Mayor’s Office staff, the Commonwealth Ports Authority, Division of Customs and Biosecurity, Sen. Corina Magofna, and representatives from the Kagman Agricultural Farms and Producers Association.  

“From the meetings, Sen. Magofna showed extreme interest in assisting iCoir with sponsoring iCoir with moving coconut exports forward for the citizens of the CNMI,” he said.  

As for the viability of the CNMI exporting coconut peat to the U.S., Shoup said a couple of things should first be accomplished.

“First, the citizens of the islands must decide if they approve of the import of raw coconut husk materials to the islands for processing, the growing of more coconut trees, the further processing of coconut materials on the islands, and export of value-added coconut materials that may forever increase CNMI forever exports many times. Second, through the initial efforts of Sen. Magofna, political groups must agree to join together to increase the wealth and livelihoods of the CNMI citizens related to coconut material exports.  

Shoup said iCoir Product Group, which enjoys over 10 issued U.S. and international coconut material process patents, over 10 trademarks, and manages many coconut material international supply chains, hopes to make the CNMI a partner in its search for a reliable supply of coconut peat, also shortened to coco-peat.

“The Northern Mariana Islands has huge wealth potential from coconut material exports ($6 million-$12 million annually initially) but it’s currently on hold. I met only one person on the island during my visit who understood that coco-peat existed and was manufacturing the material for their own use. Some compare the growth of the relatively new coco-peat supply industry of today equivalent to another California ‘Gold Rush,’ with little to no material standards, oversight or best practices to govern the new global industry. iCoir envisions the growth and popularity of the new coconut commodities long ago, thus, began developing new materials, material grade standards, and earth friendly manufacturing processes.”

Related to iCoir Product Group’s interest in CNMI coco-peat exports, he said iCoir should be granted permission to work with the CNMI to develop the islands’ coco-peat sales and exports or the alternative would be the company’s competitors, with much less customers and/or possibly low standards, will soon arrive seeking to enrich themselves from its earlier efforts.

“The government of the CNMI must work together politically at this point to work with iCoir and its buyers for the purpose of iCoir maintaining the highest standards and material repreparation for the CNMI, or possibly risk both from the start. The coco-peat industry is mostly nefarious at best, with suppliers seeking fast money over quality at the expense and reparation of the host country of origin. iCoir has found over 90% of suppliers it has inspected or examined to be producers of lower quality or even contained coco-peat materials. Inappropriate coco-peat materials may kill plants and/or pollute the environment.  

Concerning coco-peat suppliers to watch, Shoup said iCoir Product Group received an arbitration tribunal award in regard to contaminated coco-peat material of over $3million in December 2024.

Magofna, meanwhile, welcomed the interest of iCoir Product Group in developing the CNMI’s untapped coco-peat industry. 

“The viability of the export is dependent on the scale of the plan and sustainability of our natural resources and manpower. The investor met with relevant stakeholders to conclude the assessment and that’s the extent of my knowledge of his visit.

On the rhinoceros coconut beetle concern, Shoup said iCoir Product Group is equipped in dealing with the invasive species from its past experience.

“Understanding the rhinoceros coconut beetles are found in most parts of southern Asia, from India and the Maldives in the west to Myanmar, Thailand, Malaysia, Vietnam, and most parts of Indonesia, plus the Philippines, Taiwan and southern China in the east, all iCoir shipments undergo strict fumigation and other eradication methods to guard against the beetle and other insects. So far, the beetle has had little to no effect on iCoir’s coconut husk material production,” he said.

Besides, Shoup said since the rhinoceros coconut beetle mainly attacks a palm at the base of the fronds or leaves, where they attach to the growing trunk, the company’s interest being only on the coconuts themselves mitigates the risks greatly.

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Story by Mark Rabago