From Copra to Crops: World Bank Calls for Diversified Farming in Kiribati

For decades, Kiribati’s rural economy has revolved around copra, the dried meat of coconuts, which has become both a cultural symbol and a vital source of cash income on the Outer Islands. This dependence is reinforced by a generous government subsidy, originally introduced to encourage rural livelihoods and curb urban migration. Yet, as the World Bank’s New Sprouts report outlines, this model has reached a tipping point. The subsidy, which pays farmers up to four times the international copra price, consumes almost 10 percent of the national development budget and results in an estimated 2 percent annual loss of GDP. It has inadvertently discouraged food crop diversification, strained public finances, and diverted national attention away from pressing issues such as malnutrition, climate resilience, and gender inequality.

Malnutrition, Imported Diets, and Failing Food Systems

A deeper consequence of copra overdependence is the deterioration of dietary quality across the country. As local food systems weakened, traditional diets based on fish, taro, breadfruit, and pandanus were replaced with cheap, imported staples like rice, sugar, and instant noodles. These dietary shifts have taken a severe toll on public health. The report highlights that 15 percent of children under five are stunted, while an alarming 80 percent of adults are overweight, including over half of all women who are classified as obese. Non-communicable diseases (NCDs) such as diabetes and cardiovascular conditions now dominate the health landscape and account for high rates of premature death.

More than one-third of the population experiences food insecurity. In a country where food represents 60 percent of household spending, and where 70 percent of dietary energy comes from purchased food, the heavy reliance on global food markets leaves Kiribati vulnerable to price shocks and supply chain disruptions. The report emphasizes that nutritious, locally grown food remains too scarce and expensive for most families, especially those living outside the capital, South Tarawa.

Structural Barriers: Climate, Land, and Supply Chains

Efforts to revitalize food production are further impeded by a host of structural barriers. Kiribati’s atolls offer limited fertile land and are extremely vulnerable to saltwater intrusion, droughts, and rising seas. Freshwater scarcity is acute. Land tenure systems are complex, with 99 percent of land either under government ownership or customary control, and securing agricultural leases can take more than 500 days. These constraints limit the scope for scaling up farming operations.

Agricultural support services are similarly underdeveloped. While donor-funded projects have piloted successful interventions, including composting, climate-resilient crops, and regenerative techniques, these remain localized and small in scale. Farmers lack access to quality inputs, tools, and training, while public extension officers are underfunded and thinly spread across the islands.

Market linkages are also weak. Most fresh produce is sold informally through roadside stalls, with few organized markets and little access to institutional buyers like schools or hospitals. Middlemen, although vital to aggregating and transporting crops from remote islands, are often viewed with suspicion due to opaque pricing and inconsistent service. High transport costs, irregular shipping, poor port infrastructure, and limited cold storage all contribute to massive post-harvest losses, estimated at up to 30 percent for some crops. Financial exclusion compounds the problem, with just 15 percent of the population holding bank accounts and minimal access to credit for agriculture.

Reform Agenda: Reducing the Copra Subsidy and Diversifying Agriculture

The World Bank report proposes a sweeping reform agenda centered on four strategic pillars: reducing the copra subsidy, strengthening agriculture support services, improving food supply chains, and consolidating market demand. The first and most politically sensitive step is the gradual reduction of the copra subsidy, starting with islands better suited to diversification, those with more fertile land or proximity to South Tarawa. Fiscal savings from the subsidy cut could be redirected toward targeted cash transfers to protect vulnerable households, as well as investments in farming infrastructure, nurseries, and training.

Proven climate-smart farming techniques, such as those trialed by ACIAR and IFAD, should be scaled up. These include cultivating leafy green vegetables that thrive in alkaline soil, enhancing composting with coconut husks and seaweed, and promoting integrated pest management. Expanding livestock production, especially pigs and poultry, can meet market demand and supply manure for compost. To ensure adoption, community-wide training that integrates nutrition education is key.

A comprehensive food supply chain assessment is also vital. This would help identify market demand, price patterns, and opportunities for formalizing trade relationships between farmers, cooperatives, and institutions. Strengthening the role of middlemen through technical and business training could reduce losses and ensure more reliable delivery of fresh produce. Investment in port infrastructure and refrigerated transport would enable the movement of higher-value perishables like tomatoes and cucumbers from Outer Islands to the capital.

A Resilient, Inclusive, and Nutritious Future

Ultimately, the report envisions a food system that not only feeds the population more healthily and affordably but also boosts rural incomes and builds resilience to climate change. A shift from monoculture to diversified agriculture would open new employment avenues, empower women, and ease pressure on overcrowded urban areas. Institutional markets such as the School Lunch Program offer promising channels to stabilize demand and link local producers directly with public buyers.

While the challenges are steep, the path forward is clear. By redirecting incentives, improving infrastructure, and investing in knowledge and partnerships, Kiribati can cultivate a new agricultural era, one rooted in health, equity, and sustainability. As the title New Sprouts suggests, the seeds for transformation have already been planted. What’s needed now is bold leadership and coordinated action to help them grow.