Coconut occupies over 20 per cent of the cultivated land area in the Pacific Islands. Over 80 per cent of farm households in the South Pacific are directly or indirectly engaged in its cultivation, em­ ploying over 25 per cent of the rural work-force. However, its pro­ duction is likely to decline by the year 2000 due to harsh environ­ mental condition, poor remuneration and unstable international mar­ kets. But prices of related coconut products are likely to improve mar­ ginally, given a reduction in competition from other oils through prod­ uct development and differentiation. Aggressive campaign by coco­ nut producers to defuse misleading propaganda against coconut products could improve coconut image to consumers and enhance its markets overseas. Major consumers should be made aware of coconut nutritional superiority despite adverse campaign by pro­ ducers of other edible oils. Intensive research in this regard is desir­ able. The viability of the coconut industry, especially in the Pacific, will also depend on new research activities directed at improving the production systems, adoption of new technology, coupled with appropriate supportive government policies.