Owing lo tardy growth in the production of coconut oil over the last three decades, it faces the threat of being edged out of the international market. Processing of high value products has often met with failure in many countries mostly because of incompabillty with the available local resources. Experience indicates that the location of small scale processing units in rural areas where raw material availability, labour and other requirements are not in short supply will be more appropriate than in organizing large processing units in or around metropolitan areas. While small producing countries in the Latin American and Caribbean benefit from the export of fresh nuts, the major producing countries have not tapped the existing potential. The prospects of producing and marketing of coconut based food products and beverages derived from the kernel, water and sap as well as shell based charcoal and coir products arc high. What is important is lo select processes appropriate lo local conditions and as such arc sustainable.