The paper describes the coconut based activities of the Producers Organization Project, POPACA where coconut smallholders’ livelihood may be improved through increased cash incomes, improved net prices for their coconut products and better market access. POPACA is a rural development Project funded jointly by the European Union (EU) under the 8 th European Development Fund (EDF), and the Government of the Republic of France (GoF). The Government of Vanuatu (GoV) contributes to the project through the provision of local staff and office facilities. POPACA is currently undertaking specific product development program namely coconut oil, cocoa, coffee, roots and tubes and spices. The importance of copra to rural livelihood and the Vanuatu economy has made POPACA to implement a relevant and viable copra/coconut oil development program. The program comprises a number of components including small coconut oil bio-fuel pilot project, copra drier improvement program and copra quality information and training. The involvement of private sector in the program is being initiated with suitable partners.