The paper highlights the continued decline in copra production due to the influence of compact revenues on employment and aggregate incomes leading to increased employment opportunities under various schemes, where incomes are attractive. As a strategic alternative, the Coconut Development Authority has developed several products as part of its product diversification programme including laundry soap, shampoo, suntan oil and skin care oil. The Authority also embarked on a programme to concentrate on edible sector and established its coconut Food Division to produce coconut jam, virgin oil, and coco cones from fresh coconut meal. Small scale industrial processing of these products has already started in August 2003. These products are selling well in the domestic market and prospects for overseas market are good. Another high value product in the pipeline is canned coconut milk. The paper cited lack of capital as the mam reason for not expanding production and markets for coconut products.