On the fully automated production line in the sterile workshop of Hainan Dahaomai Food Company in Taling Industrial Park, located in Ding'an County, coconuts are split open by machines and coconut water is extracted for packaging.

"This batch of coconuts was shipped from Yangpu a few days ago. There are direct shipments from Indonesia to Hainan every week, so the supply of raw materials is guaranteed and our production lines are running at full capacity." Wan, marketing director at Dahaomai, said the company is very confident in increasing production and expanding their market share.

Hainan is China’s only major coconut producing area, and the coconut industry has had a foothold here for quite some time. In recent years, new products such as coconut water, coconut milk, and coconut chicken have emerged, further expanding China’s coconut consumer market. On the other hand, being conveniently near to ASEAN’s main coconut producing area, Hainan enjoys a significant location advantage. In addition, Hainan Free Trade Port policies such as duty free domestic sales of value-added processing products, zero tariffs on raw and auxiliary materials, and zero tariffs on equipment for internal company use continue to benefit companies, attracting FreeNow, MIXUE, and JOYVIO as well as many other companies to the province, furthering the transformation and improvement of the island’s coconut processing industry.

In November, 2024, a direct coconut shipping channel between Indonesia and Hainan was put into trial operation. In May 2025, a special line connecting Palu Port and Yangpu Port began weekly operation, creating a regular direct coconut ocean freight line. Through an innovative model combining government guidance, corporate transportation, and industry linkage, transportation time for raw coconut product materials was first shortened from forty to just eighteen days, then even further to the current seven days. The most recent single dedicated ship volume was 4,000 tons, setting a record and accelerating Hainan’s bid to become an ASEAN coconut industry hub.

Cui, general manager of Yaode Industry Hainan Company made some calculations: "In the past, purchases required forty days advance payment and were shipped through 5-8 transit ports, with loss rates of up to 8%. Now, direct shipments take just seven days, capital turnover time has been shortened to ten days, and the same amount of capital can be turned over four times in the same time period." According to Cui, current shipping times have stabilized at one shipment per week, and the per container coconut loss rate has dropped from 8% to less than 3%.

The efficiency of the direct shipments has also improved coconut freshness. Coconut water and pulp quality has been greatly improved compared to traditional shipping routes, helping the "Hainan Coconut" brand to become recognized as a high quality, stable, quality oriented option.

"Shorter shipping times give us confidence in making high-end products with zero additives." Wan noted that direct coconut shipments ensure the supply of raw materials, solve peer company raw material competition dilemmas, and improve the continuous operation rate of production lines. "Direct shipments shorten transportation time, greatly improving the freshness of coconut water and helping companies to develop high-end 'zero additive' products. This year, Dahaomai officially launched a new strategy, simultaneously promoting both a full online platform and brick-and-mortar chain system, resulting in an estimated annual sales volume of 20 million yuan".

Since 2022, coconut water, a natural electrolyte beverage, has benefited from a huge electrolyte beverage sales boom, but the quality of products on the market remains uneven. The regular operation of the direct coconut shipping route will provide support for Hainan companies in seizing the high ground of natural electrolyte beverage quality.

According to a representative from the direct shipping line operator, plans are in place to raise shipping capacity to 20,000 tons in July, while simultaneously opening a new direct route from Indonesia’s Pontianak Port to Hainan’s Yangpu Port. This will create a shipping network featuring the three Indonesian ports of Pontianak, Palembang, and Palu, further enhancing Hainan’s coconut industry supply chain security.

The direct two port shipping model takes advantage of Hainan’s location close to ASEAN, and provides strong support for enhancing the core competitiveness of Hainan's coconut industry.

Ma, deputy director of the Department of Agriculture and Rural Affairs of Hainan Province, said that Hainan will rely on a "national coconut advantage industry cluster" project to upgrade the coconut industry from "accelerated shipping" to a "full chain value-added" industry. Through improvements to the raw material supply system, enhancements to the value of the industrial chain, and strengthening the cluster effect, an integrated coconut "planting - processing - R&D - sales" industry ecosystem will be created, injecting new impetus into the development of the Hainan Free Trade Port.