ABSTRACT
This chapter discusses that Solomon Tropical Products Ltd. (STP) is the largest coconut oil producer and processor in the Solomon Islands, can be seen as a success, an evaluation that Bevan Vollrath shares. The different factors that contribute to that success are similar to the factors identified in other small island contexts: international connections, locally sourced material, island identity and branding, and government support. But STP also knows the challenges typical of small island businesses: high transportation costs, large distances to Asian and European markets, small profit margins, and vulnerability to external price shocks, as when the global diesel price fell as a result of the global financial crisis. While there is little to be done about structural disadvantages, there is nonetheless considerable potential for small island entrepreneurs in the biofuel sector. Indeed, biofuel is an important element of the move toward renewable energy, STP's is only one of several initiatives to use coconuts for transportation and power generation.
