A SUCCESSFUL model of coconut processing is already established in Queensland and could be replicated in the Douglas Shire region.

The topic was a major talking point to come out of the local council election forums, with candidate Donna Graham calling for a feasibility study to be commissioned immediately.

Nature Pacific Pty Ltd, based near the Gold Coast, already own harvesting plants in Fiji and Banaba Island specialising in extra virgin coconut oil, while Canberra company Kokonut Pacific Pty Ltd has developed Direct Micro Expelling technology in the South Pacific for extracting coconut oil and other products.

Both are sourcing coconuts offshore, something Port Douglas doesn't have to consider given its reputation as the coconut capital of Australia with close to 12,000 palm trees in the region.

Graham said given corporate bases already existed it made sense to explore the option more thoroughly.

"We have the trees, we already have the coconuts, we don't even have to buy existing land straight away to plant coconut trees," Graham said.

"So all we're effectively doing is harvesting the existing coconuts that we have and given the volume there is no reason we can't start an industry relatively quickly."

Graham said identifying an appropriate location and building processing factory infrastructure should be easy considering models were already being used in Fiji and the South Pacific by island villages. There was also technology adopted in the USA to turn palm fronds into pulp, which is then used to make coconut wood.

"The trees are here, the coconuts that can be harvested are here, all we need is a block of land to establish a plant," she said.

"It's just a matter of the economics stacking up and that's the assessment that needs to be done."

With coconut oil being sold for $20 a litre, local businessmen John Sullivan agreed processing a range of coconut products should be explored.

"The coconut tree is known as the tree of life because basically everything can be harvested," Sullivan, of Hortulus Landscaping Design and Management, said.

"The entire tree is processable and there are some cottage industries that need investigating. We need local council to encourage more private business to explore a coconut industry and steps should be in place at a state and federal level to encourage niche products."

Sullivan said the bottling of coconut water and production of coconut rum were just some of the niche products to be capitalised. 

"Imagine our own rum being used at the new Hemingway's Brewery, it's local industry using local products," he said.

An estimated $200,000 a year is being used to de-nut trees in the region, money Graham said could go back into the Douglas Shire budget to help fund new projects.