This document discusses potential value-added products from coconuts and summarizes representative project profiles. It outlines existing major coconut products like coconut oil and desiccated coconut that are already used to make value-added products commercially. Newly emerging products discussed include coconut chips, cream, milk powder, soft cheese, and yogurt. It also discusses wet processing techniques developed since the 1970s to produce high quality coconut oil, protein, and flour from fresh coconut. The document concludes that while some products are already commercially produced, others require further work to establish markets and identify favorable production locations through pilot plants.
Original Description:
Potential Value-Added Products and Uses of coconut
This document discusses potential value-added products from coconuts and summarizes representative project profiles. It outlines existing major coconut products like coconut oil and desiccated coconut that are already used to make value-added products commercially. Newly emerging products discussed include coconut chips, cream, milk powder, soft cheese, and yogurt. It also discusses wet processing techniques developed since the 1970s to produce high quality coconut oil, protein, and flour from fresh coconut. The document concludes that while some products are already commercially produced, others require further work to establish markets and identify favorable production locations through pilot plants.
This document discusses potential value-added products from coconuts and summarizes representative project profiles. It outlines existing major coconut products like coconut oil and desiccated coconut that are already used to make value-added products commercially. Newly emerging products discussed include coconut chips, cream, milk powder, soft cheese, and yogurt. It also discusses wet processing techniques developed since the 1970s to produce high quality coconut oil, protein, and flour from fresh coconut. The document concludes that while some products are already commercially produced, others require further work to establish markets and identify favorable production locations through pilot plants.
Marketable coconut products and summary of representative project
profiles/opportunity T. K. G. Ranasinghe UNIDO Consultant and Managing Director, Techno Consult (PVT) Ltd, Colombo Sri Lanka Introduction The main commercial product from the coconut palm is copra. Coconut oil which is derived from copra, has fetched poor prices in the international market during the past two decades, owing to the gradual decline in vegetable oil prices in real terms. There has been rapid increases in productivity in oil palm and soybean production, whilst productivity in coconut production has stagnated or declined. This situation has seriously affected the viability of coconut production. For those in remote islands of the major coconut producers in Asia, and those in the Pacific, rising transport costs to marketing centers have further eroded farm gate prices, and their economic survival is a matter of great concern. One way to overcome this problem is to diversify the coconut industry and process other products for both the domestic and export markets. Products for the domestic market would serve a useful purpose, as it could be an affordable source of food and nutrition intake, or other non-food uses for the population. Products meant for the export market would be able to generate high unit prices, due to their high value-added properties. Marketable coconut products There are two broad categories of marketable products; value-added products from existing major products, and newly emerging value-added products from basic components of the fruit and other parts. These are listed below. Products from existing major products From coconut oil Soap perfumed with locally extracted fragrances Body oil perfumed with locally extracted fragrances Hair oil perfumed with locally extracted fragrances Such products are already commercially available in several Asian and Pacific countries. The market is for hotels, tourists and local population. The industry is of small-scale and simple technology, not warranting further consideration in this paper. From desiccated coconut Desiccated coconut in consumer packs Sweetened coconut Toasted coconut Creamed coconut The first product above does not need any further consideration as this is simple for the manufacturer of desiccated coconut. Filling the consumer pack is done immediately after processing, instead of filling the bulk pack. The next three products were originally processed in the UK and USA from desiccated coconut imported in bulk packs. Some of the desiccated coconut manufacturers (large and small-scale) in the Philippines and Sri Lanka process these products in a separate unit adjacent to the main process area. A high level of hygiene and professional management is necessary to meet the food standards of the confectionery and bakery industry. Profiles/ opportunities for these latter three products are given in Annex 1. Newly emerging products Kernel-based products Coconut chips Coconut chips or thin slices are a snack item. Originally, this snack item was made from special cuts of desiccated coconut by toasting, salting and vacuum packing in cans. This is still being done by desiccated coconut manufacturers for the local and export markets. They are sold in tourist areas such as in Hawaii, and in the Caribbean. Annex 2 provides a profile for coconut chips manufacture at the household level, which can be upgraded to a small- scale industry. This scale of manufacture is appropriate for countries that do not have desiccated coconut factories. Coconut cream This is being produced on a commercial scale since the early 1980s in several Asian and Pacific countries. The local market in any coconut producing country is limited because of the ready availability of fresh coconuts, and hence, this is mainly an export item. There are several techniques developed for the manufacture of cream, and various capacities too. The author has selected for this paper, a simple process without secondary extraction, but with commercially existing unit operations. Annex 3 has the profile for coconut cream manufacture. Five other commercially operating processes are described in the UNIDO/ APCC Coconut Processing Technology Information Documents (1980) - Part 5 titled, 'Domestic Coconut Food Processes'. Coconut milk powder This is a spray dried instant coconut milk powder, similar to dairy milk powder. It is packed in triple laminate pouches and has a shelf life of 12 to 24 months. This product is being made in the Philippines, Sri Lanka and Malaysia, and plans are underway to produce it in Singapore and Indonesia. The extraction of coconut milk for conversion into powder is the same as for coconut cream (milk). After adding certain ingredients, the coconut milk is concentrated and spray dried as in dairy industry. Annex 4 provides a profile of the product made in Sri Lanka by Nestle under the brand name 'Maggi'. White soft coconut cheese White soft cheese has been made using skim cow milk extended with coconut milk, at the Institute of Food Science and Technology, University of Philippines, Los Baos, Laguna. This is an important development as it is a new use for coconut, and the importation of cow milk for making white soft cheese can be reduced. Finally, a low cost nutritious food can be made available in rural coconut producing areas. Commercial production of this product should be investigated and commenced if found viable. Annex 5 provides a profile for this product. Coconut yoghurt Similarly, yoghurt has been made using skim cow milk extended with coconut milk, at the Institute of Food Science and Technology, University of Philippines, Los Baos, Laguna. This is a significant development as it is a new use for coconut, and the importation of cow milk for making yoghurt can be reduced. Finally, a low cost nutritious food can be made available in rural coconut producing areas. Commercial production of this product should be investigated and commenced if found viable. Annex 6 provides a profile for this product. Wet processing Coconut oil is commercially obtained by crushing copra whereas, the traditional method still existing in rural areas is to gently heat coconut milk to evaporate the water. Based on this traditional wet process (starting with wet kernel), several technically feasible processes have been developed since the 1920s. High quality oil and residue (or residue further processed into protein and flour) are of edible grade, whilst copra cake is of animal food grade. With the adverse effects of malnutrition from protein deficiency, and the worsening food situation in developing countries, diversification of the coconut industry for high quality oil, protein and other by-products for edible purposes has become increasingly more important. Since the 1970s, there have been five major developments in wet processing. These are the processes by TPI, Hagenmaier, Alfa Laval, Fairchild and Biotropic. No commercialization has taken place mainly for want of appropriate markets for the new products. Markets need to be established. Critical factors that facilitate commercial viability at selected locations need to be identified. Thereafter, prefeasibility and feasibility studies have to be carried out before investments are made. All these activities have not taken place. There appear to be too many uncertainties. An alternative approach is to put together whatever technical information that is available, evaluate and select an appropriate technology, and then set up a pilot plant at a suitable location with a view to giving the wet process the last chance to diversify the coconut industry. This naturally requires grant funds for the studies involved, investment and operating costs for about five years. I would like this workshop to consider this idea. Annex 7 provides brief profiles for the five major wet processes developed during the last 25 years. Conclusions The marketable coconut products derived from major products such as coconut oil and desiccated coconut are already commercially produced in various countries. They can be established in other areas if found to be viable. Some newly emerging products (chips, cream, milk powder) have also been manufactured commercially in the last few years, and can be established elsewhere if found to be viable. Other newly emerging products (soft cheese, yoghurt, wet processing products - high quality oil, protein, flour, etc.) require establishment of markets, and identification of favourable factors at various locations for viability. These altogether need a new approach, by setting up pilot plants possibly with grant funds. References Alfa Laval. 1990. Opportunities for future diversification of the coconut industry, by Leufstedt G. Olagineux 45(11):505-510. Banzon, J. A. 1978. Reconstitution of milk, using coconut milk and non-fat dry milk. PJCS 3(2):l-8. Dulay, T. A. 1980. Laboratory Manual in Dairy Science, 135. Dairy Training and Research Institute, U.P. Los Baos College, Laguna, Philippines. 99 pp. Hagenmaier. 1980. Coconut Aqueous Processing. Revised 2 nd edition. University of San Carlos Publications, Cebu City, Philippines. Kosikowski, F. 1971. Cheese and Fermented Cheese Products. 2 nd edition. Edwards Brothers Inc, Ann Arbor, Michigan, USA. Sanchez, P. C. and E. Rasco. 1983. Coconut in white soft cheese. PJCS 8(1&2):18-24. Sanchez, P. C. and E. Rasco. 1984. Coconut milk in yoghurt manufacture. PJCS 9(1&2):42- 50. TPI. 1973. Development of a Wet Coconut Process Designed to Extract Protein and Oil from Fresh Coconut (G 78). Natural Resources Institute, UK. UNIDO/APCC. 1980. Coconut Processing Technology Information Documents - Part 5 "Domestic Coconut Food Processes". United Nations Industrial Development Organisation, Vienna, Austria. Woodroof, J. G. 1979. Coconuts: Production, Processing Products, 2 nd edition. The AVI Publishing Co. Inc., Westport, Connecticut. Annex 1. Profiles/opportunities for sweetened coconut, toasted coconut and creamed coconut Source: Woodroof J. G. (1979) Desiccated Sweetened Toasted Creamed 1 Product specifications (percent composition compared-with dc) Moisture 2.5 11.5 0.5 1.5 Fat 66.0 39.0 46.5 65.8 coco solids not fat 31.5 20.0 22.5 na Added sugars 0 27.7 30.0 0 Propylerie glycol 0 2.0 0 0 Salt 0 0.5 0.5 0 Stabilizer 0 0 0 3.0 2 Pack size 50 kg 100 lb 50,25,10 lb 50 lb na 3 Packing material 4 ply kraft paper bag + polyliner corrugated box + polyliner corrugated box + polyliner na 4 Main uses topping marshmallows chocolate pieces biscuit sandwich filling cookie dough
5 Process mix with powdered sugar, propylene glycol mix with powdered sugar, dextrose salt milled, stabilized chilled, whipped with nitrogen
salt & moisture 6 Equipment tumbling mixer tumbling mixer, endless belt oven na 7 Equipment cost na na na 8 Capacity na na na 9 Project cost na na na 10 Return on investment na na na
Annex 2. Profile/opportunity for coconut chips Source: UNIDO/APCC (1980) 1 Product specifications Made from pure coconut with added flavours. Moisture content 3.0% max 2 Pack size na 3 Packing material Cans or triple laminated pouches 4 Main uses Snack item 5 Process The coconuts are cracked and water drained out. The halves are baked in an oven at 176C for 15 to 30 minutes until the kernel is easily released from the shell. After cooling, the kernel halves are pared to remove the testa, sliced with a potato peeler and then soaked in solution of the desired flavour. The concentration and soaking time for the flavours are; salt-2% solution for 2 hours, barbecue 4% solution for 2 hours, and sugar-50% solution for 4 minutes. The proportion by weight of soaking solution to sliced kernel is 2:1. After soaking, the solution is allowed to drain in a colander for 20 minutes. The slices are thinly spread on trays and placed in an oven preheated to 300C. Drying and toasting is about 30 minutes, when the chips turn golden brown colour. After cooling for 10 minutes, it is packed warm inside triple laminated packs, sealed and labelled. 6 Equipment Baking oven, potato peeler, mixing bowl, colander, ladle, baking trays. 7 Equipment cost US$ 600 (approx.) 8 Capacity 6 coconuts per batch of 1 kg chips 9 Project cost na 10 Return on investment na
Annex 3. Profile/opportunity for coconut cream Source: Process selected by author based on commercially operating unit operations. Five other processes described in UNIDO/APCC (1980). 1 Product specifications Made from pure coconut, with added water for processing, and approved emulsifier. Fat content 18% minimum. (Products in the market have 10 to 80% whereas undiluted cream has about 38%) 2 Pack size 400 ml 3 Packing material Cans internally lacquered or enamelled, usually 6 months shelf life for export. 4 Main uses Traditional food preparations such as meat, chicken, fish, seafood, sauces, salads, curries, island baking, desserts, ice cream, cakes, candies, cookies, and cocktails etc. 5 Process Mature freshly husked coconuts are hatcheted, pared and cut open to release water, and washed. The kernel is sterilized in a boiling water bath for 90 seconds, and conveyed to a grinder/disintegrator. The ground kernel is placed in woven plastic bags and pressed hydraulically to collect the cream in stainless steel vessels. The cream is filtered and pumped into the pasteurization vessel and an approved emulsifier/stabilizer is gradually added. Water is added (1:1) and stirred thoroughly whilst heating with steam. Pasteurizing is done at 80C for 6 minutes, homogenized, and filled into cans by machine, while still hot. Seamed cans are retorted at 121C (11 psi steam pressure) for 45 minutes, and cooled with water. 6 Equipment Wet section equipment, sterilizer, grinder, hydraulic press, pasteurizer, homogenizer, filling machine, seamer, autoclave, etc. 7 Equipment cost US$ 400 000 (approx) 8 Capacity 14 000 coconuts per 8 hours - 8600 cans 9 Project cost US$ 600 000 (approx) 10 Return on investment 30 to 40%
Annex 4. Profile/opportunity for coconut milk powder Source: Specifications as appearing on the product. 1 Product specifications (per cent average composition) Varies but following applies to Maggi brand made in Sri Lanka by Nestle. Ingredients: coconut milk solids, malto-dextrin, sodium caseinate, trisodium phosphate. No preservatives and artificial flavours). Coconut fat 64.8 Carbohydrates 25.2 Protein 6.8 Minerals (ash) 1.7 Moisture 1.5 Energy value 711 kcal/100 g 2 Pack size 300 g, equivalent to 7 coconuts 3 Packing material Triple laminated pouch with outer paper carton, 24 months shelf life. 4 Main uses Export and domestic (urban) market for traditional food preparations as with coconut milk or cream (see Annex 3) 5 Process The extraction of coconut milk is as in coconut cream (milk) processing. To the milk are added malto-dextrin, sodium caseinate and trisodium phosphate. These additives, particularly sodium caseinate holds the fat when dried or else, fat globules will be formed due to the very high fat content. The milk is spray dried as in the dairy industry. 6 Equipment Wet section equipment, sterilizer grinder, hydraulic press, blending vessels, spray drier, form fill and seal machine. 7 Equipment cost na 8 Capacity na 9 Project cost na 10 Return on investment na
Annex 5. Profile/opportunity for white soft coconut cheese Sources: Banzon, J. A. (1978); Dulay, T. A. (1980); Sanchez and Rasco (1983) 1 Product specifications na (could be as for ordinary cheese) 2 Pack size na (could be as for ordinary cheese) 3 Packing material na (could be as for ordinary cheese) 4 Main uses Low-cost cheese (highly nutritious food) in rural coconut producing areas. 5 Process Husked coconuts were submerged in a 500 ppm solution of sodium hypochlorite for 1 hour and drained, split open, and grated. Grated kernel was hand pressed through cheese cloth, without addition of water. Reconstitution of skim milk with coconut milk was based on the beverage type formulation of Banzon (1978). The reconstituted milk was processed into white soft cheese according to the method of Dulay (1980). Previously boiled and cooled water (84%) at 72C is added to coconut milk with constant stirring. At 60C, skim milk is added in small quantities, and cooled to 40C, after which, 10% by weight of starter, and 0.1% by weight of aqueous solution of 25% calcium chloride are added. This is allowed to stand for 15 minutes and 3% by weight of salt is added, filtered through cheese cloth, pasteurized at 72C for 5 minutes and cooled immediately to 10C using ice cold water. Now, 3% by weight of rennet is added, stirred, and left undisturbed for 30 minutes for coagulation. Cut the curd, mix for 5 minutes and pour into cheese moulds. The cheese is allowed to remain overnight at 5C, and packed. This was developed by Sanchez and Rasco (1983). 6 Equipment na 7 Equipment cost and other information na
Annex 6. Profile/opportunity for coconut yoghurt Sources: Banzon, J. A. (1978); Kosikowski, F. (1971); Sanchez and Rasco (1984) 1 Product specifications na (important parameters such as pH, acidity as % lactic acid, and viscosity are considered comparable to high quality yoghurt). 2 Pack size na (could be as for ordinary yoghurt) 3 Packing material na (could be as for ordinary yoghurt) 4 Main uses Low cost yoghurt (highly nutritious food) in rural coconut producing areas. 5 Process Reconstitution of non-fat dry milk was based on the beverage type reconstituted milk formula of Banzon (1978). In this formulation, coconut milk provides 100% of fat and the main source of protein is non-fat dry milk. The coconut milk contributes 7.0% of the weight of the reconstituted milk, the non-fat dry milk 9.0%, and the balance of 84% is water. In the preparation of yoghurt, the method of Kosikowski (1971) was modified by substituting coconut milk in the formulation as above. The milk base was pasteurized at 85C for 20 minutes, and innoculated with 1.5% S. thermophilus culture 30 minutes prior to the addition of 1.5% L. bulgaricus. This development for the manufacture of yoghurt is based on the work of Sanchez and Rasco (1984). 6 Equipment na 7 Equipment cost na 8 Capacity na 9 Project cost na 10 Return on investment na
Annex 7. Profile/opportunity for coconut wet processing Sources: TPI (1973); Hagenmaier (1980); Alfa Laval (1990) PROCESS TPI Hagenmaier Alfalaval Fairchild 1 Biotropic 2
1 Products oil protein or other oil protein skim milk c water ORS 3
oil cream c water oil meal products oil other 2 Main uses Direct use of high quality oil in food applications without refining saves costs and saves vitamin E. Protein to enrich bread and other food, particularly in rural areas. 3 Equipment Food grade (stainless steel) typically dairy standard, and continuous processing. Some have aseptic packaging and UHT. 4 Equipment cost About US$ 400 000 to 1 000 000 5 Capacity na 6 Project cost na 7 Return on investment na 1 E Bradley Fairchild Ltd. P O Box 21252, Seattle, WA 98111-3252, USA. 2 Biotropic, Parc Agropolis - Bat 1 et. 2, 2214 bd de la Lironde, 34980 Montferrier - sur - Lez, France. 3 Oral rehydration solution. On-farm production and utilization of coconut products P.K. Thampan President, Peekay Tree Crops Development Foundation, Kerala, India Introduction Conversion of coconut into copra is the most popular on-farm processing activity in the coconut growing countries. While it is possible to produce diverse products from coconut, the farmers, in general, have not adopted the known technologies at the farm level. The small size of coconut farms, lack of appropriate technologies for small-scale processing and inadequate marketing support are the major factors which stand in the way of efficient utilization of coconut products at the primary level. Nevertheless, it is possible to promote on-farm utilization of selected products, the processing of which does not require the application of complex technologies. Among the varied products of coconut palm, a few need no processing but only marketing support whereas the others have to be processed before reaching the consumers. As most of the products and by-products are amenable to primary processing at the farm level, it is feasible even for small farmers to undertake the required processing. When such activities become popular, the coconut-based economy of millions of small-scale farmers as well as the competitive strength of the coconut industry would show perceptible improvement. In some coconut growing countries the on-farm utilization of products like husk, midribs, inflorescence sap etc. has become very popular in which the family members are directly involved in deriving socioeconomic benefits through cooperative endeavour. Institutional support is provided in some countries to promote the marketing of tender coconut. Similar support is also available in the production and marketing of edible quality dried kernel and other miscellaneous products of daily use. In this paper the discussion is focused on products other than milling copra which are amenable to on-farm processing and local marketing both at the individual and community levels as demonstrated in some of the major coconut growing countries. Utilization of husk The utilization of coconut husk for conversion into coir and coir products is yet to develop on a commercial scale in many coconut growing countries. In India and Sri Lanka the production of coir and coir products is well developed and the related industrial activities provide income and employment to coconut farmers and others. In Kerala, India, coir industry sustains the livelihood security of nearly half a million people with women workers forming the predominant group. The coir products enjoy both domestic and export demand and in most cases the coconut farmers are directly involved in the processing at the primary stage. With proper utilization of coconut husk, the coconut farmers in all the producing countries could augment the farm level income and employment. In Kerala both the farmers and private processors are associated with the coir industry. The farmers make use of the husks becoming available at each harvest for retting and fibre extraction. It is also a practice to dispose of the husks to private processors either before or after retting. Likewise, some farmers have on-farm facilities for spinning the fibre into yarn while others dispose of the fibre extracted after retting to private processors who in turn produce coir yarn in yards maintained by them. The coir yarn produced in the villages is procured by private traders for selling at terminal markets within and outside the state. The coir yarn as well as fibre traded at different levels are further processed into different coir products in the industrial units operating mainly in the private sector. To safeguard the interests of the workers and to sustain a viable coir industry, cooperative endeavour has been promoted in Kerala. A large number of coir cooperatives has been organized at the primary level with facilities for retting husk, fibre extraction and spinning. The primary coir cooperatives are affiliated to state level Federation which has marketing network for domestic marketing and for export trade. In the state, 14 important varieties of coir yarn are being produced for further processing and marketing. The principal end uses of coir yarn are for the manufacture of mattings, rugs, carpets, cordages, ropes, fishing nets, etc. The fibre, especially that obtained from unretted husk, finds many uses in the making of utility articles and in the transport industry. In places where labour is scarce, it is possible to introduce mechanical devices for the extraction of fibre and for the spinning of coir yarn. While retted husks are used for manual extraction of fibre, both unretted and partially retted husks are utilized in mechanical extraction. Likewise, spinning of coir yarn is done both manually and mechanically. Hand spinning is the most common method of manual operation which is done at the household level by women during their leisure time. One worker produces 2 to 2.5 kg of 2-ply yarn per day with each piece measuring 6 to 18 m long. The hand spun yarn is soft and has uniformity of twist and thickness. Wheel spinning and machine spinning are the mechanical methods adopted for the making of coir yarn. In the traditional mechanical spinning three workers are required to operate the spinning unit at a time. The normal output is 1500 m to 1600 m of coir yarn per day. The motorized spinning device is more efficient which requires only one operator with an output of 2400m of coir yarn in a shift of 8 hours. Depending on the local situation any spinning method could be adopted. The production of coir fibre and other coir products offers possibilities for augmenting the income of coconut farmers. Products such as fibre, coir yarn, ropes, etc. could be made at the household and community levels, and marketed locally. When coir products are manufactured and marketed on an organized scale, the coconut based economy of the producing countries will show improvement and stability. Consumer articles from mid-ribs of coconut leaflets The mid-ribs of coconut leaflets are being utilized on a commercial scale for making brooms and toothpicks in some parts of India. While the preliminary processing is done as a household activity of coconut farmers, the final shaping and marketing of the products are handled at the community level. The products are brought to the assembling markets, shaped to serve the different purposes and marketed through established channels by farmers' cooperatives or other local organizations. Though the utilization of mid-ribs is not a widespread commercial activity, some of the traditional centres of production are reputed for the bulk supplies of brooms in the country. In India, the demand for brooms made from mid-ribs of coconut leaflets is on the increase especially for the regular sweeping and cleaning work in cities and other municipal areas. At present, these brooms are in short supply mainly because the production in households is usually meant for the domestic purpose only. The only alternative to coconut brooms for large-scale cleaning purpose is rattan and/or bamboo-based brooms. The alternatives are now not preferred because of the dwindling natural resources as a result of habitat destruction and over exploitation. In this situation the utilization of the midribs of coconut leaflets on a commercial scale is an attractive proposition to augment the farm level economy of coconut farmers. The farm level production has to be supported at the community level by creating facilities like assembling centres and marketing networks for local as well as external sales. Coconut-based brooms and tooth picks have the potential to become preferred consumer products globally. Coconut sugar The production of coconut sugar is a traditional processing activity involving no sophisticated technology. In countries where it has developed, the production an d marketing are well organized in the cooperative sector. In India the processing is concentrated in some parts of Tamil Nadu state where it is a household activity. In most cases, the gardens are leased out for tapping to self-employed workers who along with their families reside in the respective farms during the lease period which normally does not exceed one year. One tapper usually covers 50-60 short and medium statured palms daily both in the morning and evening. The processing of sap into sugar is handled and controlled by women members of the respective families up to the marketing stage. The sugar produced in each family is procured by the primary sugar marketing societies which operate in the area. The primary societies market the produce through the cooperative marketing Federation to which they are affiliated. The produce is sold by the Federation in public auction at regular intervals. Apart from the solid palm sugar, another useful product that is produced at the farm level in some parts of India is treacle or sugar syrup. The syrup, a golden coloured product, is a delicacy and is in demand for use as a bread spread in place of fruit jam and as a sweetening agent for special breakfast dishes. Sugar production from coconut palm is labour intensive requiring not much of capital investment. At the community and household levels it could generate additional income and employment to a sizeable section of the rural population in the coconut growing countries. It is possible to provide training facilities to selected village youth for palm climbing, tapping and manufacture of sugar. When the production is organized in the cooperative sector, adequate quality control could be enforced at different stages such as collection of sap, assembling, boiling and conversion into pellets, cubes, crystalline sugar, etc. Apex organizations may undertake procurement of sugar from the production centres and its packaging and marketing in the domestic and export markets. The experience in countries like India, Indonesia, Thailand, etc. is that assigning palms for sugar production is much more profitable to the farmers than allowing to yield nuts. In Indonesia farmers are encouraged to leave 30% of the palms for sugar production. It is possible to assign trees both for tapping and nut production. This is done by tapping only alternate spathes or by restricting tapping to six months so that fruit production is possible during the remaining months of the year. In the Philippines, it has been shown that the same spathe could be used for the production of both sap and nut by tapping only half the length and leaving the lower half for nut production. The observations made in India and other countries show that 20-25% of the palms in each garden could be earmarked for tapping without causing significant reduction in the annual production of coconut from such gardens. On-farm production of sugar from coconut sap has both social and economic advantages. Under normal farming conditions, 50-60 coconut palms do not require more than 90 man- days for annual maintenance. On the other hand, the same number of palms when utilized for tapping and sugar production will provide full time employment to one tapper and one or two women members of the family. Economically, palms assigned to tapping generate 20- 25% more income than when they are maintained for nut production besides producing higher yield during the post tapping period. In general, the farmers set apart only medium yielding palms for tapping. In India, the average yield of toddy from such palms is around 300 litres over a tapping period of six months. There are palms which have the intrinsic ability to yield much more quantity of toddy giving an average sugar recovery of 15-16%. Such palms could be identified and utilized for evolving special types for tapping purposes. Utilization of coconut water In all the coconut growing countries vinegar is commonly used as a food preservative. In many household food preparations, vinegar forms an essential additive. As such, it has an expanding consumer demand. In the households, as well as in the organized food sector, the preference is for natural vinegar. Utilization of coconut water for vinegar production, therefore, has potential for development as a profitable processing venture. The processing could be promoted both at the household and community levels. Low cost technology for the quick processing of coconut water into vinegar is readily available. There will also be no difficulty in marketing the product in the local as well as external markets. At the community level the processing could be linked with copra making so that the coconut water becoming available in bulk is made use of without being wasted. Apart from marketing the vinegar produced at the community level, infrastructure could also be created to extend marketing support to the individual farmers who have set up on-farm processing units. By making use of coconut water to produce vinegar, the farm level economy of the farmers will show significant improvement. Another processing activity that offers promise is the production of nata-de-coco from coconut water and/or coconut milk. The processing could be organized at the community level with the individual farmers producing raw nata and the community level organization undertaking the procurement and its marketing in the local and external markets. As both raw and processed nata enjoy a growing demand, organized production and marketing under the aegis of farmers' cooperatives or other forms of organization are dependable means of increasing household income and employment of coconut farmers. Utilization of tender coconut Promoting the use of tender coconut as a source of health drink and nutritious food will open up new opportunities for improving the profitability of coconut farming. People in both the coconut producing and non-producing countries are becoming more and more health conscious and are inclined towards consuming natural products instead of synthetic ones. This changing outlook of the consumers is a positive feature to be taken advantage of by coconut farmers. The experience in India is that harvesting at tendernut stage induces higher productivity of palms. This is due to the surplus assimilates becoming available for new fruit bunches. Apart from the higher production, the farmers get better income from the practice than when harvests are restricted to mature nuts. Not only is the price of tender coconut more or less the same as that of mature nut but the harvesting is also possible at shorter intervals. The handling and marketing of tendernuts could be organized at the community level under the aegis of farmers' organizations. It is possible to collect tender coconut from individual gardens for organized marketing in the local and distant markets. While fresh nuts could be marketed locally without quality deterioration, for distant markets it would be necessary to introduce special storage and transporting arrangements in order to maintain the freshness. One method to popularize the local consumption of fresh tender coconut is to encourage individuals as well as organizations to open tender coconut stalls similar to fruit stalls. Fresh tender coconut, when made available in such stalls, will attract potential consumers and the demand would slowly increase. Along with tender coconut, it is also possible to introduce a special health drink prepared by blend mixing the gelatinous kernel and nut water. This is a very tasty and wholesome drink with a whitish appearance, viscous consistency and a nutty flavour and could be served either as such or after sweetening. The availability of large number of tender coconut stalls at different centres in the coconut producing countries would encourage the consumption of natural drink and food among the local people, thereby, creating a steady demand for tender coconut benefiting the coconut farmers. As the water and gelatinous kernel of tender coconut are to be consumed in the natural form, the enlightened consumers may show preference to nuts produced organically. It is not difficult to maintain coconut palms set apart for tendernut production without using inorganic inputs. There will be no decline in productivity under organic management as is evident from the performance of gardens maintained by enterprising farmers in some states in India. The quality of water and kernel of tender coconut show wide intercultivar variation. Some cultivars are known to produce good quality tender coconut characterized by having a high content of total sugars in the water and tasty kernel. Such cultivars could be identified and multiplied for raising gardens as source of good quality tendernuts. Utilization of ripe kernel Among the different kernel products, one product that could be produced at the farm level is edible copra in the forms of ball and cup. In some states in India, the farmers produce ball copra by storing fully ripe whole nuts at each harvest on raised platform erected within the house or in a separate shed until the nut water is completely absorbed and the kernel becomes dry and detaches itself from the shell. At this stage, the nut is dehusked and the loosened kernel is taken out in the ball form after carefully breaking and removing the shell. This practice is prevalent among the different categories of farmers, whether small or large, as it is possible to store any number of nuts at a time depending on availability of space and facility for storing in the household. The farmers take the edible ball copra at frequent intervals to the nearby regulated market centres where the produce is disposed of in recognized grades at prices determined in public auction for each grade. Edible cup copra is also produced by following careful drying methods. In India edible copra enjoys a price premium of 10-15% over the milling quality copra. It enjoys good market demand for edible uses in households and organized food sector. There are also processing units where the edible copra is converted into chips for special end uses. The production of edible forms of copra could also be encouraged in other coconut growing countries where it has not yet become popular among the farmers. One advantage with this line of activity is that even very small farmers can adopt it without incurring expenditure on processing. For erecting raised platform for storing the nuts, the materials available on the farm itself would be adequate. When the production is supported at the community level by creating facilities for collecting the product from the participating farmers and its grading and marketing from a central place, the farmers will benefit from remunerative prices and a steady consumer demand. At the community level, it is also possible to produce value-added products such as chips, ground flour, etc. tailored to special end use requirement. In some countries kernel chips are produced by slicing the wet kernel into thin, even sized pieces and toasting under controlled temperature. Both salted and sweetened chips are produced depending on local demand for use as snack food. The product is marketed in moisture proof containers. It is not difficult to organize this as a household activity under the aegis of farmers' cooperatives. The edible ball copra is also a good material for producing kernel chips. Conclusion Coconut palm offers many possibilities which can be utilized for augmenting the farm level income of coconut farmers. Apart from producing milling copra, other diverse products could be produced by the farmers by adopting simple technologies. The on-farm utilization of coconut for such purposes will be effective when organized under the aegis of farmers' cooperatives or other forms of organizational set up. This approach is essential to provide marketing support and other essential services to the farmers which alone will sustain their interest in the activities undertaken. Research and development efforts are also needed to identify and popularize coconut cultivars for specific purposes. Potential of value-added products from coconut for the South Pacific Priscilla C, Sanchez Professor, Institute of Food Science and Technology, University of the Philippines, Laguna, Philippines Introduction Research and development efforts in the diversified utilization of coconut during the past decades achieved numerous viable processing technologies. In spite of these achievements, the coconut industry in the producing countries is still highly dependent on the production and marketing of traditional products such as copra and coconut oil (Banzon et al. 1990). This situation contributed to the main problem of the coconut industry, that is the low returns from coconut farming. Continuous effort must therefore be directed to new sources of income through product diversification and improved product quality with emphasis on market-oriented technologies. Complementary to this is the need to focus attention on sustained efforts for enhancing coconut production coupled with aggressive marketing strategies. When these activities are realized then positive growth of the coconut- producing areas can be achieved thus improving the livelihood of the many small farm holders, the main component of the coconut sector. It is timely that coconut producing areas in the South Pacific concentrate in product improvement, development and diversification through the introduction of value-added products and market promotion of these products. Industry situation Coconut remains to be a subsistence crop in the South Pacific. It is part of their daily life such that every inhabitant practically grew up with it. Coconut production is dominantly based on smallholdings and beset with problems of low productivity and steady decline in hectarage (Banzon and Velasco 1982). In spite of these problems, the coconut industry still remains and plays an important role as source of foreign exchange, income and employment and play an influential part in their social and cultural heritage. Coconut is mostly consumed domestically as tendernuts for drinking and mature nuts for culinary, social and religious purposes. A small percentage of the production is converted into commercial products such as copra and coconut oil. Product diversification have been attempted in some Pacific countries. For instance, in Fiji and Papua New Guinea, soap, detergents, activated carbon (from shell), coir, desiccated coconut, coconut cream and frozen coconut meat have been produced (De Silva 1989). However, due to lack of organized promotion and marketing of the products, high cost of production and poor quality, they were not able to compete with other producing countries. Strategy for diversification The high dependence on copra as the single main product can be attributed to the lack of skills and technical know-how in processing non-traditional coconut products in a production scale suited for the conditions in the South Pacific countries. Furthermore, the potential for production and marketing of high-value coconut products in the South Pacific is hindered by political and institutional problems, lack of information on market opportunities, poorly packaged and substandard products and lack of promotion programmes (De Silva 1989; Ilala 1989; Nanpei 1989; Nganga 1989; Opio 1989; Deo 1991). Due to the nature of the coconut industry, village-level production of non-traditional coconut products is deemed well suited for in the South Pacific. This will offer new opportunities in terms of value-added products, livelihood generation, expanded markets, more nutritious food in the coconut farming communities as well as for general domestic consumption. Most of the non-traditional products that can be considered are relatively new and some are already existing in the market (Sanchez 1993). Therefore, tapping the full economic potentials of these products need careful study. First, suitable and appropriate technologies that have the potential of developing into viable industries for each country must be selected, taking into consideration the better exploitation of the coconut resources to meet particular market needs. A marketing, technical, financial and management pre-feasibility appraisal should be undertaken to come up with a short list of viable products prioritized according to profitability and market size. Specifically, the information needed should consist of project pre-feasibilities of selected commercially viable, non-traditional coconut products that will identify the markets, define the processes, and other technical requirements. It should prescribe the type of management/operation appropriate for each product and determine the investment requirements and profitability of each product. It is also essential that detailed consumer surveys be carried out to identify consumer preference on specific product. Domestic consumption must first be taken into consideration before embarking on the export market where competition is already quite high. Secondly, the next phase of the activity should involve the actual implementation of the production of prioritized products. Implementation in this case may come in the form of pilot- testing or extensive implementation by coconut farming communities and organizations. In order to operationalize these strategies, there should be effective technology transfer wherein the cooperatives or farmers' organizations would be the ultimate beneficiaries. Efforts must therefore be geared on the formation of cooperatives/organizations that will harness and motivate the direct involvement of the farmers themselves. Utilization of the farmers' time through product diversification and by-product processing will bring down product cost thus contributing significantly towards price competitiveness. The proposed concept is shown in Fig. 1. Several farmers' cooperatives/organizations will be established and be located in the coconut production areas for accessibility of the raw materials and lessening the transport cost (Chinte 1996). Members of cooperatives/organizations will undergo rigid training on value formation, cooperativism and processing of the desired products. These aspects on training will be coordinated by the Federation of Cooperatives whose members are the primary cooperatives in the area. The technology generators from outside the South Pacific Region will be tapped for effective transfer of technology. Likewise, the Federation will be responsible for the financial aspects by facilitating loans or grants from the banks and other financial sources; for the quality control of the product to satisfy the specifications of the market; for packaging the products to have attractive representation and longer shelf-life; and finally take charge of the market promotion and trading aspects. Upgrading existing technologies and adoption of new processes for coconut diversification are faced with numerous difficulties (Patterson and Hyman 1991). The coconut producing areas in the South Pacific need to establish strong bonds of cooperation to strengthen their bargaining power against producers in other countries. They should encourage research and development as well as information sharing, enhance market development and promotion and make special agreement for raw material sourcing and trading. The ultimate objective of all these is to improve the productivity of the coconut farms that will translate to income and employment opportunities. Village-level production Non-traditional products derived from coconut have been developed to diversify its utilization and produce high-value products as shown in Table 1 (Sanchez 1992). Some of these products could be manufactured at village-level requiring less sophisticated and relatively cheap equipment. Some viable products from the wet processing of coconut have been selected to illustrate the full utilization of the mature nut. The coconut milk extracted from the meat is converted either into nata de coco, coconut-filled white soft cheese, coco yoghurt, and coco jam. The residue is manufactured into coco brittle or coco flour that can be used as replacement for wheat flour (10-20%) in bakery products. The coconut water on the other hand, is processed either into carbonated and non-carbonated beverages, vinegar and alcoholic beverages. The husk and shell can be simply used as fuel during the processing of the different products. Nata de coco is a popular product worldwide due to its food and industrial applications. It is the cellulosic substance form by Acetobacter aceti subsp. xylinum on the surface of coconut milk or coconut water medium supplemented with nutrients (Sanchez 1990c). Coco-filled white soft cheese is a nutritious product used as filling for bread or as snack food. It is made from 60% pure coconut milk and 40% non-fat dry milk (NFDM) through the action of selected strains of lactic acid bacteria (Sanchez 1990b). The product is comparable to the soft cheese made from 100% cow's milk in chemical composition, flavour, aroma, texture and general acceptability. Coco yoghurt is a healthful product consisting of 3.21% protein, 2.50% fat and 6.30% solid non-fat (SNF) (Sanchez 1990d). It is easily digested and assimilated by the body. It is produced through lactic acid fermentation on the mixture containing 50% pure coconut milk and 50% NFDM. Coco water beverage can be processed into carbonated or non-carbonated drinks. It contains the essential nutrients present in the coconut water. Coco water vinegar is a natural product resulting from the alcoholic and acetous fermentation of sugar-enriched coconut water. It contains 3-4% acetic acid and is used as an indispensable commodity in any household (Sanchez 1990a). Coco brittle is a product from fresh coconut residue. It is a popular snack food among school children due to its sweet taste and crunchy texture. Based on the data obtained by actual processing of these products by cooperatives and family business in the Philippines, the economic return analysis at village-level was made in the manner that the same number of coconut was used in the processing of the different products for comparison purposes (Sanchez 1993). Furthermore, the assumption in the calculation of the cost of production is that the facilities and equipment are existing. The cost of production of the different selected products are presented as follows: nata de coco in Table 2 and its expected net income based on percentage recovery (Table 3); coconut-filled white soft cheese in Table 4; coco yoghurt in Table 5; coco water beverage in Table 6; coco brittle in Table 7; coco water vinegar in Table 8; and coco jam in Table 9. The economic analysis indicated that processing of all the products were profitable. The cost and return analysis of the different products produced from the same number of nuts (4368 pcs.) showed that the net income (US$ 3211.24) obtained from nata de coco was the highest (Table 10). This is followed by processing nuts into coco-filled white soft cheese (US$ 1360.58), coco yoghurt (US$ 952.64), coco water beverage (US$ 411.62), coco brittle (US$ 336.87), coco water vinegar (US$ 314.44) and coco jam (US$ 252.21). In order to realize the full benefits from the utilization of the coconut, an integrated processing system is highly recommended. This approach will also maximize the use of the facilities, result in the full utilization of farm labour, production of varied products and solve the environmental problems that could be brought about by the waste by-products if not utilized fully. Table 11 shows the benefits derived from the integrated processing of coconut. The net income ranges from US$ 903.52 (Scheme VIII, coco jam + coco water vinegar + coco brittle) to US$ 3959.73 (Scheme I, nata de coco + coco water beverages + coco brittle). Finally, with the new range of coconut products available for adoption, the challenge lies with the South Pacific countries to translate this into the diversified value-added products from coconut that should help improve the economic life of their people. References Banzon, J. A. and J. Velasco. 1982. Coconut Production and Utilization. Philippine Coconut Research and Development Foundation, Inc. Publication, Manila, Philippines. Banzon, J. A., O.N. Gonzalez, S.Y. De Leon and PC. Sanchez. 1990. Coconut as Food. Philippine Coconut Research and Development Foundation, Inc. Publication, Manila, Philippines. Chinte, C. T. 1996. Technology transfer and entrepreneurship - The cooperative way. Presented at the Philippine Coconut Authority In-house Review, June 17-19, 1992, San Ramon Research Center, Zamboanga City. De Silva, N. T. M. H. 1989. Coconut Industry in Papua New Guinea. Asian and Pacific Coconut Community Publication, Jakarta, Indonesia. Deo, I. 1991. Coconut Industry in Fiji. Asian and Pacific Coconut Community Publication, Jakarta, Indonesia. Ilala, S. 1989. Coconut Industry in Solomon Islands. Asian and Pacific Coconut Community Publication, Jakarta, Indonesia. Nanpei, N.O. 1989. Coconut Industry in Federated States of Micronesia. Asian and Pacific Coconut Community Publication, Jakarta, Indonesia. Nganga, M. 1989. Coconut Industry in Vanuatu. Asian and Pacific Coconut Community Publication, Jakarta, Indonesia. Opio, F. 1989. Coconut Industry in Western Samoa. Asian and Pacific Coconut Community Publication, Jakarta, Indonesia. Patterson, G. W. and E. L. Hyman. 1991. New approaches for developing small and medium scale coconut processing enterprises: Experience in the Philippines and the South Pacific. Presented at COCOTECH Meeting/Conference of the Asian and Pacific Coconut Community, July 22-26, 1991, Suva, Fiji. Sanchez, PC. 1990a. Vinegar. Pp. 151-161 in Coconut as Food, Philippine Coconut Research and Development Foundation, Inc. Publication, Manila, Philippines. Sanchez, P.C. 1990b. Cheese. Pp. 162-184 in Coconut as Food, Philippine Coconut Research and Development Foundation, Inc. Publication, Manila, Philippines. Sanchez, P.C. 1990c. Nata de coco. Pp. 185-199 in Coconut as Food, Philippine Coconut Research and Development Foundation, Inc. Publication, Manila, Philippines. Sanchez, P.C. 1990d. Fermented milks. Pp. 200-217 in Coconut as Food, Philippine Coconut Research and Development Foundation, Inc. Publication, Manila, Philippines. Sanchez, P.C. 1992. Quality standards for edible coconut products. Presented at the Joint XXIX Permanent Panel on Coconut Technology and the 4th Meeting of Coconut Products Exporters, August 3-7, 1992, Colombo, Sri Lanka. Sanchez, P.C. 1993. Barangay-level coconut wet processing: Non-oil production. Pp. 117- 136 in Proc. Village, Small and Medium Scale Processing of Fresh Coconut, (M.B. Frias and D.B. Masa, eds.). Koninklijk Instituut Voor de Tropen Publication, Amsterdam, The Netherlands. Sanchez, P.C. 1993. Challenges and Opportunities in Commercial Production and Marketing of Non-traditional Coconut Food Products and By-products. Asian and Pacific Coconut Community Publication, Jakarta, Indonesia. Pp. 147-266. Fig. 1. Concept for the transfer of processing technology, production and marketing of value-added product at village-level production.
Table 1. Some value-added products from coconut Raw material Product I. Coconut meat 1. Desiccated coconut 2. Coco Flour 3. Sweetened/preserved products 4. Dried buko - chips, leather 5. Buko juice II. Coconut milk/skim milk 1. Canned coconut milk 2. Powdered coconut milk 3. Coco jam - high fat, low fat and protein-enriched 4. Coco syrup 5. Coco honey 6. Coco candy 7. Cheeses - soft, processed, Cheddar, blue and others 8. Sweetened condensed milk 9. Coco yoghurt 10. Filled milk products - beverage, evaporated and sweetened 11. Coco cultured skim milk 12. Coco skim milk powder 13. TVP from coco skim milk 14. Coco cereal weaning flakes 15. Food preparations 16. Nata de coco III. Coconut water 1. Vinegar 2. Beverages - non-carbonated and carbonated 3. Wine and Champagne-type 4. Culture media 5. Source of hormone 6. Nata de coco IV. Coconut residue 1. Flour 2. Food preparations - baked products, macaroons, brittle, sweetened bars, pretzels, etc. V. Coconut oil 1. Food preparations and confectioneries 2. Oleochemicals 3. Beauty and health products 4. Detergents, soaps, etc. VI. Coconut husk and shell 1. Fibre 2. Coir dust 3. Activated carbon 4. Fuel 5. Organic fertilizer 6. Handicraft VII. Coconut sap 1. Vinegar 2. Alcoholic beverages - tuba and lambanog 3. Sugar 4. Honey
Table 2. Cost of production of raw nata de coco per month operation Raw material Quantity Unit cost (US$) Total cost (US$) Coconut (pc) 4368 0.20 873.60 Sugar (kg) 2184 0.70 1550.64 Glacial acetic acid (L) 546 1.15 630.00 Mother liqour (L) 5460 0.11 600.00 Labour cost 1440.00 Water & energy cost 211.54 Total cost of production (COP) 5305.78
Table 3. Expected net income per month based on percent recovery of raw nata de coco Recovery (%) Expected yield (kg) Price/ kg (US$) Total sales (US$) Total COP (US$) Net income (US$) 50 16 380 0.40 6552.00 5306.36 1245.64 60 19 656 0.40 7862.40 5306.36 2556.04 65 1 21 294 0.40 8517.60 5306.36 3211.24 70 22 932 0.40 9172.80 5306.36 3866.44 75 24 570 0.40 9828.00 5306.36 4521.64 1 Average actual recovery yield obtained by Coop members Table 4. Cost of production of coconut-filled white soft cheese Raw material Quantity Unit cost (US$) Total cost (US$) Coconut (pc) 1 4368.00 0.20 873.60 NFDM (kg) 2 1092.00 3.07 3352.40 Salt (kg) 109.20 0.38 41.50 Rennet (L) 131.04 0.96 125.80 Starter (L) 698.90 0.38 265.58 Packaging (pc) 3 21190.00 0.004 84.76 Labour cost 1440.00 Water & energy cost 931.78 Total cost of production (COP) 7115.42 1 Yield 546 litres of pure coconut milk 2 Non-fat dry milk or skim milk 3 Plastic wrapper and label Analysis: Yield/output(kg) = 2119 No. of pieces (100 g/pc) = 21 190 Unit cost (US$) - 0.40 Total sales (US$) = 8476.00 Total COP (US$) = 7115.42 Net income (US$) = 1360.58
Table 5. Cost of production of coco yoghurt Raw material Quantity Unit cost (US$) Total cost (US$) Coconut (pc) 4368.00 0.20 873.60 NFDM (kg) 639.00 3.07 1961.73 Sugar (kg) 522.16 0.77 403.60 Starter Culture (L) 131.04 0.38 49.80 Sanitizer (L) 21.84 0.77 16.82 Packaging (pc) 1 29120.00 0.02 582.40 Labour cost 600.00 Water & energy cost 383.41 Total cost of production (COP) 4871.36
1 Plastic cups and label Analysis: Yield/output (kg) = 4368 No. of package (150 g/pkg) = 29 120 Unit cost (US$) = 0.20 Total sales (US$) = 5824.00 Total COP (US$) = 4871.36 Net income (US$) = 952.64
Table 6. Cost of production of coconut water beverage Raw material Quantity Unit cost (US$) Total cost (US$) Coconut water (L) 1 873.60 0.02 17.47 Ascorbic acid (kg) 1.31 2.69 25.19 Citric acid (kg) 1.31 2.69 3.52 Sodium citrate (g) 873.60 0.003 2.62 Sugar (kg) 87.36 0.77 67.27 Sodium benzoate (g) 436.80 0.003 1.31 Packaging (pc) 2 3495.00 0.2 699.00 Labour cost 70.00 Water & energy cost 100.00 Total cost of production (COP) 986.38 1 From 4368 nuts 2 Bottle, cap and label Analysis: Yield/output (L) = 873.75 No. of bottles (250 ml/bottle) = 3495 Unit cost (US$) = 0.40 Total sales (US$) = 1398.00 Total COP (US$) = 986.38 Net income (US$) = 411.62
Table 7. Cost of production of coco brittle Raw material Quantity Unit cost (US$) Total cost (US$) Coco residue (kg) 1 546.00 - 2 - Brown sugar (kg) 182.00 0.70 127.40 Salt (kg) 5.46 0.20 1.09 Margarine (kg) 18.20 19.20 349.44 Packaging 3 (pc) 2912.00 0.30 873.60 Labour cost (US$) 300.00 Water & energy cost 50.00 Total cost of production (COP) 1701.53 1 By-product in coconut milk extraction from 4368 nuts 2 No value as waste material 3 Plastic bottle, cap and label Analysis: Yield/output (kg) = 291.20 No. of bottles (100g/bottle) = 2912 Unit cost (US$) = 0.70 Total sales (US$) = 2038.40 Total COP (US$) = 1701.53 Net income (US$) - 336.87
Table 8. Cost of production of coconut water vinegar Raw material Quantity Unit cost (US$) Total cost (US$) Coconut water (L) 1 873.60 0.02 17.47 Sugar (kg) 87.36 0.70 61.15 Active dry yeast (g) 87.36 0.004 0.34 Starter culture (L) 873.60 0.11 96.10 Packaging (pc) 2 2097.00 0.20 419.40 Labour cost (US$) 161.00 Water & energy cost (US$) 20.00 Total cost of production (COP) 776.00 1 Obtained from 4368 nuts 2 Long-neck bottle, cap and label Analysis: Output/yield (L) = 1572.75 No. of bottles (750 ml/bottle) = 2097 Unit cost (US$) = 0.52 Total sales (US$) = 1090.44 Total COP (US$) = 776.00 Net income (US$) = 314.44
Table 9. Cost of production of coco jam manufacture Raw material Quantity Unit cost (US$) Total cost (US$) Coconut (pc) 4368.00 0.20 873.60 Brown sugar (kg) 11.20 0.70 7.84 Glucose (kg) 6.00 1.92 11.52 Citric acid (g) 273.00 0.002 0.55 Packaging (pc) 1 2184.00 0.20 436.80 Labour cost (US$) 55.00 Water & energy cost(US$) 66.00 Total cost of production (COP) 1451.31 1 Plastic jar, cap and label Analysis: Yield/output (8 oz bottle) = 2184 Unit cost (US$) = 0.78 / bottle Total sales (US$) = 1703.52 Total COP (US$) = 1451.31 Net income (US$) = 252.21
Table 10. Comparative economic return analysis of some value-added products at village-level production Product 1 Total COP (US$) Total revenue (US$) Net income (US$) Nata de coco 5306.36 8517.60 3211.24 Coco-filled white soft cheese 7115.42 8476.00 1360.58 Coco yoghurt 4871.36 5824.00 952.64 Coco water beverage 986.14 1398.00 411.62 Coco brittle 1701.53 2038.40 336.87 Coco water vinegar 776.00 1090.44 314.44 Coco jam 1451.44 1703.52 252.21 1 From 4368 nuts per product Table 11. Benefits derived from integrated processing of coconut using different schemes Scheme Product Net income (US$) I Nata de coco + coco water beverage + coco brittle 3959.73 II Nata de coco + coco water vinegar + coco brittle 3862.55 III Coco-filled white soft cheese + coco water beverage + coco brittle 2109.07 IV Coco-filled white soft cheese + coco water vinegar + coco brittle 2011.89 V Coco yoghurt + coco water beverage + coco brittle 1701.13 VI Coco yoghurt + coco water vinegar + coco brittle 1603.95 VII Coco jam + coco water beverage + coco brittle 1000.70 VIII Coco jam + coco water vinegar + coco brittle 903.52 Profitability of small- and medium-scale processing of coconut products: Possible applications at farmer level and varietal development implications Abdullah Othman and Syed Kamaruddin Wazir Research Officers, MARDI, Sungai Sumum, Perak, Malaysia Introduction Coconut is a long established crop in Malaysia and its usage in the daily Malaysian foods is wide spread. It can be said to be part of the custom. As a result of good returns from the crop and its intercrops, the hectarage had increased to as much as 409 000 ha in 1981. However, it decreased to 284 000 ha in 1995 as a result of low prices of coconut and competition from other more lucrative crops, especially oil palm and rubber. Up to the year 2000, it has been forecast that the area will decline gradually at the rate of 2.2 - 3.7% per year (Tan 1992). The decrease so far has been mainly in the estate sector which have converted a major portion of their coconut areas to oil palm. Coconut plantings are found mainly in the coast of Peninsular Malaysia on marine clays and organic clays (Inceptisoils), and in the east coast they are on marine alluvial sands (Entisols) and riverine alluvium (Inceptisols) (Chan 1978). The distribution of coconut hectarage by states in Malaysia has been reported by Abdullah et al.(1996). Though coconut does not play a very significant role in the economy of Malaysia, it is still important socioeconomically as it supports wholly or partially some 140 000 farm families. Malaysia exports about RM 200 million worth of coconut products every year, but this is only 0.2% of the country's total export revenue. In general, all over the country, farmers would not easily convert their coconut planting to other crops unless the price of coconut remains very low over a long period of time. Not all coconut areas in Malaysia are suitable for oil palm or other commodity crops due to the nature of soils. The low prices of coconut and the changing life style of people have encouraged the setting up of coconut processing factories. There are several large processing factories in Malaysia that produce mainly desiccated coconut, 'santan' (coconut milk) and coconut milk powder. These large factories export most of their production. Of interest at the moment is the development and progress of small- and medium-scale coconut processing activities. It appears that the number of small- and medium-scale coconut processing industries is increasing lately, and some of those that were established earlier are trying to increase their capacities. However, this may be difficult, not because of marketing problems but mainly due to the limited supply of the raw materials. Even the large factories are operating at around 50% capacity only. This paper describes some of the small- and medium-scale coconut processing activities commonly found in the major coconut areas of Malaysia. Small- and medium-scale industries Malaysia is now going industrial, be it related to agriculture or otherwise. Small- and medium-scale industries (SMIs) together with the large industries are considered important in developing the nation. The Malaysian government has defined the SMI as an operation which involves a capital of less than RM 2.5 million (RM 2.5/US $) and employing less than 75 workers. The SMIs are given incentives by the government in the form of special tax exemptions, eligibility to borrow certain equipment and facilities and to obtain financial loans at rates lower than commercial rates. These incentives are not limited to activities involving coconut only, but also other agricultural and non-agricultural SMI ventures. The coconut-based SMIs together with the larger coconut-based industries, are important in the sense that they increased the demand for raw coconuts, thereby increasing the farm- gate price of coconuts. The common coconut-based SMIs observed in the major coconut areas are the production of pared kernel, copra and shell charcoal. The production of 'kerisik', shell powder, fibres and coconut milk are less common. Supply of coconuts Presently, a person who goes to a coconut area could not just buy a thousand nuts at normal price because almost all farms are booked or reserved. SMI entrepreneurs have some kinds of unofficial contract arrangements with coconut farmers in order to be able to get a regular supply of nuts. The entrepreneurs send their workers to harvest and husk the coconuts, normally every 2.5 - 3 months in each easily accessible field. Farms which are remote or having very tall palms are harvested every 4-6 months. Workers are paid RM 35.00 per 1000 nuts they harvested and RM 50.00 per 1000 nuts they husked. The coconut farmers are paid a gate price of RM 240.00 per 1000 nuts (RM 200.00 per 1000 nuts from the delayed harvest) less costs of harvesting and husking. Production of pared kernel Husked nuts brought to the collection centre are graded visually by size. Cracked and germinated nuts, which normally constitute 20 - 30% of the total are processed to copra. Good nuts of about 40 cm or more in circumference are sold as whole nuts at RM 0.35 per nut to middle men who take them to sell fresh in the wet market. The smaller nuts (20% of the total) are processed to pared kernels. Women working around 8 hr per day can easily pare 100 kg kernel and are paid RM 0.10 per kg pared kernel. The entrepreneurs sell these pared kernels at RM 0.81 per kg to desiccated coconut factories. To quote an example, one entrepreneur in Perak collects 8000 - 10 000 nuts per day, from which about 20% are sold as (600 kg) pared kernel. The parings after being sundried, are sold at RM 0.75 per kg. From this collection of nuts, he sells whole nuts, pared kernel, parings, copra and charcoal, making an overall net profit of RM 0.01 - 0.02 per nut per day. Production of shell charcoal There are only four medium size ground charcoal factories in Malaysia, each costing about RM 1 million. A factory in Bagan Datoh, Perak, burns coconut shells to charcoal in open-top brick wall compartments, each of size 3.6m length 3.6m width 1.5m height. Each compartment can burn 16 tons of raw shell to yield 4 tons of charcoal in one session. There are 18 such compartments in this factory. On good days, it takes 3 days to burn the shells to charcoal while on rainy days it requires up to 10 days. The charcoal pieces produced are carried to the grinding machine in a nearby shed and after grinding they are sorted by mesh screens to obtain particles of specific size as specified by the buyer. Normally charcoal of 1.5 mm size are produced and sold at RM 330.00 per ton. The remnants (30% of the total) which are below the specified size are sold at RM 100.00 per ton. The capacity of this particular factory is 10 tons ground charcoal per day with 8 workers employed. The cost of production in terms of labour only is RM 60.00 per ton, while other costs (machinery, electricity, etc.) amounts to about RM 140.00 per ton. The other method of charcoal production from coconut shells, which is more common in coconut areas world wide, is the 'single drum' method (Mohd Noh 1995). About 40 kg of charcoal can be obtained from a drum after about 8 hours of burning 150 kg coconut shells. Production of charcoal by this method is usually not on a large scale, but as a complementary activity when plentiful coconut shells are available as by-product of other activities. After the main job of harvesting coconut in the morning to early afternoon, the workers are given the opportunity to make charcoal in the evening. They are paid RM 3.50 per drum charcoal (40 kg) they make. The charcoal is then sold at RM 0.45 per kg. Production of 'kerisik' The preparation of certain local dishes such as rendang and curry would not taste as it really should unless kerisik is added. Kerisik, a local term, is the product of drying and roasting grated coconut, and then grinding them finely. There are now small kerisik producers who sell their product in local towns. The equipment needed consists of just a large pan, a Malaysian-type grating machine and a grinder. However, the setting up of a proper factory would be more advantageous but requires more capital. A factory capable of producing 250 kg of 'kerisik' per day is estimated to cost about RM 140 000 in initial capital investment. Such a factory will require a supply of about 1900 nuts a day. Assuming that the product is sold at RM 1.50 a bottle (170 g), such a project is estimated to give a return on investment of about 20% a year. The break even point is about 15 200 bottles a month. Although this is considered small-scale, it can be easily upgraded when there is an increase in demand (Adinan et al. 1994). Production of copra Copra is now produced from nuts of generally lower quality such as nuts obtained from delayed harvest (germinated nuts) and broken nuts. Generally, copra is made by direct heat drying with some smoke or sundrying or a combination of both. During the dry weather (1-2 months), split nuts are sun dried on cement floors, while during other times they are dried in simple kilns using coconut shells as fuel. Normally, 1000 nuts can yield about 250 kg copra. Split nuts are placed on grills above fire in kilns. In Malaysia the size of kilns is around 7 m 5 m. After one day of drying the shells are removed. Workers are paid RM 10.00 for splitting 1000 nuts and RM 0.60 per basket (of 60 cm diameter 60 cm height) of kernels for removing the shells (kernels from 1000 nuts are equivalent to 12 baskets). The labour cost for arranging the kernels on grills and maintaining the fire for drying is RM 6.00 per 1000 nuts. Each burning session requires 6 baskets of shell for fuel, which is equivalent to the amount of shell from about 430 nuts. The kernels without the shells are dried again on the grill for another 2 days/after which they are sun dried and sold. Presently, the local price of copra is about RM 1050.00 per ton. Other activities There are a few factories producing shell powder, pith and fibres, and nata. The production of coco lumber is not yet popular in Malaysia. Varieties common in Malaysia In Malaysia the main coconut variety planted is the local Malayan Tall. The MAWA hybrid (MD WAT) was only planted beginning late 1977 but only to over 2000 ha, while the Malayan Dwarfs were on a much smaller area. The Malayan Tails are late bearers, fruiting only 6 - 1-0 years after planting and show extreme variation in number of fruit and nut components, with a copra content ranging from 180 - 320 g/nut (Jamadon and Khadzir 1986). Preferred varieties Most of the coconuts in Malaysia are consumed (in the form of coconut milk or 'santan' and desiccated coconut) as ingredients in food preparations, and oil. The use of coconuts as young tendernuts is still comparatively less. Since almost all coconuts planted are of the Malayan Tall variety, the small- and medium- scale processors (other than the young tendernut processors) do not have much experience with other varieties. When interviewed, they confirmed that they prefer nuts which are of big size (unlike the young tender nut processors who prefer medium size nuts such as those of the Malayan Yellow Dwarf). A similar preference for big nuts in Indonesia had been reported by Hengky (1996). The fact that they prefer large nuts is easily understandable. They buy the nuts through contracts with farmers regardless of size (since the palms are of one variety i.e. Malayan Tall), but sell them at prices depending on size. The costs of harvesting and husking, by tradition, depend only on the number of nuts, without regard to size. Hence, farmers planting varieties of bigger nut size would save a portion of these costs. The hybrid MAWA is now known not to be that good for the Malaysian farmers. Besides having nuts of small size, MAWA also requires proper fertilizer input to yield well. However, farmers normally do not fertilize their coconuts except in the first few years. After having experienced the planting of the varieties Malayan Tall and MAWA, the plan now is to plant the new hybrid MATAG (Malayan Dwarf Tagnanan Tall) which is an early bearer with large nuts. The Malaysia Department of Agriculture is now preparing this hybrid to be distributed to farmers in stages and at the same time its performance would be monitored. The true performance of this hybrid on different soils and environments is not really known. It is hoped that it will yield an acceptable number of nuts that are uniformly big in size. Conclusion Small- and medium-scale coconut processing is indeed a profitable venture. The numbers of processing centres and small factories are increasing despite a decreasing hectarage of coconut plantation. As such, the supply of nuts is becoming a limiting factor. This situation of higher demand than supply is encouraging the price of coconut to increase further, thereby benefiting the coconut growers. The technologies being used in the small-scale processing of coconut are simple and cheap, and therefore are affordable by many village people. The main coconut variety available for the small- and medium-processors in Peninsular Malaysia is the Malayan Tall, which is a late bearer with variable sizes of nuts. The hybrid MAWA, though an early bearer, produces smaller nuts and demands fertilizer to realize its high yield. Coconut varieties that yield a reasonable number of uniformly big size nuts are preferred. References Abdullah, O., S. W. Syed Kamaruddin and J. Mohd Noh. 1996. Small- and medium-scale coconut processing in Malaysia. Paper presented at XXXIII Cocotech Meeting, 15-19 July 1996, Kuala Lumpur. APCC. Adinan, H., E. C. Chuah, and N. Siti Hasidah. 1994. Development of coconut processing industry. Paper presented at the International Seminar on Present and Future Development of Coconut Industry. Ministry of Agriculture, 29 May 1994, Langkawi. Chan, Y. K. 1978. Soils under coconut in Peninsular Malaysia. Proceedings of the International Conference on Cocoa and Coconuts, Kuala Lumpur, 21-24 June 1978. MARDI & ISP. Hengky, N. 1996. Coconut conservation and breeding strategy and varietal preferences for coconut farmers in swampy and dry areas in North Sulawesi, Indonesia. Paper presented at the XXXIII Cocotech Meeting, 15-19 July 1996, Kuala Lumpur. APCC. Jamadon, B. and D. Khadzir. 1986. Coconut breeding and selection programme in MARDI. Proceedings of the Plant and Animal Breeding Workshop. MARDI. Mohd Noh, J. 1995. Processing of charcoal from coconut shell. Teknol. Koko-Kelapa, Jld 10 & 11 (1994/1995). MARDI. Tan, J. H. 1992. Coconut Planted Area and Production in Malaysia (1960-2000): A Forecasting Approach. Department of Agriculture, Kuala Lumpur. Acknowledgement The authors are grateful to the Director General of MARDI for permission to present this paper. Thanks are also due to Dr Supaad Mohd Amin, Director of Food and Industrial Crops Division, MARDI, for his valuable comments.