1/25/2017 TraineeAgriculturistinMalaysia:TheBasicsofStartingaNewCoconutPlantation

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TheBasicsofStartingaNewCoconutPlantation
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ABOUTME
MichaelJ.
Startedoffasaplant
breederbytraining,later
becameanationalbiotech
industrystrategist.Nowbacktoacademic
researchagain.Hopestobean
agricultureextensionofficer/educationist
oneday.
Viewmycompleteprofile

BLOGARCHIVE
2016(1)
2015(2)
December(1)
TheBasicsofStartingaNew
Ihavebeenreceivingquiteafewrequestsoflateregardinginformationinsetting CoconutPlantation
upacoconutplantation.WhileIwouldlovetowriteacomprehensivecoverageof
May(1)
all aspects involved in establishing a coconut plantation, it will be an enormous
undertaking,andsomethingthatcannotbecoveredsimplyinblogposts. 2014(3)
2013(2)
Instead,Iwillgivesomebasicsofstartinganewcoconutplantation,thekeycost
elementsandmanpowermanagementrequirements.

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Therewasanerrorinthisgadget

Alrightthen,let'sgetdowntoit. POPULARPOSTS

TheBasicsofStartingaNew
CoconutPlantation
Thereareanumberofimportantstageswhenattemptingtosetupasuccessful TheBasicsofStartingaNew
coconutplantation.Now,alotofpeoplemaythink:Whatssodifficult?Justlook CoconutPlantationIhave
beenreceivingquiteafew
foragerminatedcoconut,digahole,andplantit! requestsoflateregardinginformationin
set...
Well, that method may work if all you want is a coconut tree, or if the coconuts
TalkingaboutPassions
are meant to be ornamental plants. But for a thriving, production coconut
TalkingaboutPassionsIts
plantation,extracareandconsiderationwillbeneeded. nothardtotellhowmuchIm
inlovewithagriculture.ButI
Asummaryofthesestepsandstagesareasfollows: amalwaysstumpedforan
answerwheneverIm...

StageA:Preparingthecoconutseedlings MAWAvs.MATAGReview
ofa21yearstudyonyield
As any serious agriculturist will tell you, getting the right planting materials is performance
MAWAvs.MATAGReview
criticaltothesuccessorfailureofcropproduction.Thisisevenmoreimportant ofa21yearstudyonyield
whenitcomestoperennialtreecropssuchascoconuts,sinceoncethecoconut performanceWow...I'vereallybeenaway
palm is planted it becomes a 25 to 30 yearlong commitment. Even if one is fromthisbloggingthingforalongti...
willingtocorrecttheplantingmistakes,itwouldhavebeen45yearsalongbefore
any serious crop production issues are detected. And unlike many other tree SUBSCRIBETO
crops where you can graft a superior variety onto the mediocre stock, and
Posts
therefore change the variety of crop, this technique does not work with coconut
palms.Ifapalmwastobereplaced,itwouldhavetobesupplantedwithanother Comments
coconutseedlingandthewaitinggamestartsoveragain.

So, Ihavetostress this point: get your coconut seedlings right. It will saveyou
fromalotofheadacheslateron.

Step1:Choosingtherightvariety

Thereareagreatmanyvarietiesofcoconutsavailabletogrowersinthetropics,
but broadly speaking, they can be classified into three general group: Tall,
hybrids,andDwarf.Eachgrouphasitsownmerit,andeachcultivarwithinthe
grouphasitsownuniquefeaturethataddstoitseconomicvalue.

Butformostsmallholders,therealeconomicvalueincoconutisthroughthesale
of tender drinking nuts, i.e. young coconuts with a high volume of sweet
coconutwater,andsoftpulpyendosperm.Assuch,coconutsfromthehybridand
Dwarf groups are of greater relevance to smallholder, given the shorter stature,
easeofmanagementandharvest,andquickerfruitbearing.

InMalaysia,themostpopularhybridvarietyistheMATAGhybridcoconut.The
MATAG is a multipurpose coconut variety, being a good variety for producing
tender drinking nuts, as well as mature coconuts for the production of coconut
milk. The husk fibers are also dense, making it suitable for production of coir.
Supply of seedlings can be obtained from the Department of Agriculture.
However,Ihavebeenmadetounderstandthatthesupplyislimited,andusually
fullybookedbyfarmerscooperatives.

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MATAGhybridcoconut

The other popular hybrid variety is the MAWA hybrid coconut. However,
productionofseedlingsislimited,sincetheMATAGhasprettymuchreplacedthe
MAWAasthepremiumvarietyofcoconut.However,itissometimespossibleto
getplantingmaterialsfromDOA,ifyouarelucky.TheMAWAdoesnotproduce
very large coconuts or tender nuts with a very high volume of coconut water
howeveritdoesproduceahighqualityandquantityofcoconutmilk,whichisalso
veryfragrantandsweet.

MAWAhybridcoconut

ButthepremiumcoconutofchoicefortenderdrinkingnutproductioninMalaysia
comes from a Dwarf variety: the Aromatic Green Dwarf, a.k.a. the Pandan
coconut. As its names say, the sweet coconut water is highly aromatic, with a
strongresemblancetothescentoflightlybruisedpandanusleaves.Themedium
sizednutsgoodvolumeofcoconutwater,rangingaround600mlpernut,andthe
softendospermhasanicejellylikeconsistency.Thispremiumvarietyfetchesa
very high exfarm price, ranging around RM2.50 for a good sized nut. Retail
pricesoftenreachRM6.00pernut,evenatroadsidestallsandeateries.Probably
due to its popularity, it is hard to find seedlings in large quantities from a single
sourcethebestsourcesarefromBukitKayuHitam(Kedah),Kajang(Selangor),
andMARDIresearchstations(thebestisTelukIntan,Perak).

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YoungPandancoconutpalms

Morecommon,andinfactoftenfrownedupon,aretheMalayanDwarfvarieties.
There are two important varieties: the Malayan Red Dwarf (MRD), and the
Malayan Yellow Dwarf (MYD). Both look quite similar, except that the MRD
producesfrondswithreddish/orangerachisandredorangenuts,whiletheMYD
produces yellowgreen rachis and bright yellow nuts. Both varieties are very
common place in Malaysia, especially the MYD. They produce medium sized
nutsthatareeitherbrightyelloworredorange,andthecoconutwaterofbothare
sweetishsourtasting,andcarriesafaintbutterycoconutaroma.Theendosperm
is often firmer, as the coconuts from these varieties are often harvested at an
older age. Since these varieties are so commonplace in Malaysia, not many
vendorsactuallysellfreshtenderwholenutsitisusuallysoldintheformofcups
orjugs,withaddedsugartoincreasethesweetnessofthedrink.Youwillusually
findthembeingsoldinthepasarmalamandroadsidestalls.

YoungMRDcoconutpalms

There are a few more aspects to consider when choosing the right coconut
variety, but I shall not touch on those areas, since doing so will amount to me
writing a book. What should be kept in mind is that while coconuts are often
synonymous with the seaside, they actually do far better on inland and coastal
alluvial soils, not sand. If you only have coastal (sandy) soils to plant, then go
with only hybrids or Tall varieties growth and yield of Dwarfs are negatively
affectedbytheporoussoilandsalinewater.

Step2:Settingupacoconutseedlingnursery

Thisisanaspectincoconutplantingthatseemstobeoftenneglected.Afterall,
coconutsseemtogrowsocommonlyandwitheaseinthiscountry.

However,aswithallcropsofeconomicvalue,startingthecropontherightfootis
themostimportantsteptowardsasuccessfulfarmingenterprise.Ifoneisunable

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or not willing to make the effort to do so, then they should not venture into
agricultureinthefirstplace.

It would impractical for most coconut planters to germinate their own coconut
seedlings,sincedoingthiswouldrequirealotoftime,effort,spaceandtechnical
expertise.Thus,itwouldbebestforthecoconutfarmertosourcehis/hercoconut
"seednuts" from a certified seed producer. I have already mentioned few
previously.

Usually, seednuts are sold as emergents, which can be seen in the picture as
follows:

These would have a growing point of about 30cm height (up to emergent leaf),
and very few emerging roots at the base. With certified seed producers, culling
and selection of salable seednuts would have already been conducted, so the
farmer may buy such materials with confidence. Seednuts will be sold as
bareroots, and the farmer will need to purchase and prepare his/her coconut
seedlingsatleast1yearpriortofieldplanting.

Seednuts that are purchased must first be transplanted into polybags and
allowed to grow to the ideal field planting sizes. The following series of
transplantingstepsshowhowthisshouldbedone:

Step1:Placeseednutintopolybaghalffilledwithsoil

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Step2:Topupwithmoresoil

Step3:Firmdownthesoil,leavingalittlebitofhuskexposed

Polybagsizesshouldbe45cmx45cm(layflat),andneedtobe500gaugeblack
with perforations. Do note that for optimized transplanting of seednuts, the
polybags should be halffilled 3 days in advance and watered daily, to allow
settling of the soil. Once seednuts have been transplanted, make sure to water
the seedling adequately. Each seedling will require 2,500ml of water per day in
theabsenceofrain,whichcanbeachievedbywaterfor30minutestwiceaday
(morning&evening)usingasprinklersystem.Otherwise,handwateringusinga
measured water can is advised. Spacing in the nursery should be 1m x 1m
equilateral triangle, amounting to 4,000 plams per acre. But since you will only
needlessthan100palmsforeachacre(71seedlingsifplantinghybrid+10%for
supply planting 88 seedlings if planting Dwarf + 10% for supply planting), you
shouldadjustthisfigureaccordingly.Seedlingsaremaintainedinthenurseryup
to1yearbeforefieldplanting.

Temporarycoconutseedlingnursery,6monthsoldfromsowing
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Yes,Iknowthatalotoffarmersdon'tbotherwiththesestepsbuttherearemany
goodreasonsforkeepingthispractice.Notonlywilltheolderandmoremature
seedlingsbequickertoestablish,theyarealsolesssusceptibletostuntingand
transplanting shock in the field compared to seednuts that are planted directly
into the ground. In particular, the root system of a 1year old seedling is better
developedandrobust,comparedtoa6montholdseednut.

Directplantingofseednutsintothefield.
Ascanbeseenfromoldpalmbehind,nouniformgrowth

Youhavetobearinmindthateverypalmyouplantisa2530yearinvestment,so
makesurethefirststepsaretherightones,oryouwillbestuckwitha25year
longmistake.

StageB:Fieldplanting

Once the seedlings have attained the suitable planting age, the next stage
involves preparing the field. This process is quite straight forward, the only few
crucial things being the planting system used, and preparation of the seedlings
priortofieldplantingoperation.

Step3:Preparationofseedlingsforfieldplanting

12monthto15montholdcoconutseedlingsdesignatedforfieldplantingmustbe
preparedatleast23weeksbeforehand.Thisreasonforthisstepistominimize
transplanting shock experienced by seedling once transferred into the field.
Ideally,seedlingsshouldbeofasimilarheightanythatareobviouslyundersized
shouldbesetasideinfavorofmorerobustsiblings.

To prepare the seedlings for field planting, pruning of the basal fronds must be
carriedout,followedbyrootpruningofhalfthebasalarea(asemicircle,taking
care not to cut the polybag) at least 23 weeks before field planting. Watering
mustbeintensifiedonthedaywhenrootpruningiscarriedout.

Twoorthreedayspriortofieldplanting,seedlingfrondsaretrimmedindiamond
shape, and tied. The balance of 50% roots are pruned one day before
dispatching the seedling into the field for planting, and must be watered
thoroughly.

Whenmovingtheseedlings,itisimportanttoensurethattheyarehandledwith
care to prevent damaging the nursery bags. The correct way is to hold the
seedlings whilst supporting the base of the bag. Thus, there must be sufficient
laborfortheoperationofmovingseedlingsfromthenurserytothefield.

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Step4:Landpreparationandspacing

With coconuts, timing when to plant your palms is important. Normal planting
months are in April to May, or September to December. These are the typical
monsoonseasonsinMalaysia,wheretherewillbeadequaterainfallduringfield
planting,thusensuringthatyourpalmsdonotsufferfromtranspirationstress.Do
note that for areas typically hit hard by the monsoon rains (eg. East Coast
states), it would best to plant during the less severe monsoon months, typically
duringApriltoMay.

Clearedandpreparedfield,readingforplantingcoconutseedlings

Samefieldtwomonthslater,aftercoconutseedlingshadbeenplanted

Field clearing should commence 2 months ahead of the target planting date.
Brushandunwantedvegetationshouldbefelled,clearedandburned.Twotype
of row plantings are normally found in coconut plantation, but the most efficient
methodinMalaysiaisknownasthe"doublehedgedrow".Thisplantingsystem
facilitates infield mechanization, allowing efficient grass mowing, fertilizer
spreading, and also evacuation of harvest coconuts. The following dimensions
areusedinadoublehedgedrowsystem:

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Tallsandhybridcoconutscultivars:

Distance(rowtorow):Camberedarea 8.5m
Distance(rowtorow):Fielddrain 6.5m
Distance(inarow):PalmtoPalm 7.5m

DwarfandPandancoconutcultivars:

Distance(rowtorow):Camberedarea 7.25m
Distance(rowtorow):Fielddrain 6.25m
Distance(inarow):PalmtoPalm 5.93m

Field drains of dimension 4'x3'x2' alternate with scupper drain of dimension

3'x2'x1'.Tworowsofcoconutareplantedperdrainblock.

Thisresultsincoconutpalmsthatareplantedatadensityof178palms/haunder
the doublehedged planting system for tall and hybrid coconut palms, and 220
palms/hafordwarfandPandancoconutpalms.

Covercrops,suchasmucuna,areoftenplantedtoprotectthebaresoilofnewly
planted fields. This helps retain soil moisture content, and when the cover crop
diesback,addsbackorganicmattersandsoilnutrientslockeddeepunderground
tothetopsoil.Itwouldbeagoodpracticetoplantcovercrops,butmaintaining
this will add additional costs to the grower, as the cover crop has to be pruned
and cut back each month in order to prevent it from choking the young palms.
Oncethepalmshavereached56yearsofage,thecovercropcanbekilledoff,
eitherthroughtheuseofweedicides,orbynaturalshading.

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Immaturecoconutfieldwithmucunacovercrop

Immaturecoconutfieldwithnocovercrop

StageC:Upkeepandmanagementofcoconutplantation

The initial years of establishment would see you weeding back the cover crop (if you've
planted them), mowing down the grasses, and applying fertilizer for your young palms.
After34years,youryoungpalmswillcomesintofirstbearing,andthisiswhenyouwill
firstbegintoharvestthefruitsofyourlabor.

Step5:Generalmaintenanceofcoconutplantation

Coconut plantations are fairly bare of grasses and weeds during the high
productivity years (years 818). However, during the immature and late years,
whensunlightpenetrationishigh,weedswillbemoreabundant.Nonetheless,it
isagoodpracticenottokilloffalltheweedsandgrass,butinsteadtomanage
and crop them down. This helps to hold the soil and retain moisture, house
beneficial insects, and keep the palm in a good, healthy state. Thus, mowing
down the grass and leafy weeds is the suggested option for broadleaf shrubs,
contactweedicidescouldbeused.

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NotethemowedgrassinthisMRDcoconutfield

Chemical fertilizer should be applied to supplement inherent soil nutrients to

provide a steady supply of balanced nutrient range required for the healthy
growthofpalms.Thequantityandqualityofthefertilizerapplied,andtheirtiming
and placement, are important aspects to be considered to ensure proper
realizationofthisinput.

Themanuringregimesareasfollows:

(i)2kgUrea
(ii)2kgMuriateofpotash(MOP)
(iii)1kgRockphosphate(RP)

Donotethattheratesaboveareforeachpalm,peryear.Youwillneedtosplitthe
amount according to how many round of fertilizer application is carried out in a
year. It is recommended that at least 4 rounds be carried out, i.e. 500g urea +
500gMOP+250gRPperapplicationbutpreferably,8roundsisideal,i.e.250g
urea+250gMOP+125gRPperapplication.

Whenmanuring,avoidspreadingthefertilizertobroadly.Itisimportantthatthe
fertilizersareappliedwithintherootzonearea.Onetrickthatmanygrowersdois
to spread some of the fertilizer over the frond heap stacked at the interpalm
area. As the frond heap traps a lot of moisture and organic nutrients, coconut
roots tend to congregate beneath the heap. Thus, applying some fertilizer onto
the heap would target the coconut roots there, thereby feeding the palms more
efficiently.

Notethespreadoutfrondheapbetweeneachpalm.
Thecenterisascupper(shallow)drain

Anotherimportantnoteisthatthefertilizerratesaboveisnotfixed,andwillvary
according to soil type, productivity, foliar nutrient status, age, and yield targets.
But of course, not all growers will have access to the necessary analytical
equipment, so engage a government agriculture extension officer for further
advicewhennecessary.

Coconutsarenormallyselfpruning,meaningthatdeadfrondsandbunchstalks
willdryandfallontheiraccord.However,itisstillagoodpracticetoremovethem
off the palm where they dont fall naturally, and stack them neatly on the inter
palmheap.Thereisgreatvalueinkeepingthispracticeasthedeadfrondsand
bunchstalksbreakdown,theyactuallyreleasemicronutrientsbackintothesoil.
This helps increase the soil nutrient content and biomass over time, which will
furtherimproveyourcoconutpalmshealth.Inaddition,suchfrondheapsactas
moisture traps, and help provide an alternate source of moisture to palm roots.
Asmentionedearlier,fertilizersmayalsobeappliedtothiszone,asthecoconut

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root mass tends to congregate here, thereby ensuring that your fertilizer is
targetedtotherootsofthepalms.

Step6:Harvestingofcoconuts

(a)Harvestingoftendernuts

Tendernutsareharvestedwhenthenutsareabout7monthsold.Harvesting
intervals are 1721 days per round, depending on the preferences of the
buyers and the consumers. This is usually pertaining to the thickness and
harness of the soft coconut flesh at 17 days, the flesh are very jellylike,
whereasat21days,thereissomefirmnesstotheflesh.

Duringharvesting,theharvestermustremovealldriedfrondsandplacethem
alongthefielddrainedges,orcutthemintosmallersectionandplacethemin
theinterpalmspaces

Harvestingoperationisatwomanjob.Onepersonclimbsupthepalmsusing
asturdyladder,andattachesaharvestingharness(hookandrope)ontothe
bunch of coconut. The person below pulls the harness tout, to give some
tensionontothebunch,andthestalkofthebunchisthencutandfreedfrom
thepalmbythepersonontop.Thepersonbelowwillthencarefullylowerthe
bunchofcoconutontotheground.

Harvestingtendernutsfromatallcoconutpalm.
Notetheropebeingguidedbytheharvester,andthehookedbunchbeingloweredontheright

This method of harvesting ensures that the tender young coconuts are not
bruisedordamaged,sincethiswillnotonlyaffecttheappearanceofthenuts,
butanyinternaldamageswillcausethenutstospoilfast.Bunchesharvested
thiswaywillhaveashelflifeof45daysifkeptinchilledroom.

Theharvestedbunchbeingsafelylandedontotheground.
Noticethehookattachedtotherope.

(b)Harvestingofmaturenuts

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For mature nuts, coconuts are plucked when their exocarp (skin) turns fully
brown.ForhybridsandDwarfs,harvestingisdoneevery36days(10rounds
peryear)whereasforMAWA,whicharelategerminators,harvestingintervals
are45dayspercycle(8roundsperyear).

Theharvestingoperationconsistsofpluckingtheripenutsfromthepalms,or
shakingthemloosefromthebunchusingalongpole.

Harvestingmaturebrowncoconutsusingalongpole

Care must be given! Since there have been cases when loose mature
coconutshavefallenonpeoplesheads,leadingtoseriousheadinjuriesand
death. It is suggested that safety helmets be provided when dealing with
especiallytallpalms.

Generalcostingsofsettingupacoconutplantation

Thecosttosetupacoconutplantationwillobviouslyvaryaccordingtolocation.
Thekeyvariablesareusuallytiedtotheland(eg.terrainandcontour,soiltype),
and also farm input costs (eg. labor costs, fertilizer prices, planting material
costs).Thus,thefollowingcostingsshouldbetakenonlyasanapproximationto
thecostsofstartingacoconutplantation:

SeedlingCost:

Barerootseednutfromseedgarden RM 2,500 (RM10 x 250

pc)
Soil,polybag,fertilizer,pest&diseaseetc. RM1,500(for250pc)
Costofplantingsize RM4,000

CoconutPlantingCoststoMaturity:

Year1:Landpreparation,planting RM8,000/ha
Year 2: General upkeep of immature RM2,200/ha
palms
Year 3: General upkeep of immature RM2,500/ha
palms
Year 4: General upkeep of immature RM2,500/ha
palms

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Costtomaturity RM15,200/ha

MatureCoconutAnnualCostings:

Activity Cost/ha
Weeding RM200.00
Manuring/fertilizerapplication RM1,400.00
Pest&diseasemanagement RM31.00
Pruning/sanitation RM15.00
Upkeepofroads,paths&bridges RM90.00
Upkeepofdrains RM35.00
Sundries&Misc. RM65.00
Harvesting&collection RM100,00
Annualcostsaftermaturity RM1,936.00

Donotehoweverthattheidealsizeforaprofitablecoconutplantationisatleast4
hectares(10acres),andthatthebreakdownabovehasbeenpareddowntofit1
hectare.Also,costsmayvarybylocation,locallaborandequipmentcosts,etc.
Thus,thefiguresaboveservemerelyasaguide.

Typical yields of a mature coconut plantation are 23,000 nuts/ha/year but for
your first 4 years of crop production (after the 3year immature stage), yields
would range around 10,000 nuts/ha/year only. Thus, the average cost factor for
thefirst4yearsofcropproductionwillbeaboutRM0.68pernutthereafter,the
costofproductionwillfallsharplytoaroundRM0.08pernut.Therefore,assuming
no additional costs are incurred, a minimum sales price of RM1.00RM1.50 is
neededtobreakevenwithinthefirst10years.

Hopefully,thispostwillnowgiveeveryonesomeideaaboutwhatisinvolvedwith
startingupacoconutplantation!

PostedbyMichaelJ.at23:52

+1 Recommend this on Google

Labels:coconutfarm,cost,MATAG,MAWA,newplantation

20comments:

unknown 18February2016at18:58
Hi Michael... firstly thanks for such a detailed right up.. was just wondering the
figures given of about 15k plus for first 4 yrs till the is some income.. is this figures
achiveableinthiscurrenttimesorarethisfiguresofmanyyearsback?...isthe8kfor

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land preparation and planting per hectare include the seedlings? Thanks again for
thewriteupandhopetogetsomefeedbacksoon...
Reply

Replies

MichaelJ. 21February2016at17:41
Goodday.Toansweryourquestion:

1.Yes,thesefiguresareafewyearsoutdated,andcostswouldbealittle
differentnow.However,asI'venoted,thecostwillvaryaccordingtolocal
situation, eg. the labor cost in the East Coast states of Malaysia is much
lower compared to the West Coast, fertilizer cost in the West Coast is
cheaper than the East Coast, etc. Hence, the figure I've posted here
shouldbeviewedasaballparkfigureonly.

2. The land preparation and planting cost does not include the cost of
seedlings.Thankyouforaskingthequestion,Ithinkitwouldbebeneficial
formetoaddinacostingaspectfortheseedlings.

Depending on which option you choose (whether to raise your own
seedlings, or direct purchase of field planting size), the cost will range
between RM2,500 RM5,000 for 250 Pandan coconut seedlings,
assumingseedlingcostrangebetweenRM10toRM20each.

Reply

unknown 18February2016at21:39
Sorrydetailedwriteupagreatjob
Reply

unknown 22February2016at02:58
Thanks for the quick reply... so basically add 5k to the first 4 yrs for seedling that
bringscosttoabout20kto21kperhactareforfirst4yearsbeforematurity...isthisa
safefigureandwouldnotdefermuch?Whatwouldbeamaxcostforfirst4yrsjustto
besafethatwecanbeassuredwewontrunoutofbudget...

Isthereapriceformatagseedlingthatyouknowoff?

After maturity the cost is about 2k per hactare... can i put that as a safe cost also
thatwouldincludeallpossibleexpenditure...tobesafewhatismaxyearlycostper
hactareforafter4thyearoncematured?

Thanks for ur help i just want to know at maximum cost possible is the coconut
plantationstillviable...
Reply

Replies

MichaelJ. 25February2016at19:28

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Goodday.

The price for MATAG seedlings, if you purchase under JPPK farming
scheme is about RM18 per seednut. Do not buy from outside sellers,
which are not certified seed producers, even if their prices are cheap. Do
takenotethatMATAGisahybridcoconutvariety,soifyoutakeF2,F3,F4
etc.ashowtheyareoftenmarketedbytheseoutsidesellers,itwillnotbe
truetotype.AsfarasIamaware,thereareonly2certifiedseedproducers
ofMATAG,whichisDOA/MARDI(incollaboration),andUnitedPlantations
Bhd.

Friend... there is no safe figure. There are a lot of risks in agriculture,
suchascontinuousbadweather,suddensurgeinpests/diseases,natural
disastersetc.,andanyofthesewillinflateyourcosts.But,assumingthat
all variables are at normal levels, the land quality is good, the pest and
disease pressure is acceptable, and manpower adequate etc., then the
costs figure would be within range, with about 10% variance for
unbudgeteddirectcosts(eg.needtohireextraworkersduetohigherthan
normalcrop).

But to really answer your question, if you want to be safe, then have at
least 2x the budget. If you think that is a lot: yes, it is. That is why there
are more people doing other businesses, than going into smallholder
farming.Withmostotherbusinesses,youareplayingdicewithcustomers
and clients, essentially human being with more predictable patterns. Your
willpoweranddeterminationtosucceedonlyhastosurpasstheaverage
person.Insmallholderagriculture,especiallyonethatisdependentonthe
land, you are playing dice with God on a daily basis. Your willpower and
determinationthereforehastoataGodlikelevel.

Not to discourage you, but only to make you aware. If you go into
smallholderagriculture,itmustnotbedrivenbyinterestpassionhastobe
thekeydriver.Interestwillonlykeepyougoingaslongasitisinteresting
toyoubutpassionwillensureyoustayputthroughtheblood,sweat,and
tears.Literallyspeaking.

Reply

Knightliness 6April2016at02:06
Goodday,IamEricfromSarawak.ThankyoufortheInfo,veryveryuseful,Ihavea
3 acres land, which take 30 minutes drive from my home. I am thinking to utilize it,
and it already have road access to it. All i need is just to clear the land, drainage
system,andconstructioncostthenreadytogo.However,thelandsizeisjustabout
3 acres, do you recommend for coconut farming? will it be too small? Thank you
againforsomuchinfor.Appreciatedit.
Reply

MichaelJ. 6April2016at02:30

http://traineeagriculturist.blogspot.com/2015/12/thebasicsofstartingnewcoconut.html 16/19
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GooddayKnightliness.

Honestly speaking, plantations are only truly profitable with a minimum of 10

hectares.Anythingsmallerthanthat,andtheventureisnotreallyworththeeffort.

For eg., 1 hectare of coconuts produces around 22,000 nuts a year, which
wholesales at RM0.60 per tender nut (for MATAG and tallrelated varieties) that is
equal to RM13,200 a year in gross revenue. I think it is possible to earn more
working for someone else instead. But for 10 hectare, then you are talking about
good money, since your gross revenue is around RM132,000 and even after
deductingcosts,youarelookingatnettreturnsinthevicinityofRM100,000ayear
(oraboutRM8,300amonth).

And the above has not factored in doing your own processing, eg. dehusking and
packaging, which hikes up your coconut prices to around RM2.00+/ per nut
wholesale.

Sobottomlineis,Iwouldthinkthatyoushouldfocusonsomeothercropifyouhave
less than 10 hectares of land. Maybe short cycle crops like chili (1kg wholesale
aroundRM5,1hectareproducesabout6000kgevery56monthcycle).
Reply

KsTan 1June2016at09:31
Good day, mike!! thanks for all the info and finally can see some 1 writes about
coconutplantingotherthanoilpalm/durian:D..

ifiweretoleasesome5hectaresforcoconutplantingwoulditbestillprofitableand
anyideawhatcouldbethelandleaseprice?isthereanythinglikeamarketvaluefor
suchkindofcropusagelandlease??
Reply

MichaelJ. 1June2016at18:27
GooddayKSTan,

Thereisnostraightforwardanswerforyourquestion,ashighlightedinmyprevious
comments.

IF,thecoconutfarmismanagedwell,themarketfortendernutsaresecuredwitha
good price structure (whether wholesale unprocessed or semiprocessed), the yield
performanceisstable,andyouroverheadsamanagedproperly,thenyes,itisvery
possible for a 5 hectare coconut plantation to be profitable. Of course, what
constitutesas"profitable"isalsosubjective,astheamountofworkneededtoearn
that"profit"mustcommensuratewithexpectations,i.e.RM3,500monthlynettreturns
doesnotseemas"profitable"forsomeifitinvolveslaboring67hoursadayunder
thehotandhumidconditionsofaplantation.

Privatelandleasepriceswillvaryaccordingtolocationandconditionoftheland.In
some kampung areas of Terengganu for instance, you can get monthly lease rates
of a few hundred ringgit a month per acre in Selangor, the rates are often ranging
aroundafewthousandringgitpermonth.Andno,thelandleasedoesnotdepend
onwhatkindofcropyouwillbecultivating.Landlordstypicallyleaseoutthelandon
a"asis"basis,andmaystipulatethatnopermanentstructurescanbebuiltonsaid
land.

If you are adamant to lease land for coconut cultivation, I would suggest that you
dealdirectlywiththestategovernment/DOA/JabatanTanah&Galian/excoetc.
instead.Ifyougothatroute,thelandleaseistypicallyveryverycheap,buttheland
leased to you will be quite sizeable. There is often a clause in the land lease
agreement where the investor (a.k.a. you) has to carry out some level of
developmentinorderfortheleaseagreementtobemaintained.AsIunderstandit,
there are typically two types of agreement, one which is on a threeyear fixed term
contract (but usually only applicable to land where the government has already
carried out some development, eg. access road, lighting etc.), and longlease
contracts typically up to 20 years period. If you could get ahold of the latter, then
yourcoconutplantationventurewillbesecured.

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Warmregards,
MichaelJ.
Reply

MahadaiSingh 3June2016at09:52
wherecanipurchasethematagseedlings?
Reply

Replies

MahadaiSingh 3June2016at09:54
sendinfotobramha.singh@yahoo.com

Reply

GerardCHeong 12June2016at20:14
HiMichael&fellowreaders,
Gerardhere.IwouldliketoknowifsalinesandysoilsuitableforproductivePandan
coconutplantation?Andalsoifirrigationandwateringofseawaterviableoptionfor
productive coconut plantation in the sense of nutrient speaking? If yes, any
recommendedsequenceforseawaterwatering?
Reply

ShiawYeeChan 14August2016at21:24
HiMichael,
Thank you for the detailed writeup, very informative. Do you provide consultation
serviceforcoconutplantation?ifyes,plssendreplytoshiawyee.ng@gmail.com
Thanks
Reply

Unknown 20September2016at11:30
HiMichael,canyoucontactmeatkelsensawh@gmail.com.

Thankyou
Reply

GaryChow 7November2016at01:31
HiMichael,canyoucontactmeatgary383@gmail.com
Reply

RaymondMinkula 17December2016at12:14
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RaymondMinkula 17December2016at12:22
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Unknown 12January2017at20:18
DearMrMichael,

Mycompanyiskeentoventureintococonutplanting.Canyoucontactmeatemail:
ocsebay1@yahoo.com?

Thankyou,

OngChinSeng
Reply

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