Village-Scale Coco Foods

Processing Plant
A Pre-Feasibility Study
By:
SOPREX Foundation, Inc.
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 Project Concept
• Village-level scale of operations
• Daily capacity of 1000 nuts per day
• 300,000 coconuts annual raw material
requirement
• Can be supplied from as low as 20
hectares
• Adopt the wet-dry process
• Use biomass as heating fuel
• Co-managed by farmers
Process Flow (Main Product)

Dehusking Splitting Scooping/ COCO

Paring
MEAT

WHOLE
NUT Granulating

VIRGIN Low Heat FRESH Expeller

Boiling Extraction
OIL GATA

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Process Flow (By-Products)

Scooping/
Dehusking Splitting Paring/ COCO
Granulating MEAT

WHOLE
NUT
HUSKS COCONUT COCO
WATER SHELL

Decortication Beverage Charcoaling

Production
Process Flow (By-Products)

PARED
Dehusking Splitting Scooping/
Paring COCO
MEAT
WHOLE
Expeller Cooking in
NUT Extraction Oil Granulating

EXPELLER
CAKE Expeller
Extraction
CRUDE
Grinding COCONUT
OIL
DEFATTED
COCO
Grinding DRIED
FLOUR
MEAT
(sapal)
 Ave.
Daily
PRODUCTS AND BY-PRODUCTS VOLUME Consump-
DAILY Buyers
(1000 coconuts per day, 25 days per month) tion per
(HH)
HH

Sapal/Expeller Cake for sale to livestock/poultry

132 1 kg/day 40
raisers (kg)
Pure Coconut Milk for sale to food processors
103 2 li/day 15
(liters)
Virgin Coconut Oil (liters) 61 1 kg/wk 61
Coco Protein (Whey) (kg) 5 0.10 kg/day 51

Coco Uncola: (Cases, 24 bottles) 42 12 btl/wk 84

Charcoal: (kg) 43 1 kg/day 13

Coconut husk, initially for sale to native delicacy
1,000 20 pc/day 15
makers (pcs)
 Market Aspects
• production volumes can easily be
consumed within the barangay itself
– as low as 13% for charcoal consumption
– maximum 84% for beverage consumption
• gata supply can be used in the production of
native delicacies
• sapal supply can be used in the production of
cookies and other baked products
• part of the crude coconut oil supply can be
used for laundry and bath soap production
 Market Aspects
• Price competitiveness
– coconut pure cream milk 30.00/liter
– coco uncola 3.50/bottle
– virgin coco oil (retail packs) 300.00/liter
– virgin coco oil (bulk sales) 200.00/liter
– parings oil 15.00/liter
– sapal/expeller cake 5.00/kg
– coco protein/whey (dried latik) 60.00/kg
– charcoal 5.00/kg
– coconut husk 0.10/pc
 Cost/Benefit Summary

• Total Capital Cost: PhP 2.35M

• Capital sharing:

Client Equity - PhP 505T (21.5%)

Grants/Loan - PhP 1,857T (78.5%)
 INVESTMENT COST (P’000)
Pre-Operating Expenses P 300.0
Land/Site Development 175.0
Buildings 186.0
Plant Machinery & Equipment 791.4
Transport/Office Equipment 300.0
Initial Working Capital 600.2
TOTAL P 2,352.0
 Cost/Benefit Summary
• Projected Annual Gross Income:
Php 8.21M
• Projected Annual Net Income before
interest and taxes (NIBIT): PhP 5.01M
• ROI: 213.1% p.a.
• Payback Period: 0.5 yrs
• NPV @ 24% p.a. = Php 9.41M
• IRR = 216.3% p.a.
 Cost/Benefit Summary
• Over a 5-year period: PhP 21 M net income
• At PhP3.50/coconut ≈ PhP 14/copra kg
• Other Socio-Economic Benefits
– direct employment of 7 workers
– indirect employment:
• retailers,
• home-based producers &
• backyard poultry/livestock raisers
 COCONUT BUYING PRICE

• Floor price: never lower than P3.50

per piece, delivered plant gate.
• Formula: Current Copra Price divided
by 4.5 (average no. of nuts per kg
copra)
• May rise in proportion with increase in
coco oil prices
 Environmental & GAD Features
• Promotes and demonstrates the good
practice of biomass use
• Supports the ISWM program of the LGU
• Fully utilizes the nutritional and economic
value of coco water
• Indirectly reduces pressure on natural
resources
• Reduces the workload of home-based
producers of gata-based delicacies
 Local Data Required for
Detailed Feasibility Study
• Prices of copra, coconut and coconut
products for trend analysis
• Prevailing Labor Costs: Copra Production
• Municipal capacity of coconut production
• LGU investment capacity based on
Income and Expenditures history
• BDP, MDP/CLUP, SEP
 NEXT STEPS
• Project Planning
• Business Organization and Internal
Resource Mobilization
• Sourcing of Other Funds (additional equity,
loans, grants)
• Project Construction and Staff Recruitment/
Training
• Start of Operations
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