Coco Foods Processing Plant Pre-feasibility Presentation

Village-Scale Coco Foods Processing Plant A Pre-Feasibility Study By: SOPREX Foundation, Inc. Website: http://soprex.wordpress.com http://soprex.wordpress.com

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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/ Paring

WHOLE NUT

COCO MEAT

Granulating

VIRGIN OIL

Low Heat Boiling

FRESH GATA

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Expeller Extraction

Process Flow (By-Products) Dehusking

Splitting

Scooping/ Paring/ Granulating

COCONUT WATER

COCO SHELL

WHOLE NUT HUSKS

Decortication

Beverage Production

Charcoaling

COCO MEAT

Process Flow (By-Products) Dehusking

WHOLE NUT

Splitting

Expeller Extraction

Scooping/ Paring

Cooking in Oil

EXPELLER CAKE

Grinding

COCO FLOUR

PARED COCO MEAT Granulating

Expeller Extraction

CRUDE COCONUT OIL Grinding

DEFATTED DRIED MEAT (sapal)

PRODUCTS AND BY-PRODUCTS VOLUME (1000 coconuts per day, 25 days per month)

DAILY

Ave. Daily ConsumpBuyers tion per (HH) HH

Sapal/Expeller Cake for sale to livestock/poultry raisers (kg)

132

1 kg/day

40

Pure Coconut Milk for sale to food processors (liters)

103

2 li/day

15

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

1,000

20 pc/day

15

Coconut husk, initially for sale to native delicacy 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 coco uncola virgin coco oil (retail packs) virgin coco oil (bulk sales) parings oil sapal/expeller cake coco protein/whey (dried latik) charcoal coconut husk

30.00/liter 3.50/bottle 300.00/liter 200.00/liter 15.00/liter 5.00/kg 60.00/kg 5.00/kg 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 Website: http://soprex.wordpress.com Please retain this link when using this document.