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Thailand's Biodiesel from Coconut Oil

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Thailand's Biodiesel from Coconut Oil SRI LANKAN DESICCATED COCONUT INDUSTRY ISSUES, CHALLENGES AND DEVELOPMENT STRATERGIES W.K.N. Shanthichandra Introduction Coconut is a staple food for people in many parts of the world and also it plays an important role in sustaining the national economy by contributing to the Gross Domestic Products (GDP). It also provides livelihood, income, energy, shelter etc., for coconut farmer families throughout the lifetime of the plant. Coconut is a raw material for number of value added export products such as desiccated coconut, coconut oil, virgin coconut oil, coconut milk, cream and milk powder etc, mostly traded in the international market. The desiccated coconut (DC) is one of the major export oriented processed products in Sri Lanka and also in other coconut growing countries. The Sri Different Grades of Desiccated Coconut Lankan DC is well accepted in the world market for its unique History of Desiccated Coconut by using the tea leaf dryer. sweet taste and pleasant smell. Industry Vavasseur subsequently Moreover, Sri Lanka has very introduced the very first high per capita consumption of Sri Lanka is the birth-place of desiccated coconut brand in coconut in the world. Desiccated desiccated coconut. Coconut, as England called the Black V and coconut is manufactured by an ingredient in the production of commenced commercial removing the moisture in confectionery items was first production in Ceylon. The brand shredded or fine/ medium grade utilized in the United Kingdom became an instant success and cuts of coconut kernel and used (UK) in the late 1870's. Initially, the company quickly expanded in various industries like fresh coconuts were being distribution throughout the rest of confectionery and bakery shipped into UK from Sri Lanka Europe. Before the end of the products, and frozen foods. The (then Ceylon). However, the century, the brand was DC is sieved, and graded difficulties in handling and introduced into the United States. depending on the size of the distribution of raw material, particles such as fine, medium coupled with long shipping time, In 1909, the USA imposed a and coarse. Moreover, DC has spoilage of nuts became major heavy tariff on imports of the been graded based on the fat problems. As a result, nearly a product into the country. It, content such as low fat century ago, a Colombo based however, exempted the (maximum 50% fat) and high fat European firm established the Philippines, which was a part of (minimum 60% fat) in the final first ever desiccated coconut its territories in Asia at that time, product. In addition, DC is also factory in the world, in Sri Lanka seeking to help in the available in value added forms in 1888. A British entrepreneur, development of its coconut namely toasted, sweetened or in Henry Vavasseur, successfully industry. Taking advantage of the combination of sweetened developed a process for duty exemption, the Vavasseurs toasted, different shapes like preserving the coconut kernel established production facilities flakes, granules, chips or shreds. through drying (or desiccating) in the Philippines in 1923. COCOINFO INTERNATIONAL, VOL. 18, No. 1, 2011 29 However, in order to differentiate country’s DC production was World demand for DC is the Philippine product from unable to meet at least 45,000MT 243,000MT in 2008 and it was Ceylon's Black V, the Red V of target for last nine years and 150,760MT in the year 1990. The brand was created. also the mills were operated EU and the USA are the biggest below 50% of their installed export market for DC followed Present Situation of Sri capacity. The mono-cropping by Canada, Asia and Pacific Lankan Coconut Industry practice, and nutrient deficiency region such as Australia, New in the soil particularly K, decline Zealand, Japan, China, Taiwan, In average, Sri Lanka produced the coconut acreage due to land Singapore, and Korea. The about 2.7 billion coconuts conversion for commercial and Middle East countries especially annually. As per the official industrial purposes, unfavorable United Arab Emirates, Saudi estimate the direct consumption climatic conditions, outbreaks of Arabia, Iran, Oman and Jordan is around 90 coconuts per person pests and disease such as coconut are also major importers per year which means around mite, ganoderma, leaf rot particularly from Sri Lanka. 70% of total nut production goes diseases and lack of good Spain, Germany, France, to the domestic consumption. agricultural practices in coconut Portugal, United Kingdom, Italy, Only, the balance 30% is cultivations contribute to the Poland, Greece and Belgium are available for the processing shortage of raw materials for the also the main buying countries. sector mainly for the DC, DC Industry. Brazil, Chile, Mexico, Pakistan Coconut Oil, Coconut milk, and Australia are growing coconut cream and coconut milk Therefore, processing sector is markets. powder. running short of raw materials for their routing operations. It World demand for DC had a The DC industry in Sri Lanka becomes worst during the lean progressive growth with slow consists of around 55 factories, production period which is increasing trend until 2007 and which are mostly located in the October to April every year. Sri from the year 2008 the export coconut triangle. The capacity of Lanka’s DC production and volume slightly declined. The an average factory varies from export quantities are reported low total DC exports were shown 40,000 to 60,000 nuts/day. since the year 2001. Out of 55 negative growth or decline of Industry output is around 90,000 DC mills, only 42 mills are export volumes in last two years tons per annum. Sri Lanka is the engaged in production off and on 2009 and 2010. In the CY 2000, world’s third largest DC below the installed capacity due the world DC exports grew up to producer after the Philippines to shortage and high price of nuts 201314 MT and 243339MT in and Indonesia, sharing about for last 7-8 years period. The CY 2008 but in CY 2009 the 25% of the global annual DC estimate DC production for 2010 export quantity was slightly production. In 2000, the DC is around 30,000MT which is 30 declined to 191603 MT. The production reached its highest percent of the installed capacity. Philippines, Indonesia and Sri level of about 89,000 tons. It is The industry's ability to meet Lanka are main producing the highest foreign exchange demand may be jeopardized and countries. The Philippines plays a earner in the Sri Lankan coconut some of the mills have stopped leading role in production and processing industry, accounting their productions. export of DC. The Philippines for about 0.44% of national GDP. DC export quantity had More than 98% of the DC World Scenario in Production progressively grown until 2008 produced is exported and the and Marketing of DC but the export quantity came total export earning was US$65.2 down in last two years. Sri million in 2000. About 35,000 Today, DC is exported Lanka sold 30,247 MT of personnel are involved in the worldwide and used as an desiccated coconut to the coconut processing industry, out ingredient for many overseas market in 2010. Sri of which nearly 10,000 are confectionery products such as Lanka as the pioneers of DC directly employed by the DC chocolate fillings and toppings, production has an average annual industry. garnished ice cream bars and production of about 45000 MT health bars, cakes and crispy with the installed capacity of However, country is experienced biscuits, baked macaroon and 90,000 MT per year after low nut yield for almost last nine some desserts, coco bread and completion of the mill years and it has been fluctuated candies, and coconut-sprinkled modernization programme between 2.3-2.7 billion nuts per cereals. Other than the implemented by the Coconut year by putting the mills to commercial usages, DC is also Development Authority. Under operate under capacity for long used for culinary purposes in this programme, 42 DC Mills period of time. As a result, the most of the countries. Annual have been fully automated by 30 COCOINFO INTERNATIONAL, VOL. 18, No. 1, 2011 product exporting countries. The DC prices were always below 1000US$ until year 2006 but an increasing trend has been experienced from CY 2007 onwards. Before that the prices were fluctuating between the 700 and 1000US$ but it underwent a sharp increase reaching 1800US$ in 2008 (Fig2). The price increase is usually associated with short supply of DC. Issues & Challenges The declining coconut installing fluid bed dryers, previous year and to a certain production, shortage of raw coconut shell fired boilers with extent implementation of good materials (nuts) and lack of the stainless steel (food grade) agricultural practices are some of consistency in supply are some of process line to produce the the reasons. the major issues faced by the quality guaranteed DC from Sri industry. Likewise, the DC Lanka. As a result, the physical industry is reluctant to enter into properties such as pure natural The safety and shelf-life of DC long term supply agreement. whitish colour, unique sweet depend on the chemical, physical Most of the mills operate in 1/3 taste, pleasant aroma/smell and and microbiological properties. of the installed capacity which texture and also the The overall quality of the product increases the operational cost and microbiological properties of Sri is improved by the also result in losing regular Lankan DC have been improved. implementation of good buyers. However, the above The Sri Lanka DC industry manufacturing practices. The Sri issues have become challenges to requires about 690 million nuts Lankan DC is purely natural the industry to ascertain suitable or about 20% of annual nut product hence there is no health way to overcome these situations, production, to operate in minimal hazards.
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