Ofero A. Caparino, Ph.D. Division Chief, BioProcess Engineering Division PHilMech

Philippine Center for Postharvest Development and Mechanization CLSU Compound Science City of Munoz Nueva Ecija Tel: 044-4560-213

 68 out of 79 3.61 B provinces are nuts areas 2.7 B nuts  340 M bearing trees

8.92 B  15.31 B nuts/year nuts Reference: PCA, 2013) WORLD TOP TEN COCONUT PRODUCERS (FAOSTAT, 2013)

15.31 B nuts/year 20,000,000 18,000,000 (Average 2007-2011) 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 ‐ PRODUCTION COCONUT MACHINERY, PRIMARY VALUE‐ADDED MARKET SALES EQUIPMENT for INCOME INPUTS PARTS PROJECT PRODUCT PRODUCTS

R&D, COOKING OIL OILMILLS OIL SOAPS PRODUCTION MEAT DETERGENTS RESOURCES KERNEL PROCESSING LIVESTOCK FEEDS MACHINERY MEAL Nursery/Seed Gardens ROPES, GEOTEXTILES BEATING MACHINE, FIBER DOORMATS, BASKETS HUSK DECORTICATOR, BALER, 1‐ & 2‐PLY ORGANIC FERTILIZER ROPE TWINER, Farmers/ DUST ROOTING MEDIA Planting DOORMAT EQUIPMENT HORTICULTURE POTS DOMESTIC AND …creating new JAGGERY, COCONECTAR, EXPORT TODDY Fertilization SAP COCOSUGAR, LUMBANOG MARKETS WINE, Pest demands in the Management COCONUT Coconut COCONUT , VINEGAR, NATA emerging markets WATER WaterWATER DE COCO, WINE LATHE, CUTTER, ACTIVATED worldwidePOLISHER, CHARCOAL CHARCOAL SHELL HANDICRAFT Harvest FORMED FASHION ACCESSORIES, MACHINERY PRODUCTS BELTS, BUTTONS, HANDICRAFTS WOOD WOOD, WOOD, HANDICRAFTS, LUMBER LUMBER FURNITURES LEAVES, LEAF SHEATHS, HATS, SLIPPERS, BASKETS, STIPULES BAGS, HANDICRAFTS TRAYS, PICTURE INFLORESCENCE FRAMES, PLACE MATS, BLINDS, ARTIFICIAL FLOWERS Flowchart of Supply and Value of Coconut and Coconut Products in the , Coconut industry strategic plan for Philippine Agriculture 2010 Sources of cocowater – Large desiccated coconut processing plants Some health benefits of

 Use for intravenous hydration of patients in remote areas (Campbell‐Falck et al.,2000).  Hasbeenusedasalternative fluid for emergency blood plasma transmission to wounded soldiers without allergenic reactions (FAO, 2005).  Acclaimed as a natural contender in the sports market because of its desirable taste and aroma, nutritional and functional characteristics that normally present in sports (FAO, 2005).  It has large amount of electrolytes, which believed to be an important alternative solution for oral rehydration (Sena et al, 20012) Some health benefits of coconut water

 Intravenous hydration of patients (Campbell‐ Falck et al.,2000).  Alternative fluid for emergency blood plasma transmission (FAO, 2005).  Natural contender in the market (FAO, 2005).  Large amount of electrolytes (Sena et al, 20012) Coconut water has five electrolytes that human body needs (FAO, 2010)

Potassium The most important positive ion (cation) inside the cells; regulates heartbeat and muscle function; coconut water contains 203‐256 mg, which is 15 times the amount in the average sports drink Sodium The most important positive ion in fluid outside the cells, and also the one most depleted with exercise, as one lose sodium through sweat and urine. Magnesium Important for maintaining the electrical potential of body cells, proper muscle function, and preventing calcium overload Phosphorous Plays important roles in bone health, and in transferring energy throughout your body, helping your muscles contract, and regulating nerve function (partners with calcium) Calcium Important for bone health (partners with phosphorous) Chemical composition of young and mature coconut water

Components Young Mature

Inorganic ions

Calcium (Ca), mg/100g 27.35 31.64

Magnesium (Mg) , mg/100g 6.40 9.44

Phosphorous (P) , mg/100g 4.66 12.77

Potassium (K) , mg/100g 203.70 257.52

Sodium, Na, mg/100g 1.75 16.10

Presentation Copyright by PHilMech HOW MUCH potential volume of coconut water from mature coconut left unutilized during processing (e.g. copra and Virgin , desiccated coconut, etc ) ? Copra processing Unutilized coconut water

Harvesting Dehusking Splitting/cracking Drying

Scooping dried coconut Copra product Unutilized coconut water

Coconut flour

Whole nut Coco shell Skimmed Deshelled coconut meat Ground coconut meat

Coconut milk Virgin coconut oil

Processing of VCO, coconut flour and skimmed milk Unutilized coconut Broken shells water

Coconut flour

Whole nut Pairings Skimmed Deshelled coconut milk coconut meat Pared Ground coconut meat coconut meat

Coconut milk Virgin coconut oil

Processing of VCO, coconut flour and skimmed milk 2.4 Billion liters / year ( potential volume of coconut water from matured coconut left unutilized during copra processing…)

Total production in = 15 Billion nuts per year 2012 (FAO, 2013)

Estimated Damaged = 3 Billion nuts per year due to calamaties (30M trees x 100 nuts/yr)

Estimated prod (2014 ‐ = 12 Billion nuts per year 2020)

Assuming 80% for = 9.6 Billion nuts per year copra processing

Available water from = 2.4 Billion Liters / year matured coconut, 0.25 kg water /kg nut or 0.25 L water /kg nut (Aragao, 2000) COCONUT PRODUCTION BY REGION (PNS, 2016)

3,000,000

2,500,000

2,000,000

1,500,000

Production, MT 1,000,000

500,000

0 CAR ARMM CARAGA MIMAROPA CALABARZON BICOL REGION ILOCOS REGION DAVAO REGION SOCCSKSARGEN CENTRAL LUZON CAGAYAN VALLEY EASTERN VISAYAS CENTRAL VISAYAS WESTERN VISAYAS NORTHERN MINDANAO ZAMBOANGA PENINSULA MEMBERS OF ASSOCIATION OF PHILIPPINE COCONUT DESICCATORS (APCD) (UCAP, 2016)

3,000,000 1 Franklin Baker 1. Pater Paul (Sorsogon) 1 Franklin Baker 2. Peter Paul 2,500,000 3. Pacific Royal 4. Atson COCO 1. Roxas Sigma 2,000,000 5. Fresh Ingredient 1 Franklin Baker or Peter Agriventures (North cot) 6. Primex COCO Products Paul? (Palawan) 2. Century Canning 7. Superstar Coconut Products (GenSan) 1,500,000

Production, MT 1,000,000

500,000

0 CAR ARMM CARAGA MIMAROPA CALABARZON BICOL REGION ILOCOS REGION DAVAO REGION SOCCSKSARGEN CENTRAL LUZON CAGAYAN VALLEY EASTERN VISAYAS CENTRAL VISAYAS WESTERN VISAYAS NORTHERN MINDANAO ZAMBOANGA PENINSULA Dehusked Nut inspection and Nut boring Empty nut coconut counting

Filtered coconut Filtered coconut Deshelling Coconut shell water water (Single strength) (Single strength) Pared/white Pairings Feeds coconut meat Sterilization (done by toll Concentration Grinding/ processors) Milk extraction Grits Shreding

Sterilized coconut Concentrated Coconut Milk Drying water coconut water Dehydration

Dessicated VCO extraction Size Aseptic packaging Keep at Coconut and purification reduction in food- grade -16oC (Wet Process) barrel Packaging Skimmed Coco VCO Cocomilk Flour Export / domestic consumption

General Process Flow of an Integrated Coconut Processing Facility Research Challenge ?

100% Pure ? NO Preservatives ? NO Additives ?

Un‐utilized Technology Interventions coconut water

Presentation Copyright by PHilMech Coconut Positive water displacement Pump

Chilled Coconut Water Heating Pre-Cooling Chilling

Conceptual design of a continuous flow pasteurizer‐chiller Stored for 4 weeks under chilled condition (4⁰C±2⁰C)

Fresh coconut water Heating Cooling Storage

Laboratory pasteurization of coconut water Establishment of PHilMech Village Level Coconut Water Processing System

The technology was granted patent (Utility Model) to PHilMech by Intellectual Property Office of the Philippines (IPOPHL) on November 11, 2015, with Registration No. 2‐2015‐000266. Components of the PHilMech Village Level Coconut Water Processing System

The village level processing system can be installed in an area of about 200 m2. The system contains basic processing equipment as illustrated, including, washing bins (a), coconut cage (b), extractor (c), pasteurizer‐ chiller, and (d) filling & capping machines (e). The plant includes small laboratory for quality analyses and a dry room for supplies and materials. The assumed useful life of the machines is 10 years. Pasteurizer‐chiller

Extractor

Cage

Distilled water

Chlorinated water

Tap water

Pre‐cleaned coconut

Experimental set up for the production of bottled coconut water Performance testing in the production of bottled coconut water using the developed continuous‐flow pasteurizer‐chiler. The village level coconut water processing plant located in Pili, Cam Sur Harvesting De-husking Pre-cleaning Washing Extracting

100%Pure cocowater, no additives or preservatives

Storage under chilled Pasteurizing-chilling Filling Capping condition

Actual processing of bottled coconut water following the PHilmech established processing procedures and protocols.

Actual processing... Presentation Copyright by PHilMech Presentation Copyright by PHilMech Total count of coconut water pasteurized at 70 ⁰C , 80 ⁰C & 90 ⁰C and stored for 4 weeks at chilled condition (4±2 ⁰C ) and ambient Condition (28±2⁰C) Mold Counts of coconut water pasteurized at 70 ⁰C , 80 ⁰C & 90 ⁰C and stored for 4 weeks at chilled condition (4±2 ⁰C ) and ambient Condition (28±2⁰C) Sensory evaluation of pasteurized coconut water vs. commercial cocowater

Presentation Copyright by PHilMech Sensory evaluation of pasteurized coconut water vs. commercial cocowater (n‐100)

Commercial Coconut Water

PHilMech CCW Brand A Brand B Brand C Product Characteristics PHilMech CCW Brand C Parameters Brand A [240ml] Brand B [330ml] [350ml] [250ml] Product Characteristics Preservation technique Pasteurization Sterilization Sterilization Flash Pasteurization

No added Cane Sugar Cane Sugar No sugar added Sodium Sodium No preservative Preservative No preservative Metabisulfite Metabisulfite Concentrated CCW Concentrated CCW Raw Material/Source Pure CCW (mature) Pure CCW (young) (Reconstituted) (Reconstituted)

Aluminized coated Packaging Clear PET bottle ‐ carboards ‐ Nutritional Facts PHilMech CCW Brand C Parameters Brand A [240ml] Brand B [330ml] [350ml] [250ml] Total , g 6 (0.01/mL) 12 (0.05/mL) 17 (0.05/mL) 10 (0.04/mL) Calories, kcal 40 (0.11/mL) 50 (0.22/mL) 70 (0.21/mL) 50 (0.20/mL) Crude , g 00 0 0 Ash, g 0.39 ‐ ‐ ‐ Total , g 1.0 0 0 0 Total Sugars, g 7 (0.02/mL) 8(0.03/mL) 11(0.03/mL) 10(0.04/mL) , g 00 0 0 Sodium, mg 95 (0.27/mL) 110 (0.46/mL) 150 (0.45/mL) 50 (0.2/mL) Potassium, mg 500 (1.43/mL) 325 (1.35/mL) 447 (1.35/mL) 480 (1.92/mL) Magnesium, mg 8 (0.2/mL) 22 (0.09/mL) 31 (0.09/mL) ‐ Calcium, mg ‐‐52 ‐ Iron, mg ‐‐ 1 ‐ Sensory evaluation (n‐100) 30 27 27 24 25 21 19 17 17 18 18 15 12 12 13 13 13 10 10 8 9 9 4 4 4 4 3 2 3 3 2 2 0 1 1 0

1. dislike 2 3 4 5. neither 6789. like extremely like nor extremely dislike PHilMech CCW Brand A Brand B Brand C

Overall liking scores for PHilMech Cocowater and other commercial/popular brands Sensory evaluation (n‐100) Taste

After‐taste Aroma

Thickness Sweetness

Turbidity

Coco freshBrand A TropicanaBrand B NyogiBrand C PrototypePHilMech CCW

Degree of liking on specific attributes for coconut water INITIAL RESULTS OF MARKET AND PROFITABILITY STUDY IN CAMARINES SUR

Conducted by Central Bicol State University of Agriculture (CBSUA) Team, 2016

Presentation Copyright by PHilMech Target Market Profile (CBSUA, 2015)

Students  Not allowed to leave the school premises during class hours and will have no choice but to buy from among the limited choices being offered by the school canteen/cafeteria)  principal aim is to consume the beverage for refreshment

Health‐conscious beverage consumers  These two market segments would look for a functional drink that would either give them a replenished energy effect or an added nutritional benefit to their diets.

Millenials and young generation ‐ mixture of young professionals and college students who are generally confident, connected and open to change. Dubbed as the digital natives ‐ Philippines, there about 27 million people who falls under this segment (CISCO, a worldwide leader in IT) ‐ Millenials were represented by the college students evenly distributed from private and public universities.

Athletes and Sports Enthusiasts Presentation Copyright by PHilMech Financial analysis in producing coconut water beverage as an enterprise (CBSUA, 2015) Sensitivity Analysis

Scenario 1: Production of 1,500 bottles daily

PRICE Php 18 Php 19 Php 20

NPV (933,515.45) 191,447.45 1,316,410.34

BCR 0.81 1.03 1.26

IRR 5% 17% 28% Financial analysis in producing coconut water beverage as an enterprise (CBSUA, 2015) Sensitivity Analysis

Scenario 2: Production of 2,000 bottles daily

PRICE Php 16 Php 17 Php 18

NPV (997,169.60) 127,793.30 1,252,756.19

BCR 0.80 1.03 1.25

IRR 4% 16% 27% Financial analysis in producing coconut water beverage as an enterprise (CBSUA, 2015) Sensitivity Analysis

Scenario 3: Production of 2,500 bottles daily

PRICE Php 15 Php 16 Php 17

NPV (810,369.50) 314,593.39 1439,556.28

BCR 0.84 1.06 1.29

IRR 6% 18% 29%

Inauguration – Village Level Cocowater processing project 1st World Bank Review Mission to PRDP South Luzon Cluster

World Bank officials: Coco water project a very good World Bank technical experts, headed by Carolina V. Figueroa‐ Geron expressed their appreciation of the Coco Water Processing achievement Technology Pilot Testing and Business Incubation Project which will pilot test the technology developed by PHilMech. Source: http://www.daprdp.net Pilot Testing of Village Level Coconut Water Processing System

Funding: BAR, PHilMech Cocolife MPC

General Objective:

To pilot test the PHilMech developed village level coconut water processing system integrated to a copra and VCO processing level of operations. Specific Objectives:

1. To establish a village level coconut water processing center integrated to a copra and VCO processing operations; 2. To establish the profitability of a PHilMech village level cocowater processing system enterprise integrated to the existing copra and VCO coconut processing system; 3. To determine the potential market of cocowater product derived from the village level processing system enterprise; Specific Objectives:

4. To determine the factors affecting the adoption of the PHilMech village level cocowater processing system integrated to an existing copra and VCO coconut processing system; and 5. To develop the entrepreneurial skills in management of the farmers cooperative in the village level enterprise. SERVICE AREA

PRE‐CLEANING/ RECEIVING SHAVING GRATING SPLITTING WASHING & SANITATION COCOMILK EXTRACTION EXTRACTION CREAM

SEPARATION LABORATORY FILLING/

FILTRATION/ PACKAGING COCOWATER AGE VCO STOR FILLING/LABELING

PASTEURIZATION STORAGE

RECEPTION AREA MINI OFFICE CONFERENCE PRODUCT DISPLAY ROOM Main products

Expected Outcome of the project Empower the coconut farmers by engaging them in appropriate operation and management of the developed technology and increase their income. For further details, please contact:

DR. DIONISIO G. ALVINDIA OIC Executive Director PHilMech Science City of Munoz, Nueva Ecija

Attention:

OFERO A. CAPARIÑO, Ph.D. Division Chief BioProcess Engineering Division PHilMech Science City of Munoz, Nueva Ecija Tel.: (044) 4560213 Local 421 Suncell : 0932‐8616958 Philippine Center for Postharvest Globe : 0917‐8115516 Development and Mechanization Email: [email protected] (PHilMech)

Presentation Copyright by PHilMech Infomercial . Philippine Rural Development Program (World Bank funded project)‐Department of Agriculture . Department of Agriculture–Regional Field Office 5 . Central Bicol State University of Agriculture (CBSUA) . Provincial Local Government Unit (PLGU)‐Camarines Sur . HDM Technologies . GMCC . Rollmaster