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Thailand's Biodiesel from Coconut Oil

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Thailand's Biodiesel from Coconut Oil THE SUPPLY CHAIN OF COCONUT PRODUCTS IN THE PHILIPPINES IN SUPPORT OF GLOBAL SUSTAINABILITY OF THE COCONUT INDUSTRY Yvonne T. Agustin The Philippine coconut industry in a nutshell Coconut is the country’s no. 1 export earner with record high revenue of $1.957 billion in 2011. Average annual revenue (2009-13) is USD1.508 billion. Against total merchandize exports of the country, coconut oil alone, the industry’s major export was no. 10 last year, with no import components unlike the top nine before it. Of gross export receipts from coconut, coconut oil was responsible for USD1.044 billion or 69.5%. In the agriculture sector, three coconut products made it to the top 10 export earners’ list Various Coconut Products from the Philippines namely, coconut oil (1), copra senile trees, the coconut industry products and by products to as meal (7) and desiccated coconut still is able to deliver the many as 100 countries around the (9). USD1.508 billion in gross export world. It is estimated that around receipts annually. 70% of the country’s coconut Coconut area accounts for around harvest goes to the export a quarter of the country’s total Meanwhile, as of June last year, market. arable land, according to data data from the Philippine Coconut from the Bureau of Agricultural Authority show there are 69 Given a host of coconut products Statistics. In 2012, total area coconut oil mills in the country and by-products, this paper will stood at 3.574 million hectares, a with installed crushing capacity cover only the major coconut fractional rise from prior year at of 4.826 million MT copra per products and by-products export 3.562 million hectares. Bearing year. Refineries number 43 with as well as leading non-traditional trees population during the year production capacity of 1.642 coconut products exports. was 344 million, expanding from million MT of cochin/RBD oil. prior year at 340 million trees. Oleochemical plants are fewer at The Philippine Coconut Supply From these trees a total of 15.862 13 with requirement of 250,000 Chain billion nuts were harvested, an MT of coconut oil. A new sector increase by 4.0% from year- in biodiesel opened a new market The agriculture/production stage earlier at 15.245 million MT. for coconut oil with 9 firms in the supply chain is mass-based capable of producing 400,000 and involves around 3.5 million In copra terms, total production MT of biodiesel per year. There coconut farmers and farm in 2013 was 2.710 million MT, are currently 11 desiccated workers. This part of the chain exceeding the previous year at coconut plants operating in the makes available an average 2.633 million MT by 2.9%. For country producing 198,479 MT, 15.521 billion nuts for processing this year, the figure is projected the equivalent of around 1.6 into various products for local to decline by 11.4% to 2.4 billion nuts raw material. use and export overseas. Data million MT, after two straight Likewise, there are 11 activated from the Bureau of Agriculture years of production growth and carbon plants with production Statistics show value of coconut the destructive typhoon that capacity of 101,075 MT. production at this stage is leveled coconut areas in parts of Php88.8 billion. As the products Eastern Visayas. Despite the 344 As export oriented industry, it move farther into the chain, value million trees of relatively poor trades around 40 various coconut addition follows. genetics and a good number of 8 COCOINFO INTERNATIONAL, VOL. 21, No. 2, 2014 which comprise 70% of the husk Chart 1 increase its value after further Marketing Channels of Coconut Products processing into blocks, pellets, for the horticulture industry. Coir fibers are exported as such MARKETING CHANNELS OF COCONUT PRODUCTS UNITED STATES or further processed into value- Coconut Oil Grated Coconut Meat Desiccated Coconut Bukayo added products like Coconut Coir Coconut Vinegar GROWERS PRIMARY PRODUCTS PROCESSORS MARKETS Coconut Shell Charcoal Makapuno geotextiles/nets for domestic and Activated Carbon Frozen Coco Meat Oleochemicals Coconut Flour export markets. The local market Coconut Water Coco Handicrafts Virgin Coconut Oil for coir and products has been Oil Millers boosted by Memorandum Foreign EUROPE Nuts1/ Copra Market Copra Oleochemicals Circular 25 by former President Coconut Oil Coconut Water Gathered Coco Chemicals / 62.45% Desiccated Coconut Hydrogenated CNO Arroyo, directing all national and 15.862 B Coconut Coir Virgin Coconut Oil Biodiesel Coconut Shell Charcoal Coco Handicrafts local government agencies and KOREA other agricultural institutions and Copra Coconut Coir Desiccated Coconut Coco Shell Powder councils to use coco peat or coir Copra Meal Coconut Flour dust and coconut fiber materials Number of Desiccated Coconut Activated Carbon Trees1/ CHINA for soil conditioning and erosion 344 M* Husked Nuts Coconut Oil Oleochemicals control. Likewise, the use of VCO / Coco Milk Coconut Shell Charcoal Acid Oil Desiccated Coconut Fresh Coconut Glycerin Coco Handicrafts geotextiles and biologs made from coir or coconut fiber has JAPAN Coco Shell Charcoal / Coconut Oil Glycerin been prescribed for use in Hectarage Coco Shell Coco Chemicals Coco Milk Powder 3.574 M Coco Shell Powder / Domestic Coco Shell Charcoal Liquid Coco Milk infrastructure and public work Activated Carbon Nata de Coco Activated Carbon Market projects for soil erosion control, 37.55% OTHERS Copra Alkanolamide more particularly of the Coconut Oil Grated Coco Meat Husk Coir Copra Meal Nata de Coco Department of Public Works and Value of Desiccated Coconut Coconut Chips Coconut Coir Coconut Flour Highways. Production Coconut Shell Charcoal Coconut Water 88.8 B Fresh Coconut Shampoo Activated Carbon Oleochemicals Water Processors Bailed coir and coir twine are the DOMESTIC CONSUMPTION Processed Oil major exports from this sector. Edible and Inedible Copra Meal Major buyers of bailed coir are Desiccated Coconut Coconut Coir China and Korea. Coco Shell Charcoal 1/ Figures as of 2012 * Bearing trees only Sources of basic data: Bureau of Agricultural Statistics Fresh Coconut Philippine Coconut Authority Foodnuts M Million Home-made Oil Coconut Shell B Billion Oleochemicals The coconut shell increases its become raw materials to different value as it is processed into When the coconuts are split into products and in the process new coconut shell powder for the its various parts at the farm, on players join the chain as traders, resins industry, coconut shell the basis of 15.521 billion nuts processors, marketers. charcoal and activated carbon, harvest, potentially 6.208 million the latter gets the highest value in MT of coconut husk can be Coconut Husk this sector due to its important produced, 2.794 million MT of use in various industries like coconut shell, 4.035 million MT In the case of the coconut husks, mining, food and beverage, of coconut water, and 5.588 these are processed into coir cigarettes, pharmaceutical, million MT of coconut meat. fiber, twines, geotextiles, coco medical, among others. These various parts move into the logs, and other products. next level in chain as they Considered waste, the coco dust For a while, unprocessed coconut Table 1. Export of Coir Products shell from mature nuts was used as raw material for sugar Average (2009-2013) (sorbitol) used as sweetener for Products Volume (MT) Value Unit Price bubble gums. The plant had to (USD, Million, FOB) (USD, MT, FOB) stop production as it could not Bailed Coir 9,282 2.837 305.65 compete with traditional consumers of coconut shell such Coir Twine 1,015 1.754 1,728.08 as charcoal and activated carbon Pads/ Liners 16 0.021 1,312.15 producers. Coir Nets 19 0.044 2,315.79 Japan and China are the major Cocopeat 2,445 0.572 233.95 importers of coconut shell Door Mats 850* 0.002 2.35 COCOINFO INTERNATIONAL, VOL. 21, No. 2, 2014 Total 13,627** 5.228 9 *Square meters ** Excludes doormats charcoal with respective market shares at 43.4% and 26.3%. Average import volume of Japan is 18,092 MT while that of China is 10,958 MT. Japan also was a primary market for activated carbon with uptake at 7,214 MT responsible for 21.9% of aggregate, followed by Germany at 3,821 MT (11.6%) and the US at 3,529 MT (10.7%). Of the shell products, activated carbon has the highest value. Tender Coconut Water Coconut Water major product, with coconut revenue, further increasing the milk, virgin coconut oil, coconut value of the coconut. Coconut Finally, coconut water has joined flour, and other food products as water is now a USD9 million the supply chain after being other key products. Virgin export winner (2009-2013 considered a waste product from coconut oil, however, has an average) with record high coconut processing especially extended chain as new products turnover of USD19 million in desiccated coconut production. are developed from it. Bulk of 2011; coir products, USD4 Coming out in the millions of the coconut kernel is processed million with high at USD13 liters from the plant (at least 1.25 into copra, comprising about million last year. million liters per day at 100% 90% of the fresh coconut supply, capacity utilization), disposing of from which coconut oil is There has been increasing coconut water then was costly as extracted. Coconut oil is the interest for coconut water as this had to undergo treatment primary material for various sports drink, not necessarily from before being freed up. The products that include cooking oil, green coconuts. Both Coca Cola volume is just too much for margarine, shortening, and Pepsi Cola have joined the vinegar production! Even for oleochemicals, biodiesel bandwagon and have acquired nata de coco, which normally produced in the country and coconut water companies or utilizes coconut milk rather exported overseas.
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