Coco Coir/Fiber Production

Coco Coir/Fiber Production Coco Coir Uses & Market Demand • Coco coir, a durable fiber extracted from discarded coconut husks, is now widely used as basic material in making nets, rolls, and mats as protective covers for soils and slopes. • It is becoming popular in USA and countries in Southeast Asia. • Coco coir is preferred over concrete bricks and peat moss because it is cheaper, renewable, and completely organic. Coco Coir Market Demand

• Coco coir is extensively used to rehabilitate deserts, enhance greens in golf courses and prevent soil erosion in riverbanks and highways.

• It is also an excellent growing medium for landscape plants and grasses since the fiber has natural rooting hormones and good water-holding capacity. Steps in Coco Coir Fiber Decortication and Processing (daily operation), LMPCI, Sariaya, Quezon

Husks (13,000 Soaking Decorticating pcs) (First Pass)

First Pass Dust

Decorticating Second Pass (Second Pass) Fiber (Refined Fiber 1.3 metric tons (20%) Dust (includes dust from first Drying pass 80%)

Baling/Weighing 50-65 bales Source: Dela Cruz, Pobre & Gabrido, 2002 Manual on Machinery and Equipment Storage For Coconut By-product Utilization of coir nets in Unisan, Quezon TheThe VietnamVietnam ModelModel ofof DecorticatingDecorticating MachineMachine

Cost of Machine $517.00 Pick-up Price Cost of Motor , $273.00 20HP (Second hand) Manufacturer KARI, Ben Tre province, Vietnam

Perspective view of Source: Dela Cruz, Pobre & Gabrido, 2002 Decorticating Machine Manual on Machinery and Equipment For Coconut By-product DiscountedDiscounted CashCash FlowFlow ofof CocoCoco CoirCoir Production,Production, LMPCI,LMPCI, SariayaSariaya ,, Quezon,Quezon, 1995.1995.

ITEM 1 2 3 4 5 6 7 8 910 BENEFITS Sales from fibers - 1,064,700 1,064,700 1,064,700 1,064,700 1,064,700 1,064,700 1,064,700 1,064,700 1,064,700

COSTS Operating Cost - Labor - 227,500 227,500 227,500 227,500 227,500 227,500 227,500 227,500 227,500 Fuel - 90,581 90,581 90,581 90,581 90,581 90,581 90,581 90,581 90,581 Husk - 283,920 283,920 283,920 283,920 283,920 283,920 283,920 283,920 283,920 Misc. - 36,400 36,400 36,400 36,400 36,400 36,400 36,400 36,400 36,400 Maintenance 776,000 2,400 32,200 24,728 30,760 23,000 33,928 21,560 32,200 24,728 Investment Cost ------TOTAL COST 776,000 640,801 670,601 663,129 669,161 661,401 672,329 659,961 670,601 663,129 NET BENEFITS (BF) -776,000 423,899 394,099 401,571 395,539 403,299 392,371 404,739 394,099 401,571

FINANCING Loan receipt 600,000 ------Debt Servicing - 197,434 197,434 197,434 130,093 130,093 - ---

NET BENEFITS (AF) -176.000 226,465 196,665 204,137 265,446 273,206 392,371 404,739 394,099 401,571

Discount Factor 0.87 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 (15%) NPV 1,081,205 BCR 1.30 IRR (BF) 23.16%

Source: Medina, S.M.; Matienzo, E.L.A; Medina C.M.; Manalo, D.D. & Aguilar, E.A. 1997. Documentation & Assessment of Successful Coconut Production, Processing, & Marketing Enterprises in Luzon. PerspectivePerspective viewview ofof singlesingle --plyply twiningtwining machinemachine

Cost of Machine (Vietnam-made) Source: Dela Cruz, Pobre & US$ 45.00 Gabrido, 2002, Manual on Single ply rope making equipment Machinery and Equipment (wooden model) with ½ hp motor For Coconut By-product Village -Level Double Ply Twining Technology

Drying of Coconut Fiber DoormatDoormat MakingMaking EquipmentEquipment

Cost of Equipment (Vietnam-made) Source: Dela Cruz, Pobre & Gabrido, 2002 Doormat-making US$ 13.00 Manual on Machinery and Equipment equipment For Coconut By-product ProcessProcess FlowFlow ofof MakingMaking DoormatsDoormats

Inlaying of rope using Knitting the product pusher and hammer

Pumping and pushing the finished doormat

Source: Dela Cruz, Pobre & Gabrido, 2002 Manual on Machinery and Equipment For Coconut By -product Doormat frame used in COGENTC Site of Maitum , Sarangani

Doormats produced by FEIMCO Cooperative in COGENT site of Maitum, Sarangani