INTEGRATED APPROACH IN THE PROCESSING OF COCONUT PRODUCTS /BY-PRODUCTS AND MARKET PROSPECTS IN THAILAND Somchai Watanayothin and Peyanoot Naka* Abstract Problems in the coconut industry in Thailand will be augmented by maximizing the utilization of coconut into several high-quality and high- valued products. The major coconut products for domestic and export market are coconut milk/cream, coconut water, coconut nectar, young tender coconut, Nata de Coco, Coconut shell handicrafts, coconut fiber and virgin coconut oil. Those coconut products are produced by the large industrial enterprises, medium industrial enterprises and small cottage industries. For marketing and competition conditions, the big company shall emphasize on the market expansion, cost reduction, technology and new products development, trading alliance building as well as the creation of the company’ s market bases for more stability and customer recognition. Major targeted customer group is the foreign market highly purchasing power countries which consist of the United States, European Union, Japan and Australia.The company shell maintain the existing strong market base for more strength together with the building and expansion of the market base toward the markets where the company brands have not been satisfied for its total sales. In addition, the company shall create and maintain the positive image of the products for the customers’ reliability and trust of the company’s product forevermore. Introduction Coconut is widely grown thoroughly the country. In 2007, it covered 225,000 ha and produced 1,219 million nuts, decrease from 2000, 30.77 percent (table 1). The large coconut production are found in the Southern and Western regions. Coconut production in Thailand as in the hands of smallholders. Three quarters of total production is sold as fresh nuts uses in cooking or for other purposes, and the remaining quarter converted into copra. However, due to strong competition from other economic copra, coconut production has been declining since 2000. The most production areas are Prachab Kirikhan, Chumphon and Surat Thani as 17.80, and 11.91 percent of total areas, respectively. The varieties of planting are 91.74% for mature nuts, 6.10% for young coconut and 2.16% for nectary coconut. *Senior Agricultural Scientist and Senior Scientist, Horticulture Research Institute, Department of Agriculture, Ministry of Agriculture and Cooperatives, Phaholyothin Road, Chatuchak, Bangkok 10900, Thailand. 215 In Thailand, coconut is completely a smallholder’s crop with about 1.0-1.5 ha per household in average and coconut farmers almost live below poverty line. For mature nut variety is almost Thai Tall variety; few are hybrid. The Hybrid which Department of Agriculture terminate, are Sawi hybrid No.1, Chumphon 60 and Chumphon.No.2 Totally hybrid grown in Thailand are 10%. Comparison coconut yields from Research station and farmer’s fields are 3.0 and 1.2. Average farm income of farmers is 280 US$ per hectare. Coconut is one crop of importance, since it plays an important role in the economy of the country and on the daily like of the Thaipeople. It is a major source of employment, income generation and food. Owing to low income from traditional products such as mature nut, copra and coconut oil, product diversification for high value products is one approach that could increase farmer income. However, due to declining farm productivity and unstable markets of coconut products, Thais coconut farmers have been facing with a lot of difficulties in their coconut production and processing. Since the income from coconut is small when compared to fruit crops. As a result, coconut productivity would be decreased more, and in consequence, their incomes were small earlier now become least. Unlike other coconut-producing countries, Thailand produces mostly young coconut for fresh consumption of their water (Liquid endosperm in the cavity of fruit). Although quite large areas are also grown with coconuts to provide products such as coconut milk (aqueous extract of solid endosperm, or coconut meat), desiccated coconut, dehydrated coconut, coconut chips, coconut water, coconut jelly (formed through fermentation of coconut water), coconut oil (by extraction of copra), etc. The palm’s unopened inflorescence can be manipulated to yield coconut or processed into alcoholic drinks (through fermentation), or coconut sugar (through boiling). Table 1. Thailand: Area And Production of Coconut, 2000 – 2007 Year Area Production of Coconut 1000 Ha Million Copra Equivalent Nuts 1000 MT 2000 325 1,098 329 2001 326 1,117 335 2002 327 1,134 340 2003 328 1,146 344 2004 343 1,199 360 2005 344 1,204 361 2006 226 1,248 374 2007 225 1,219 366 Source: Office of Agriculture Economics 216 Coconut Products Coconut Product diversification as a means of appropriate processing technologies is divided into two parts; 1. Edible Products 1. Coconut Chip 2. Coconut Sugar 3. Nata de Coco 4. Young Coconut 5. Coconut Milk 6. Virgin Coconut Oil 7. Coconut Nectar 8. Roasted Young Coconut 9. Honey Roasted Coconut 10. Dehydrated Sweet Coconut 11. Coconut Water 2. Inedible Coconut Products 1. Coconut Shell Handicrafts 2. Coconut Fiber 3. Coconut Midrib Broom 4. Coconut Midrib Basket 5. Coconut Soap and Lotion The textual description of products, the processes and it profitability. 1. Edible Products Coconut Chip Coconut chip is the thinly sliced crispy coconut meat .It may be fresh tasting, toasted, sweeten or salted. It uses for snack food. It ‘s almost household products, few are industrial. Varieties suit for coconut chip are dwarf varieties; Sawi hybrid No.1, tall varieties; Sri Lanka, and Thai tall .The nuts shold be ten months old. The processing of coconut chip is dehusking, coconut cutting. Separate the coconut meat from shell, remove paring with a sharp knife, slice meat with peeler. Mix 87 % sliced coconut meat in the mixture of 12 % sugar and 1 % salt for 12 hours in refrigerator,drain chips and dry in indirect dryer at 70 degree celclius for 15-18 hours. Allow to cool, pack in plastic bag or moisture proof polyethylene/foil bags or store in tightly covered glass jars and label with sticker, ready for sales . For industrial, packing in pouches of 30 grams, household making in plastic bag of 100- 120 grams. The cost of production per dryer that uses 250 small coconut include ingredients, labour, electricity, packaging is 1,226.8 baht or 29.9 USD per one dryer. Profitability is 953.2 baht or 23.2 USD per dryer which can do 160 times per year. 217 The gross income of coconut chip production per year is 149,512 baht. or 3,646 USD The quality of coconut chip is good flavour and accept by the consumers. Coconut Sugar Coconut Sugar is mostly used for cooking, desserts, curries and some for raw material of food industries, eg. confectionery. Coconut sugar is made mainly by home industries in villages where coconut is grown. Export quantity has increased from 637,842 kilogram, value 21,213,490 baht in 1998 to 1,007,269 kilogram, value 19,520,315 baht in 1999. The United States of America is the biggest importer of palm sugar, others are Australia, Japan, United Kingdom, France, Canada, Saudi Arabia, Germany, Hong Kong and Netherlands, respectively. The process of coconut sugar are divided into three steps; tapping of coconut sap, collection coconut sap and coconut sugar processing. The palm is first tapped for sugar when the second spathe emerges. It is gradually pulled down and held in place with string, when the spathe is 40 cm. Long. After about 6 days the spathe should be correctly positived for tapping. The spathe is cut about 6 cm. From the tip. The sheath is peeled off, exposing the spikelets which are then ties down with string. Sap is collected between 06.00 and 09.00 and again between 15.00 and 18.00 everyday. About 3 mm are trimmed off at every collection. A cylinder of bamboo or aluminum is place over the end of spathe. A single spathe may be tapped for up to one month, and a good variety may have 2 brunches in production simultaneously. After filtering, the sap is poured into a large pan holding about 60 litres. This is heated to boiling, so that evaporation takes place and the syrup becomes sticky. The pan is taken from the fire and put on the tire wheel. Slow continuous stirring to cool and stir the syrup using the stirring device until it nearly becomes hard. Pour sugar into the aluminum container or mould. Evaporation takes about 2 hours usually between 10.00 and 12.00 daily. The ratio between sap and sugar is about 7:1 Cost of coconut sugar production is 282 baht or 69 USD per 30 kilograms container or 9.40 bht/kg or 0.23 USD/kg g which include labour, fuel, bark of tree, aluminum container and other cost (fertilizer, processing equipments, etc). Sugar production per year will be 1,928 kg/year/rai/ (1 ha = 6.25 rai). Farmer’s gross in come 25,071 bht or 3,917.34 USD /rai/year. Nata De Coco Nata de coco, a gelatinous dessert delicacy, produced by the action of microorganism acetobactor xylinum on coconut water, sugar and acetic acid. Quality of nata is smooth, clear and chewy. It is sweeten by boiling it in sugar and water solution. It is also used as an ingredient in other food products such as ice cream, fruit cocktail. Analysis of nata de coco cooked in syrup or nata de coco preserve shows that it contains 67.7 % water, 0.2 % fat ,12 mg % calcium, 5 mg % iron, 2 mg % phosphorus, trace of thiamine and protein and 0.1 microgram % riboflavin.