IT WAS recently announced that the Department of Agriculture (DA) is promoting the use of cattle feed that is using copra meal as one of its main ingredients.
Apparently, the idea to use copra came about after there was a shortage of soybeans in the world market, a development that has resulted in higher soybean prices.
While I believe that that might be a good stop gap measure, it may not be a good strategy in the long run because of many reasons.
Producing copra from fresh coconuts has never been a good idea, because by drying the fresh coconut meat, there is already value lost, because precious oil is lost in the drying process. Besides, as the dried copra is stored and transported, it is susceptible to being attacked by insects and vermin.
There is also an additional risk about copra being infected by salmonella, which is a danger to both animal health and human health.
Recent studies and market experiences have also shown that VCO (virgin coconut oil) could even be a better product than coconut cooking oil.
The coconut industry offers various opportunities for value addition, but the choice between producing copra meal for animal feeds and producing coconut cooking oil or VCO significantly impacts profitability, value-added potential, and market positioning. Below is a comparative analysis based on profitability, value addition, and other considerations.
Producing Copra Meal for Animal Feeds Production Process
Copra meal is a byproduct of extracting coconut oil from dried coconut meat. The process involves drying coconut meat, extracting oil, and milling the remaining residue into copra meal.
* Target Market – primarily the livestock and aquaculture feed industries
* Profitability – low to moderate; copra meal is a bulk commodity with relatively low profit margins due to its low unit price
* Production Cost – lower compared to oil production as it involves fewer processing steps
* Market Stability – moderate demand, but it competes with other animal feed options like soybean meal
* Value Added – low; copra meal is a byproduct and often considered a secondary product in the value chain
* Price Range – typically, lower than coconut oil or VCO; prices fluctuate based on the demand for animal feed and global commodity markets.
* Sustainability and Byproducts – minimal waste as copra meal is itself a byproduct; environmentally sustainable if production adheres to ethical sourcing and energy-efficient drying methods. (To be continued)/PN
