Producing Coconut Cooking Oil Production Process
This requires copra processing and oil extraction through expelling or solvent extraction. Refining is often needed to produce cooking-grade oil (Refined, Bleached, and Deodorized Coconut Oil, or RBD).
* Target Market – domestic and international food industries
* Profitability – moderate; vooking oil has higher unit prices than copra meal, but costs are also higher due to refining
* Production Cost – moderate to high due to equipment, energy, and labor requirements
* Market Stability – high demand as a staple cooking ingredient worldwide
* Value Added – moderate; the oil is a refined product with a broader market reach and more applications than copra meal
* Price Range – higher than copra meal but lower than VCO
* Sustainability and Byproducts – byproducts like copra meal and coconut husks can be used or sold, reducing waste.
Producing VCO Production Process
VCO is extracted from fresh coconut meat through mechanical or natural means (cold pressing, fermentation, or centrifuge). This does not require refining, bleaching, or deodorizing, preserving natural nutrients.
* Target Market – health-conscious consumers, beauty and cosmetics industries, and niche export markets
* Profitability – high; VCO commands premium pricing due to its perceived health benefits and versatility
* Production Cost – high; requires fresh coconuts, specialized equipment, and labor-intensive processing
* Market Stability – growing demand, particularly in health and wellness markets
* Value Added – very high; VCO is considered a high-end product, with significant markup potential
* Price Range – substantially higher than both copra meal and cooking oil
* Sustainability and Byproducts – residue from VCO production can be used as a secondary product (e.g., coconut flour or feed); lower environmental impact if using eco-friendly processing methods.
Conclusion
1. Profitability – Producing VCO is the most profitable option due to its high market price and premium consumer demand, especially in export markets. Copra meal is the least profitable, serving as a low-margin commodity.
2. Value Added – VCO also offers the highest value addition, making it ideal for niche markets focused on health, beauty, and wellness. Coconut cooking oil provides moderate value addition, while copra meal is considered a byproduct with limited added value.
3. Recommendation – For long-term profitability and sustainability, focusing on VCO production is advisable. However, if capital and market access are limited, producing coconut cooking oil may serve as a practical intermediate step. Copra meal production should only be pursued as part of an integrated approach to minimize waste and maximize resource utilization.
4. Implementation – Create an inter-agency Technical Working Group (TWG) to study the transition from producing copra meal to producing VCO. However, the TWG could also study how to produce animal feeds from the process of VCO production. TWG members could be the Department of Agriculture, Department of Trade and Industry, and Department of Science and Technology./PN
