Bicol Integrated Fiber Coconut Processing Project

emb.gov.ph

Bicol Integrated Fiber Coconut Processing Project

Bicol University Focus

Facts about Bicol Coconut Farmers

Coconut Farmers Form

The Biggest Poverty Group

• Income From Copra is P900-

P1000 per hectare/month

• With 2 Hectare Ave. per

Family of six, Income per

month is P2,000


Facts about Coconut

•Largest Farm

Waste in the

Country

•8 Billion Husks are

burned or thrown

away

• 4 Billion Used

as Fuel to

Make Copra

Husks


Transforming Husks Into

Useful Materials

• Furniture and Molded

Products

• Gardening and Agriculture

• Insulation Materials

• Building Materials

• Erosion Control and

Bio-Engineering


RESEARCH AND EXTENSION FUNDING

DIFFICULTIES OF REGIONAL

UNIVERSITIES & COLLEGES

Regional Colleges and Universities Viewed

as Second Class Research and Extension

Institutions

Disparity of Allocation of Research Funds

and Facilities Between the National and

Regional Educational Institutions


Sourcing Development Funds from

Non Government Agencies and

Foreign Institutions


RESEARCH RESULT COMMERCIALIZATION

DIFFICULTIES

1.Bias Against Regional Research Institutions

2.Fear of Investment in New Technologies

3.Bias Against University Developed

Technologies

4.Lack of Industry Academe Linkage

5.Lack of Government Support for

Commercialization of New Technologies


FROM UNIVERSITY TO PRIVATE

INITIATIVE: THE BIRTH OF JUBOKEN

ENTERPRISES


Investment & Facilities Needed

One small factory can

be supplied by 1,000

hectares of coconut

plantation


Investment & Facilities Needed

(New Plant)

Investment

• Truck P400,000

• Decorticating

Machine P360,000

• Baling Machine P250,000

• Operating Capital P500,000

• Transformers P120,000

Total 1,630,000

Facilities

• Minimum 1 hectare

land processing area

•500 sq.m. covered

area

• Near ample water

resource

• Near Three Phase

Electrical Line


RAW COCONUT FIBER

SHANGHAI EXHIBIT


Market for Raw Coconut

Fiber in Southeast Asia

Factories Lines

Requirement

/mo.

Delivery

Delay

Increase

/yr

CHINA

KOREA

TAIWAN

JAPAN

TOTALS

27

6

13

3

49

95

29

52

8

184

30,000

8,500

16,000

2,000

56,500

15%

10%

10%

10%

20%

5%

5%


Stitched Fibers and Mats


Processing of Husks into

Erosion Control Nets

COCONUT

HUSK

Decorticating

De-fibering &

Drying Machine

Fiber

(30%)

Weaving

Ropes/Twined

Fiber

Twining


Feasibility study of a small Decorticating Machine

Direct operating cost per day * (2003)

Qty. Description Unit Cost Total

7000 Husks 0.05 350.00

7000 Hauling 0.13 910.00

5 Labor 160.00 800.00

Electricity/fuel 750.00

1000 Drying 0.25 250.00

1000 Baling 0.15 150.00

220 Bagging 1.50 330.00

Supervision 250.00 250.00

Total

P3,790.00


Feasibility study of a small Decorticating Machine

Produce

Estimated Sales per day *(2003)

Unit

Price Total

1,000 kg of fiber 5.5 5,500.00

220 bags of cocopeat 15 3,300.00

Profit 8,800.00


easibility Study of a Small Decorticating Machine

NE MONTH OPERATION (2003) ONLY RAW FIBER

Per month

Projected Expenses

HUSKS (182,000) 9100

HAULING 40,950

LABOR 23,400

ELECTRICITY 19500

DRYING 6500

BALING 3900

BAGGING 8580

SUPERVISOR 8000

BOOKEEPER/CLERK 6000

Misc.Off. Expenses 5,500

Maintenance/Depreci

ation

8300

TOTAL 139,730

Projected Income

Fiber (26 tons) 143,000

Cocopeat 5720

sacks

85,800

TOTAL 228,800


Additional Cost for Netmaking

Additional expenses Net

Twining 400,000

Weaving 175000

Transport 25000

Other Costs 35000

Additional Income from Nets

Nets/P20 per

sq. meter

Add

Cocopeat

857,000

85,800

Add Fiber

Cost

635,000

774,730

Total 1,085,800


The site is cleared paying special attention

in preserving whatever vegetation can be salvaged.


Cocofiber nets are the care placed on the slope.


Cocofiber roles or fascines are installed on

top of the slope in order to secure the nets.


The coco fiber nets are then stitched together.


Cocopeat is added to help supplement the

soil for latter vegetation growth.


Vetiver grass is planted into the cocofiber rolls.


The site then undergoes a final cleaning and clearing process.


Design using coco products

A channel is transformed by bio-engineering (Germany)


Ecologically & Aesthetically Sound Erosion Control Measure

(Germany)


A river in Malaysia that used erosion

control products from the Philippines


Slope Rehabilitation on a very unstable soil in Tagaytay Ridge


Erosion Control Nets Installed at Bicol River


Peace Village in Antipolo City, before & after erosion

control nets were installed.

Before


Desert

rehabilitation

in Mongolia

Slope

rehabilitation in

Japan


Environment friendly fiber materials were

used in this man-made waterway in Japan


Slope embankment in Japan use coco fiber

materials in slope protection


Reviving an

urban river in

Japan

Before

After


Bio-engineering the embankment of the

San Roque Dam using coco fiber net


Coco Peat

Is an excellent growing medium made from coconut dust.

It is widely used as stand-alone growing medium or as a soil supplement

because it’s highly effective, economical and purely organic.


Green houses using coco peat and fiber as soil amendments


Ever- Ortigas


Root Development

w/out coco peat

w/ coco peat


Consolidation and Integration: The Bicol Solution

(Creation of Bicol Production Grid with One Integrated

Processor and Consolidator and Twenty Decorticating

Plants and Production Communities)

JUBOKEN ENTERPRISES

Central Processing Facility and Consolidator

10 Milling and Production Communities (2004)

10 Milling and Production Communities (2005)

10 Milling and Production Communities (2006)


Ease of Establishment

• Technology is

available and tested

in the Philippines

• Low Capitalization

• Availability of Raw

Materials

• Takes less than

three months to

establish


Potential Demand for

Coconut Fiber Nets

Potential market for geo-textiles (in pesos)

Location

Potential

Erosion

Control

Market

Amount for

Geo-textiles

Amount Paid

to Workers

Producing

Geo-textiles

Ripple Effect

on the

Communities

Philippines 600 M 240 M 144 M 720 M

China &

APEC

Countries

21 B 5 B 3 B 15 B

MALACANANG MEMORANDUM CIRCULAR 25


The Project (Participating Companies)

Year 1 Year 2 Year 3

JUBOKEN ENT.

Legazpi-Manito Tabaco City Jovellar

Libon-Polangui Bacacay Sta. Elena

Ligao City Daraga Bato

Labo Pio-Duran Caramoan

Daet Libmanan Casiguran

Sipocot Lupi Pili

Iriga City Tinambac Labo

Goa Del Gallego Tagkawayan

Bulan

Ragay

Irosin Sorsogon City Gubat

Castilla Matnog Pilar


Income Net


Coconut Statistics of Bicol Peninsula CY 2003*

Province/Town

Coconut Area

Bearing

Trees

Total Nut

production

Total Number

of Farmers

Albay 99,940 9,163,292 503,981,060 46,823

Camarines Sur 203,282 19,520,892 1,073,649,060 94,274

Camarines Norte 100,086 7,557,178 415,644,790 23,393

Sorsogon 97,738 7,762,746 426,951,030 49,840

Total

* Source: Philippine Coconut Authority


YEARLY PRODUCTION TARGETS

Unit Year 1 Year 2 Year 3

Raw Fiber tons 2,400 4,800 7,200

Nets sq.m 2,400,000 4,800,000 7,200,000

Rubberized

Products

tons 200 400 600

Cocopeat tons 7,200 14,400 21,600


Who will benefit from the

project


THE 30 NEW INVESTORS IN THE

Investor

PRODUCTION GRID:

EARNINGS OF AT LEAST 80T

PESOS/MONTH FOR BASIC FIBER

PRODUCTION, OR 200-300T PESOS

FOR NET PRODUCTION


PROJECT JOB GENERATION

Job generation

YEAR 1 YEAR 2 YEAR 3

PERMANENT JOBS

EARNING P200/DAY

FAMILY

SUBCONTRACTOR

S EARNING

MINIMUM 2,000

PER MONTH

150 300 450

3,000 6,000 9,000


Export Revenues $

Year 1 Year 2 Year 3

Raw Fiber 349,040 698,181 1,047,273

Rubberized

Products

163,636 327,272 490,909

Nets 1,090,909 2,181,818 3,272,727

Cocopeat 122,727 245,454 368,181

TOTAL 1,726,364 3,452,727 3,681,181

PESOS 94,950,00 189,900,000 282,485,000


ECONOMIC RIPPLE

EFFECT ON REGIONAL

DEVELOPMENT

YEAR 1 YEAR 2 YEAR 3

CONTRIBUTION TO

REGIONAL INCOME

ECONOMIC RIPPLE

EFFECT IN THE

REGION

94,950,000 189,900,000 282,485,000

474,750,000 949,500,000 1,412,425,000


Cost Savings on

Construction

• Less Damages due to

concrete cracks and collapse

• Cost is 10% of Concrete

P 2300/sq.m. P 180/sq.m. P 1200/sq.m.


Removes Waste and Promotes

Environmentally Sound Construction

• One Small Factory Eliminates 7,000 to

10,000 husks wastes per day

• Improves the Environment Through the

Introduction of Plants in Construction of road

and river banks.


BICOL AS

EXPORTING

POINT TO ASIA

General

Santos City


THE MAIN MARKETS:

CHINA

JAPAN

KOREA


Income Net

WHY START THIS

INDUSTRY MODEL IN

BICOL?


AVAILABILITY OF RAW

MATERIALS

73% OF THE CULTIVATED AREAS ARE

COCONUT FARMS


PROXIMITY TO MANILA

Fiber Production in Laguna and Quezon are

Primarily geared for the local furniture

industry. Bicol is the nearest resource to

tap for export.


AVAILABILITY OF SKILLS

Bicol has a very long history of fiber rope making

and weaving due to the very long history in

abaca handicraft manufacturing.

The decline of the abaca industry severely

affected about 500,000 families in the region.


AVAILABILITY OF

PROFESSIONAL EXPERTISE

AND TECHNOLOGIES

Geo-textile Manufacturing and Bio-Engineering was

pioneered in the Philippines by Researchers and Engineers

originally based in Bicol University.

This pool of professionals have gone a long way in

introducing bio-engineering not only in the country but also

in other countries.


AVAILABILITY OF RAILROAD SERVICES

TO MANILA

BETTER ORGANIZED

UTILIZATION OF RAIL

TRANSPORT COULD CUT

TRUCKING COSTS BY 60%


WHY JUBOKEN ENTERPRISES

AND COCO TECHNOLOGIES

CORPORATION?


JUBOKEN ENTERPRISES IS A

MULTI-AWARDED COMPANY WITH

MORE THAN 10 YEARS OF

HISTORY IN COCOFIBER

RESEARCH AND MANUFACTURING


JUBOKEN ENTERPRISES PIONEERED

COCOFIBER GEOTEXTILE NETS AND

COCOFIBER FASCINES IN THE

PHILIPPINES


JUBOKEN ENTERPRISES/COCO TECHNOLOGIES

CORPORATION PIONEERED BIO-ENGINEERING

IN THE PHILIPPINES. IT HAS MORE THAN 30

ENGINEERS AND STAFF IMPLEMENTING BIO-

ENGINEERING PROJECTS IN ASIA AND THE

PHILIPPINES.


JUBOKEN/COCOTECH IS A HOMEGROWN

BICOLANO COMPANY WITH MORE THAN

95% OF ITS EMPLOYEES COMING FROM

BICOL


Signing of MOA with Chinese River Rehabilitation and

JUBOKEN/COCOTECH

Water Quality

HAS

Company

MORE THAN TEN

YEARS OF MARKETING ADVANTAGE IN ASIA


WHAT DO WE HAVE TO DO?


ADDITIONAL INVESTMENT NECESSARY(167,000,000)

Existing

Assets

JUBOKEN 18,000,000

Additional

Investments

Land Bank

CIIF, LGU

ACEF

Land & Bldg. 3,000,000 1,000,000 5,000,000

Machineries 5,000,000 30,000,000

Quedancor

Operating

Cap.

15,000,000

30

PLANTS

Land 30,000,000

Bldg. &

Machineries

45,000,000

Operating

Cap.

15,000,000

TOTAL 51,000,000 21,000,000 15,000,000 35,000,000 45,000,000


Why We Succeeded

* Developed Products and Services Wherein We

had Competitive Advantage

* Dedication of Proponents to the Project

* Continuous Research and Development

* Maintenance of Quality

* Involvement of Rural Communities in

Production

* Investment in Employees’ Training and Education

* Continuous Investment in the Company

* Establishment of Strategic Alliances with agencies and

other companies


Unsolicited Recommendations

* Encourage and Provide Support for

University Research Activities

* Increased Academe and Industry

Cooperation

* Review Technologies Ready for Commercialization

* Provision of Venture Capital for Technology

Commercialization

* Encouragement on Entrepreneurship


ECONOMIC RIPPLE

EFFECT ON REGIONAL

DEVELOPMENT

YEAR 1 YEAR 2 YEAR 3

CONTRIBUTION TO

REGIONAL INCOME

ECONOMIC RIPPLE

EFFECT IN THE

REGION

94,950,000 189,900,000 282,485,000

474,750,000 949,500,000 1,412,425,000


PROJECT JOB GENERATION

Job generation

YEAR 1 YEAR 2 YEAR 3

PERMANENT JOBS

EARNING P200/DAY

FAMILY

SUBCONTRACTOR

S EARNING

MINIMUM 2,000

PER MONTH

150 300 450

3,000 6,000 9,000


IF COCONUT FIBER ROPES CAN BE MADE,

IMAGINATION IS THE ONLY LIMIT ON WHAT

OTHER PRODUCTS WE CAM MAKE, OTHER

THAN GEO-TEXTILES


DIOS

MABALOS!

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