Bicol Integrated Fiber Coconut Processing Project
Bicol Integrated Fiber Coconut Processing Project
Bicol Integrated Fiber Coconut Processing Project
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<strong>Bicol</strong> University Focus<br />
Facts about <strong>Bicol</strong> <strong>Coconut</strong> Farmers<br />
• <strong>Coconut</strong> Farmers Form<br />
The Biggest Poverty Group<br />
• Income From Copra is P900-<br />
P1000 per hectare/month<br />
• With 2 Hectare Ave. per<br />
Family of six, Income per<br />
month is P2,000
Facts about <strong>Coconut</strong><br />
•Largest Farm<br />
Waste in the<br />
Country<br />
•8 Billion Husks are<br />
burned or thrown<br />
away<br />
• 4 Billion Used<br />
as Fuel to<br />
Make Copra<br />
Husks
Transforming Husks Into<br />
Useful Materials<br />
• Furniture and Molded<br />
Products<br />
• Gardening and Agriculture<br />
• Insulation Materials<br />
• Building Materials<br />
• Erosion Control and<br />
Bio-Engineering
RESEARCH AND EXTENSION FUNDING<br />
DIFFICULTIES OF REGIONAL<br />
UNIVERSITIES & COLLEGES<br />
Regional Colleges and Universities Viewed<br />
as Second Class Research and Extension<br />
Institutions<br />
Disparity of Allocation of Research Funds<br />
and Facilities Between the National and<br />
Regional Educational Institutions
Sourcing Development Funds from<br />
Non Government Agencies and<br />
Foreign Institutions
RESEARCH RESULT COMMERCIALIZATION<br />
DIFFICULTIES<br />
1.Bias Against Regional Research Institutions<br />
2.Fear of Investment in New Technologies<br />
3.Bias Against University Developed<br />
Technologies<br />
4.Lack of Industry Academe Linkage<br />
5.Lack of Government Support for<br />
Commercialization of New Technologies
FROM UNIVERSITY TO PRIVATE<br />
INITIATIVE: THE BIRTH OF JUBOKEN<br />
ENTERPRISES
Investment & Facilities Needed<br />
One small factory can<br />
be supplied by 1,000<br />
hectares of coconut<br />
plantation
Investment & Facilities Needed<br />
(New Plant)<br />
Investment<br />
• Truck P400,000<br />
• Decorticating<br />
Machine P360,000<br />
• Baling Machine P250,000<br />
• Operating Capital P500,000<br />
• Transformers P120,000<br />
Total 1,630,000<br />
Facilities<br />
• Minimum 1 hectare<br />
land processing area<br />
•500 sq.m. covered<br />
area<br />
• Near ample water<br />
resource<br />
• Near Three Phase<br />
Electrical Line
RAW COCONUT FIBER<br />
SHANGHAI EXHIBIT
Market for Raw <strong>Coconut</strong><br />
<strong>Fiber</strong> in Southeast Asia<br />
Factories Lines<br />
Requirement<br />
/mo.<br />
Delivery<br />
Delay<br />
Increase<br />
/yr<br />
CHINA<br />
KOREA<br />
TAIWAN<br />
JAPAN<br />
TOTALS<br />
27<br />
6<br />
13<br />
3<br />
49<br />
95<br />
29<br />
52<br />
8<br />
184<br />
30,000<br />
8,500<br />
16,000<br />
2,000<br />
56,500<br />
15%<br />
10%<br />
10%<br />
10%<br />
20%<br />
5%<br />
5%
Stitched <strong>Fiber</strong>s and Mats
<strong>Processing</strong> of Husks into<br />
Erosion Control Nets<br />
COCONUT<br />
HUSK<br />
Decorticating<br />
De-fibering &<br />
Drying Machine<br />
<strong>Fiber</strong><br />
(30%)<br />
Weaving<br />
Ropes/Twined<br />
<strong>Fiber</strong><br />
Twining
Feasibility study of a small Decorticating Machine<br />
Direct operating cost per day * (2003)<br />
Qty. Description Unit Cost Total<br />
7000 Husks 0.05 350.00<br />
7000 Hauling 0.13 910.00<br />
5 Labor 160.00 800.00<br />
Electricity/fuel 750.00<br />
1000 Drying 0.25 250.00<br />
1000 Baling 0.15 150.00<br />
220 Bagging 1.50 330.00<br />
Supervision 250.00 250.00<br />
Total<br />
P3,790.00
Feasibility study of a small Decorticating Machine<br />
Produce<br />
Estimated Sales per day *(2003)<br />
Unit<br />
Price Total<br />
1,000 kg of fiber 5.5 5,500.00<br />
220 bags of cocopeat 15 3,300.00<br />
Profit 8,800.00
easibility Study of a Small Decorticating Machine<br />
NE MONTH OPERATION (2003) ONLY RAW FIBER<br />
Per month<br />
<strong>Project</strong>ed Expenses<br />
HUSKS (182,000) 9100<br />
HAULING 40,950<br />
LABOR 23,400<br />
ELECTRICITY 19500<br />
DRYING 6500<br />
BALING 3900<br />
BAGGING 8580<br />
SUPERVISOR 8000<br />
BOOKEEPER/CLERK 6000<br />
Misc.Off. Expenses 5,500<br />
Maintenance/Depreci<br />
ation<br />
8300<br />
TOTAL 139,730<br />
<strong>Project</strong>ed Income<br />
<strong>Fiber</strong> (26 tons) 143,000<br />
Cocopeat 5720<br />
sacks<br />
85,800<br />
TOTAL 228,800
Additional Cost for Netmaking<br />
Additional expenses Net<br />
Twining 400,000<br />
Weaving 175000<br />
Transport 25000<br />
Other Costs 35000<br />
Additional Income from Nets<br />
Nets/P20 per<br />
sq. meter<br />
Add<br />
Cocopeat<br />
857,000<br />
85,800<br />
Add <strong>Fiber</strong><br />
Cost<br />
635,000<br />
774,730<br />
Total 1,085,800
The site is cleared paying special attention<br />
in preserving whatever vegetation can be salvaged.
Cocofiber nets are the care placed on the slope.
Cocofiber roles or fascines are installed on<br />
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<br />
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<br />
A channel is transformed by bio-engineering (Germany)
Ecologically & Aesthetically Sound Erosion Control Measure<br />
(Germany)
A river in Malaysia that used erosion<br />
control products from the Philippines
Slope Rehabilitation on a very unstable soil in Tagaytay Ridge
Erosion Control Nets Installed at <strong>Bicol</strong> River
Peace Village in Antipolo City, before & after erosion<br />
control nets were installed.<br />
Before
Desert<br />
rehabilitation<br />
in Mongolia<br />
Slope<br />
rehabilitation in<br />
Japan
Environment friendly fiber materials were<br />
used in this man-made waterway in Japan
Slope embankment in Japan use coco fiber<br />
materials in slope protection
Reviving an<br />
urban river in<br />
Japan<br />
Before<br />
After
Bio-engineering the embankment of the<br />
San Roque Dam using coco fiber net
Coco Peat<br />
Is an excellent growing medium made from coconut dust.<br />
It is widely used as stand-alone growing medium or as a soil supplement<br />
because it’s highly effective, economical and purely organic.
Green houses using coco peat and fiber as soil amendments
Ever- Ortigas
Root Development<br />
w/out coco peat<br />
w/ coco peat
Consolidation and Integration: The <strong>Bicol</strong> Solution<br />
(Creation of <strong>Bicol</strong> Production Grid with One <strong>Integrated</strong><br />
Processor and Consolidator and Twenty Decorticating<br />
Plants and Production Communities)<br />
JUBOKEN ENTERPRISES<br />
Central <strong>Processing</strong> Facility and Consolidator<br />
10 Milling and Production Communities (2004)<br />
10 Milling and Production Communities (2005)<br />
10 Milling and Production Communities (2006)
Ease of Establishment<br />
• Technology is<br />
available and tested<br />
in the Philippines<br />
• Low Capitalization<br />
• Availability of Raw<br />
Materials<br />
• Takes less than<br />
three months to<br />
establish
Potential Demand for<br />
<strong>Coconut</strong> <strong>Fiber</strong> Nets<br />
Potential market for geo-textiles (in pesos)<br />
Location<br />
Potential<br />
Erosion<br />
Control<br />
Market<br />
Amount for<br />
Geo-textiles<br />
Amount Paid<br />
to Workers<br />
Producing<br />
Geo-textiles<br />
Ripple Effect<br />
on the<br />
Communities<br />
Philippines 600 M 240 M 144 M 720 M<br />
China &<br />
APEC<br />
Countries<br />
21 B 5 B 3 B 15 B<br />
MALACANANG MEMORANDUM CIRCULAR 25
The <strong>Project</strong> (Participating Companies)<br />
Year 1 Year 2 Year 3<br />
JUBOKEN ENT.<br />
Legazpi-Manito Tabaco City Jovellar<br />
Libon-Polangui Bacacay Sta. Elena<br />
Ligao City Daraga Bato<br />
Labo Pio-Duran Caramoan<br />
Daet Libmanan Casiguran<br />
Sipocot Lupi Pili<br />
Iriga City Tinambac Labo<br />
Goa Del Gallego Tagkawayan<br />
Bulan<br />
Ragay<br />
Irosin Sorsogon City Gubat<br />
Castilla Matnog Pilar
Income Net
<strong>Coconut</strong> Statistics of <strong>Bicol</strong> Peninsula CY 2003*<br />
Province/Town<br />
<strong>Coconut</strong> Area<br />
Bearing<br />
Trees<br />
Total Nut<br />
production<br />
Total Number<br />
of Farmers<br />
Albay 99,940 9,163,292 503,981,060 46,823<br />
Camarines Sur 203,282 19,520,892 1,073,649,060 94,274<br />
Camarines Norte 100,086 7,557,178 415,644,790 23,393<br />
Sorsogon 97,738 7,762,746 426,951,030 49,840<br />
Total<br />
* Source: Philippine <strong>Coconut</strong> Authority
YEARLY PRODUCTION TARGETS<br />
Unit Year 1 Year 2 Year 3<br />
Raw <strong>Fiber</strong> tons 2,400 4,800 7,200<br />
Nets sq.m 2,400,000 4,800,000 7,200,000<br />
Rubberized<br />
Products<br />
tons 200 400 600<br />
Cocopeat tons 7,200 14,400 21,600
Who will benefit from the<br />
project
THE 30 NEW INVESTORS IN THE<br />
Investor<br />
PRODUCTION GRID:<br />
EARNINGS OF AT LEAST 80T<br />
PESOS/MONTH FOR BASIC FIBER<br />
PRODUCTION, OR 200-300T PESOS<br />
FOR NET PRODUCTION
PROJECT JOB GENERATION<br />
Job generation<br />
YEAR 1 YEAR 2 YEAR 3<br />
PERMANENT JOBS<br />
EARNING P200/DAY<br />
FAMILY<br />
SUBCONTRACTOR<br />
S EARNING<br />
MINIMUM 2,000<br />
PER MONTH<br />
150 300 450<br />
3,000 6,000 9,000
Export Revenues $<br />
Year 1 Year 2 Year 3<br />
Raw <strong>Fiber</strong> 349,040 698,181 1,047,273<br />
Rubberized<br />
Products<br />
163,636 327,272 490,909<br />
Nets 1,090,909 2,181,818 3,272,727<br />
Cocopeat 122,727 245,454 368,181<br />
TOTAL 1,726,364 3,452,727 3,681,181<br />
PESOS 94,950,00 189,900,000 282,485,000
ECONOMIC RIPPLE<br />
EFFECT ON REGIONAL<br />
DEVELOPMENT<br />
YEAR 1 YEAR 2 YEAR 3<br />
CONTRIBUTION TO<br />
REGIONAL INCOME<br />
ECONOMIC RIPPLE<br />
EFFECT IN THE<br />
REGION<br />
94,950,000 189,900,000 282,485,000<br />
474,750,000 949,500,000 1,412,425,000
Cost Savings on<br />
Construction<br />
• Less Damages due to<br />
concrete cracks and collapse<br />
• Cost is 10% of Concrete<br />
P 2300/sq.m. P 180/sq.m. P 1200/sq.m.
Removes Waste and Promotes<br />
Environmentally Sound Construction<br />
• One Small Factory Eliminates 7,000 to<br />
10,000 husks wastes per day<br />
• Improves the Environment Through the<br />
Introduction of Plants in Construction of road<br />
and river banks.
BICOL AS<br />
EXPORTING<br />
POINT TO ASIA<br />
General<br />
Santos City
THE MAIN MARKETS:<br />
CHINA<br />
JAPAN<br />
KOREA
Income Net<br />
WHY START THIS<br />
INDUSTRY MODEL IN<br />
BICOL?
AVAILABILITY OF RAW<br />
MATERIALS<br />
73% OF THE CULTIVATED AREAS ARE<br />
COCONUT FARMS
PROXIMITY TO MANILA<br />
<strong>Fiber</strong> Production in Laguna and Quezon are<br />
Primarily geared for the local furniture<br />
industry. <strong>Bicol</strong> is the nearest resource to<br />
tap for export.
AVAILABILITY OF SKILLS<br />
<strong>Bicol</strong> has a very long history of fiber rope making<br />
and weaving due to the very long history in<br />
abaca handicraft manufacturing.<br />
The decline of the abaca industry severely<br />
affected about 500,000 families in the region.
AVAILABILITY OF<br />
PROFESSIONAL EXPERTISE<br />
AND TECHNOLOGIES<br />
Geo-textile Manufacturing and Bio-Engineering was<br />
pioneered in the Philippines by Researchers and Engineers<br />
originally based in <strong>Bicol</strong> University.<br />
This pool of professionals have gone a long way in<br />
introducing bio-engineering not only in the country but also<br />
in other countries.
AVAILABILITY OF RAILROAD SERVICES<br />
TO MANILA<br />
BETTER ORGANIZED<br />
UTILIZATION OF RAIL<br />
TRANSPORT COULD CUT<br />
TRUCKING COSTS BY 60%
WHY JUBOKEN ENTERPRISES<br />
AND COCO TECHNOLOGIES<br />
CORPORATION?
JUBOKEN ENTERPRISES IS A<br />
MULTI-AWARDED COMPANY WITH<br />
MORE THAN 10 YEARS OF<br />
HISTORY IN COCOFIBER<br />
RESEARCH AND MANUFACTURING
JUBOKEN ENTERPRISES PIONEERED<br />
COCOFIBER GEOTEXTILE NETS AND<br />
COCOFIBER FASCINES IN THE<br />
PHILIPPINES
JUBOKEN ENTERPRISES/COCO TECHNOLOGIES<br />
CORPORATION PIONEERED BIO-ENGINEERING<br />
IN THE PHILIPPINES. IT HAS MORE THAN 30<br />
ENGINEERS AND STAFF IMPLEMENTING BIO-<br />
ENGINEERING PROJECTS IN ASIA AND THE<br />
PHILIPPINES.
JUBOKEN/COCOTECH IS A HOMEGROWN<br />
BICOLANO COMPANY WITH MORE THAN<br />
95% OF ITS EMPLOYEES COMING FROM<br />
BICOL
Signing of MOA with Chinese River Rehabilitation and<br />
JUBOKEN/COCOTECH<br />
Water Quality<br />
HAS<br />
Company<br />
MORE THAN TEN<br />
YEARS OF MARKETING ADVANTAGE IN ASIA
WHAT DO WE HAVE TO DO?
ADDITIONAL INVESTMENT NECESSARY(167,000,000)<br />
Existing<br />
Assets<br />
JUBOKEN 18,000,000<br />
Additional<br />
Investments<br />
Land Bank<br />
CIIF, LGU<br />
ACEF<br />
Land & Bldg. 3,000,000 1,000,000 5,000,000<br />
Machineries 5,000,000 30,000,000<br />
Quedancor<br />
Operating<br />
Cap.<br />
15,000,000<br />
30<br />
PLANTS<br />
Land 30,000,000<br />
Bldg. &<br />
Machineries<br />
45,000,000<br />
Operating<br />
Cap.<br />
15,000,000<br />
TOTAL 51,000,000 21,000,000 15,000,000 35,000,000 45,000,000
Why We Succeeded<br />
* Developed Products and Services Wherein We<br />
had Competitive Advantage<br />
* Dedication of Proponents to the <strong>Project</strong><br />
* Continuous Research and Development<br />
* Maintenance of Quality<br />
* Involvement of Rural Communities in<br />
Production<br />
* Investment in Employees’ Training and Education<br />
* Continuous Investment in the Company<br />
* Establishment of Strategic Alliances with agencies and<br />
other companies
Unsolicited Recommendations<br />
* Encourage and Provide Support for<br />
University Research Activities<br />
* Increased Academe and Industry<br />
Cooperation<br />
* Review Technologies Ready for Commercialization<br />
* Provision of Venture Capital for Technology<br />
Commercialization<br />
* Encouragement on Entrepreneurship
ECONOMIC RIPPLE<br />
EFFECT ON REGIONAL<br />
DEVELOPMENT<br />
YEAR 1 YEAR 2 YEAR 3<br />
CONTRIBUTION TO<br />
REGIONAL INCOME<br />
ECONOMIC RIPPLE<br />
EFFECT IN THE<br />
REGION<br />
94,950,000 189,900,000 282,485,000<br />
474,750,000 949,500,000 1,412,425,000
PROJECT JOB GENERATION<br />
Job generation<br />
YEAR 1 YEAR 2 YEAR 3<br />
PERMANENT JOBS<br />
EARNING P200/DAY<br />
FAMILY<br />
SUBCONTRACTOR<br />
S EARNING<br />
MINIMUM 2,000<br />
PER MONTH<br />
150 300 450<br />
3,000 6,000 9,000
IF COCONUT FIBER ROPES CAN BE MADE,<br />
IMAGINATION IS THE ONLY LIMIT ON WHAT<br />
OTHER PRODUCTS WE CAM MAKE, OTHER<br />
THAN GEO-TEXTILES
DIOS<br />
MABALOS!
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