PROJECT TITLE: Coconut Sugar Production
PROJECT LOCATION: Poblacion, Mutia, Zamboanga del Norte
A. PROJECT OVERVIEW

1. Background:

Coconut sap sugar is an emerging high-value product that gained popularity because of its health benefits. It has a very low Glycemic Index making it a great natural sweetener for diabetics and those with family history of diabetes.

Processing this novel product is an economic opportunity which can be feasibly operated at the Municipality of Mutia which is predominantly coconut planted-area and where our 4 hectare ancestral land is located.

2. Rationale:

The province of Zamboanga del Norte is predominantly planted to coconut trees being the second largest coconut producing province nationwide. The municipality of Mutia typifies this agricultural landscape having coconut as its major crop. Prompted by the emergence of local and international market demands for coconut sugar, our family has decided to invest on this new business venture. Moreover, many of our coconut plantation workers are distant relatives or acquaintances whom we’ve developed close ties through years of working together, our family are also inclined help workers by giving them better avenues of financial gains.

3. Description:

Transforming the coconut sap to sugar granules is appropriate and best adapted to a farm-level or medium scale enterprise. It is a good and sustainable source of immediate income for with an increasing demand both in the local and international markets.

To realize this, the project should undergo two major phases. First, the establishment of Aromatic variety in our family owned land. The unique characteristic of this variety makes it the best source of coconut sap for sugar processing.

Almost halfway to the field establishments commences the construction of the village-type processing plant for coconut sap sugar. Freshness of the sap is a key factor to caramelization process, hence proximity of the source of raw materials to the processing plant should be considered. Our family will also provide the lot and labor for the processing plant.

The second phase, coconut sugar production, will start upon completion of the processing plant. Initially, it will utilize the coconut sap from existing coconut trees in the area while waiting for the Aromatic variety to mature.

4. Objectives:

General, this new business venture aims liberate our decades long of dependency on copra production through optimum utilization of coco-based resources.

Specifically, the project also aims to achieve the following:

a. Develop other coconut by-products into profitable and sustainable business ventures such as sugar, syrup, juice and etc.

b. Promote local employment by generating a number jobs on a regular basis. 5. Expected Project Benefits & Outcomes:

Two years after planting the Aromatic variety seedlings, it is expected to have reached its productive stage - bearing nuts and producing sap. Earnings from fresh sap per tree are estimated at P768.00 per month. Similarly, young nuts for buko juice will contribute a minimum of P150.00 per tree every two months. This addition is already a huge contribution and great advantage to the meager income from copra production being realized only every three months. More importantly, this venture will also create employment opportunities for the locales in the area.

6. Project Innovation

One of the major drawbacks of coconut sugar production is the sap collection. Using the dwarf Aromatic variety eliminates the dangers of tapping the inflorescence of tall coconut trees making it more convenient and hassle free. This motivates farmers to deliver fresh sap regularly to the processing center ensuring continuous production output.

Other than sugar, it is also recommended to process the sap collected early in the morning into syrup which proved to be just as sellable like its granulated form. Early morning sap had undergone fermentation which made it impossible to turn into sugar. So turning this rejected sap into syrup increased the economic value of every tree. Young nut from this variety is best also for commercial buko juice purposes being the sweetest and most flavourful among coconut varieties. Hence, farmers can earn from fresh saps and young nuts from every tree which leads to enhanced productivity and income.

Planting the Aromatic variety as the subsequent source of coconut sap for sugar processing is definitely an improvement of the present coconut sugar production which obviously is very cumbersome and dangerous.

B. Methodology: a. Establishment of Coconut Aromatic Variety

This phase will cover the period from procurement of seedlings, land preparation and field planting to care and maintenance until fruit- bearing stage. The duration of these activities is approximately two years. Funds for the planting materials of the Aromatic variety, land, labor and other essential inputs will be shelled out by the proponent of the project (family patriarch) as part of equity of the loan.

b. Construction of Coconut Sugar Processing Plant

Construction of this facility will follow the recommended design and program of works prepared by the Philippine Coconut Authority based on the standards of the Bureau of Food and Drugs. Funds for the plant construction will be part of the amount to be sourced out through loan.

c. Coconut Sugar Processing

The existing coconut trees in the area will be the initial source of coconut sap for sugar production as the Aromatic variety starts to bear fruit which is about two years after planting, a significant characteristic of dwarf varieties.
Areas of Consideration: a. Production area – A total of four (4) hectares of coconut land is the proposed area and source of coconut sap. The nearby area is also privately owned coconut land, as well as the entire municipality could be a source of coconut sap, since the town is considered a coconut-based municipality. b. Production site – The processing plant is strategically located, 1.5 kms away from the production area and 0.5 kms away from the local market. c. Availability of Processing Equipment – The presence of suppliers or dealers of this type of processing equipment is an advantage to the proposed project. d. Accessibility of Road Network - The road network is accessible from the production site to the processing site. However, the road network within the farm is only trail except from the entrance of the farm to the farm house which is cemented. e. Possible Outlet Distribution System - The coconut sugar can be distributed through retail and wholesale. It shall be retailed in the local commercial center and sold wholesale in the cities and even in Metro Cebu and Manila.

C. PROJECT MANAGEMENT 1. Banking on Family Business Experience

Sugar production is not something new to the our family. For quite some time now, we do have a few land areas intended for cane sugar production. The negative effects to the soil from continuous cropping of sugarcane had prompted our family to look for other alternative raw materials for sugar production. The advent of coconut sap in the sugar industry is considered an answer to this dilemma.

Most of our workers involved in sugar processing are experts in their own field. Their tools and equipment for sugar production are still in good operating condition and can be utilized for the preliminary production of coconut sugar. Plus, their skills on cane sugar processing can be applied to coconut sap sugar which is very similar except for some added ingredients in the first.

2. Roles and Functions

Management of the business operation will be directly under a very simple core management people which is comprised of family members specifically created for this venture. But just like other family owned businesses, its governing policies and procedures are decreed by the family members managing key positions. During the initial phase of operation, this core management team will be tapping the expertise of another senior family member who will act as a Business Development Specialist who will guide the team until such time this group becomes capable of running the business operation on their own.

During the institutional capability building and strengthening phase, the BDS is expected to facilitate meetings and seminars. Likewise, the BDS acts as facilitator in providing the technology on coconut field establishment and during the hands-on training on sugar processing.

Simultaneous to managing the business operations during the initial critical period, is the coaching and mentoring of the core management team.

Developing other market outlets (local and export) is likewise expected from him. To realize this, initiatives in securing the government registration and organic certification from the authorities must be done at the outset of the operation. Needless to say, it is his prime duty to ensure all steps in the product processing adhere to the regulations and standards set for this purpose.

D. MONITORING AND EVALUATION

Having the greatest stake on the project, our family patriarch will undertake bi-monthly on-site project monitoring. A standard monitoring and evaluation tool will be used to gauge its operation and management. However, this will not limit devising other tools that may deem appropriate and necessary during the course of project implementation. He will likewise take the initiative of convening all family members should there be situations beyond the organization’s capacity to handle.

E. SUSTAINABILITY MECHANISMS At the outset of the project implementation specifically during the institutional building and strengthening phase, all preparatory efforts are guided by the attainment of benefits in mind. Measures to ensure that the project should succeed and continue its operation will be embedded in the policies, systems and procedures the management must formulate.

Employment of BDS during the initial phase of the project is a revolutionary mechanism to mitigate problems or failures encountered during the critical period of implementation. During the BDS tenure in the project, it is expected that he had prepared the organization of the turnover at a some later time.

H. PROMOTION OF SOUND ENVIRONMENTAL PRACTICES AND RISK ASSESSMENT

Planting the dwarf Aromatic variety has all the advantages of being the ideal source of coconut sap. It is also strongly recommended during the field establishment to use only organic fertilizer to mitigate soil acidity which could affect the sugar content of the sap.

Sanitation is of utmost concern during sap collection as this affects its ph. Sap container must be cleaned daily after use. Adulterated sap or presence of dirt raises acidity level resulting to failure to form into sugar granules.

Recommended plant design, tools and equipment will be strictly followed. Safety measures will be established to avoid mishaps during processing. Further, it is the primary role of management to provide a good cooking stove or furnace where external heat is minimized to lessen the adverse effect of heat exposure of the cooking staff. On the other hand, the new design should not reduce the heating efficiency of the equipment. Above all, coconut sugar is purely an organic product and must adhere to organic processing standards without compromising the quality of the product and health of the workers.