Coconut Farmers Form The Biggest Poverty Group Bicol University Focus Facts about Bicol Coconut...

• Coconut Farmers Form The Biggest Poverty Group

• Coconut Farmers Form The Biggest Poverty Group

Bicol University FocusFacts about Bicol Coconut Farmers

Bicol University FocusFacts about Bicol Coconut Farmers

• Income From Copra is P900-P1000 per hectare/month

• Income From Copra is P900-P1000 per hectare/month

• With 2 Hectare Ave. per Family of six, Income per month is P2,000

• With 2 Hectare Ave. per Family of six, Income per month is P2,000

• 4 Billion Used as Fuel to Make

Copra

• 4 Billion Used as Fuel to Make

Copra

•Largest Farm Waste in the Country

•8 Billion Husks are burned or thrown

away

Facts about Coconut HusksFacts about Coconut Husks

• Furniture and Molded Products

• Gardening and Agriculture• Insulation Materials• Building Materials

• Erosion Control and Bio-Engineering

Transforming Husks Into Useful Materials

Transforming Husks Into Useful Materials

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)

Facilities• Minimum 1 hectare land processing area•500 sq.m. covered area• Near ample water resource• Near Three Phase Electrical Line

Investment• Truck P400,000• Decorticating Machine P360,000• Baling Machine P250,000• Operating Capital P500,000 • Transformers P120,000

Total 1,630,000

RAW COCONUT FIBER

SHANGHAI EXHIBIT

CHINAKOREATAIWANJAPANTOTALS

276

133

49

9529528

184

30,0008,500

16,0002,000

56,500

15%10%10%10%

20%5%5%

Factories LinesRequirement

/mo.Delivery

DelayIncrease/

yr

Market for Raw Coconut Fiber in Southeast Asia

Market for Raw Coconut Fiber in Southeast Asia

Stitched Fibers and MatsStitched Fibers and Mats

COCONUT HUSK

Decorticating De-fibering & Drying

Machine

Fiber(30%)

Weaving Ropes/TwinedFiber

Twining

Processing of Husks into Erosion Control Nets

Processing of Husks into Erosion Control Nets

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

Direct operating cost per day * (2003)

Feasibility study of a small Decorticating Machine

Estimated Sales per day *(2003)

ProduceUnit Price Total

1,000 kg of fiber 5.5 5,500.00

220 bags of cocopeat 15 3,300.00

Profit 8,800.00

Per monthFeasibility Study of a Small Decorticating MachineONE MONTH OPERATION (2003) ONLY RAW FIBER

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/Depreciation

8300

TOTAL 139,730

Projected Expenses Projected Income

Fiber (26 tons) 143,000

Cocopeat 5720 sacks

85,800

TOTAL 228,800

Additional expenses NetAdditional Cost for Netmaking

Twining 400,000

Weaving 175000

Transport 25000

Other Costs 35000

635,000

Add Fiber Cost

774,730

Additional Income from Nets

Nets/P20 per sq. meter

857,000

Add Cocopeat

85,800

Total 1,085,800

The site is cleared paying special The site is cleared paying special attention attention in preserving whatever vegetation can in preserving whatever vegetation can be salvagedbe salvaged..

Cocofiber nets are the care placed on the Cocofiber nets are the care placed on the slope.slope.

Cocofiber roles or fascines are installed Cocofiber roles or fascines are installed on on top of the slope in order to top of the slope in order to secure the nets.secure the nets.

The coco fiber nets are then stitched together. The coco fiber nets are then stitched together.

Cocopeat is added to help supplement the Cocopeat is added to help supplement the soil for latter vegetation growth. soil for latter vegetation growth.

Vetiver grass is planted into the cocofiber Vetiver grass is planted into the cocofiber rolls.rolls.

The site then undergoes a final cleaning and The site then undergoes a final cleaning and clearing process.clearing process.

A channel is transformed by bio-A channel is transformed by bio-engineering (Germany)engineering (Germany)

Design using coco Design using coco productsproducts

Ecologically & Aesthetically Sound Erosion Control Ecologically & Aesthetically Sound Erosion Control Measure (Germany)Measure (Germany)

A river in Malaysia that used A river in Malaysia that used erosion control products from erosion control products from

the Philippinesthe Philippines

Slope Rehabilitation on a very unstable soil in Tagaytay RidgeSlope Rehabilitation on a very unstable soil in Tagaytay Ridge

Erosion Control Nets Installed at Bicol RiverErosion Control Nets Installed at Bicol River

Peace Village in Antipolo City, before & after Peace Village in Antipolo City, before & after erosion control nets were installed.erosion control nets were installed.

BeforeBefore

Slope rehabilitation in Japan

Slope rehabilitation in Japan

Desert rehabilitation in Mongolia

Desert rehabilitation in Mongolia

Environment friendly fiber materials were used in this man-

made waterway 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

Slope embankment in Japan use coco fiber materials in slope

protection

Reviving an urban river in Japan

Reviving an urban river in Japan

Before

After

Bio-engineering the embankment of the San Roque

Dam using coco fiber net

Bio-engineering the embankment of the San Roque

Dam using coco fiber net

Coco PeatIs 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

w/out coco peat w/ coco peat

Root Development

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 NetsPotential Demand for Coconut Fiber Nets

LocationLocation Potential Potential Erosion Erosion Control Control MarketMarket

Amount for Amount for Geo-textilesGeo-textiles

Amount Paid Amount Paid to Workers to Workers Producing Producing

Geo-textilesGeo-textiles

Ripple Effect Ripple Effect on the on the

CommunitiesCommunities

PhilippinesPhilippines 600 M600 M 240 M240 M 144 M144 M 720 M720 M

China & China & APEC APEC CountriesCountries

21 B21 B 5 B5 B 3 B3 B 15 B15 B

Potential market for geo-textiles (in pesos)Potential market for geo-textiles (in pesos)

MALACANANG MEMORANDUM CIRCULAR 25

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

The Project (Participating Companies)

Income Net

Coconut Statistics of Bicol Peninsula CY 2003*

* Source: Philippine Coconut Authority

Province/Town

Coconut Area Bearing

TreesTotal Nut

productionTotal 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

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

Who will benefit from the project

InvestorTHE 30 NEW INVESTORS IN THE PRODUCTION GRID:

EARNINGS OF AT LEAST 80T PESOS/MONTH FOR BASIC FIBER PRODUCTION, OR 200-300T PESOS FOR NET PRODUCTION

Job generationPROJECT JOB GENERATION

YEAR 1 YEAR 2 YEAR 3

PERMANENT JOBS EARNING P200/DAY

150 300 450

FAMILY SUBCONTRACTORS EARNING MINIMUM 2,000 PER MONTH

3,000 6,000 9,000

Export Revenues $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

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

ECONOMIC RIPPLE EFFECT IN THE REGION

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

Cost Savings on ConstructionCost 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

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

BICOL AS EXPORTING

POINT TO ASIA

General Santos City

THE MAIN MARKETS:

CHINA

JAPAN

KOREA

Income NetWHY 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 TECHNOLOGIESGeo-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 Water Quality CompanyJUBOKEN/COCOTECH HAS MORE THAN TEN YEARS

OF MARKETING ADVANTAGE IN ASIA

WHAT DO WE HAVE TO DO?

ADDITIONAL INVESTMENT NECESSARY(167,000,000)

Existing Assets

Additional Investments

Land Bank

CIIF, LGU

ACEF Quedancor

JUBOKEN 18,000,000

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

Machineries 5,000,000 30,000,000

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 SucceededWhy 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

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

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

ECONOMIC RIPPLE EFFECT IN THE REGION

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

Job generationPROJECT JOB GENERATION

YEAR 1 YEAR 2 YEAR 3

PERMANENT JOBS EARNING P200/DAY

150 300 450

FAMILY SUBCONTRACTORS EARNING MINIMUM 2,000 PER MONTH

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!DIOS MABALOS!