Ofero A. Caparino, Ph.D.Division Chief, BioProcess Engineering Division

PHilMech

Philippine Center for Postharvest Development and Mechanization

CLSU Compound

Science City of Munoz

Nueva Ecija

Tel: 044-4560-213

IFEX PHILIPPINES FOOD EXPORT AND INVESTMENT SEMINARS

Philippine Trade Training Center (PTTC), Pasay CityMay 19-21, 2017

Outline of Presentation

o Introduction/Motivationo General profile of the Philippine coconut industryo Supply of coconut and by-productso Unutilized coconut water during copra and VCO processngo Health benefits and chemical composition of young and

mature coconut watero PHilMech Village Level Coconut Water Processing System

o Technical performance o Nutritional analysis and sensory evaluation of

cocowatero Market and financial analysiso Prospects and opportunities

Courtesy of GoogleMOTIVATION . . .

o Total Area : 3.56 M has.

o 68 provinces are coconut areas

o 2nd largest coconut producer, next to Indonesia

o 25 M Filipinos dependent to coconut industry

o 3.5 M are coconut farmers/workers

o Among rural poor, coconut farmers have the highest

poverty incidence at 60%

o Coconut farmer’s per capita income: less than $ 1/day

o Farmers dependency on traders who dictate prices

General profile of the Philippine coconut industry (PCA, 2013; NAPC, 2013)

o Industry remains dependent on copra: major players are multi-national company/corporations.

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

WORLD TOP TEN COCONUT PRODUCERSP

rod

uct

ion

. MT

Philippines

15.31 billion nuts/year

(Average production from

2007-2011, FAO, 2013)

Reference: PCA, 2013)

Desiccated Coconut (DCN) Exports (Ave. 2008-2010)

0

50

100

150

DC

N E

xpo

rt, T

ho

usa

nd

MT

Reference: PCA, 2013)

Coconut Oil (CNO) Exports (Ave. 2009-2010)

0

200000

400000

600000

800000

1000000

1200000

1400000

2008 2009 2010

Philippines Indonesia' Others

Harvesting Dehusking Splitting/cracking Drying

Scooping dried coconut Copra product

Copra processingUnutilized

coconut

water

Whole nut

Unutilized

coconut

water

Deshelled

coconut meat

Coco

shel

lGround

coconut meat

Coconut milk

Skim

med

coco

nut

mil

k

Vir

gin

coco

nut

oil

Coconut flour

Processing of VCO, coconut flour and skimmed milk

Whole nut

Bro

ken

shel

ls

Deshelled

coconut meat

Pared

coconut meat

Pai

rings

Ground

coconut meat

Coconut milk

Skim

med

coco

nut

mil

k

Vir

gin

coco

nut

oil

Coconut flour

Processing of VCO, coconut flour and skimmed milk

Unutilized

coconut

water

2.4 Billion liters / year ( potential volume of coconut

water from matured coconut left unutilized during copra processing…)

Total production in 2012 (FAO, 2013)

= 15 Billion nuts per year

Estimated Damaged due to calamaties(30M trees x 100

nuts/yr)

= 3 Billion nuts per year

Estimated prod (2014 -2020)

= 12 Billion nuts per year

Assuming 80% for copra processing

= 9.6 Billion nuts per year

Available water from matured coconut, 0.25

kg water /kg nut or 0.25 L water /kg nut

(Aragao, 2000)

= 2.4 Billion Liters / year

Challenge?o Industry remains dependent on copra and are dictated by

multi-national corporations.

o Can we develop an industry where value added happens at the

community level and add benefits to the coconut farmers?

100% Pure? No additives ? No preservatives?

?

Use for intravenous hydration of patients in remote areas(Campbell-Falck et al.,2000).

Has been used as alternative fluid for emergency bloodplasma transmission to wounded soldiers without allergenicreactions (FAO, 2005).

Acclaimed as a natural contender in the sports drink marketbecause of its desirable taste and aroma, nutritional andfunctional characteristics that normally present in sportsdrinks (FAO, 2005).

It has large amount of electrolytes, which believed to be animportant alternative solution for oral rehydration (Sena etal, 20012)

Some health benefits of coconut water

Coconut water has five electrolytes that human body needs (FAO, 2010)

Potassium The most important positive ion (cation) inside the cells; regulates heartbeat and muscle function; coconut water contains 203-256 mg, which is 15 times the amount in the average sports drink

Sodium The most important positive ion in fluid outside the cells, and also the one most depleted with exercise, as one lose sodium through sweat and urine.

Magnesium Important for maintaining the electrical potential of body cells, proper muscle function, and preventing calcium overload

Phosphorous Plays important roles in bone health, and in transferring energy throughout your body, helping your muscles contract, and regulating nerve function (partners with calcium)

Calcium Important for bone health (partners with phosphorous)

Components Young MatureInorganic ions

Calcium (Ca), mg/100g 27.35 31.64Magnesium (Mg) , mg/100g 6.40 9.44Phosphorous (P) , mg/100g 4.66 12.77Potassium (K) , mg/100g 203.70 257.52Sodium, Na, mg/100g 1.75 16.10

Copyright - PHilMech

Chemical composition of young and mature coconut water

Other components present in coconut water

- Vitamins (C, B1, B2 & B3)

- Amino Acids (e.g. Lysine, cystine, glutamic acid & others)

- Organic Acids (e..g Tartaric, malic, citric and acitic acids)

- Enzymes (e.g. Catalase, dehydrogenase, peroxidase & others)

- Phytohormones (e..g Auxin & cytokinin)

Reference: Santoso et al., 1996; Yong et al, 2009; Tulecke et al., 1961)

The PHilMech Village Level Coconut Water Processing System

The technology was granted patent (Utility Model) to PHilMechby Intellectual Property Office of the Philippines (IPOPHL) on November 11, 2015, with Registration No. 2-2015-000266.

Positive

displacement

Pump

Coconut

water

Heating Pre-Cooling

Chilled

Coconut Water

Chilling

Conceptual design of a continuous flow pasteurizer-chiller

Stored for 4

weeks under

chilled

condition

(4⁰C±2⁰C)

Fresh coconut water Heating Cooling Storage

Pasteurization trial of coconut water using water bath and cube ice

5.00

5.50

6.00

6.50

7.00

0 6 12 18 24

pH

Val

ue

Time, Hr

Chilled Condition Ambient Condition

Figure10a. acidity of untreated coconut water stored at chilled condition (4±2oC) and ambient condition (28±2oC)

Figure10b. Sweetness of untreated coconut water stored at chilled condition (4±2oC) and ambient condition (28±2oC)

4

5

6

7

8

0 6 12 18 24

TS

S, oB

rix

Time, Hr

Chilled Condition Ambient Condition

0

100

200

300

400

0 6 12 18 24

Tota

l C

ou

nt,

cfu

/mL

Time, Hr

Chilled Condition Ambient Condition

>

Figure11a. Aerobic plate count of untreated coconut water stored at chilled condition (4±2 ⁰C) and Ambient Condition (28±2⁰C).

Figure11b. Yeast count of untreated coconut water stored at chilled condition (4±2 ⁰C) and Ambient Condition (28±2⁰C).

0

10

20

30

40

50

0 6 12 18 24

Yea

st c

ou

nt

Time, Hr

Chilled Condition Ambient Condition

Figure11c. Mold count of untreated coconut water stored at chilled condition (4±2 ⁰C) and Ambient Condition (28±2⁰C).

0

2

4

6

8

0 6 12 18 24

Mo

ld C

ou

nt,

Time, Hr

Chilled Condition Ambient Condition

Pasteurization of coconut water extracted from mature coconut

2.1. Effect on the acidity, sweetness and microbial load of untreated coconut water stored for 24 hours under chilled condition (4±2oC) and Ambient Condition (28±2oC)

Figure12. Preliminary expt on the changes in turbidity of pasteurized and non-pasteurized coconut stored for 4 weeks under chilled condition (4±2 ⁰C).

0

200

400

600

800

1000

0 1 2 3 4

Turb

idit

y, N

TU

Storage Time, Weeks

Pasteurized at 90°C Unpasteurized

The village level processing system can be installed in an area of about200 m2. The system contains basic processing equipment as illustrated,including, washing bins (a), coconut cage (b), extractor (c), pasteurizer -chiller, and (d) filling & capping machines (e). The plant includes smalllaboratory for quality analyses and a dry room for supplies andmaterials. The assumed useful life of the machines is 10 years.

Components of the PHilMech Village Level Coconut Water Processing System

PHilMech Laboratory prototype pasteurizer-chiller developed and fabricated under the project.

o Continuous flow process type; Variable flow rate o Chilling temperature range from -5°C to +20°Co 3/8” diameter and 1.5 mm thick Seamless SS 304 tube o With temperature sensors and controllerso Single Phase 220 Volts / 60 Hertz. o All surfaces in contact with cocowater and other structures are made of SS 304

(Food grade materials)

First Prototype Second Prototype

PHilMech prototype pasteurizer-chiller

Experimental set up for the production of bottled coconut water

Pasteurizer-chiller

Extractor

Cage

Distilled water

Chlorinated water

Tap water

Pre-cleaned coconut

Performance testing in the production of bottled coconut water using the developed continuous-flow pasteurizer-chiler.

The village level coconut water processing plant located in Pili, Cam Sur

Harvesting De-husking Pre-cleaning Washing Extracting

100%Pure cocowater, no

additives or preservatives

Filling CappingStorage under chilled

conditionPasteurizing-chilling

Actual processing of bottled coconut water following the PHilmechestablished processing procedures and protocols.

Actual processing..

* Harvesting was done in 3 coconut trees (20-25ft high) with one bunch of coconut harvested by lowering the nuts slowly using rope.

Performance rate capacity during harvesting, dehusking, pre-cleaning, washing, sanitation, surface air drying and drilling of coconut.

Components Manpower Performance Rate

Harvesting*, tree/min 1 0.74 ±07

Dehusking, Nuts/min 1 4.43 ±07

Pre-cleaning, Nuts/min 3 2.78 ±21

Washing, Nuts/min 2 2.16 ±05

Sanitation/Chlorination, Min/batch - 15 ±0.5

Air drying/cleaning, Min/batch - 31.67 ±2.89

Drilling/extraction, Nuts/min 2 8.50±0.36

Total count of coconut water pasteurized at 70 ⁰C , 80 ⁰C & 90 ⁰C and stored for 4 weeks at chilled condition (4±2 ⁰C ) and ambient Condition (28±2⁰C)

Mold Counts of coconut water pasteurized at 70 ⁰C , 80 ⁰C & 90 ⁰C and stored for 4 weeks at chilled condition (4±2 ⁰C ) and ambient Condition (28±2⁰C)

Presentation Copyright by PHilMech

Sensory evaluation of pasteurized coconut water vs. commercial cocowater

Sensory evaluation of pasteurized coconut water vs. commercial cocowater (n-100)

PHilMech CCW Brand A Brand B Brand C

Commercial Coconut Water

Nutritional Facts

ParametersPHilMech CCW

[350ml]Brand A [240ml] Brand B [330ml]

Brand C

[250ml]

Total Carbohydrates, g 6 (0.01/mL) 12 (0.05/mL) 17 (0.05/mL) 10 (0.04/mL)

Calories, kcal 40 (0.11/mL) 50 (0.22/mL) 70 (0.21/mL) 50 (0.20/mL)

Crude Protein, g 0 0 0 0

Ash, g 0.39 - - -

Total Fat, g 1.0 0 0 0

Total Sugars, g 7 (0.02/mL) 8(0.03/mL) 11(0.03/mL) 10(0.04/mL)

Dietary Fiber, g 0 0 0 0

Sodium, mg 95 (0.27/mL) 110 (0.46/mL) 150 (0.45/mL) 50 (0.2/mL)

Potassium, mg 500 (1.43/mL) 325 (1.35/mL) 447 (1.35/mL) 480 (1.92/mL)

Magnesium, mg 8 (0.2/mL) 22 (0.09/mL) 31 (0.09/mL) -

Calcium, mg - - 52 -

Iron, mg - - 1 -

Product Characteristics

Preservation technique Pasteurization Sterilization Sterilization Flash Pasteurization

SugarsNo sugar added Cane Sugar Cane Sugar No sugar added

Preservative No preservativeSodium

Metabisulfite

Sodium

Metabisulfite

No preservative

Raw Material/Source Pure CCW (mature)Concentrated CCW

(Reconstituted)

Concentrated CCW

(Reconstituted)Pure CCW (young)

Packaging Clear PET bottleAluminized coated

carboards --

Sensory evaluation

0 13 4

10

30

2118

13

42

12

17 17 18 19

9

231

4

10

15

2725

13

2

8

4

12

2724

13

9

30

1. dislikeextremely

2 3 4 5. neitherlike nordislike

6 7 8 9. likeextremely

PHilMech CCW Brand A Brand B Brand C

Overall liking scores for PHilMech Cocowater and other commercial/popular brands

(n-100)

Degree of liking on specific attributes for coconut water

Taste

Aroma

Sweetness

Turbidity

Thickness

After-taste

Coco fresh Tropicana Nyogi PrototypeBrand A Brand B Brand C PHilMech CCW

Sensory evaluation

(n-100)

Presentation Copyright by PHilMech

INITIAL RESULTS OF MARKET AND PROFITABILITY STUDY IN CAMARINES SUR

Conducted by Central Bicol State University of Agriculture (CBSUA) Team, 2015

Presentation Copyright by PHilMech

Presentation Copyright by PHilMech

Target Market Profile (CBSUA, 2015)

Students (DepEd ) and some college students captive market as students are not allowed to leave the school premises during

class hours and will have no choice but to buy from among the limited choices being offered by the school canteen/cafeteria)

principal aim is to consume the beverage for refreshment

Health-conscious beverage consumers These two market segments would look for a functional drink that would either

give them a replenished energy effect or an added nutritional benefit to their diets.

Millenials and young generation- mixture of young professionals and college students who are generally

confident, connected and open to change. Dubbed as the digital natives- Philippines, there about 27 million people who falls under this segment (CISCO,

a worldwide leader in IT) - Millenials were represented by the college students evenly distributed from

private and public universities.

Athletes and Sports Enthusiasts

Sensitivity Analysis

Scenario 1: Production of 1,500 bottles daily

PRICE Php 18 Php 19 Php 20

NPV (933,515.45) 191,447.45 1,316,410.34

BCR 0.81 1.03 1.26

IRR 5% 17% 28%

Financial analysis in producing coconut water beverage as an enterprise (CBSUA, 2015)

PRICE Php 16 Php 17 Php 18

NPV (997,169.60) 127,793.30 1,252,756.19

BCR 0.80 1.03 1.25

IRR 4% 16% 27%

Sensitivity Analysis

Scenario 2: Production of 2,000 bottles daily

Financial analysis in producing coconut water beverage as an enterprise (CBSUA, 2015)

PRICE Php 15 Php 16 Php 17

NPV (810,369.50) 314,593.39 1439,556.28

BCR 0.84 1.06 1.29

IRR 6% 18% 29%

Sensitivity Analysis

Scenario 3: Production of 2,500 bottles daily

Financial analysis in producing coconut water beverage as an enterprise (CBSUA, 2015)

MOA signing with partner agencies

CHEERS FOR CAM SUR’S COCO WATER. Witnesses and signatories of the Memorandum of Agreement for the village-level pilot testing of coco water processing equipment in Camarines Sur made a public endorsement of the 100% pure coconut water processed using PhilMech’s pasteurizer-chiller (Annielyn L. Baleza, I-SUPPORT InfoACE Unit, DA-RAFID 5)

.

Inauguration – Village Level Cocowater processing projectDA-RFO 5, San Agustin, Pili Camarines Sur

Inauguration – Village Level Cocowater processing project

1st World Bank Review Mission to PRDP South Luzon Cluster

World Bank officials: Coco water project a very good achievement

World Bank technical experts, headed by Carolina V. Figueroa-Geron expressed their appreciation of the Coco Water Processing Technology Pilot Testing and Business Incubation Project which will pilot test the technology developed by PHilMech.

Source: http://www.daprdp.net

Pilot Testing of Village Level Coconut Water Processing System

July 2016 -

Location: Mendoza Highway, Kingking

Pantukan CompostelaValley, REGION 11

The developed technology has potential to maximize the utilization and add value to un-utilized coconut water during copra and VCO processing.

It can empower the coconut farmers by engaging them in appropriate operation and management of the developed technology and increase their income.

Philippine Rural Development Program (World Bank funded project)-Department of Agriculture

Department of Agriculture–Regional Field Office 5 Central Bicol State University of Agriculture (CBSUA) Provincial Local Government Unit (PLGU)-Camarines Sur HDM Technologies GMCC Rollmaster

For further details, please contact:

DR. DIONISIO G. ALVINDIAOIC Executive DirectorPHilMechScience City of Munoz, Nueva Ecija

Attention:

OFERO A. CAPARIÑO, Ph.D.Division ChiefBioProcess Engineering DivisionPHilMechScience City of Munoz, Nueva EcijaTel.: (044) 4560213 Local 421Suncell : 0932-8616958Globe : 0917-8115516Email: ofero1058@yahoo.com

Presentation Copyright by PHilMech

Philippine Center for Postharvest Development and Mechanization (PHilMech)