Minggu, 16 Februari 2020

Reviving the Integrated Coconut Industry Part 8: Coconut Milk, VCO, Dessicated Coconut, Coconut Water, Nata de Coco, Shell Charcoal and Activated Carbon

Basically the campaign to save the coconut plantation (tree of life) is to revive the integrated coconut industry. Damaged and not maintained of coconut plantations due to lack of funding to maintain and develop it in a sustainable manner.

Bioeconomy is defined as knowledge-based production and uses biological resources or living things to produce products, processes, and services in the economic sector within the framework of a sustainable economic system.

Instant coconut milk or packaged coconut milk is almost unthinkable, especially by mothers in Indonesia a few decades ago. Likewise, bottled coconut water, almost all Indonesians were also unthinkable at that time. That is mainly because coconut is very easy to get in almost all corners of the country. But this condition changed when Asian cuisine began to worldwide so that many Western people like it. Coconut milk as one of the main elements of the dish has become a necessity that must be provided. Urban communities with dense population and have a high level of activity, need something practical and instant that makes instant coconut milk products easily accepted. It is also the same as instant food seasoning products that are in demand in urban areas.

Coconut milk and bottled coconut water industry is a type of large industry so it requires a supply of raw materials in large quantities and continuously. To get these conditions in general can only be in coconut plantations which are not infrequently still very remote location. At that location, electricity and a number of supporting infrastructure were not yet available, so the integrated coconut industry could not yet be operated. Electricity is one of the basic needs for industrial operations, so it needs to be made before running the integrated coconut industry such as industries with the main products are coconut milk and bottled coconut water. The production of electricity for this purpose can be done in at least two ways: first, with a steam boiler, as is usually done in a palm oil mill. Coconut coir which has the lowest economic value is used for fuel.
The second way, namely by continuous pyrolysis. Coconut shell can be used as raw material for the pyrolysis. With pyrolysis technology, it would be more profitable because besides electricity generated, heat and charcoal shells are also produced. Electricity and heat can be used for the operation of the coconut processing industry, while shell charcoal can be directly sold or further processed into briquettes or activated carbon. When the need for electricity is large, power plants can use both, namely coconut coir steam boilers and pyrolysis with raw materials for coconut shells. If you want to produce more charcoal, coconut coir can also be used for continuous pyrolysis fuel. The quality of coconut coir is lower than that of coconut shell. This is so that coconut coir charcoal can be used as agricultural charcoal (agri-char / biochar) so that it will increase the productivity of coconut plantations, while coconut shell charcoal for the purposes mentioned above.
Apart from being processed into packaged coconut milk, fruit meat can also be processed into VCO (Virgin Coconut Oil) or dessicated cooconut. VCO production can be done on a medium scale, but currently for the export market or foreign buyers in general require organic certificates. That is also the reason why the production of small-scale VCO for the export market is difficult. Basically, coconuts can be made for a variety of products, according to market needs. Almost all coconut processing industries require electricity and heat for the production process (specifically for the VCO industry, only electricity). The integrated coconut industry approach makes the coconut processing industry more efficient. The combination of the coconut processing industry adjusts to market needs. The dim market for copra & coconut oil, it turns out that little by little is substituted by increasing markets for dessicated coconut, VCO, coconut milk, nata de coco, bottled coconut water and even coconut sugar. Is it possible that the coconut will come back victorious? There are indications there indeed. Wallahu'alam 

Selasa, 11 Februari 2020

Reviving the Integrated Coconut Industry Part 6: Integration of Dessicated Coconut Production, Packaged Coconut Water, and Shell Charcoal

Basically the campaign to save the coconut plantation (tree of life) is to revive the integrated coconut industry. Damaged and not maintained of coconut plantations due to lack of funding to maintain and develop it in a sustainable manner.

Bioeconomy is defined as knowledge-based production and uses biological resources or living things to produce products, processes, and services in the economic sector within the framework of a sustainable economic system.
Dessicated coconut is not very popular in Indonesia. This product is used in the food industry for a mixture of cakes and chocolate so that it gives the flavor of coconut and much later became a favorite food in Europe. This product was originally discovered in Sri Lanka from Henry Vavasseur's drying experiment of grated coconut in 1888. There are 3 countries that are currently producing dessicated coconut, namely the Philippines, Sri Lanka and Indonesia. The need for this dessicated coconut product also continues to increase, namely recorded export of dessicated coconut in 1990 amounting to 151 thousand tons and in 2008 it increased to 248 thousand tons. In Indonesia alone, it is estimated that there are around 20 dessicated coconut (DC) factories.

DC is produced by drying grated coconut until the water content reaches a maximum of 3%. A dryer commonly used for DC production is a fluidized bed dryer. This dryer has advantages including high sensitivity for its operations, so it is commonly used for food and pharmaceutical products. Rotary dryer is a type of dryer that is also popular in the industry, especially in biomass processing such as wood pellets and briquettes, for more details, please read here. Rotary dryer types are more suitable for materials that are not too sensitive to heat, are not easily broken when dropped and heavier materials. That is why rotary dryers are more suitable for materials such as minerals, fertilizers and so on. Rotary dryer can be said to be heavy duty processing load and requires a wider space, while fluidized bed dryer for lighter-duty materials and requires less space.
For drying the grated coconut, heat energy is needed and for the operation of the plant's equipment such as shredding, conveyors, etc. electricity is needed. Both of these energies can be fulfilled by using a continuous pyrolysis unit. Coconut shell is used as a raw material for continuous pyrolysis, so that the output is in the form of charcoal, syngas and biooil. The charcoal can be sold for immediate use, made briquettes or activated carbon. For electricity production, syngas is used for fuel the gas engine (internal combustion engines) which convert heat energy into mechanical energy then into electrical energy. And biooil can be a source of heat both for boiling or sterilizing coconut meat as well as for a heat source for drying grated coconut with the heating media not in direct contact (indirect heating) with the grated coconut.

With the above pattern, the integrated coconut industry is energy independent or does not require energy supply from outside. This condition is very attractive especially for operations in remote locations. This energy independent industry practice is common in the palm oil industry. Palm oil mills usually burn shells and fiber for the production of electricity and steam. Why besides electricity, does the palm oil mill also produce steam? For more details, you can read here.
At present a number of palm oil mills have even used efficient boilers so that it is sufficient with fiber only and the shell can be sold or exported abroad. Though there is a better or more efficient way to produce electricity and steam, which is also by continuous pyrolysis, for more details read here. The shell, which is a biomass fuel, has properties almost similar to wood pellets at a cheaper price and is still abundantly available. Japan and Korea are the two countries in Asia that are most striking in the use of biomass energy related to climate change mitigation and global warming.
Coconut shell charcoal is a sought-after product, so the price is also increasing every year in accordance with market laws, namely supply-demand. The production of coconut shell charcoal will provide an attractive additional income compared to just being burned to ash and making a zero waste integrated coconut industry.

The DC industry is usually large enough in scale or production capacity to produce quite a lot of coconut water. Coconut water can be processed into bottled coconut water, which also requires electricity and heat in the production process. Electricity and heat production can use coconut fiber as fuel. Burning coconut fiber to heat the boiler and produce electricity, similar to the palm oil mill. Steam is produced to heat or sterilize the coconut water. The demand for bottled coconut water increased rapidly, from 484 thousand liters in 2009 to 71.7 million liters in 2015, or 141 times. 

Reviving the Integrated Coconut Industry Part 4: Analysis and Projection

Basically the campaign to save the coconut plantation (tree of life) is to revive the integrated coconut industry. Damaged and not maintained of coconut plantations due to lack of funding to maintain and develop it in a sustainable manner.

Bioeconomy is defined as knowledge-based production and uses biological resources or living things to produce products, processes, and services in the economic sector within the framework of a sustainable economic system.


The Monas monument in Jakarta is so monumental and so famous that almost all Indonesians know it, even the Jakarta province uses the monument as its government logo or icon. But very few know that the 32 kg gold which is the top of the Monas monument, 28 kg or 87.5% (say almost 90%) comes from the contribution of coconut entrepreneurs, namely from the copra trade. Coconut has indeed experienced the glory of even having a large role in Indonesia's independence. A number of ammunition of wars to various important events in the framework of Indonesia's independence were financed by the copra trade. Copra is the raw material for coconut oil which later becomes a number of derivative products that are highly needed by humans. The era of the triumph of copra or coconut oil revolves around the transition period of the 19th century to the 20th century or more precisely between the 1870s to the 1950s and its heyday in the 1920s. 


Why now copra and coconut oil are especially sinking and unable to compete with palm oil? The long history of trade competition is the answer. Some parties, especially the American Soybean Association (ASA) accuse coconut oil as an evil oil that contains cholesterol and saturated fat clogging coronary arteries. The accusation has never been proven right, in fact it proved to be the opposite, but it is one of the main reasons for the destruction of the global copra and coconut trade. The campaign and the tropical oil war took about 30 years or in the 1950s to the end of the 1980s in the United States and eventually the Indonesian coconut industry collapsed. 

If we look at palm oil, it turns out the same thing happened. For some time Indonesian palm oil has also received a negative campaign due to environmental destruction so that Europeans do not want to buy palm oil from Indonesia. It could be and it is probable that this is also an effort to weaken and make the palm oil industry will also be dropped later. But because it has only been running for a few years, it seems that the effect is not very visible at this time. And if it is done massively and continuously and there is no significant resistance, then it is not impossible that the fate of the palm oil industry is also similar to the coconut industry. The statement that 'only donkeys fall into the same hole twice' is something that needs to be pondered deeply to analyze this. 
 
Coconut Fruit
As an additional reference, Indonesia, which in the colonial era as one of the main producers and exporters of cane sugar, is currently also having a misfortune because besides being no longer an exporter, it has become one of the largest sugar importers. In 2016 Indonesia became the largest sugar importer in the world with a value of $ 2.1 billion or around Rp.28.4 trillion. The value of Indonesia's imports was greater than the three other importing countries whose populations were actually greater than those of Indonesia, namely America ($ 1.9 billion), China ($ 1.2 billion) and India ($ 922 million). There are quite a lot of sugar factories in Indonesia, namely more than 180 units, but most of them are currently not actively producing and most are on Java. The total national sugar production is 2.2 million tons with a sugar cane plantation area of around 0.5 million hectares and an estimated need of 5.7 million tons so that production still needs to be increased. 

Indonesia, the majority of which still exports raw materials for industries in other countries, also indicates that it is a developing country, so this condition should also be improved. Export of a variety of finished products or a minimum of intermediate products must be sought. Export of whole coconut is one thing that must be avoided and replaced with exports of processed products. When we talk about reviving the integrated coconut industry, but on the other hand, whole coconuts as raw materials are directly exported without processing it is a lie or it's useless. Industries without raw materials will surely die. Exporting whole coconut with an estimated number of four billion items annually is a setback. How not, in the history of the glory of the coconut, Indonesia exports in the form of a minimum of copra, while today it even exports whole coconuts. Industry era 4.0 also has no meaning with conditions like this. 
 
Whole coconut
Of course it needs good regulation and cooperation between various parties to overcome this. Indeed, there are also policies from developed countries to limit the development of developing countries' industries, for example during the heyday of coconut in Philippines many exported copra to the United States and the United States gave some import taxes to the Philippines on condition that the Philippines not develop its coconut industry. And indeed in that era many copra processing industries located in Europe and the United States. 
 
Palm oil fruit
Even in the current era of bioeconomy all commodities of agriculture, forestry, fisheries and animal husbandry should support each other to make a strong economy, for example with agro-forestry will be able to optimize the potential of land and environmental balance. Don't let the dichotomy and contradiction occur so that between bioeconomy-based products weaken each other, for example coconut oil and palm oil should be able to have their own segments or even from the beginning it has been designed that coconut for mainly non-oil food products and palm oil for oil products because the productivity of oil per hectare is the largest of all plants. Coconut oil and palm oil (CPO) have different qualities, because coconut oil has a medium chain bond or MCFA (Medium Chain Fatty Acid) while palm oil (CPO) has a long chain bond or LCFA (Long Chain Fatty Acid). Coconut oil which is rich in lauric acid is similar to palm kernel oil (PKO). Besides being found in coconut oil and palm kernel oil (PKO), lauric acid is also found in mother breast milk
 
CPO (Crude Palm Oil)
When the European Union for example with its bioeconomy makes various efforts to obtain various sources of energy, food, chemicals and so on from living things or biomass, then we should realize that Indonesia's position in the tropics is the best position to lead the bioeconomy era on condition that managed properly. Do not let the great potential just be useless and even bring disaster like some time ago, namely natural wealth invites the invaders and the Indonesian people were colonized due to the devide et impera politic. As a result, instead became a slave in their own country. Indonesia should be the largest producer of biomass, the biomass country.


As palmae plant groups there are many similarities between palm oil and coconut. And specifically the case in Indonesia, for example the productivity of coconut and palm oil is also still less than other countries like Malaysia, so this needs to be improved. But the number of palm oil processing industries starting from the production of CPO and its derivatives is currently more than coconut, which is estimated to be around 1000 pieces while the area of palm oil plantations is also almost 4 times that of coconut plantations. Palm oil production is currently reaching 38.17 million tons for CPO or 41.98 tons in total with palm kernel oil (PKO) in 2017 or the largest in the world. With CPO production of 38.17 million tons, the use in the food sector, especially cooking oil, is 3-5% (equivalent to approximately 2 million tons). In other sectors, CPO derivative products such as oleochemical 3.8 million tons / year ago, the energy sector, biodiesel 2 , 5 million tons, and the rest export around 70%.

There is an analysis that indicates that the coconut industry will rise with a number of products starting to demand the market, including the most striking coconut water, followed by coconut milk, dessicated coconut and VCO. But unfortunately most of the success is not in Indonesia but in other countries such as the Philippines, Sri Lanka and India. In fact, there are even products whose raw materials from Indonesia after being ready to sell products are sold back to Indonesia, namely coconut milk which is the source of coconut from Indonesia. Thus the actual analysis that the coconut industry began to stretch has a point especially at the global level, while for the domestic indicators there are almost no indications, only small spots are still too early to be said to rise. With an estimated 14 billion nuts produced annually in Indonesia, there are around 3 billion liters of coconut water, or when converted to VCO to 1.4 million tons, dessicated coconut to 1.7 million tons while coconut shells are 2.5 million tons and coir/fiber of 5.6 million tons.

Indeed, in the current era of bioeconomy, it is a natural thing that in the past it became trash and discarded, and now it is a commodity that is sought and even competed, for example coconut water that was once thrown away, is now accommodated as raw material for nata de coco and bottled coconut water, coconut shells and coconut husks, then palm kernel shells which were originally only thrown away as a road hardener/ improvement are now widely sought after and used as fuel for power plants with very large demand, more details can be read here. Some coconut products that are starting to be in demand, there is already demand and it is projected to continue to increase is coconut water. The Philippines exported 484 thousand liters of coconut water in 2009 to 17.9 million liters in 2012 and in 71.7 million liters in 2015 or there was a 141-fold increase in 8 years. To produce 71.7 million liters of coconut water, 261 million coconuts are needed per year. And it is estimated that the bottled coconut water market currently reaches 13 trillion rupiah. Unfortunately there is no information for Indonesia. Almost all of the coconut water products are exported to the United States and usually a close relationship with the buyer's country which is closely related to historical factors will facilitate business transactions. Maybe that's why the no. 2 coconut producing country in the world can export more their coconut products to the United States.

Coconut milk packaging is used not only for cooking but also for vegetable milk, such as soy milk. China is a country that consumes a lot of coconut milk to replace animal milk, with China as its biggest consumer. Whereas dessicated coconut, there are currently 3 main producers namely the Philippines, Indonesia and Sri Lanka. At present it is estimated that more than 20 dessicated coconut plants in Indonesia. The demand for dessicated coconut was quite large at 151 thousand tons in 1990 to 248 thousand tons in 2008.

Will the Indonesian coconut industry be able to rise? Of course it can, but there are a number of conditions that must be met. The rise of the coconut industry must be led by people who have adequate capability so as to understand the core problems and be able to map problems accurately in this sector and provide solutions. A leader is a person who has a vision and lives or implements his vision until the goal is reached. Leaders who do not have the strong driving force to implement their vision will not have the drive to be moved to create the solutions needed. With the efforts of various parties and always praying to Allah SWT, God willing, will be realized.

 Coconut is very close to people's lives, so the community can actively participate in advancing the integrated coconut industry. Integrated coconut industries can be made in centers of coconut plantations, even in remote locations as long as there is access to market their products. Market access and control are important. When the market has been acquired and controlled, production activities can be easily carried out. It's useless to build a factory or industry if you don't have a market. The pattern of mutually beneficial cooperation (non-usury) such as syirkah with profit sharing will make the industry stronger. Insha Allah. That is because from coconut can produce a lot of products that can be commercialized and will bring blessings. Large companies have also been prepared to take this opportunity, so do not miss it. Things that need to be pursued so that assets do not only revolve in certain circles as is currently the case with the application of capitalist economy. With the current economic model it takes 800 years for the bottom billion people to reach 10% of global income. As a result of the current liberalism and capitalism, the richest 10% control 85% of global wealth. The three richest people in the world have assets of more than 47 countries GDP, the lowest gross GDP. 1% of the richest people own more than 50% of the world's wealth. This huge inequality should be overcome immediately with a fair and prosperous economy.

Will coconut be back victorious and become a locomotive in the current bioeconomy era? Can coconut be able to move the economic sector back heroically as an important commodity that has a role in Indonesia's independence? Or is it even in the 'lullabies' with the many potentials of this country but is unable to exploit it and instead invites new 'invaders'? Wallahu 'alam