Nationwide Association of Consumers, Inc.
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NACI Extra Virgin Coconut Oil Project

Project proposal prepared by Moises P. Talladen (NACI Secretary General) and Jose R. Baligod (NACI Chairman)

click here to download file of complete NEVCO project information

The extra virgin coconut oil (evco) is produced from the cold-pressed extract of  matured coconut  meat or kernel by purely mechanical method. The term " extra virgin" is borrowed from the  " extra virgin olive oil" which is produced in similar fashion. The extra virgin coconut oil produced in this project differs significantly from most virgin coconut oils (vco) presently available in the market in terms of processing ( vco is low-heat treated, while evco is not ), consistency ( vco is thicker ), aroma and taste (evco tastes better). Laboratory analysis through Gas-Liquid Chromatography will settle the issue on the chemical composition of both products. Both oils, however, look  the same as clear white oil.

 

The principal uses of  virgin coconut oil are the following:

 

·        as the cooking oil of choice by health-conscious consumers especially those with cardio-vascular illness;

·        basic ingredient in the manufacture of soap, shampoo, cosmetics and skin care products;

·        as carrier or base oil in the making of  therapeutic oils ( mixed with essential oils) used for aromatheraphy in the Spa industry;

·        diesel fuel substitute ( coco methyl ester or coco diesel);

·        as anti-microbial medicine in bacterial, fungal and viral infections such as HIV, Herpes, Cytomegalovirus, STD, dandruff, and skin infections.

 

The by-products from the manufacture of  extra virgin coco oil can be re-processed into  a.) coconut flour,  b.) animal feeds and  C.) charcoal. These can be produced in commercial quantities to provide additional income for the organization and its beneficiaries.  

 

VIABILITY  AND  SUSTAINABILITY

 

The huge market demand for virgin coconut oil is fast growing as the population grows, and as more people learn about its benefits.  In fact, the current demand is so high that prices have been driven upwards. The selling price in the local market ranges from Php 500 to Php 600 per liter. As more supplies get into the market, the price is expected to go down.

 

The expected income from the sales of NEVCO shows the viability  of this project. This project will sustain itself after we start selling NEVCO in the market by the 4th month. The income is expected to grow substantially after we start producing the by-products such as coconut flour, charcoal, skin care products, animal feeds and coco diesel.

 

BUSINESS BACKGROUND

 

Recent scientific findings on the health benefits of  virgin coconut oil contributed to the current demand and interest on the product, both locally and internationally. Studies have shown that virgin coco oil has effective anti-microbial actions against certain types of  bacteria, fungi and viruses such as Aids virus, herpes, cytomegalovirus, hepatitis, flu virus, etc. When used as cooking oil, it has been found to be beneficial for people with cardio-vascular ailments ( heart disease, high blood, etc.), contrary to western belief. Its saturated fats is mostly  medium chain triglyceride which is completely metabolized in the human body, and does not contribute to the build-up of cholesterol and destructive free radicals, unlike other fats and oils.

 

Today, many Filipino entrepreneurs have embarked on the manufacture of virgin coco oil to supply growing demand.  With coconut trees growing all over the country, this business enterprise is quite easy to undertake as the technical and supply requirements are cheaply  available.

 

THE MANUFACTURING PROCESS

 

The Nationwide Association of Consumers (NACI), Inc. has developed its own cold - press technology in the production of  extra virgin coco oil.  The process is actually a simple one involving the following steps:

 

a)     Dehusking, grating, pressing and filtering;

b)     Ferment the cream or milk to separate the oil from the water. A clear, white oil develops on top of the solid part with the water at the bottom;

c)      Take out the oil, and place it in separate container;

d)     Place the oil in a centrifuge to remove the remaining water and protein;

e)     The final product is a clear white oil with a thin consistency and fresh coconut aroma.

 

 This is the NACI Extra Virgin Coconut Oil ( NEVCO) ready for the market.

 

PRODUCT DEVELOPMENT

 

Six months after the onset of oil production, the organization will embark on project expansion by  producing:

·        Coconut flour  from the dried kernel after extraction of  its milk;

·        Coco diesel or Coconut Methyl Ester (CME) for local use;

·        Virgin Coco Oil with Lemongrass Essential Oil  as a more effective anti-microbial/ anti-bacterial medicine than pure Virgin Coco Oil;

·        Herbal soap and herbal shampoo, using our own virgin coco oil and lemongrass essential oil with its hydrolat produced by our sister organization, Gold In Grass Corporation.

 

Women Cooperatives in Albay will be organized to handle each of the above project components. The Training Department of NACI will conduct training seminars and transfer of technology in collaboration with Technicians from the Philippine Coconut Authority (PCA) and Technology & Livelihood Resource Center (TLRC). The Department Of Trade & Industry with whom NACI has signed a Memorandum of Agreement (MOA), will assist in the marketing of the products locally and internationally.

 

 SALES AND PROMOTION

 

NACI  will participate in various Trade Exhibits nationwide such as those held in the following venues :

·        World Trade Center - Metro Manila

·        Phil. Trade & Training Center - Metro Manila

·        Mega Trade Hall, SM Megamall - Metro Manila

·        Provincial Trade Fairs - various provinces

·        Hotels and Tourism outlets

 

A  website in the internet will be opened for promoting our products worldwide.

 

Initially, the participants and beneficiaries of this project will buy some of the products for their own consumption. The bulk , however, will be sold to the mother organization,NACI, for sales distribution to various chapters and affiliated organizations nationwide.

 

Export sales will be done  sometime in the future when production capacity shall have reached 5,000 liters of  virgin coco oil per month



 

This project will provide sustainable enterprise and self-employment to many members who will actually become business partners of NACI. They need no longer seek  employment elsewhere as this project enables them to earn substantial income.

 

The coconut farmers in Albay will surely have a steady substantial income by selling their coconuts to the organization. As production requirement grows, more coconut farmers will be involved including those in  the nearby towns of Polangui, Ligao and Legaspi  as NACI will also buy their coconuts. Compared to their copra income which is presently at Php 11.00 per kilo of dried kernel, these farmers will be much better off selling their coconuts to NACI at  Php 3.00 per nut which can be translated to Php 15.00 - 20.00 per kilo of dried kernel without the trouble of cutting and drying expense that they would have with copra preparation. 

 

Expansion of  this operation is planned in the immediate future to pursue the advocacy of NACI  on "economic empowerment " among its members nationwide. The profits that NACI shall earn from this operation will fund the setting up of work stations in the following sites within the next  five years:

·        Barangays Tamurong and Calongboyan, Candon, Ilocos Sur

·        Barangay Bacquit, Bauang, La Union

·        Barangay Becques, Tagudin, Ilocos Sur

·        Lucena City and Mauban, Quezon

·        Sorsogon City, Sorsogon

 

By the end of a ten-year period, NACI shall have implemented a socio-economic development program nationwide that shall have contributed substantially to the attainment of  President Arroyo's objectives on job creation and support for new entrepreneurs. A modest estimate of NACI's contribution to the attainment of the President's 10 million job-objective would be between  one to two million new jobs from this project alone and its components by  year 2010.