Production Process of Coconut Flour and Virgin Coconut Oil Part 2

Applications/Uses of Coconut Flour

Coco Flour (High-Protein)

  • As substitute for wheat flour in breads and cakes to provide the limiting amino acids in wheat flour
  • Can be used in nutrition feeding programs

Coco Flour (High-Fiber)

  • As food supplement/additive in breads, cookies, snack food to provide dietary fiber sources
  • Can be used as fiber food to help in preventing constipation; as fiber food for patients with diabetes and moderately raised cholesterol levels

Popular breads & cakes that can be fortified with high- protein coconut flour:

10%:

  1. Raisin bread
  2. Ensaymada
  3. Monay
  4. Loaf bread
  5. Pinagong
  6. Pan de sal
  7. Nutribun

10-40%:

  1. Chiffon cake
  2. Cheese cake
  3. Mocha-chiffon cake
  4. Orange-chiffon cake

Acceptable levels of coconut flour (high-fiber) as an additive in food products

Baked Products:

  • Multi-grain bread – 10%
  • Chocolate chips – 38%
  • Chocolate crinkles – 21%
  • Oatmeal cookies – 25%
  • Cinnamon bread – 10%
  • Macaroons – 25%
  • Hotcake – 15%
  • Lemon poppyseed – 15%

Snack Foods:

  • Multi-grain chips – 10%
  • Polvoron – 15%
  • Kropek – 10%

Extruded Products:

  • Canton noodles – 10%

MARKET ASPECTS

A. Coconut Flour – Market demand of coconut flour

Wheat importation (source: US Wheat Association):

  • 1997 – 2,256,766 MT
  • 1999 – 2,332,487 MT
  • 2000 – 2,850,420 MT
  • 2002 – 3,084,410 MT
  • 2003 – 3,124,595 MT

If 5% of wheat flour will be substituted with coconut flour the potential market demand of high protein coco flour is 156,230 MT annually. This will reduce our dollar importation of wheat.

Major Wheat Based Products

  • Pan de Sal 19%
  • Loaf bread 18%
  • Buns and rolls 6%
  • Other breads 4%
  • Noodles 21%
  • Pasta 1%
  • Crackers/ Cookies 18%
  • Cakes/ pies/ pastries 13%

Total 100.00%

Price (Local):

  • High Protein Coco Flour– 25 / kg
  • High Fiber, Low Fat Coco Flour – 90/ kg

Supply:

  • Peter Paul Philippine Corporation (high-protein) – 30 MT / mo.
  • Freyvonne Milling Services (high-protein) – 4MT / mo.
  • Sirawan Food Corporation (high-fiber) – 1MT / mo.

Total 11 MT / mo

Prospects

  • Availability of convenient alternatives like bread, noodles, etc.
  • Increase demand for healthy breads such as oatmeal, wheat, rye, multi-grain and others as more and more consumers are becoming health conscious
  • Specialty breads like high fiber white bread are on the rise. People are becoming more conscious on quality and nutritional contents.
  • The industry benefits from the government campaign on fortification of products like bread, salt, noodles, sardines and margarine.
  • There is growing consumer base of 7.6 million which offer bright prospects on the medium term despite some short term market constraints.
  • The feeding program to be spearheaded by the DA, NNC and Dep-Ed, if proven successful will create a market for high-protein coconut flour and encourage existing VCO producers to process further their by-products.
  • The spread of coffee shops like Starbucks, Coffee California, Seattle’s Best Coffee, etc. is expected to increase consumption of bread, a complement of coffee.
  • The expansion of specialty bakeshops in other urban centers outside Manila.

Market Potential of Coco Flour

The National Supplemental Feeding Program (“Healthier Children, Wealthy Farmers Program”) is a large market for high-protein coconut flour.

The Department of Education has 167,000 grade 1 and pre-school children. The Department of Social Welfare and Services Department has 60,000 3-5 year old pre-schoolers in day care centers in 4th, 5th, and 6th class municipalities. At 120 days feeding regimen, this will require 28 tons of coconut flour for the production of “coco pan de sal”. The program is scheduled to start this August, 3005 and will be continued after the 120 days feeding once the local government units support the program for sustainability. The coco pan de sal will be fed together with dairy milk to be able to provide 1/3 of the daily RENI (Recommended Energy and Nutrient Intake).

B. Virgin Coconut Oil

Market Demand of VCO

  • 2001 – 1.8 MT = $19,810
  • 2002 – 19.1 MT = $91,610
  • 2003 – 113 MT = $406,580
  • 2004 – 120 MT = $422,856

Price

  • Local price of VCO ranges from P600 – P1,000 per liter
  • Export price of VCo ranges from $ 3,134 / MT – 2004

Market Prospects

  • Consumer demand for functional foods and organic products
  • Acceptance of herbal/natural medicine as alternative products to complement, if not replace, synthetic drugs.
  • Increasing demand for safe, efficacious and quality natural therapeutic products considering burgeoning world population & high cost of drugs.
  • Growing awareness on the value of food and nutrition in preventing diseases.
  • Aging global population.
  • Increasing interest in natural products, including beauty product line
  • Increased promotion & advertisement resulting for testimonials.

For more information, contact:

Philippine Coconut Authority
Elliptical Road, Diliman, Quezon City
Tel: (02) 928-8741 to 45
Email: [email protected]
Web: www.pca.da.gov.ph

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