|Title:||Indonesia annual coconut flour exports volume and value in tons, dollars, and percent change for 2006 to 2010|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Exports of Coconut flour, 2006--2010
Year Volume Growth Value Growth (tons) (%) (US$ XXX) (%)
2006 X,XXX X,XXX 2007 XX,XXX XX.X% XX,XXX XXX.X% 2008 XX,XXX XX.X% XX,XXX XXX.X% 2009 XX,XXX XX.X% XX,XXX -XX.X% 2010 X,XXX -XX.X% X,XXX -XX.X%
Sources: Agro-industry directorate general, processed
As a tropical country, Indonesia is a fertile land for coconut palms. The low lands of its coastal areas from Sumatra in the west and Papua in the east are lined with the swaying slim tall plants. However, the potential has not attracted enough big investors to produce major export commodity from coconut palms like crude palm oil, coffee and cocoa.
Currently Indonesia has X.X million hectares of coconut plantations expanding from X.XX million hectares in 1969. The vast majority of XX% or X.X million hectares of the plantations are made up of smallholdings of individual farmers. Plantations owned by state companies total around X,XXX hectares with private plantation companies owning the rest. Or owned by state plantation companies and the rest by private companies.
Most of the plantations, owned by farmers are left to grow naturally without proper fertilization. They are not well tended, therefore, they remain small not up to commercial scale.
Around XX% of the country's coconut production is disposed of on the domestic market XX exported either in the form of fresh fruits or processed products. No much progress has been made in the development of downstream industry
One factor causing the sluggish development of coconut industry is that its has lost ground in competition with palm oil industry. Oil palm trees produce more and much cheaper vegetable oil. Crude palm oil (CPO) has even become a major world commodity and gained greater domination in the market of edible oils.
However, a number of copra-based products have good prospects as they could not be substituted with CPO-based products. Among the coconut-based products that could not be substituted with other products include coconut milk powder, coconut jam, liquid coconut milk, coco chips, desiccated coconut, coconut pith, coconut vinegar, frozen coconut meat, nata de coco, virgin oil, fresh coconut and coconut water concentrate. Other copra-based products like cooking oil and coco chemicals could not stand the competition against those from palm oil and soybean oil.
Copra-based industrial scheme
Almost parts of coconut palms have commercial value--its trees, fruit meat, fibrous husk, the shells and the coconut milk.
Among the products from coconut fruits having high commercial value are Virgin Coconut Oil (VCO), activated carbon (AC), coconut fiber (CF), coconut charcoal (CCL), and oleo-chemicals in the form of fatty acid, metal ester, fatty alcohol, fatty amine, fatty nitrogen, glycerin, etc. Coconut trees are used as raw material for furniture.
Among coconut products which have been developed in the country include Coconut Crude Oil (CCO) and derivatives Desiccated Coconut (DC), Virgin Coconut Oil (VCO), activated carbon (AC), coconut fiber (CF), coconut charcoal (CCL).
Around XX% of coconut meat is processed to turn out CCO and the rest for other products. However, the percentage has tended to decline in favor of other products such as oleo-chemicals (OC), which are the derivatives of CCO.
Other than OC, the products from the coconut fruit meat having good prospects are VCO, DC, CM and CC. The four products have high commercial value. VCO could improve health (immunity to degenerative disease) and as basic material for high value natural cosmetics.
DC is a product of food mixture hygienic and practical. CM is a isotonic drink that could substitute milk, and CC is a practical and hygienic material for cooking to substitute milk from manually scraped coconut.
Derivatives of coconut shells having commercial value are AC, CCL, shell flour (CP). Activated carbon could be used in oil and gas industry, water distillation, pulp processing, fertilizer industry and gold mine.
The fibrous husk could be used as material for furniture, like luxurious car seats, spring beds and geo-textile (GT). From coconut fruits--the fiber, the meat and the milk could be processed into various products as follows:
Plantations dominated by smallholder's estates
Coconut plantations have been dominated by smallholdings accounting for XX% owned by individual farmers, traditionally managed and not well tended that they are not up to commercial scale.
Altogether there are X.X million hectares of coconut plantations in the country including X.X million hectares owned by smallholders X,XXX hectares owned by state companies and XX,XXX hectares owned by private companies for about XX years, from 1969 to 2011, the coconut plantations expanded from X.XX million hectares to X.X million hectares.
The largest plantations are found in Riau, Central Java, east Java and North Sulawesi.
No significant increase in production
The country has the world's largest coconut plantations but production is not proportional with the size of the plantation areas. The country's production of coconut in 2010 reached X.XX million tons. The production has not increased much from the previous years.
In 2003, production totaled X,XXX million tons. Until 2008, the production fluctuated with the lowest at X.XX million tons in 2004 before rising to X.XX million tons in 2010.
The production was relatively small given the size of the plantations. In 2011, production is only X.X ton per hectare as against the potential production of X.X tons per hectare.
Plantations owned by smallholders are generally traditionally managed without proper fertilization. As a result the productivity remains low.
The productivity even declines from years before. In 2001, the production averaged X.X tons /hectare, down to X.X ton in 2005. The productivity is much lower than coconut plantations in India and Sri Lanka.
The plants in around XX% or XXX,XXX hectares of the coconut plantations have been too old and no longer productive. Rejuvenation has been attempted by the government, but no much headway has been made.
By 2009, replanting reached only XX,XXX hectares in XX regencies of XX provinces. Replanting has been made in frontier or isolated areas far from processing facilities.
No large scale coconut processing industry
Traditional, in addition to modern system is still used in the coconut processing industry in Indonesia. No industry with certain products dominating coconut processing in the country.
The processed products of coconut in the country include copra, cooking oil (Refined Bleached Deodorized), milk squeezed from coconut, Virgin Coconut Oil, Nata Decoco, palm sugar, charcoal, Geo textiles, etc. Coconut processing factories are located mainly in coconut producing areas such as West Java, East Java, Central Java, North Sulawesi North Sumatra, etc. Jakarta, however, has many coconut processing factories although it has no coconut plantation.
The industry ministry has three categories for coconut industry in two classes upstream industry with products including fresh fruits and copra (black and white copra) ; intermediate industry with products including coconut shells, copra Meal, desiccated coconut; and downstream industry producing cooking oil, coconut cream/milk, activated carbon (AC) , etc.
Coconut oil less competitive
The productivity of coconut plantations is below other sources of vegetable oils like crude palm oil as a result the derivatives of coconut especially coconut cooking oil is not competitive in price.
Coconut oil is superior in quality with high content of lauric acid needed especially in detergent industry and cosmetic industry and friendlier to the environment.
Coconut fruits could serve as substitutes for palm kernel, on the contrary, oil palm fruits could not be processed to produce substitutes for coconut milk, desiccated coconut, oriental food, spry dried powder, and hair oil. Oleochemicals, bio-diesel and fatty alcohol could also be produced from coconut although not as efficiently as from CPO.
From XX edible oils and fats traded as international commodities in 2005, coconut oil ranked the Xth, with a market share of X.XX% as against soybean oil's share of XX.XX%, CPO XX.XX%, rapeseed oil X.XX%, sunflower oil X.XX% and animal oils/fats X.XX%.
The position of coconut oil has not improved with production of coconut oil grows only X% per year. There is no big investment in the coconut sector and the government has not show interest in encouraging investment in the sector.
The market of coconut derivatives in the world is dominated by the Philippines, known as the world's largest copra producer. The Philippines accounts for XX% of the world's supplies of coconut oil. Most of its processed products of coconut are exported.
Coconut processing industry producing coconut oil from copra has expanded in the Philippines. That country even imports part of its copra feedstock from Indonesia. Coconut industry in that country also produces CCO-based oleochemicals such as fatty alcohol, fatty-add, methyl ester and alkanola-mide.
The market demand for coconut products is quite encouraging especially to be used for organic foods, functional drink, cosmo centicals, oleo chemicals, and bio-fuel and bio lubricants.
Around XX% of coconut production exported
Indonesia is one of the world's largest producers of coconut, but it is also a large consumers of that commodity. Most of its production, therefore, is disposed of on the domestic market. Only XX% of its coconut fruits are exported. The Philippines exports XX% of its coconut production. Indonesia's coconut exports are almost entirely in fresh fruits, while exports by the Philippines are dominated by processed products Even Malaysia, which produces no coconut is an exporter of coconut based cooking oil importing feedstock from Indonesia.