This document provides a business plan for Davao Oriental Coconut Husk Social Enterprise Incorporation (DOCHSEI). Key points: - DOCHSEI was created in 2004 in Davao Oriental, Philippines to provide livelihoods to coconut farmers and communities through a coconut coir processing business. - It produces coir fiber products like geotextiles, woven mats, scouring pads as well as charcoal briquettes and bio-organic fertilizer from coconut husks. - Davao Oriental is a major coconut producing region in the Philippines, ranking 3rd highest. The business aims to contribute to the growing Philippine coconut coir industry.

1.
1
DOCHSEI
Business
Plan
Davao
Oriental
Coconut
Husk
Enterprise
Incorporation
(DOCHSEI)
Unlad
Kabayan
Migrant
Services
Foundation
In
Partnership
With
Kalumonan
Foundation

2.
2
DOCHSEI
Business
Plan
Table
of
Contents
I.
Executive
Summary
1.1
Industry
Analysis
1.1.1
Global
Coir
Industry
1.1.2
Philippine
Coir
Industry
1.2
Research
Methodology
and
Limitations
1.2.1
Limitations
of
the
Study
II.
Production
Plan
2.1
The
Products
2.2
Production
2.2.1
Husk
Requirements/Supply
2.2.2
Coir
Processing
2.2.3
Charcoal
Briquettes
2.2.4
Woven
Mat
2.2.5
Scouring
Pad
III.
Financial
Analysis
3.1
Summary
of
Assumptions
3.1.1
Raw
Material
Requirement
3.1.2
Sales
and
Marketing
IV.
Competitive
Analysis
4.1
Key
Players
4.1.1.
Charcoal
Briquettes
4.1.2
Woven
Mat
4.1.3
Scouring
Pad
4.2
Pricing
4.3
Performance
V.
Marketing
Plan
5.1
Marketing
Coverage
5.2
Pricing
5.3
Distribution
VI.
Impact
Analysis

3.
3
DOCHSEI
Business
Plan
6.1
Value-­‐Added
Products
6.2
Socio-­‐Economic
Integration
6.3
Environmental
Protection

4.
4
DOCHSEI
Business
Plan
1.0
Executive
Summary
Company
Name:
Davao
Oriental
Coconut
Husk
Enterprise
Incorporation
(DOCHSEI)
Location:
Barangay
Bato-­‐Bato,
San
Isidro,
Davao
Oriental
Product
Line:
Coir
Fiber
(Geotextiles,
Woven
Mats,
Scouring
Pads)
and
Peat
(Charcoal
Briquettes,
Bio-­‐Organic
Fertilizer)
Davao
Oriental
Coconut
Husk
Social
Enterprise
Incorporation
(DOCHSEI)
was
created
in
2004
as
a
business
incubation
project
of
Unlad
Kabayan
Migrant
Services
Foundation.
After
more
than
ten
years
in
production,
DOCHSEI
has
become
one
of
the
key
players
in
the
re-­‐emerging
“sunrise”
coconut
coir
industry
of
the
Philippines.
Its
creation
serves
the
following
purposes:
(1)
To
provide
sustainable
livelihoods
and
additional
income
to
coconut
farmers
and
residents
of
Davao
Oriental.
(2)
To
help
mainstream
the
use
of
coconut
coir
as
a
financially
and
ecologically
cost
effective
substitute
for
synthetic
products.
(3)
To
encourage
the
entrepreneurial
capacity
of
coconut
farming
communities
by
contributing
to
young
but
ever
growing
coir
industry
in
the
Philippines.
DOCHEI
is
strategically
based
in
Davao
Oriental,
the
3rd
ranking
coconut
producing
province,
with
an
annual
production
of
1,046,223.72
metric
tons.
It
produces
an
average
of
one
billion
nuts
annually,
covering
a
total
crop
area
of
156,837
hectares.
Table
1:
Top
10
Coconut
Producing
Provinces
Province
Production
(MT)
Quezon
1,114,760.53
Davao
Oriental
1,046,223.72
Davao
del
Sur
837,687.04
Leyte
680,139.83
Zamboanga
del
Norte
599,248.82
Lanao
del
Norte
566,848.00
Zamboanga
del
Sur
554,971.66
Misamis
Occidental
546,441.00
Maguindanao
541,040.90
Misamis
Oriental
484,950.00
Source:
Bureau
of
Agricultural
Statistics

5.
5
DOCHSEI
Business
Plan
1.1
Industry
Analysis
While
the
coconut
tree
and
fruit
has
been
globally
praised
for
its
variety
of
products
and
the
usability
of
all
its
components,
the
coconut
husk,
also
known
as
coir,
has
yet
to
be
globally
recognized
for
its
use
in
variety
of
uses
agriculture,
environmental
rehabilitation,
handy
crafts,
and
so
forth.
Coir
is
a
natural
fiber
that
is
extracted
from
the
coconut
husk
(bunot
in
tagalog).
Its
high
level
of
lignan
makes
it
stronger
but
less
flexible
than
cotton.
It
has
good
resistance
to
microbial
action
and
salt-­‐water
damage
and
needs
no
chemical
treatment.
1.1.1
Global
Coir
Industry
The
coconut
thrives
in
tropical
countries
where
rainfall
and
sunshine
are
plenty
and
serves
as
a
major
source
of
income
for
these
areas.
Coir
products
include,
but
are
not
limited
to,
upholstery
padding,
rope,
twine,
fishing
nets,
geotextiles,
brushes,
mats,
rugs,
planting
pots,
growing
medium
and
more.
Globally,
around
650,000
tons
of
coir
is
produced
annually.
India
and
Sri
Lanka
remain
to
be
the
greatest
contributors
and
the
Philippines
frequently
ranks
at
second
or
third.
India
and
Sri
Lanka
are
also
the
main
exporters,
followed
by
Thailand,
Indonesia,
Malaysia,
Vietnam,
and
the
Philippines.
Table
2:
The
Top
5
Coconut
Producing
Countries
Country
Coconut
Production
(MT)
%
of
World
Total
Indonesia
18,000,000
30.00%
Philippines
15,862,386
26.4$
India
10,560,000
17.00%
Brazil
2,888,532
4.80%
Sri
Lanka
2,000,000
3.30%
Sources:
FAOSTAT
data,
2014
(last
accessed
by
Top
5
of
Anything:
January
2014
1.1.2
Philippine
Coir
Industry
The
Philippines
is
one
of
the
top
producers
of
coconuts.
There
are
3.55
million
hectares
of
coconut
trees,
encompassing
26%
of
total
agricultural
land
in
68
out
of
the
81
provinces.
These
388
Million
bearing
trees
produce,
on
average,
15.344
billion
nuts
per
year
with
43
nuts1
per
tree.
Coconut
plantations
are
found
in
Luzon
(23.0%),
Visayas
(17.4%)
and
Mindanao
(59.6%).
In
the
Philippines,
Davao
Region
is
the
leading
producer
of
coconut,
wherein
Davao
Oriental
takes
the
lead,
contributing
40
percent
in
volume
and
production
or
2
metric
tons
in
20121.
1
This
value
is
expected
to
drop
due
to
the
recent
damage
by
Typhoon
Pablo

6.
6
DOCHSEI
Business
Plan
The
coconut
industry
provides
an
annual
average
of
5.97%
contribution
to
the
GVA
and
1.14%
to
the
GNP.
The
coconut
industry
is
an
important
source
of
employment
and
additional
income
for
many
farmers
in
rural
communities.
The
main
product
of
export
remains
to
be
copra
and
desiccated
coconut
while
the
left
over
husk
is
used
for
household
fuel/copra
production
(60%)
or
simply
discarded
in
fields
(40%)
as
waste.
1.2
Research
Methodology
and
Limitations
Research
on
the
various
products
of
coconut
coir
fiber
and
pithe
was
primarily
conducted
online.
Information
on
the
global
and
local
coir
industry
was
collected
from
online
sources,
books,
and
an
interview
with
a
Philippine
Coconut
Authority
(PCA)
employee,
Jeremias
Palawan.
Danielle
Peterson
and
Ronald
Dura
conducted
hands-­‐on
research
and
development
on
site
at
DOCHSEI.
The
initial
value
added
products
were
conceived
through
brain
storming
sessions
and
the
final
products
that
met
expectations
after
prototyping
were
the
pithe
charcoal
briquettes,
woven
mat,
and
scouring
pad.
All
materials
used
in
experimentation
were
found
on
the
plant
or
in
local
marketplaces
within
Davao
Oriental.
1.2.1
Limitations
There
was
no
available
funding
for
research
and
development.
Therefore,
all
materials
used
were
either
fabricated
on
site
or
purchased
with
our
own
money.
Due
to
the
short
amount
of
time,
these
products
have
not
yet
been
tested
for
legal
standards
or
reached
final
stage
or
marketable
status.
Therefore,
the
products
mentioned
in
this
case
study
shall
be
presented
in
their
current
status
and
will
continue
to
be
tested
and
finalized
in
the
future.
Although
DOCHSEI
products
include
geotextiles,
baling
fiber,
and
raw
pithe,
for
the
purpose
of
this
business
plan,
only
the
value-­‐added
products
(briquettes,
mats,
scouring
pads)
shall
be
discussed.

7.
7
DOCHSEI
Business
Plan
2.0
Production
Plan
2.1
The
Products
In
order
to
increase
the
variety
of
products
and
lessen
the
financial
impact
of
potential
changes
in
the
market
or
threats
from
equipment
issues,
DOCHSEI
shall
diversify
its
product
line
to
include
charcoal
briquettes,
woven
mats,
and
scouring
pads
in
the
near
future.
1)
Charcoal
Briquettes
Coir
dust,
a
by-­‐product
of
fiber
extraction,
is
traditionally
used
as
a
soil
medium
or
base
ingredient
in
bio-­‐organic
fertilizer
(BOF).
Experimentation
has
shown
that
coir
dust
can
also
be
cooked
into
charcoal,
mixed
with
water,
a
binding
agent
such
as
cassava
flour,
and
molded
into
briquettes
for
use
in
cooking
fuel
or
as
a
household
energy
source.
Coir
briquettes
serve
as
a
better
replacement
for
wooden
charcoal
for
they
are
made
from
the
renewable
resource
coir,
which
helps
to
lessen
the
environmental
impact
of
cutting
down
trees
for
charcoal
production.
2)
Woven
Mats/Rugs
After
twining
coir
fibers
into
ropes,
they
can
be
hand
woven
into
mats
and
rugs
of
beautiful
designs.
The
fibers
can
be
bleached
or
dyed
to
create
unique
and
personal
color
combinations.
Mold
and
mildew
resistant,
durable
and
long
lasting,
these
mats
are
a
lovely
addition
to
any
household
to
create
a
laid-­‐back,
tropical
feeling.
3)
Scouring
Pads

8.
8
DOCHSEI
Business
Plan
Coir
fibers
are
the
perfect
material
for
scouring
pads
as
its
stiff
yet
flexible
texture
is
tough
on
grease
and
stains.
Following
the
twining
process,
coir
twine
is
encased
in
nylon
netting
to
maintain
shape
and
form.
A
truly
“green”
product,
the
coir
twine
can
either
be
disposed
in
biodegradable
trash
or
used
in
mulch
for
soil
mediums
once
the
scouring
pad
has
been
fully
used.
2.2
Production
2.2.1
Husk
Requirements/Supply
DOCHSEI
operates
on
2
shifts,
morning
(7am-­‐4pm)
and
overnight
(7pm-­‐6am),
each
requiring
an
approximate
18,000
husks
minimum
to
maintain
continuous
production
and
meet
scheduled
deadlines
of
delivery.
These
husks
are
obtained
from
several
multi-­‐cabs
(960
husks/trip)
and
one
elf
truck
(3600
husks/trip).
Sources
of
coconut
husks
include
the
39
barangays
within
the
municipalities
of
San
Isidro,
Lupon,
Banay
Banay,
Mati
and
Governor
Generoso.
2.2.2
Coir
Processing
A
decorticating
machine
uses
revolving
blades
to
crush
and
separate
raw
coconut
husks.
The
decorticating
process
of
coir
results
in
raw
fiber
and
pithe,
a
dust
like
by-­‐
product.
From
raw
materials,
the
fiber
and
pithe
can
then
be
sold
as
bale
fiber
and
raw
peat
or
further
processed
into
geo-­‐nets,
mats,
charcoal
briquettes
and
scouring
pads.

9.
9
DOCHSEI
Business
Plan
2.2.3
Charcoal
Briquettes
Materials
(As
suggested
by
Villar
Foundation):
2
Kilos
Dried
Coir
Pithe
800
Grams
Cassava
Starch
2
Liters
Warm
Water
Directions:
ü Fill
empty
paint
can
with
dried
pithe
and
seal
tightly.
ü Cook
on
flame
until
pithe
is
evenly
blackened
and
completely
carbonized.
ü Mix
pithe
charcoal,
cassava
starch
and
warm
water
together
until
consistency
is
slightly
moist
and
sticky.
ü Mold
briquettes
into
disks
of
the
following
dimensions:
o Length:
2.6
cm
o Inner
circle:
1.0cm
o Outer
circle:
4.0cm
ü Lie
briquettes
out
beneath
the
sun
for
approximately
48
hours
or
until
briquettes
are
completely
dry.
Husk
Supply
Husk
Hauling
Soaking
Decortication/
Screening
Fiber
Twining
Geo
Net
Mats
Scouring
Pad
Drying
Baling
and
Bundling
Bale
Fiber
Pith
Raw
Peat
Cooking
Charcoal
Briquette

10.
10
DOCHSEI
Business
Plan
Results
and
Observations:
The
percent
of
pithe,
coconut
shell,
cassava
starch
as
well
as
the
warmth
of
the
water
influences
the
consistency
and
moisture
of
the
briquettes.
Trial
1
Ingredients:
100%
Pithe,
Cold
Water
Consistency
–
Very
watery
Trial
2
(Most
Successful)
Ingredients:
100%
Pithe,
Hot
Water
Consistency
–
Moist,
Very
Bouncy
Trial
3
Ingredients:
60%
Pithe
40%
Coconut
Shell
Charcoal,
Warm
Water
Consistency
–
Slightly
Moist,
Slightly
Bouncy
Adding
coconut
shell
charcoal
increased
the
heat
of
the
briquettes.
However,
since
DOCHSEI
only
utilizes
coconut
husks,
purchasing
coconut
shell
will
further
increase
the
cost
of
production
and
market
price.
2.2.4
Woven
Mat
Materials:
36
Meters
Twine
Molder
(For
Shaping)
Optional:
Softening
–
Enzymes
and
chemicals
can
be
used
to
soften
the
naturally
coarse
coir
fiber.
Specific
microorganisms
degrade
the
lignin
that
gives
coir
fibers
its
hard
texture.
Bleaching
and
Dying
–
To
lighten
the
appearance
of
the
fibers,
they
can
be
bleached
with
hydrogen
peroxide,
peracetic
acid,
or
bio-­‐
bleaching
microbial
enzymes.
Traditional
dyes
and
dying
techniques
can
be
used
to
give
the
mats
unique
color
combinations
and
patterns.

11.
11
DOCHSEI
Business
Plan
Directions:
ü Gather
4
strands
of
twine
side
by
side.
ü Guide
the
strands
of
twine
through
the
molders
directional
flow
to
recreate
woven
mat
design.
ü Bind
both
ends
together
with
latex.
ü Use
the
blowtorch
to
singe
off
any
stray
hairs
Results
and
Observations:
The
woven
mat
design
was
recreated
perfectly
but
further
prototypes
would
improve
by
increasing
the
number
of
ropes
used,
torching
stray
fibers,
and
perfecting
the
size
and
peg
design
of
the
molder.
2.2.5
Scouring
Pad
Materials:
Twine
Poly
mesh
bag
Directions:
ü Twist
2-­‐3
cords
of
coir
twine
together.
ü Stuff
into
poly
mesh
bag.
ü Seal
shut
with
needle
and
thread.
Results
and
Observations:
The
scouring
pad
fibers
were
effective
at
removing
tough
stains
on
a
variety
of
surfaces
such
as
plates
and
table
tops.
The
twine
does
not
lather
as
much
as
competitor
sponges
but
is
more
durable
and
longer
lasting.
Further
prototypes
would
improve
if
a
non-­‐toxic
biodegradable
binder
is
discovered
so
that
the
poly
mesh
bag
wouldn’t
be
needed.

12.
12
DOCHSEI
Business
Plan
3.0
Financial
Analysis
3.1
Summary
of
Assumptions
3.1.1
Raw
Material
Requirement
(Example)
The
raw
material
requirement
for
one
shift
at
DOCHSEI
is
18,000
husks.
MONTHLY PRODUCTION - JUNE 2014
HUSK HAULING DECORTICATION
DATE # OF LOADS # OF HUSKS
Husk Fiber Dust
Processed Produced Produced
16 24 32,064 16,200 1,800
N.S.
17 4 6,374
N.S.
18
N.S.
19 12 17,040 14,400 1,600
N.S.
20 20 26,006 14,625 1,625
N.S.
21 13,275 1,475
N.S.
22 13,725 1,525
N.S.
23 14 20,126
N.S.
24 8 16,648 14,850 1,650
N.S.
25
N.S.
26 26 38,210
N.S.
27 23 31,758
N.S.
28 6 5,640
N.S.
29
N.S.
30
N.S.
31
N.S.
TOTAL 137 193,866 87,075 9,675 -
Prepared by: ELIZA C. BUENVIAJE

13.
13
DOCHSEI
Business
Plan
3.1.2
Sales
and
Marketing
a.
Charcoal
Briquettes
o Selling
price
is
P10.50
o Target
markets
for
the
briquettes
are
the
restaurants,
households,
and
mountaineering
stores.
b.
Woven
Mat
o Selling
price
is
P55
o Target
markets
for
the
rugs
are
the
traders,
retailers,
schools
and
households.
c.
Scouring
Pad
o Selling
price
is
To
Be
Determined
(TBD)
o Target
markets
for
scouring
pads
are
restaurants,
supermarkets
and
households.

14.
14
DOCHSEI
Business
Plan
4.0
Competitive
Analysis
4.1
Key
Players
4.1.1.
Charcoal
Briquettes
The
main
cooking
fuels
used
in
the
Philippines
include
agricultural
residues,
fuel-­‐
wood,
charcoal,
Liquefied
Petroleum
Gas
(LPG)
and
kerosene.
The
rural
poor
use
the
least
amount
of
charcoal
because
it
is
more
expensive
and
they
less
frequently
cook
fresh
fish
and
chicken.
Rural
charcoal
consumption
is
about
half
that
found
in
urban
areas.
Pithe
briquettes
are
not
heavily
used
in
the
Philippines,
the
two
available
products
locally
found
being
from
Villar
Foundation
and
Subastans.
an
agricultural
goods
supplier.
The
main
competitor
of
coir
charcoal
briquettes
would
be
traditional
wood
charcoal
that
is
easily
found
in
wet
markets
or
supermarkets.
4.1.2
Woven
Mats
The
local
market
for
coir
woven
mats
is
not
yet
well
developed.
Coir
woven
mats,
if
ever
found
in
a
household,
would
most
likely
be
from
international
sellers.
The
low
income
and
rural
poor
are
less
likely
than
to
middle
to
upper
class
to
import
coir
mats
of
higher
quality
from
abroad
as
it
is
not
a
necessity
and
can
be
quite
expensive.
The
choice
of
the
competitor
doormat’s
material
is
a
matter
of
performance
and
design
preference.
Doormats
are
usually
made
from
tough,
long-­‐lasting
material
such
as
coir,
palmyra
(palm)
fibres
and
stalks,
nylon,
rubber,
cloth,
or
aluminum
and
other
metals.
4.1.3
Scouring
Pads
Scouring
pads
are
typically
made
from
metal
or
plastic
mesh
to
obtain
abrasive
qualities
for
scrubbing
and
residue
removal.
Coir
scouring
pads,
alternatively,
are
all
made
from
material
that
is
natural
and
biodegradable.
Filipino
households
typically
use
regular
sponges
for
their
dishwashing
needs
with
the
patola
loofah
as
a
locally
used,
all
natural
scrub
comparable
to
the
coir
scouring
pad.
The
major
suppliers
of
coir
scouring
pads
are
international
producers
from
countries
like
India
or
the
United
States
such
as
Coco-­‐Clean
and
Safix.
Other
“Green”
products,
although
not
made
from
coir,
are
made
from
all
natural
materials
such
as
cellulose
are
found
in
brands
such
as
Mr.
Clean
or
Scotch
Brite.

15.
15
DOCHSEI
Business
Plan
4.2
Competitor
Pricing
PRODUCT
PRICE
COMPARISON
Product
Brand
Price
Weight/Count
Charcoal
DOCHSEI
10.50
10
pieces
Villar
P12-­‐13
12
pieces
Traditional
Wood
P20
5
small
bags
Woven
Mat
DOCHSEI
P55
36
meters
Abbot
$48.69
22
x
33
in
India
$25
30
x
18
in
Scouring
Pad
DOCHSEI
TBD
TBD
Scotch
Brite
37.50
-­‐
Cleans
Up
18.75
-­‐
4.3
Performance
a)
Coir
Charcoal
Briquettes
DOCHSEI
briquettes
were
compared
to
and
tested
against
Villar
Foundation
and
Subastan’s
coir
charcoal.
Villar
foundation’s
ratio
of
ingredients
made
it
a
long
lasting
heat
source.
Subastan
charcoal
took
about
fifteen
pieces
to
cook
one
kilo
of
rice
in
an
hour.
Smoke
was
ashy,
suggesting
mud
as
the
binding
material
Early
stages
of
the
DOCHSEI
charcoal
briquettes
we’re
able
to
successfully
cook
one
kilo
of
rice
in
one
hour
using
12-­‐15
pieces.
Further
testing
will
reveal
the
best
ratio
in
order
to
make
the
heating
capacity
of
DOCHSEI’s
briquettes
comparable
or
better
than
competitors.
b)
Woven
Coir
Mat
No
coir
mats
we’re
available
in
local
market
places
or
stores
and
therefore,
were
unable
to
be
physically
compared.
However,
by
virtue
of
its
material
of
coir
twine,
the
woven
coir
mat
is
durable
and
well
suited
for
high
traffic
areas.

16.
16
DOCHSEI
Business
Plan
c)
Scouring
Pad
Due
to
time
constraints,
the
scouring
pad
was
not
physically
tested
against
competitors.
Working
with
left
over
twine,
it
was
found
that
coir
fibers
are
effective
at
cleaning
surfaces
from
stains,
dirt,
and
grease.
The
sponge
does
not
lather
as
much
as
its
competitor
sponges
but
is
as
effective,
if
not
better,
than
scouring
pads
available
in
the
market.

17.
17
DOCHSEI
Business
Plan
5.0
Marketing
Plan
5.1
Market
Coverage
India’s
close
proximity
to
Europe
and
America
explains
why
it
dominates
these
markets
in
coir
exportation.
Meanwhile,
the
Philippines
has
easier
access
to
Japan,
China,
and
East
Asia.
The
local
market
for
coir
products
is
very
young
and
the
majority
of
products
have
been
used
in
horticulture
or
government
sponsored
land
development
projects.
While
exportation
is
a
possibility,
to
push
forward
the
use
of
coir
in
the
Philippines,
the
value
added
products
shall
be
majorly
focused
towards
the
local
domestic
market
through
every
day
household
items
such
as
fuel
(briquettes),
basic
décor
(door
mats/rugs),
and
cleaning
tools
(scouring
pads).
The
municipalities
and
barangays
of
Davao
City
and
Davao
Oriental
would
be
the
first
target
market
of
these
products.
If
these
products
find
success
in
these
markets,
they
could
then
be
sold
to
other
consumers
all
over
the
Philippines.
Domestic
Market
a.
Charcoal
Briquette
–
Homeowners
and
restaurants
would
absorb
the
majority
of
this
product.
Other
possibilities
include
mountaineering
stores
to
be
sold
as
portable
fuel
during
long
treks
and
hikes.
b.
Woven
Mat
–
The
market
would
be
focused
on
“a
mat
for
every
door”;
More
specifically
for
middle
to
upper
class
households.
c.
Scouring
Pad
–
Targeted
to
households,
restaurant
owners,
and
any
individual
with
dirty
dishes
and
a
sink.
Individuals
who
seek
environmentally
friendly
shops
and
supermarkets
such
as
Rustan’s
and
Echostore
are
prime
targets.
5.2
Pricing
a.
Charcoal
Briquette
a.
Estimated
Production
Cost
and
Details:
o Materials
–
P35
o Output
–
P20
packs
o Material
per
pack
–
P1.70
o Workers
Labor
Per
Pack
–
P6
o Total
Cost
of
production
per
pack
–
P7.70
o Selling
price
–
P10.50
(10
pieces
briquettes)
o Profit
–
P2.80

18.
18
DOCHSEI
Business
Plan
b.
Woven
Mat
a.
Estimated
Production
Cost
and
Details:
o Length
required
–
36
meters
o Labor
per
piece
–
P25
o Twine
cost
–
P8.40
o Selling
price
–
P55
o Profit
–
P21.60
c.
Scouring
Pad
a.
Estimated
Production
Cost
and
Details
o Twin
Cost
–
TBD
o Nylon
Net
Cost
–
TBD
o Selling
price
–
TBD
o Profit
–
TBD
5.3
Distribution
a)
Distribution
Channels
All
three
value-­‐added
products
will
be
available
through
distribution
centers
including
the
plant
site,
wholesale
and
retails
stores,
LGU-­‐DA
office,
agri-­‐
support
NGOs
and
field
offices.
These
centers
would
first
originate
in
the
nearby
municipalities
of
Davao
Oriental
and
possibly
expand
to
areas
in
Metro
Manila
in
later
years
with
the
Unlad
Kabayan
office
in
Quezon
City
as
the
main
distribution
center.
b)
Online
All
products
could
eventually
be
made
available
through
online
sales
through
DOCHSEI
or
Unlad
Kabayan’s
website
if
there
are
interested
buyers
living
in
areas
outside
of
Metro
Manila
and
Davao
Oriental.

19.
19
DOCHSEI
Business
Plan
6.0
Impact
Analysis
6.1
Value-­‐Added
Products
DOCHSEI’s
main
products
can
currently
be
broken
down
into
85%
bale
fiber
(exported
to
China
for
use
as
mattress
stuffing
and
upholstery),
10%
geotextiles
(sold
to
Department
of
Trade
and
Industry
for
local
erosion
control
and
land
rehabilitation)
and
5%
unprocessed
pithe
for
agricultural
purposes.
In
the
Philippines,
the
majority
of
coconut
coir,
locally
known
as
bunot,
is
either
thrown
away
or
burned
to
create
copra,
dried
coconut
meat.
DOCHSEI’s
creation
of
value
added
products
will
help
farmers
see
that
bunot,
formally
perceived
as
nothing
but
waste,
is
actually
a
valuable
resource.
By
further
developing
and
marketing
products
such
as
briquettes,
mats,
and
scouring
pads,
it
will
create
additional
jobs
and
income
for
the
plant
workers
and
the
community.
Diversifying
DOCHSEI’s
product
line
is
a
strategic
move
that
will
allow
greater
financial
freedom
in
terms
of
alleviating
potential
losses
that
would
result
if
any
of
DOCHSEI’s
main
products
sell
poorly
or
experiences
a
drastic
drop
in
market
price.
The
target
volumes
of
the
value-­‐added
products
can
be
manipulated
to
ensure
that
DOCHSEI
continually
profits
and
runs
smoothly.
6.2
Socio-­‐Economic
Integration
The
majority
of
jobs
in
Davao
Oriental
are
coconut
farming
and
mine
working.
Since
its
founding,
DOCHSEI
has
resulted
in
socio-­‐economic
integration
of
the
community
by
providing
jobs
and
income
to
individuals
and
families
who
needed
it
most.
As
an
alternative
to
the
dangerous
job
of
mining,
working
with
the
coconut
coir
value
chain
is
dependable,
rewarding
and
safe.
DOCHSEI
currently
enables
about
10
to
13
families
to
work
full
time
and
support
their
families
who
live
on
the
plant
site.
DOCHSEI
provides
sustainable
livelihoods
for
30
families
(active)
and
supplementary
income
to
110
families
(active
+
inactive
Stay
at
home
mothers,
the
elderly,
and
anyone
willing
to
work
from
home
serve
as
twiners
or
geotextile
producers
for
DOCHSEI.
Creating
value-­‐added
products
would
only
increase
the
positive
impact
DOCHSEI
has
had
upon
the
community
members.
Their
production
would
not
only
create
additional
jobs
but
also
further
increase
economic
activity
within
the
community.
6.3
Environmental
Protection
All
of
DOCHSEI’s
current
products
and
the
value-­‐added
products
previously
discussed
are
created
with
coconut
coir,
the
outer
husk
of
the
coconut.

20.
20
DOCHSEI
Business
Plan
By
creating
products
from
coir,
DOCHSEI
reduces
environmental
pollution
that
result
from
the
burning
of
husks
for
fuel.
It
will
alleviate
the
insect
infestations
caused
by
the
tossing
of
husks
as
waste.
Using
coir
products
is
a
healthier
alternative
to
the
toxic
foam
mattress
stuffing
and
chemical
and
inorganic
fertilizers.
The
processing
of
coir
into
geotextiles
like
erosion
control
nets
serves
the
rehabilitation
of
soil
of
logged
and
mined
over
areas.
Likewise,
bio-­‐organic
fertilizers
made
from
coir
pithe
help
to
increase
yields,
improves
quality
of
crops
and
soil
structure,
restore
soil
fertility
and
enrich
soil
with
microfauna.
Because
coir
comes
from
the
coconut
fruit,
no
trees
need
to
be
cut
down
for
these
products.
Coconut
coir
is
biodegradable
and
will
not
damage
the
environment.
It
is
the
alternative
that
will
decrease
tree
cutting,
improve
the
health
of
landscapes,
and
reduce
waste.