Looking for Co-Founder and Investor to provide new project development

PT. W2P MANAJEMEN BISNIS
SETIONO WINARDI

PT. W2P Manajemen Bisnis is a company established under the law of
the Republic of Indonesia, engage on business, management,
investment consultancy service to companies who looking for
sustainable business growth and achieve business competitive in the
future.
The customers come from various sectors, such as mining, exploration,
engineering and construction, manufacture, transportation, pharmacy,
non-government organization, public service, government bodies,
hospitality.
Founded by 3 persons as the professional who have international
experience over 20 years in various companies in Indonesia and
overseas when providing service to the customers on the fields
management, organization, operation, investment, business, and
strategic planning includes and not limited on people development
skills align with the international standard professional.
The founders are Mr. Setiono Winardi, Mr. Wadi, and Mr. Prihandiyono.

Name : PT. W2P Manajemen Bisnis
Address : Jl. Siliwangi Raya No. 59 Sepanjang Jaya, Zip.
17114, Rawalumbu, Bekasi, West Java Province,
the Republic of Indonesia
Website : https://www.welteducation.co.id
Email : info@welteducation.co.id or
maswin1967@gmail.com
Deed : Public Notary Rosliana SH, No.4, 6 April 2017
Legalized : AHU-0017733.AH.01.01.TAHUN 2017
Licences : 510/032-KCRL
Taxes : 81.775.615.8-432.000

PT. W2P Management Team
 Ownership capital shares US$. 150,000,000
1. Mr. Setiono Winardi – US$. 50,000,000
2. Mr. Wadi – US$. 25,000,000
3. Mr. Prihandiyono – US$. 25,000,000
4. Share stock – US$. 50,000,000
 Commissioner – Mrs. Fauziah Sahib
 Board of Director
1. Mr. Setiono Winardi – President Director/CEO
2. Mr. Wadi – Director
3. Mr. Prihandiyono - Director

The Coconut Industry to produce the Virgin Coconut Oil (VCO)
to supply for domestic and export demand with the value
added on waste management plant, which are produce:
1. Organic Fertilizer to supply domestic and export demand
2. Energy Renewable to supply domestic and export demand
3. Material interior for Aircraft to supply Airbus and Boeing
demand
4. Coco Fiber to supply domestic and export demand
Looking for Co-Founder and Investor to provide financial
investment at the sum US$. 50,000,000 (fifty million United
State Dollar).

Land Plantation 1,500,000 sqm 66.67 100,000,000
Office and Property 1,000 sqm 4,000 4,000,000
Machinery and Equipment
1. Virgin Coconut Oil 1 set 15,000,000
2. Organic Fertilizer 1 set 3,000,000
3. Renewable Energy 1 set 5,000,000
4. Material Interior of Aircraft 1 set 6,000,000
5. Coco Fiber 1 set 2,000,000
Working Capital 15,000,000
150,000,000Grand Total
Detail Unit Price (US$) Sub Total (US$)

Before After
US$ US$
Capital Stock 150,000,000
Plantation 100,000,000
Office & Property 4,000,000
Machinery and Equipment
1. Virgin Coconut Oil 15,000,000
2. Organic Fertilizer 3,000,000
3. Renewable Energy 5,000,000
4. Material Interior of Aircraft 6,000,000
5. Coco Fiber 2,000,000
Working Capital 15,000,000
PT. W2P Manajemen Bisnis x 100,000,000
Co-Founder & Investor x 50,000,000
Condition
Price (US$)Detail

SalesRevenue(US$) 75,000,000
AllCosts(US$) 45,000,000
GrossProfit(US$) 30,000,000
Taxes25%(US$) 7,500,000
NetProfit(US$) 22,500,000
PT.W2PManajemenBisnis(US$) 15,000,000
Pay-backInvestment(US$) 7,500,000

BUSINESS PLAN FOR COCONUT MANUFACTURING
INTRODUCTION
Business Plan for Coconut Manufacturing is a business plan to establish Coconut Manufacturing
which will industrialize Coconut into products such as; Virgin Coconut Oil (VCO), Organic
Fertilizer, Renewable Energy and Interior Material of Aircraft.
The establishment of the Coconut Manufacturing business will use agricultural products originating
from the Eastern Indonesia region, Manado City, North Sulawesi Province, starting by establishing a
new company as a start-up OR making an acquisition in a company engaged in the Coconut industry.
The "Coconut" agricultural product industry was chosen because Indonesia is the largest producer of
Coconut products, and other countries that produce Coconut are India, Vietnam, Thailand and the
Philippines.
Products to be obtained from the Coconut manufacturing industry can be divided into the following:
Product Name Market Demand
1. Virgin Coconut Oil (VCO) Local – Indonesia market opportunity
International – USA, Europe, Middle East
2. Renewable Energy Local – Indonesia market opportunity
International – Middle East, China, Europe
3. Organic Fertilizer Local – Indonesia market opportunity
International – USA, Europe, Africa
4. Nata de Coco Local – Indonesia market opportunity
International – Asian, Africa, Middle East
5. Material Interior of Aircraft International – Boeing and Airbus
Coconut consists of several materials, as follows:
1. Meat - Coconut meat is particularly high in calories, saturated fat, and fiber. It also contains a
variety of minerals, including manganese, copper, selenium, phosphorus, potassium, and iron.
2. Coconut Fiber - Coconut fiber, obtained from unripe coconut, is a natural fiber extracted from
the husk of coconut. The coconut is steeped in hot seawater, and subsequently, the fibers are
removed from the shell by combing and crushing, the same process as jute fiber. The individual
fiber cells are narrow and hollow with thick walls made of cellulose, and each cell is about 1 mm
long and 10–20 μm in diameter, as shown in Fig. 2.6.
The raw coconut fibers show length varying from 15 to 35 cm and diameter from 50 to 300 μm.
When they are immature and then become hardened and yellowed because a layer of lignin is
deposited on their walls. Coconut fiber shows a good stiffness and is used in products such as
floor mats, doormats, brushes, mattresses, coarse filling material, and upholstery

3. Coconut Water - Coconut water, less commonly coconut juice, is the clear liquid inside coconuts
(fruits of the coconut palm). In early development, it serves as a suspension for the endosperm of
the coconut during the nuclear phase of development. As growth continues, the endosperm
matures into its cellular phase and deposits into the rind of the coconut pulp. The liquid inside
young coconuts is often preferred to the liquid of a ripened coconut.
Plain coconut water has long been a popular drink in tropical countries, where it is available
fresh, canned, or bottled. Coconuts for drinking are served chilled, fresh, or packaged. They are
often sold by street vendors who cut them open with machetes or similar implements in front of
customers. Coconut water for retail can be found in ordinary aluminum cans, Tetra Paks, or
plastic bottles, sometimes with coconut pulp or coconut jelly included.
Coconut water can be fermented to produce coconut vinegar. It is also used to make nata de coco,
a jelly-like food. Providing 19 calories in a 100 millilitres (3.5 imp fl oz; 3.4 US fl oz) amount,
coconut water is 95% water and 4% carbohydrates, with protein and total fat content under 1%
each (table). Coconut water contains small amounts of vitamins and dietary minerals, all under
10% of the Daily Value (DV).
4. Shell - Coconut shell is the strongest part covered in coconut fruit. Coconut shell is located in
between the coconut flesh and coconut husk. This shell is naturally created to protect the inner
part of coconut. This is shell is use to produce various handicraft applies and other applications.
Most of handmade decorative are created by using coconut shell due to their strength. Coconut
shells are also used to made charcoal which is use as fuel and this coconut charcoals are far better
than other charcoals
5. Brown skin - Coconuts, when harvested, have a hard husk, which is usually removed for
commercial markets. Under this husk is a brown or tan hairy covering – over a hard shell or
“nut”. These coconuts are usually sold “young” or dried. The white flesh inside the young
coconuts is usually not as firm as a dried coconut and is more easily removed
HUMAN RESOURCES AND TECHNOLOGY MANUFACTURING
Human Resources
The use of human resources will be divided into 2:
1. Local human resources originating from the Manado region, North Sulawesi Province and other
areas that will be tasked with carrying out the production process, and the recruitment process
will be carried out by a local Recruitment Company.
2. Foreign human resources (experts) originating from other countries, such as from India, Pakistan,
USA and Europe, based on the results of an assessment of the professional capabilities that will
be carried out by the International Recruitment Company. They will be tasked with carrying out
the work of Marketing, and Technology Supervision that is operated including product quality
control.

Management
Management will consist of 2 parts, as follow:
1. Commissioner - Representative of Investor, foreign citizen
- Representative of Initiator, Indonesian citizen
2. Director - President Director, Indonesian citizen
- Professional independent, Indonesian citizen
- Professional independent, foreign citizen
Technology Manufacture to Producing
1. Virgin Coconut Oil Product
By using manufacturing technology, white meat coconut will be processed into Virgin Coconut
Oil. Virgin Coconut Oil is an edible oil extracted from the kernel or meat of mature coconuts
harvested from the coconut palm (Cocos nucifera). It has various applications. Because of its
high saturated fat content, it is slow to oxidize and, thus, resistant to rancidification, lasting up to
six months at 24 °C (75 °F) without spoiling.
2. Organic Fertilizer Product
Waste produced from the processing of white meat coconut into Virgin Coconut Oil (VCO), will
undergo further processes using manufacturing technology so that the waste becomes Organic
Fertilizer which can be used for fertilizer on agricultural and plantation crops.
In contrast, the majority of fertilizers used in commercial farming are extracted from minerals
(e.g., phosphate rock) or produced industrially (e.g., ammonia). Organic agriculture, a system of
farming, allows for certain fertilizers and amendments and disallows others; that is also distinct
from this topic.
Mineral
By many definitions, minerals are separate from organic materials. However, certain organic
fertilizers and amendments are mined, specifically guano and peat. Other mined minerals are
fossil products of animal activity, such as greensand (anaerobic marine deposits), some
limestones (fossil shell deposits), and some rock phosphates (fossil guano).
Peat, a precursor to coal, offers no nutritional value to the plants, but improves the soil by
aeration and absorbing water. It is sometimes credited as being the most widely use organic
fertilizer and by volume is the top organic amendment.
Plant
Processed organic fertilizers include compost, humic acid, amino acids, and seaweed extracts.
Other examples are natural enzyme-digested proteins. Decomposing crop residue (green manure)
from prior years is another source of fertility.

Other ARS studies have found that algae used to capture nitrogen and phosphorus runoff from
agricultural fields can not only prevent water contamination of these nutrients, but also can be
used as an organic fertilizer. ARS scientists originally developed the "algal turf scrubber" to
reduce nutrient runoff and increase quality of water flowing into streams, rivers, and lakes. They
found that this nutrient-rich algae, once dried, can be applied to cucumber and corn seedlings and
result in growth comparable to that seen using synthetic fertilizers.
3. Renewable Energy Product
Coconut Shell
Coconut shell is an agricultural waste and is available in plentiful quantities throughout tropical
countries worldwide. In many countries, coconut shell is subjected to open burning which
contributes significantly to CO2 and methane emissions.
Coconut shell is widely used for making charcoal. The traditional pit method of production has a
charcoal yield of 25–30% of the dry weight of shells used. The charcoal produced by this method
is of variable quality, and often contaminated with extraneous matter and soil. The smoke
evolved from pit method is not only a nuisance but also a health hazard.
The coconut shell has a high calorific value of 20.8MJ/kg and can be used to produce steam,
energy-rich gases, bio-oil, biochar etc. It is to be noted that coconut shell and coconut husk are
solid fuels and have the peculiarities and problems inherent in this kind of fuel.
Coconut shell is more suitable for pyrolysis process as it contain lower ash content, high volatile
matter content and available at a cheap cost. The higher fixed carbon content leads to the
production to a high-quality solid residue which can be used as activated carbon in wastewater
treatment. Coconut shell can be easily collected in places where coconut meat is traditionally
used in food processing.
Coconut Husk
Coconut husk has high amount of lignin and cellulose, and that is why it has a high calorific
value of 18.62MJ/kg. The chemical composition of coconut husks consists of cellulose, lignin,
pyroligneous acid, gas, charcoal, tar, tannin, and potassium.
The predominant use of coconut husks is in direct combustion in order to make charcoal,
otherwise husks are simply thrown away. Coconut husk can be transformed into a value-added
fuel source which can replace wood and other traditional fuel sources. In terms of the availability
and costs of coconut husks, they have good potential for use in power plants.
4. Nata de Coco
Nata de coco, also marketed as coconut gel, is a chewy, translucent, jelly-like food produced by
the fermentation of coconut water, which gels through the production of microbial cellulose by
Komagataeibacter xylinus. Originating in the Philippines, nata de coco was originally invented in
1949 by Teodula K. Kalaw as an alternative to the traditional Filipino nata de piña which is made
from pineapples. It is most commonly sweetened as a candy or dessert, and can accompany a
variety of foods, including pickles, drinks, ice cream, puddings, and fruit cocktails.

5. Interior Material of Aircraft
Shareholder
Option One – Establish New Company Joint Venture
1. Foreign business partner as the majority shareholder
2. Indonesian business partner as the minority shareholder to comply Government Regulation
Option Two – Acquisition for Established Company and Convert to Join Venture Company
1. Foreign business partner as the minority shareholder
2. Indonesian business partner as the majority shareholder
MANAGEMENT TEAM
Empowering human resources for the management team member with the qualification and method
for deploying
RUN DOWN
Preparing operation with duration approximately 2 months
1. Legal standing to comply Indonesian laws - 6 weeks
2. HR Recruitment process - 5 weeks
3. Office and manufacture property preparation - 4 weeks
4. Office equipment to provide operation - 3 weeks
Permanent Contract
Commissioner
1. Expatriate Contract
2. Local Contract
Director
1. Expatriate Contract
2. Local Contract
Management
1. General Manager Contract
2. Manager Contract
3. Supervisor Permanent
4. Staff Outsourcing
Standard Qualification
Team Member
Contract Type
Remarks
5 years
5 years
Out Sourcing

Preparing business running with duration approximately 18 months
1. Appraisal engineering company - 2 months
2. Manufacturing equipment and installation - 12 months
3. Product assessment to comply regulation - 3 months
4. Establish vendor for business partner - 2 months
5. Marketing operation until creating sales - 6 months
Engineering company
The engineering company is the company to provide the technology for manufacturing, as follow:
1. Engineering company to provide the manufacture equipment technology
2. Engineering company to provide the waste product management
3. Engineering company to provide the product development management (waste product)
Marketing strategy
1. Giving a free seminar to give an explanation to prospective customers who will need the main
product, where prospective customers will consist of:
A. Business partners who act as Distributors, Agents, Retail
B. Business partners who act as producers of finished products Manufacturing
C. Business partners engaged in aircraft manufacturing such as Boeing and Airbus
2. Product branding in various media such as; streaming media, broadcast, professional and general
(social).
3. Building and making materials composed; presentations, leaflets, brochures, videos, websites.
Sales Strategy
1. Selling the product, but need more process manufacture on bulk volume
2. Selling the finish product, consist of:
a. Liquid
- Bulk volume and need the vessel tanker
- Retail volume and need the moving skid tank
- Retail volume and need the plastic methods packaging
b. Solid
- Bulk volume and need plastic bag methods packaging
- Bulk volume without methods packaging
3. Contract selling
a. Contract: Long term contract and short term with renewal option
b. Incidental

4. Payment methods
a. International export will use the Letter of Credit, with the terms and condition; at sight, un-
conditional, and irrevocable letter.
b. Up-front (in Advance) for the short term contract for each Delivery Order
c. Out-Standing on bank wire transfer for the long term contract with bank guarantee provided
5. Using e-procurement
E-procurement is an application that can be installed by customers and management at
smartphone to make product purchases and payments online, so that it is easily known by other
Management Teams online, and is useful for being able to monitor, such as;
a. Raw material inventory
b. Stock of products to sell
c. Manage finances transparently
d. Accept customer complaints
e. And there are many other benefits
CUSTOMERS AND PRODUCTS
Export Domestic (Local)
1. Trader 1. Trader
2. Manufacture a. Distributor
b. Agency
c. Retail
2. Manufacture
1. Trader 1. Trader
a. Distributor
b. Agency
c. Retail
1. Trader 1. Trader
2. Manufacture a. Distributor
b. Agency
c. Retail
2. Manufacture
1. Trader 1. Trader
a. Distributor
b. Agency
c. Retail
d. End User
Manufacture
1. Airbus
2. Boeing
3 Renewable Energy
Organic Fertilizer4
Material of Interior for Aircraft5
Customer Oriented
Product Oriented
Virgin Coconut Oil (VCO)
No
1
Coco Fiber2

INVESTMENT UTILITY
FINANCIAL PLANNING
FINANCIAL REPORT
The objective of financial report is to provide information about the financial position, performance
and changes in financial position of an enterprise that is useful to a wide range of users in making
economic decisions. Financial reports should be understandable, relevant, reliable and comparable.
Reported assets, liabilities, equity, income and expenses are directly related to an organization's
financial position.
Financial statements are intended to be understandable by readers who have "a reasonable knowledge
of business and economic activities and accounting and who are willing to study the information
diligently. Financial reports may be used by users for different purposes:
Office and Manufacture Property US$ 4,000,000
Machinery and Equipment (Technology Manufacture) for VCO US$ 10,000,000
Waste Management Plant US$ 5,000,000
Organic Fertilizer Plant US$ 3,000,000
Renewable Energy Plant US$ 5,000,000
Material Interior for Aircraft Plant US$ 6,000,000
Coco Fiber US$ 2,000,000
Working Capital US$ 15,000,000
Grand Total US$ 50,000,000
INVESTMENT UTILITY
CurrencyUTILITY Price (US$)
Currency 1 2 3 4 5
Sales Revenue US$ 40,000,000 55,000,000 65,000,000 75,000,000 75,000,000
All Costs US$ 45,000,000 45,000,000 45,000,000 45,000,000 45,000,000
Profit US$ (5,000,000) 10,000,000 20,000,000 30,000,000 30,000,000
Taxes US$ - 2,500,000 5,000,000 7,500,000 7,500,000
NetProfit US$ (5,000,000) 7,500,000 15,000,000 22,500,000 22,500,000
Detail
Year

Owners and managers require financial statements to make important business decisions that affect
its continued operations. Financial analysis is then performed on these statements to provide
management with a more detailed understanding of the figures. These statements are also used as
part of management's annual report to the stockholders.
Employees also need these reports in making collective bargaining agreements (CBA) with the
management, in the case of labor unions or for individuals in discussing their compensation,
promotion and rankings.
Prospective investors make use of financial statements to assess the viability of investing in a
business. Financial analyses are often used by investors and are prepared by professionals (financial
analysts), thus providing them with the basis for making investment decisions.
Financial institutions (banks and other lending companies) use them to decide whether to grant a
company with fresh working capital or extend debt securities (such as a long-term bank loan or
debentures) to finance expansion and other significant expenditures.
The financial report will be evaluated by a Public Accountant Office that has permission from the
Government, and must be submitted as a Management report to Shareholders at the General Meeting
of Shareholders, to monitor the duties and responsibilities of the Directors and Commissioners while
carrying out the obligations that have been assigned.
ACCELERATION RETURN OF INVESTMENT
Initial Public Offering
Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a
company are sold to institutional investors and usually also retail (individual) investors. An IPO is
underwritten by one or more investment banks, who also arrange for the shares to be listed on one or
more stock exchanges. Through this process, colloquially known as floating, or going public, a
privately held company is transformed into a public company. Initial public offerings can be used to
raise new equity capital for companies, to monetize the investments of private shareholders such as
company founders or private equity investors, and to enable easy trading of existing holdings or
future capital raising by becoming publicly traded.
Merger and acquisition
Mergers and acquisitions (M&A) are transactions in which the ownership of companies, other
business organizations, or their operating units are transferred or consolidated with other entities. As
an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the
nature of their business or competitive position.
ORGANIZATION
1. Commissioner
1.1. President Commissioner

1.2. Commissioner
2. Director
1.1. President Director (CEO)
1.2. Finance Director
1.3. Operation Director
3. Management Team
3.1. Leader (Finance Director)
Finance directors are members of a senior executive team with responsibility for their
company's financial health. They combine operational and strategic roles, manage
accounting and financial control functions, and establish a financial strategy for the
profitable long-term growth of the business
Responsibility:
 Oversee, review, and adhere to the budgets for each business department
 Assist in company-wide budgetary planning
 Ensure that all of the company's financial practices are in line in statutory regulations
and legislation
 Analyze the financial climate and market trends to assist senior executives in creating
strategic plans for the future
 Interpret complex financial information and provide updates and information as needed
 Monitor cash flow, accounts, and other financial transactions
 Supervise financial assistants and other employees in the facilitation of day-to-day
operations, including tracking financial data, invoicing, payroll, etc.
 Prepare official reports on a monthly and annual basis
 Seek out methods and practices to minimize financial risk
 Contract auditing services to ensure financial monitoring is up-to-date
 Create and maintain relationships with service providers and contractors, including
banking institutions and accountants
 Update and implement financial policies and procedures
 Maintain a policy manual for the finance department
 Work with human resources employees to secure candidates who will be an asset to the
finance department
 Establish and implement a training program for new finance employees.
3.1.1. Accounting Manager
Accounting managers oversee other accountants and may provide direction within a
specific branch of the financial department. Controllers play a role in supervising
all financial departments and staff, which affords them a higher level of
responsibility and authority.

Responsibilities
 Oversee and manage the general accounting functions, including, but not
limited to: accounts payable, accounts receivable, general ledger, and taxes
 Help with quarterly and year-end financial audit activities and the annual
corporate financial controls audit
 Assess current practices and procedures, and make recommendations for
improvements
 Prepare, review, and analyze financial statements to ensure accuracy and
completeness
 Perform ad hoc analysis and projects as requested
 Supervise and/or manage general ledger accounting functions
 Develop staff by managing performance, setting goals, providing ongoing
training, and maintaining strong employee relationships
 Work with external auditors to ensure correct and timely closing and reporting
at year-end
3.1.2. Budgeting Manager
Budget managers evaluate the financial needs of an organization, developing
budget strategies to increase the company's profitability. They design and
implement the company's financial plans to comply with legislation and ensure
business growth
Responsibilities
 Preparing the appropriate templates to prepare the budget by all concerned
departments.
 Comply with the approved policy of budgeting regarding the deadlines and the
management of the budgeting process.
 Receiving the budget estimates from all the departments of the organization and
critically examines them for correctness, accuracy and completeness; and
conformance with established procedures, regulations, and organizational
objectives
 Studying the previous budget and also taking into consideration the benefits and
losses occurred during the previous financial years, due to budget planning.
 Suggesting suitable amendments in the budget to the higher authorities and
managerial staff of the concerned department.
 Consolidating the data for budget presentation and also providing an overview
of the financial status of all the operations.
 Rendering financial advice to the management officials of different operations,
to undertake proper financial planning and decision making.
 Analyzing actual results to budgets and forecasts.
 Submitting budget reports to the higher management of the organization for
further scrutiny and approval in accordance with the approved policy.
 Monitoring the budget throughout the year.

 Preparing detailed reports pertaining to discrepancies and amendments that
occurred in the budget, during the entire financial year also forms an important
part of budget analyst job description. This is however done in coordination
with the concerned managers of the department or the company.
 Assisting in projecting future financial needs, taking into considerations the
various projects undertaken by the organizations and also help the higher
officials in management of financial resources.
 As an additional part of their job description, budget analysts sometimes are
also responsible for cost benefit analysis, studying financial requests and also
researching on alternative and reasonable funding methods for the organization.
 Preparing business plan for five years and making the necessary update of the
plan according to any material changes in the business or the regulations which
may affect forecasts.
 Budgets and Analysis Manager shall also be responsible for financial analysis
in areas like Sales, Margin, Inventory, Store space, etc on periodical basis and
prepare the analytical reports for Management action.
3.2. Leader (Operation Director)
A Director of Operations is responsible for the direction and coordination of an
organization. Generally, a Director of Operations is responsible for the growth and
profitability of a company or organization. This role may include expense control, staff
management, goods production and department supervision
Responsibilities
 Assists upper management in setting goals that promote company growth
 Oversees daily activity of the team
 Prepares budgets, schedules, and other organizational reports as needed
 Provides advice and guidance to other employees
 Manages team workloads in order to meet goals and deadlines
 Develops plans to increase efficiency and reduce costs
 Improves existing systems and policies
 Ensures customer requirements are met in a timely manner
 Promotes and enforces safety in the workplace
 Manages stock and inventory
 Oversees manufacturing functions
 Works closely with other departments to promote efficient factory optimization
 Identifies improvement areas and plans and implements systems to boost company
effectiveness
 Manages internal and external service suppliers
 Executes plans designed to meet company goals by changing policies and coaching
employees
3.2.1. General Manager Operation
Duties for the General Manager will include allocating budget resources,
formulating policies, coordinating business operations, monitoring and motivating

staff, managing operational costs, ensuring good customer service, improving
administration processes, engaging with vendors, hiring and training employees
Responsibilities
 Direct and coordinate activities of businesses or departments concerned with
the production, pricing, sales, and/or distribution of products.
 Manage staff, preparing work schedules and assigning specific duties.
 Review financial statements, sales and activity reports, and other performance
data to measure productivity and goal achievement and to determine areas
needing cost reduction and program improvement.
 Establish and implement departmental policies, goals, objectives, and
procedures, conferring with board members, organization officials, and staff
members as necessary.
 Determine staffing requirements, and interview, hire and train new employees,
or oversee those personnel processes.
 Monitor businesses and agencies to ensure that they efficiently and effectively
provide needed services while staying within budgetary limits.
 Oversee activities directly related to making products or providing services.
 Direct and coordinate organization's financial and budget activities to fund
operations, maximize investments, and increase efficiency.
 Determine goods and services to be sold, and set prices and credit terms, based
on forecasts of customer demand.
 Manage the movement of goods into and out of production facilities.
 Locate, select, and procure merchandise for resale, representing management in
purchase negotiations.
 Perform sales floor work such as greeting and assisting customers, stocking
shelves, and taking inventory.
 Develop and implement product marketing strategies including advertising
campaigns and sales promotions.
 Plan and direct activities such as sales promotions, coordinating with other
department heads as required.
 Direct non-merchandising departments of businesses, such as advertising and
purchasing.
 Recommend locations for new facilities or oversee the remodeling of current
facilities.
 Plan store layouts, and design displays.
3.2.1.1. Sales and Marketing Manager
A Sales and Marketing Manager is responsible for researching and
developing marketing opportunities and planning and implementing new
sales plans. The Sales and Marketing Manager will also manage both the
marketing and the sales staff and will perform managerial duties to meet
the company's operations goals.

Responsibilities
 Accomplishes marketing and sales human resource objectives by
recruiting, selecting, orienting, training, assigning, scheduling,
coaching, counseling, and disciplining employees; communicating job
expectations; planning, monitoring, appraising, and reviewing job
contributions; planning and reviewing compensation actions;
enforcing policies and procedures.
 Achieves marketing and sales operational objectives by contributing
marketing and sales information and recommendations to strategic
plans and reviews; preparing and completing action plans;
implementing production, productivity, quality, and customer-service
standards; resolving problems; completing audits; identifying trends;
determining system improvements; implementing change.
 Meets marketing and sales financial objectives by forecasting
requirements; preparing an annual budget; scheduling expenditures;
analyzing variances; initiating corrective actions.
 Determines annual and gross-profit plans by forecasting and
developing annual sales quotas for regions; projecting expected sales
volume and profit for existing and new products; analyzing trends and
results; establishing pricing strategies; recommending selling prices;
monitoring costs, competition, supply, and demand.
 Accomplishes marketing and sales objectives by planning,
developing, implementing, and evaluating advertising,
merchandising, and trade promotion programs; developing field sales
action plans.
 Identifies marketing opportunities by identifying consumer
requirements; defining market, competitor's share, and competitor's
strengths and weaknesses; forecasting projected business; establishing
targeted market share.
 Improves product marketability and profitability by researching,
identifying, and capitalizing on market opportunities; improving
product packaging; coordinating new product development.
 Sustains rapport with key accounts by making periodic visits;
exploring specific needs; anticipating new opportunities.
 Provides information by collecting, analyzing, and summarizing data
and trends.
 Protects organization's value by keeping information confidential.
 Updates job knowledge by participating in educational opportunities;
reading professional publications; maintaining personal networks;
participating in professional organizations.
 Accomplishes marketing and organization mission by completing
related results as needed.
3.2.1.2. Procurement Manager
Manage a company's sourcing capabilities and supply chain. They are
responsible for strategizing and negotiating with suppliers and vendors in

order to acquire the most cost-effective deals and to reduce procurement
expenses.
Responsibilities
 Devise and use fruitful sourcing strategies
 Discover profitable suppliers and initiate business and organization
partnerships
 Negotiate with external vendors to secure advantageous terms
 Approve the ordering of necessary goods and services
 Finalize purchase details of orders and deliveries
 Examine and test existing contracts
 Track and report key functional metrics to reduce expenses and
improve effectiveness
 Collaborate with key persons to ensure clarity of the specifications
and expectations of the company
 Foresee alterations in the comparative negotiating ability of suppliers
and clients
 Expect unfavorable events through analysis of data and prepare
control strategies
 Perform risk management for supply contracts and agreements
 Control spend and build a culture of long-term saving on procurement
costs
3.2.1.3. Technical and Maintenance Manager
Technical and Maintenance Manager will oversee all technical matters
company wide and manage our technology support team. He will work
collaboratively with clients/users, the development team, and various
stakeholders within the company to ensure the delivery of all products in
an efficient, timely manner.
Responsibilities
 Conduct interviews, hire and train new technical support/engineer
staff
 Provide guidance and insight to upper management and procure buy-
in
 Report progress, including any changes made to plans and production
 Contribute to product design and establishment of requirements
 Delegate technical responsibilities and monitor the progress of
projects
 Deliver products consistently, on time, and on budget
 Oversee user testing and report results - adjust requirements as needed
 Work closely with project manager during all phases of the
development lifecycle
 Review all work produced by the development team
 Ensure code produced meets company standards

3.2.1.4. Human Resources Manager
Create, develop, improve, and improve human resources with
organizations, implement, and improve relations with employees and
human resource policies, programs and practices.
Responsibilities
 Maintain work structure with job requirements and job descriptions
for all positions.
 Take care of the organization's staff by arranging recruitment, testing,
and interview programs; counseling manager about selecting
candidates; conduct and analyze exit interviews; changes changes.
 Prepare employees to carry out tasks and run programs and training.
 Maintain payment plans by conducting periodic payment surveys;
scheduling and evaluating work; preparation of payment budgets;
individuals and individuals; Aim, approve and implement the revision
of the salary structure.
 Ensure planning, monitoring, and evaluating employee work by
training managers to train and discipline employees; scheduling
management conferences with employees; listen and resolve
employee complaints; counseling and supervisory employees.
 Maintenance programs for employee benefits and employee benefits;
attend a management benefit plan; discuss beneficial benefits;
Receive and borrow contract offers; contract assistance Program
assistance and educational programs benefit.
 Request legal approval by approving and applying applicable human
and federal human resource requirements; conduct an investigation;
note the note; representing the organization at the hearing.
 Maintain management guidelines by preparing, discussing, and
discussing human resource policies and procedures.
 Maintain historic human resource records by adopting a filing system
and retrieving; keep records of the past and present.
 Maintain professional and technical knowledge by discussing
educational training; discuss professional publications; build private
networks; discuss in professional societies.
 Complete the operational requirements of human resources by
scheduling and assigning employees; following up on the work.
 Safeguard human resource staff by recruiting, selecting, directing, and
bringing employees.
 Maintain the work of human resource staff by providing counseling
and disciplining employees; planning, recovery, and the results of
work decisions.
 Contribute to team efforts by achieving results that match needs.
3.2.1.5. Production & Warehouse Manager

a. He organizes and oversees the manufacturing of goods, and will be
ultimately responsible for the smooth running of all production lines
and the quality of output.
b. Have deep know-how in production procedures. Ability to direct
personnel towards maximum performance will set you apart as a
leader. Decision-making and problem-solving will take up a great part
of your day. If you are up to it, we’d like to talk to you.
c. The goal is to ensure an efficient and productive manufacturing
process that meets customer requirements.
d. Managing warehouse in compliance with company’s policies and
vision
e. Overseeing receiving, warehousing, distribution and maintenance
operations
f. Setting up layout and ensure efficient space utilization
g. warehouse manager job description
h. Direct receiving, warehousing and distribution operations, and will
oversee the efficient receipt, storage, value-adding servicing and
dispatch of a wide variety of products.
i. To ensure productivity targets are achieved and that all warehouse
processes are running smoothly and promptly.
Responsibilities
 Liaise with other managers to formulate objectives and understand
requirements
 Estimate costs and prepare budgets
 Organize workflow to meet specifications and deadlines
 Monitor production to resolve issues
 Supervise and evaluate performance of production personnel (quality
inspectors, workers etc.)
 Determine amount of necessary resources (workforce, raw materials
etc.)
 Approve maintenance work, purchasing of equipment etc.
 Ensure output meets quality standards
 Enforce health and safety precautions
 Report to upper management
 Strategically manage warehouse in compliance with company’s
policies and vision
 Oversee receiving, warehousing, distribution and maintenance
operations
 Setup layout and ensure efficient space utilization
 Initiate, coordinate and enforce optimal operational policies and
procedures
 Adhere to all warehousing, handling and shipping legislation
requirements
 Maintain standards of health and safety, hygiene and security
 Manage stock control and reconcile with data storage system
 Prepare annual budget
 Liaise with clients, suppliers and transport companies

 Plan work rotas, assign tasks appropriately and appraise results
 Recruit, select, orient, coach and motivate employees
 Produce reports and statistics regularly (IN/OUT status report, dead
stock report etc)
 Receive feedback and monitor the quality of services provided
3.2.2. Supervisor and staff will adjust on the operation running
Jakarta, 14th
March 2020
Setiono Winardi

APPENDIX I
Jakarta, 14th
March 2020
Setiono Winardi
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
SETTLEMENT OFFICE AND LEGAL STANDING
1. Legal Standing
2. Recruitment Employees
3. On Boarding Employees
4. Preparation Office and Manufacturing for Property
5. Preparation Office Equipment to provide operation
PREPARATION OPERATION FOR MANUFACTURING
1. Vendor Assessment (Engineering Company)
2. Manufacturing Technology Manufacturing
3. Installation on site the Technology Manufacturing
4. Running test the Technology Manufacturing
5. Launcing and Running the Technology Manufacturing
PREPARATION RAW MATERIAL (PROCUREMENT)
1. Vendor Assessment to supply Coconut
2. Contract with Vendor Assessment to Commitment Supply
SALES MARKETING (VCO & PRODUCT DEVELOPMENT)
1. Marketing for penetration opportunity and demand
2. Contract Selling product development (negotiation)
3. Contract signed launching and implementing
PRODUCT DEVELOPMENT
1. Nata de Coco
2. Organic Fertilizer
3. Renewable Energy
4. Interior Material Aircraft
Detail Work
Duration Month
Time Table

APPENDIX II
Exchange Rate US$. 1.00 = IDR. 14,000
List Salary & Benefit in “thousand” (000)
Jakarta, 14th
March 2020
Setiono Winardi
1 2 3 4 5
Commissioner 2 50,000- 60,000 50,000- 60,000 55,000- 65,000 55,000- 65,000 60,000- 70,000
Director 3 65,000- 75,000 65,000- 75,000 70,000- 80,000 70,000- 80,000 80,000- 90,000
General Manager 1 35,000- 50,000 35,000- 50,000 40,000- 55,000 40,000- 55,000 45,000- 60,000
Manager 7 20,000- 30,000 20,000- 30,000 25,000- 35,000 25,000- 35,000 30,000- 40,000
Supervisor
1.SecretarytoDirector(Personal Assistant) 1 7,000- 15,000 7,000- 15,000 10,000- 20,000 10,000- 20,000 15,000- 25,000
2.ProductionLeader 1 7,000- 15,000 7,000- 15,000 10,000- 20,000 10,000- 20,000 15,000- 25,000
3.QualityLeader 1 7,000- 15,000 7,000- 15,000 10,000- 20,000 10,000- 20,000 15,000- 25,000
4.Warehouse Leader 1 7,000- 15,000 7,000- 15,000 10,000- 20,000 10,000- 20,000 15,000- 25,000
5.Finance Assistant 1 7,000- 15,000 7,000- 15,000 10,000- 20,000 10,000- 20,000 15,000- 25,000
6.GALeader 1 7,000- 15,000 7,000- 15,000 10,000- 20,000 10,000- 20,000 15,000- 25,000
19
Position Number
Salary& BenefitRange (000) IDR

APPENDIX III
MACHINERY FOR COCONUT MANUFACTURING
BUT CAN IMPROVED, INTEGRATED ON OPERATING AND UTILIZING
COCONUT FIBER PEELER
COCONUT SHELLER
BROWN SKIN PEELER
WHITE MEAT WASHER

BUSINESS OPPORTUNITY WITH LOW RISK
AND LOOKING FOR VENTURE CAPITAL
Product Example:
Agriculture
Product
“Coconuts &
Manufacturing”
DEVELOPING COCONUT BUSINESS
Email: info@welteducation.co.id or maswin1967@gmail.com
Mobile/WhatsApp: +62 817 9875789

PRODUCT INTRODUCTION
The coconut tree (Cocos nucifera) is a
member of the palm tree family
(Arecaceae) and the only known living
species of the genus Cocos. The term
"coconut" (or the archaic "cocoanut")
can refer to the whole coconut palm,
the seed, or the fruit, whichbotanically
is a drupe, not a nut.

PRODUCT MATERIAL OF COCONUTS
Coconut meat is the fresh raw meat of the coconut.
Once a fresh coconut is cracked open, you can drink
the coconut water and scoop out with the meat with
a spoonor a knife, depending on how tender it is.
Ripe coconuts have thicker, fleshier meat whereas
the younger coconuts have tender flesh, which can
be scraped very easily with a spoon or even the
inside of the coconut husk. The white meat is highly
nutritious, aids in digestion, and helps in skincare.In
grocery stores, pureed coconut meat is commonly
sold as coconut butter. You can also make fresh
coconut milk by pureeing raw coconut flesh and
water (according to the desired consistency you
need).

MAIN PRODUCTS
Virgin Coconut Oil
MILK
COCONUT FLOUR

VCO MARKET DEMAND
Global virgin coconut oil market stood at $
2.7 billion in 2018 and is projected to
grow at a CAGR of over 9% during the
forecast period to reach $ 4.7 billion by
2024, on the back of increasing
investments in the industry. This influx of
investments is supporting market players
to increase their production capabilities
and to cater to rising demand for coconut
oil across the globe. Coconut is a
widespread plantation and is grown in
more than 80 countries. The world
production of coconut is estimated at
around 55 million tons annually. Coconut
oil has significant use in toiletry, food and
various industrial sectors.

ANALYSIS
Asia-Pacific accounted for the largest market share in 2016 and is projected to grow at the highest CAGR of 14.50%
during the forecast period. Coconut milk is an essential part of Asian cuisine, and the demand for coconut milk
powder is expected to remain high in the region during the forecast period. The major growth factor for the coconut
milk market in Asia-Pacific is the high level of lactose intolerance among the consumers.
Asia-Pacific region is followed by North America, which accounted for the second largest market share and it is
estimated to exceed USD 629.1 million by 2023. The US accounted for the highest market share in North America
and expected to remain dominant throughout the forecast period owing to the increasing trend of vegan diets in the
country. This has contributed significantly to the growing demand for coconut milk in the country.
Europe is a significant region in the global coconut milk market. It accounted for a considerable market share of
21.72%, as of 2016. Rest of Europe accounted for the highest market share in the European market. The surging
demand for plant-based beverages and products containing natural ingredients are crucial determinants fueling
regional growth. Middle East & Africa regions are estimated to grow at a moderate rate during the forecast period.
Key Players
McCormick & Company, Inc. (US), Goya Foods, Inc. (New Jersey), Dabur India Ltd (India), Ducoco (Brazil), Vita
Coco (US), Celebes Coconut Corp. (Philippines), Thai Agri Foods Public Co., Ltd (Thailand), Danone SA (France),
Theppadungporn Coconut Co., Ltd (Thailand), and ThaiCoconut Public Company (Thailand) are some of the key
players in the global coconut milk market.

PRODUCT WASTE– 01 (FLOUR WASTE)
Benefits
1. Fish food
2. Organic fertilizer
3. Cattle fodder

ORGANICS FERTILIZER DEMAND
Global organic fertilizers market is
expected to flourish at a CAGR of
6.9% during the forecast period.
Further, the global organic
fertilizers market is anticipated to
reach at a valuation of USD 6.3
Billion by the end of 2024 from
USD 3.1 Billion in 2016. Rising
awareness about the long term
benefit of organic farming and
increasing adoption of eco-friendly
products is anticipated to drive the
growth of the global organic
fertilizers market.

PRODUCT WASTE– 02 (BROWN SKIN)
Benefits
1.Raw material for Cosmetics
2.Raw material Fish Food
3.Agriculture material

PRODUCT WASTE– 03 (COCONUT FIBER)
Benefits
1. For creating ropes by use of CoconutFiber
2. Insulation on Construction and otherindustry
3. Mattresses
4. Irrigation industry
5. Hydroponic industry
6. Floor Mats
7. Shock Absorbent
8. Vehicle Seats
9. Landscaping
10.Production of ConcreteFiberboard
11.Etc

ANALYSIS
Development trends that are promising as demand derived from coconut
fiber consumption increased in China in 2001 with 40% market share in the
world export market. Currently, only exports of coir products and other
value-added from coconut fiber as coir fiber, foot scrub carpets, floor mats
and covered with soil grid is estimated at $ 150 million. Approximately 88%
coconut fiber products of all kinds are sdan3 from India and Sri Lanka (02
major producing countries) and the rest is exported from Indonesia,
Thailand, Philippines and Malaysia. In India, strong domestic consumption
and export growth was only 1% of total world exports in 1996, and
increased 11% in 2002 and then more than doubled to 28% in year in
2012. If Sri Lanka's exports mainly focuses on semi-finished products such
as mattresses, just sclerosis, only the twisted fiber India focus on products
with added value. The new technology incorporated in coconut fiber
industry in order to improve quality and create new applications for coir
products only in architecture and construction, agriculture and many other
digital products is a challenge way to sustain the development of the coir
industry only.

PRICE TREND MARKET
Prices coconut fiber - raw material for the production of coconut fiber products of all kinds - produced in
02 countries Indonesia and Sri Lanka has been improved and began to rise in mid-2013. Besides, since
only fiber coconut in India rather stagnant in the last 10 months, reached 256 USD / ton in the month of
9/2013 to 259 USD / ton in the month of 6/2014. Price in India, compared with Indonesia and Sri Lanka,
may be stabilizing because domestic demand is slowly growing. In 02 countries, the price of coconut
fiber depends very much on the international market. The amount exported only coir product types in
India increased by 23.6%, rising from 429 501 tonnes (4/2012 - 3/2013) to 537 404 tonnes. There are
about 537 040 tonnes including 14 coconut fiber products are exported types, exports reached U.S. $
245.4 million, an increase of 32.3% compared with exports last year 185.5 million.
India exports about 14 kinds of coconut fiber products to the world market, including semi-finished
products such as coir fiber, foot scrub carpets, carpet premiere, just rubberised coir and other types of
finished products such as mesh land cover and floor mats. Of the 14 types of coir products in India only,
production and export of rubberised coconut fiber, coir fiber brushes and rising. Export volume
rubberised coir only increased by 199.7% compared to the same period last year exported; followed by
the export of coco peat, coconut fiber twisted and covered with soil grid. Tufted carpet export turnover
rose highest, approximately 215.3% over the same period last year; both products and coir brushes are
also increased by approximately 97% and 58.7%. Exports of coco peat India continues to rise around
50.6%, an increase of 30.3% over the same period last year and are exported to South Korea (24.64%);
followed by the Netherlands (18.07%), American (10.7%), Spain (7.11%) and Australia (3.62%). Agrawal
et. al. (2013) projected exports coco peat will continue to increase by 30% in 2016. Products second-
largest exporter of coconut fiber is India, reaching 32.4% of total exports of coconut fiber this country
and is projected by Agrawal et. al. (2013), the output will also rise from 12-15% in 2016. Ranking in third
place is tufted carpet products with high export volume increased 17.33%, higher than the same period
last year before.

PRODUCT WASTE – 04 (COCONUT WATER)
Benefits:
1. Natural Sports Drink
2. Low in Calories
3. Potassium
4. Calcium and Magnesium
5. Antioxidants
6. AminoAcids
7. Cytokinins

COCONUT WATER DEMAND
The global coconut water market was valued at USD 961.9 million in 2017 and is expected to
exhibit growth at a CAGR of more than 25.0% from 2017 to 2025. It is a new-found
phenomenon especially in North America and Western Europe, where the demand has started
to take off.
The demand is expected to strengthen further over the coming years as consumers turn
towards healthy low-calorie soft drinks alternatives. Coconut water is low in fats, is an effective
source of amino acids, vitamins and minerals, and is considered a natural isotonic.
The demand for is emerging in the western countries including U.S., U.K., and Germany which
are witnessing an increase in consumption of functional drinks, given the increasing inclination
of consumers towards health and wellness products at large.

PRODUCT WASTE – 05 (COCONUT SHELL)
Benefits
1. Renewable energy

RENEWABLE ENERGY
Renewables will have the fastest growth in the electricity sector, providing almost 30% of
power demand in 2023, up from 24% in 2017. During this period, renewables are forecast to
meet more than 70% of global electricity generation growth, led by solar PV and followed by
wind, hydropower, and bioenergy. Hydropower remains the largest renewable source, meeting
16% of global electricity demand by 2023, followed by wind (6%), solar PV (4%), and bioenergy
(3%).
While growing more slowly than the power sector, the heat sector – which includes heating for
buildings or industry – will account for the biggest overall share of renewables in meeting
energy demand in 2023. Renewable heat consumption is expected to increase by 20% over the
forecast period to reach a share of 12% of the heating sector demand by 2023. However, a
modest increase in the share of renewable heat is foreseen, as robust growth in total heat
demand is expected to result from continuous economic and population growth.
Renewables in transport have the lowest contribution of all three sectors, with their share
growing only minimally from 3.4% in 2017 to 3.8% in 2023. Although they expand by almost
one-fifth over the forecast period, renewables cover only a small portion of all energy demand
in transport because of ongoing petroleum product consumption. Renewables in transport
mostly comes from biofuels, and although renewable electricity consumption in road (such as
electric cars, two- and- three wheelers, and buses) and rail transport modes increases 65% over
the forecast period, this is from a low base.

PRODUCT WASTE – 06 (WASTE WATER
TREATMENT PLANT)
Benefits
1. Solid Waste to be organic
fertilizer

COMMUNITY IMPACT
VCO MILK FERTILIZER FIBER
150
100 100
TotalManPower 825
PRODUCT
75 375
TOTAL
200200
COMPANY
DeliveryProduct
Plantation
BusinessTrade
Manufacturing 150 100 50
150
Consultant 2
Adviser 3
Expatriate 10
Local 25
Expatriate 20
Local 50
TotalManPower 825
Quantity
100
150
215
Local 250Out-Source
Position Title
Local
Local
Local
Expatriate
BoardMember
GeneralManager
Manager
Supervisor
Staff

LOOKING FOR INVESTMENT
We will start-up company, and completed designing this business after take
the research to provide Community Development in South Sulawesi,
Indonesia, and the initiative will put the research for the business and now
looking for Investment US$. 50,000,000 (fifty million US Dollar), and the
utilization for:
1.
million US Dollar)
2. Mobilization expatriate to location US$. 5,000,000 (fife million US
Dollar)
3.
TERMS:
1. Net Profit Commitment 30%-35%
2. EBITDA Commitment 30%-40%
3. Return of Investment 6-7 years
We welcome to discuss at Jakarta, the Republic of Indonesia
Purchase Machinery and Equipment US$. 25,000,000 (twenty fife
Working capital US$. 16,000,000 (sixteen million US Dollar)
4. Full Office US$. 4,000,000 (four million US Dollars)

QUESTIONS
More details to establish cooperation, please do not hesitate to contact:
SETIONO WINARDI
E. maswin67@gmail.com
Mobile +6281315421509, +628179875789
https://www.linkedin.com/in/mas-winardi-5a2703194/
We would like to invite the Venture Capital Company for invest and explore the
Indonesian resources with us.
We will be the partner for your company in Indonesia and operate the business
directly

An Assessment of Competitiveness
and Industry Potential
AUTHOR: Nigel Smith, Nguyen My Ha, Vien Kim Cuong, Hoang Thi Thu Dong
Nguyen Truc Son, Bob Baulch, Nguyen Thi Le Thuy
DATE: August 2019
Coconuts in the Indonesia

1
Acknowledgements
We would like to thank all those that have contributed to this study.
The study has been made possible by the support of the Provincial People’s Committee of Ben Tre
province and the financial assistance of IrishAid, the Swiss Agency for Cooperation and
Development and IFAD.
We would like to thank the managers and staff of the many businesses and agencies in the
Philippines, Sri Lanka, Thailand and Ben Tre that have been generous in their time and information
and the consultants that made the benchmarking visits possible; Divina Bawalan (The Philippines),
Zahra Cader (Sri Lanka) and Malinvisa Sakdiyakorn (Thailand).
In Ben Tre, the study has benefited from the input from staff of various line departments and
agencies. The staff of the Project Management Unit of the IFAD project have played a central role in
organising a series of industry consultation meetings in the province as well as collecting updated
information from the local industry.
Finally, this study has built on the earlier work of Dr Nguyen Anh Phong and the team from the
Centre for Agricultural Policy and to a large extent on the analysis of Fred Levitan, Antony Feeny,
Jenny Scharrer, Philipp Essl and Terrance Mohorak.
The study would not have been possible without all these efforts. However any omission or errors
in this report are the responsibility of the authors alone.

2
Contents
Summary ............................................................................................................................................... 5
Introduction....................................................................................................................................... 5
The world coconut industry .............................................................................................................. 5
Industry issues................................................................................................................................... 8
Examples of best practice at a company level ................................................................................ 10
Lessons from the rest of the world ................................................................................................. 11
Impact potential.............................................................................................................................. 13
Industry strategy recommendations for Ben Tre............................................................................ 14
1 Introduction................................................................................................................................. 15
2 The world coconut industry ........................................................................................................ 16
2.1 World coconut supply ......................................................................................................... 16
2.2 World coconut demand....................................................................................................... 18
2.3 Kernel product industry....................................................................................................... 21
2.4 Husk product industry......................................................................................................... 28
2.5 Shell product industry ......................................................................................................... 30
2.6 Trends and Issues................................................................................................................ 32
3 Profile of selected competitor countries..................................................................................... 35
3.1 The Philippines .................................................................................................................... 35
3.2 Sri Lanka .............................................................................................................................. 40
3.3 Thailand............................................................................................................................... 45
4 Current industry situation in the Mekong Delta ......................................................................... 47
4.1 Mekong Delta Industry........................................................................................................ 47
4.2 Ben Tre Industry.................................................................................................................. 47
5 Examples of best practice at a company level ............................................................................ 53
5.1 The SAMBU Group, Indonesia............................................................................................. 53
5.2 Peter Paul Philippines.......................................................................................................... 54
5.3 Renuka Group, Sri Lanka ..................................................................................................... 55
5.4 Wonderfarm / Interfood Processing Industry Ltd, Vietnam .............................................. 56
5.5 Hayleys Export and HayCarb ............................................................................................... 56
5.6 Cocogreen Technologies Corp. (COCOTECH), The Philippines............................................ 60
5.7 Common themes in business success ................................................................................. 61
6 Lessons from the rest of the world ............................................................................................. 62
6.1 The key conclusion: Move quickly to a high value-added industry .................................... 62

3
6.2 Detailed insights.................................................................................................................. 63
7 Impact potential from the industry............................................................................................. 71
7.1 Socio-economic impacts...................................................................................................... 71
7.2 Coconuts and poverty ......................................................................................................... 71
7.3 Poverty impact potential from the industry ....................................................................... 73
7.4 Environmental Impacts ....................................................................................................... 76
8 Coconut Industry Strategy Recommendations for Ben Tre ........................................................ 78
Acronyms and Glossary....................................................................................................................... 85
Bibliography......................................................................................................................................... 88
Annex 1 - Business interviews in Ben Tre............................................................................................ 89
Annex 2 - Comparative data on selected countries............................................................................ 90
Annex 3 - Contact details for selected coconut enterprises ............................................................... 94

4
List of Figures and Tables
Figure 1: Major kernel processing routes, selected products....................................................7
Figure 2: Unit value - selected kernel products (USD/000 nuts)................................................7
Figure 3: Rising profits with increased integrated processing .................................................13
Figure 4: Stable global coconut production ............................................................................16
Figure 5: Difference in Productivity and Change in Area between countries..........................17
Figure 6: World coconut market value, 2006...........................................................................18
Figure 7: Coconut mass and value balance..............................................................................20
Figure 8: Major kernel processing routes, selected products..................................................21
Figure 9: Unit value - selected kernel products (USD/000 nuts)..............................................21
Figure 10: Kernel export product mix and unit value achieved...............................................22
Figure 11: World consumption of vegetable oils (MT millions)...............................................23
Figure 12: Consumption of coconut oil by market segment (MT millions)..............................24
Figure 13: Coconut oil markets by country ..............................................................................24
Figure 14: World desiccated coconut demand and prices.......................................................26
Figure 15: The Philippines Coconut Industry 2007 - at a glance..............................................35
Figure 16: Philippine Kernel Exports ........................................................................................37
Figure 17: The Sri Lanka Coconut Industry 2007 - at a glance.................................................40
Figure 18: Sri Lanka's unique export industry - At a glance.....................................................41
Figure 19: Sri Lanka Husk Industry - product mix and value, 2007..........................................43
Figure 20: Ben Tre Coconut Industry 2007 - at a glance..........................................................48
Figure 21: Rising breakeven nut prices with increased integrated processing........................64
Figure 22: Rising profits with increased integrated processing ...............................................69
Figure 23: Histogram of Per Capita Incomes and Poverty Lines in Ben Tre, 2006...................73
Figure 24: People out of poverty (on-farm) from rising coconut prices ..................................75
Table 1: World coconut market volume, 2006 5
Table 2: Output from a 100 million nut per year industry......................................................11
Table 3: World coconut market volume, 2006.........................................................................19
Table 4: Possible output from a 100 million nut per year industry .........................................33
Table 5: Poverty incidence and poverty gap for coconut selling and rural households in the Mekong
Delta and Ben Tre - $1.25/day PPP ..........................................................................................72
Table 6: Poverty incidence and poverty gap for coconut selling and rural households in the Mekong
Delta and Ben Tre - $2.50/day PPP ..........................................................................................73
Table 7: Poverty impact potential among coconut selling household in rural areas...............74
Table 8: Employment creation in an improved coconut industry............................................76

5
Summary
Introduction
The numbers surrounding the world coconut industry are substantial –
55,500,000,000 coconuts produced every year from 12,000,000 hectares
supporting an industry worth USD 6 billion at wholesale. Yet despite the size
and wealth of the industry most coconut growers are among the poorest in
their society and over 1 million tonnes of coconut dust are dumped into the
environment every year.
In the Mekong Delta, riverbanks shaded with coconut trees are an iconic part
of the landscape, but only in the last decade has the local coconut industry
taken the first steps to becoming a modern, competitive industry. Much of
this recent development has happened in Ben Tre province, at the heart of
the industry in the Delta with the greatest concentration of coconut trees and
businesses. The Ben Tre authorities and industry leaders are now looking to
help the industry mature into an internationally competitive and sustainable
coconut industry that maximises the value created for the local community,
businesses and coconut farmers.
This study is part of that process and aims to provide evidence of the current
state of the global coconut industry and the local industry in Ben Tre and the
wider Mekong Delta and to assess specific opportunities for the industry’s
future development. The study also identifies several promising commercial
opportunities for local coconut businesses and the impacts these could have
on the company’s own bottom-line profits as well as the wider industry. It
supplements extensive secondary data with insights and evidence gathered
through an international benchmarking exercise with leading competitor
countries, including the Philippines, Sri Lanka and Thailand as well as the local
industry in Ben Tre.
The world coconut industry
The world consumes its coconuts as oil (55%), fresh (37%), desiccated (5%)
and a small amount of a long list of other products (by volume). The annual
wholesale value of the coconut sector can be estimated as approximately
USD 6 billion for 2006 comprised of; coconut oil USD 2.9 billion, fresh nuts
USD 2.2 billion, desiccated coconut USD 0.3 billion, other kernel products
USD 0.3 billion, husk products USD 0.3 billion, shell products USD 0.1 billion.
Markets Products
Nuts millions
(%)
Total Oil Fresh
nuts
Desiccated Other
Total
55,500
(100%)
30,269
(55%)
20,371
(37%)
2,666
(5%)
2,193
(4%)
Export
23,310
(42%)
18,852
(34%)
242
(0.5%)
2,378
(4%)
1,838
(3%)
Domestic
32,190
(58%)
11,417
(21%)
20,129
(36%)
288
(0.5%)
356
(1%)
55 billion nuts p.a.
world output
USD 6 billion
market
Ben Tre leading
growth of industry
in Mekong Delta
Evidence-based
insights
International
benchmarking
Oil and fresh
coconuts consume
92% of nuts
Table 1: World coconut market volume, 2016

6
Domestic markets in producing countries dominate world demand,
consuming around 58% of all nuts each year with a value of USD3.8 billion.
Thus, India, Indonesia and Philippines are the biggest coconut consumers,
with Brazil and China the fastest growing markets.
Export markets were worth approximately USD 2.3 billion in 2006, consuming
42% of nuts and are dominated by kernel products. For kernel products, 97%
of all exports (in nut equivalent) were in the form of oil (82%), copra1
(4%)
and desiccated coconut (11%). In volume terms, coconut meal is a major by-
product from oil production and is consumed for animal feed in domestic and
export markets. In terms of other kernel products, coconut milk is one of the
largest volume high value products, with an estimated annual market volume
of 150,000 - 250,000 MT and growing.
Sales of husk products are equivalent to the husks from approximately
5 Billion nuts per year – just 9% of all available husks. Major products are coir
yarn, rope, matting and mats. Of these products, 60% by volume are
consumed in domestic markets, mostly in India, and 40% are exported.
Exports of husk products (mostly as coir products) and shell (mostly as
activated carbon) are relatively small in value terms at approximately USD
210 million and USD 110 million, respectively in 2006. This is mainly due to
the small amounts of available husks and shells that are processed in most
countries. The notable exceptions to this are Sri Lanka, Vietnam and some
areas of India and Thailand.
In terms of unit value addition, kernel products are the most important in
terms of industry level value creation. Kernel products on a commercial scale
can achieve values of USD 300 / 1000 nuts or more. Husk products can also
create significant value at commercial scale of around USD 90 / 1000 nuts
while shell products can create USD 10-30 / 1000 nuts.
In terms of supply, the Asia Pacific region accounts for 87% of global
production, with the “Big Three” countries producing 76% - Indonesia (16
billion nuts), India (13 billion) and Philippines (13 billion). Brazil is the fourth
biggest producer (3.5 billion) and the only big producer outside Asia-Pacific.
Sri Lanka, Thailand, Vietnam (and Ben Tre in particular) have good yields, of
5000 – 7,700 nuts per hectare per year compared to the world average of
4,676. Despite high yields, Thailand, Sri Lanka and Malaysia have seen
significant falls in the coconut production area in the 5 years to 2006, of 31%,
11% and 28% respectively. Vietnam and India are the only two higher yield
countries that have not seen recent declines in their production area.
Kernel Product Industry
There are three main processing routes for different kernel products: the
traditional alternatives of Oil or DC and the more recent Integrated kernel
processing routes, as illustrated below.
1
Copra is an intermediary product in oil production and exports fell by 66% between 1996 and 2006 as countries
processed into oil directly themselves.
Domestic market
most important
Export markets
dominated by oil
and DC
Yet sizeable
markets for
coconut milk in
absolute terms
Just 9% of husks
processed
Only countries with
good use of husk
are Sri Lanka and
Vietnam
Kernel products
create most value
per nut
Husk products also
valuable
“Big Three”
producer countries
– 76% of nuts
Indonesia, India,
Philippines

7
Figure 1: Major kernel processing routes, selected products
2
Oil and desiccated coconut are the main products sold in volume terms, as
outlined above. However, in terms of unit value, these are low value
commodity products. A number of other products available through
integrated processing achieve significantly higher unit value per coconut (see
Figure 2) and several products can be produced and sold in parallel. This
enables competitive businesses to achieve in excess of USD 300 per 1000
nuts and often much more through integrated kernel processing.
Figure 2: Unit value
3
- selected kernel products (USD/000 nuts)
Husk product industry
Husk markets have two main segments: husk fibre and coconut pith. These
are independent end markets but coconut pith is an unavoidable by-product
2
Numerous product variations and manufacturing arrangements exist in real businesses. The diagram illustrates some of
the main products from each processing routes.
3
APCC reported international averages, 2006. Coconut candy and fresh coconuts based on data collected in Ben Tre. For
coconut candy, the value shown is the price paid for the fresh nuts by the candy companies as the cost of the coconuts is
less than one third of the total cost of goods sold.
Can also be sold as
coconut cream or
milk / cream powder
Desiccated
coconut
154 kg
Route 1 - Oil
Route 2 - DC
Route 3 - Integrated
+
+
+
Copra meal
74 kg
Coconut Oil
150 kg
+ Copra meal
74 kg
Coconut Oil
150 kg
+ Copra meal
74 kg
Coconut Oil
150 kg
+ Copra meal
74 kg
Coconut Oil
150 kg
Copra meal
74 kg
Coconut Oil
150 kg
+
Coconut
oil
150 kg
Copra
239 kg +
Copra
meal
74 kg
Canned coconut milk
(with req’d water added)
253 kg
Residue
210 kg
Coconut
milk
190 kg
Coconut
flour
55kg
60kg
Virgin
coconut
oil
35kg
De-husked
coconuts
1000kg
with low fat milk
+
Coconut water
products
~300kg
( also from
DC route}
end market
complimentary by-product
processing step
+
Can also be sold as
coconut cream or
milk / cream powder
Desiccated
coconut
154 kg
Route 1 - Oil
Route 2 - DC
Route 3 - Integrated
+
+
+
Copra meal
74 kg
Coconut Oil
150 kg
+ Copra meal
74 kg
Coconut Oil
150 kg
+ Copra meal
74 kg
Coconut Oil
150 kg
+ Copra meal
74 kg
Coconut Oil
150 kg
Copra meal
74 kg
Coconut Oil
150 kg
+
Coconut
oil
150 kg
Copra
239 kg +
Copra
meal
74 kg
Canned coconut milk
(with req’d water added)
253 kg
Residue
210 kg
Coconut
milk
190 kg
Coconut
flour
55kg
60kg
Virgin
coconut
oil
35kg
De-husked
coconuts
1000kg
with low fat milk
+
Coconut water
products
~300kg
( also from
DC route}
end market
complimentary by-product
processing step
+
50 - 300
270
270
37
150
220
11380
310
Oil +Copra meal
DC
Virgin Coconut oil
Water (by product)
Flour (milk by product)
Coconut Candy
Powdered Milk
Liquid Milk
Fresh Coconuts
3 major kernel
processing routes:
Oil, DC or
Integrated
Milk, candy and
other products
achieve high unit
value
Oil and DC have
low unit value
Husk products as
valuable as
commodity kernel
products

8
of husk fibre production. If fully utilised, husk products can generate
approximately USD 130 per 1000 nuts - significantly more than DC (USD113)
or Oil and copra meal (USD80).
India is the world’s largest producer and consumer of coconut husk fibre
products, with total annual production of around 435,000 MT of products,
80% of which are sold domestically. The three other major husk fibre
producers are Sri Lanka, Thailand and Vietnam – all of whom export around
90% of their products. The main import markets are China, Netherlands, USA,
Spain and Germany which accounted for 85% of imports in 2006. China is by
far the largest importer, importing over 115,000 MT in 2006, or 45% of world
imports. Husk fibre imports grew by an average of 11% per year from 2002 to
2006.
The only two major exporters of cocopith are Sri Lanka and India, who
accounted for 60% and 36% of total exports in 2006, mostly as substrate and
coco peat. The major import markets are the EU, Korea, Japan and USA.
These four countries accounted for 74% of total imports from Sri Lanka. The
world substrate market is reported4
to be growing steadily at 5% per year.
Reported exports of coco pith products consume approximately 200,000 MT
of raw pith. Despite these exports and similar volumes of domestic use, over
1 million tonnes of coco pith from husk fibre processing is unaccounted for
every year, often being dumped into the environment.
Shell product industry
Around 85% of shells are consumed domestically, mostly burnt as fuel. Only
around 15% of the world production of shells are processed for export, with
an estimated 8 billion shells processed in 2006. Of this, activated carbon
accounted for 93% of total volume with the balance being mostly shell
charcoal.
The global production of all activated carbon is reported5
to be 660,000 MT
of which 120,000 MT is for water purification. Global coconut activated
carbon production is reported to be around 130,000 MT, with exports of
120,000 MT.
The unit value generated from shell is relatively low even when processed, at
just USD 10-30 per 1000 nuts. The export value of activated carbon creates
around USD 18 per 1000 nuts and shell charcoal and shell powder create USD
14 and USD 33, respectively. Shell powder is an emerging product with
promising applications as a resin and glue additive.
Industry issues
The four major issues in the coconut industry are currently:
1. Upheaval in the coconut oil industry
2. Low productivity and farmer income
3. Missed opportunities from not using the entire nut
4. Dealing with cocopith
4
5
India biggest fibre
producer and
consumer
Fibre export
markets in China,
Europe and USA
Only Sri Lanka and
India export pith
Export markets
growing in EU,
Korea, Japan and
USA
85% of shell used in
domestic market –
most for fuel
Activated carbon
main shell export
Even activated
carbon is relatively
low unit value
Major industry
issues
Interview with substrate company in Sri Lanka, February 2019
Interview with Haycarb, Sri Lanka, February 2019

9
Upheaval in the coconut oil industry
While coconut oil has been losing market share to palm oil in recent years, the
strong growth in global vegetable oil consumption has made it possible for
coconut oil to still sustain positive growth, albeit at around 2.5% per years. This
is primarily from the industrial use market with food use all but stagnant, with
growth of less than 1% per year.
A major question for the entire coconut industry is whether or not the loss of
market share to palm oil will accelerate in the coming years. If so, it is likely
that the current stagnation of coconut oil in the edible oil segment could turn
in to an outright decline.
This would most likely be triggered by a collapse in coconut oil use by
consumers in producing countries, especially India and Sri Lanka. Already, the
domestic coconut oil industry is in crisis in both countries. Sri Lanka has
introduced protectionist tariffs to restrict imports of palm oil to support the
domestic coconut oil industry – at the expensive of the export industry and
local consumers. Such measures appear to be unsustainable over the medium
term. In India, Kerala’s coconut farmers are protesting at the collapse in
coconut prices.
The planned response of the Philippines oil industry to the competition is to
attempt to dramatically increase the yield of coconuts at the farm level. If
successful, this plan would greatly increase nut supply, lower nuts prices and
allow the oil millers to produce more oil at lower cost. For the millers this
would help address their over capacity problems, and raise their
competitiveness. The benefit to the farmers is unclear.
Either a collapse in domestic coconut oil consumption in producing countries
or a surge in yields in a major producer like the Philippines would result in a
significant shift in the balance of supply and demand for nuts in the entire
coconut industry, equivalent to up to 20% of annual world coconut production.
Changes on this scale would have far reaching consequence. Nut prices would
fall, but initially unevenly between countries. Production would shift to lower
cost producers and coconut farmers worldwide would see lower income and
there could be an accelerated reduction in coconut production in badly
affected areas.
These changes would be slow and painful and the exact impact is hard to
determine. What is clear is that the current crisis is set to continue.
Low productivity and farmer income
The relatively low productivity at farm level, combined with low farm gate
prices in several major producing countries, especially the Philippines and
India, is a major long term weakness of the industry.
In the Philippines, coconut farmers are regarded as being among the poorest
with few alternatives. In other producing countries, such as Malaysia and
Thailand, the low income from coconuts has driven farmers to switch to other
more profitable crops and an overall decline in the local coconut industry.
Missed opportunities from not using the entire nut
Will stagnation
turn to outright
decline?
How will major
producers
respond to the
current crisis?
Will the crisis
trigger a major
restructuring of
the industry?
Current crisis is
set to last
Farmers gain
little from the
coconut industry
Opportunities
being missed
Local industries

10
Globally, the coconut industry makes very poor use of anything other than
coconut kernel meat. Millions of tonnes of potentially valuable material, from
husks, shells or water, are thrown away every year.
At the same time, the value achieved per nut is low and coconut farmers
struggle to make an acceptable living. This is especially true at the moment
with the crisis in the coconut oil markets.
Efficient use of the entire nut in a local coconut industry could triple, or more,
the value created compared to simple DC or oil supply chains. While market
limitation mean that this is not possible for the entire global industry, those
local industries that succeed in making the transition to an efficient industry
will create a sustainable competitive advantage for themselves and deliver
significant benefit to their business and farmers alike.
Dealing with cocopith
The most successful industries in the future will be those that have integrated
kernel processing in tandem with good use of husks and shells.
Proper use of cocopith within a local industry is therefore not only necessary
to avoid major environmental pollution but is a necessary part of developing
an internationally competitive coconut industry. Vietnam, India and Thailand
have the greatest opportunities in the immediate future to benefit from this.
Examples of best practice at a company level
Individual businesses are proven examples of the commercial strength of
higher value added business models and industry strategies. Notable examples
include Sambu Group (Indonesia), Renuka Group (Sri Lanka), Peter Paul
Philippines, Wonderfarm (Vietnam), Tropicoir (Sri Lanka) and Hayleys Export
(Sri Lanka) as well as numerous Thai and Malaysian companies. Many of them
share the same common themes:
 For kernel processing, the most successful businesses:
o have incrementally evolved integrated processing business models,
often starting as simple DC or oil millers
o differentiate their products through integrated processing and a
continuous process of diversification
o now make, as a minimum, coconut milk/cream, coconut milk
powder, as well as traditional desiccated coconut and defatted
coconut (residue).
o have added coconut drinks and virgin coconut oil to their product
range more recently
o still retain production of original products, eg. DC, but with profit
growth driven by investment in high value products
o can thrive, even in higher cost local industry, if using an integrated
processing business model
 To maintain competitiveness, research and development, quality
control, and customer service are major focuses of businesses in all
three sub-sectors
A sustainable
competitive
advantage
Necessary for
competitiveness
Best
opportunities in
Vietnam, India
and Thailand
Many examples
of successful
businesses
Common themes
for success

11
 International distribution networks are essential and Joint ventures
(or long term relationships) with partners in end markets are often an
important part of the success of export led companies
 Domestic markets also have potential, if marketing activity is properly
addressed
 Manufacturing sites with good port access are an advantage
 Businesses need to be of a medium scale, providing them:
o management capacity to access export markets
o sufficient volume to support a diversified product range
o production volumes to achieve processing efficiency
o resources to invest in ongoing product development
Lessons from the rest of the world
The key conclusion: Move quickly to a high value-added industry
The most striking conclusion is that there is both an opportunity and an
increasingly urgent need for the coconut industry in Ben Tre, and the wider
Mekong Delta, to move up the value curve and become a high value-added
industry.
The opportunity
Sizeable markets exist for a range of high value products from all parts of the
coconut, both domestic and export. While small compared to the main
coconut commodity markets, they are sufficient to provide good market
opportunities for an industry of the size of Ben Tre.
The local industry could realistically raise the value added per 1000 nuts from
its current level of USD 250 towards USD 520, by investing in the manufacture
of commercially proven higher value products through integrated processing
of the kernel and full utilisation of the husk fibre and pith for finished
products and the shell.
Table 2: Output from a 100 million nut per year industry
6
2006
International
average
export prices
Product 000
nuts
/MT
USD
/000
nuts
Output
MT per
year
Total value
USD
p.a. FOB
Kernel
Coconut milk
(liquid & powder)
4.0 290 25,000 29,000,000
Residue
for animal feed
6.0 37 16,800 3,700,000
Water - 33% of
available water
4.2 50 7,920 5,016,000
Husk
Coir yarn 9.0 68 11,086 6,800,000
Pith 3.9 62 25,873 6,200,000
Shell Charcoal 19.7 13 5,076 1,312,000
Total 520 91,755 52,036,000
6
By comparison, Ben Tre produces around 310 million nuts per year
Ben Tre must
move to a high
value added
industry
Sizeable markets
for higher value
products
Target integrated
kernel processing
and full use of
husk
Could realistically
double value
added to
USD520/000 nuts

12
The need
As well as the opportunity, there is an increasing urgent need. The current
industry has high nut costs by international standards and is not competitive
in the mainstream commoditised coconut products of DC and Oil, especially
in relation to the very large, low cost production capacity in the Philippines
and Indonesia. These problems will be further aggravated by the upheavals in
the coconut oil markets.
High value added industries, outside of the commodity markets, will be best
placed to withstand the harsh market conditions within the mainstream
markets in the coming years – as their competitive advantage comes from the
efficiency of utilisation of the entire nut for value added products and a
diversity of end markets, as opposed to simple competition on the lowest
price of a nut.
In addition to the pressure for market competitiveness, maintaining higher
farmer incomes is important for the security of raw material supply. The two
most effective mechanisms for achieving this are intercropping and moving to
an efficient, high value added industry that can still be competitive even with
higher nut prices
Ben Tre well placed as an industry to take the opportunity
The existing conditions in Ben Tre are favourable to moving to a high value
added industry:
 There is a sizeable and stable domestic demand for coconut candy – a
high value product – already consuming over 130 million nuts per
year.
 There are already examples of successful integrated kernel
processors in Vietnam, severing both domestic and export markets
(e.g. Wonderfarm)
 Ben Tre has recently succeeded in attracting foreign investment into
similar new integrated processing factories
 Several DC businesses operate in Ben Tre and have already expressed
interest in investing to diversify into integrated processing businesses
 Vietnam already has established demand for coconut residues for
feed, currently being imported from the Philippines, that would be a
by-product of integrated kernel processing by the local industry
 A few smaller businesses have already proven the market for high
value finished husk fibre products and pith products and nearly all
husks already enter the processing industries (although not yet for
these high value products)
 There is a rapidly improving business environment and infrastructure,
with HCMC now just 2.5 hours by road and a highway under
construction.
Commercial interests strongly aligned to industry interests
Most of the modern, integrated kernel processing businesses began as
desiccated coconut processors or oil millers. They gradually added related
product lines to make them the big integrated coconut processing
enterprises that they are today.
Ben Tre is a high
cost producer
Not competitive
in coconut
commodities:
DC or Oil
Need to compete
on value added
not lowest cost
nuts
Need to sustain
higher farmer
income for supply
security
Ben Tre well
placed
- Existing DC
businesses
interested in
diversifying
- Some proven
high value
product
companies
- Established
domestic
demand for
some products

13
The commercial benefits of this business strategy are self evident. At current
market prices, a DC business processing 10,000 nuts per day could increase its
profits (EBIT7
) from around VND 3 million per day (approx. USD 180) to
around VND 10 million (approx. USD 615) by investing an additional USD
60,000 – USD 100,000 to take the first step towards integrated kernel
processing, initially selling coconut milk and residue. With an incremental
investment of around USD 0.5 – 0.7 million, and a move to full integrated
production of high value products, daily profits could rise to over VND 40
million (USD 2285).
Figure 3: Rising profits with increased integrated processing
8
This pathway takes advantage of the fact that there are similar processing
step
s
betw
een
coco
nut
milk
and
desic
cate
d
coco
nut
prod
uctio
n, so
it is
easy to integrate these two product lines. Similarly, liquid coconut milk
processing and coconut water can share the same UHT packaging or canning
system, also assisting integration.
Similarly, the existing businesses selling high value finished products from
husk fibre, pith and shell have already identified the greater profit margins
that can be achieved in these finished products and have an interest in
expanding their business in these areas.
Technology and equipment are now widely available from commercial
equipment suppliers for all major products from integrated kernel processing
and high value husk fibre and pith products.
Impact potential
In Ben Tre, the total annual household income from the coconut industry is
approximately VND 1,100 billion (USD 64 million). Of this, around 70% comes
from on-farm sales of coconuts and around 30% from paid labour in the
7
EBIT – Earnings Before Interest and Tax
8
Values are per 10,000 nuts processed – a typical daily amount for a small-medium scale factory with a throughput of 3
million nuts per year. Estimates use current prices for finished goods & estimates of costs of good sold from company
interviews and team research.
-
10
20
30
40
50
60
70
80
90
100
110
120
130
DC Cocomilk +
Residue
Cocomilk +
VCO & flour
Various milk,
drinks & VCO
+Residue
Various milk
& drinks +
Flour & VCO
Increasing Development of Integrated Kernel processing
MillionVND
Nut
cost
Other
costs
EBIT
Big increases in
profitability are
possible from
integrated
processing
Proven business
growth route
Similar production
lines for easy
migration from
DC to integrated
processing
Technology
available
“off the shelf”
In Ben Tre, total
household income
from industry p.a.
VND 1,100 billion
~ 70% on-farm

14
industry which employs an estimated 19,000 workers in Ben Tre (excluding on-
farm labour).
With greater value creation and strong competition in the local industry, farm
gate prices for coconuts can be expected to rise. An increase in farm gate
prices is likely to be the most important mechanism for poverty impact, given
that on-farm sales income is the most important mechanism for local
household to benefit from the industry and that coconut farmers are poorer
than the rural average in Ben Tre.
Increases in farm gate prices of coconuts will lead to higher household
income for coconut sellers without addition costs or labour and therefore,
across the populations, a reduction in poverty rates.
Estimates of the combined impact of an improved coconut industry in Ben
Tre from increased on-farm incomes9
and new job creation10
can be
estimated to be in the order of:
+ 35,000 – 70,000 people of out poverty11
, on-farm from a sustained
average increase in coconut prices of 25%-50%, respectively
+ 5,000 – 10,000 new FTE jobs off-farm, mostly in additional husk fibre
processing
Industry strategy recommendations for Ben Tre
The goal for the Ben Tre coconut industry should be to become an
internationally competitive and sustainable coconut industry that maximises
the value created across the industry for businesses and coconut farmers,
through profitable businesses, employment creation and attractive and
stable coconut prices for farmers.
The objectives for the overall industry should be to:
a) Maximise the value-added across the industry by greatly expanding
production of higher value products, especially from the kernel, husk fibre
and pith,
b) Sustain a healthy level of competition among coconut buyers and
processors,
c) Ensure raw material supply security by generating attractive incomes for
coconut growers, and
d) Ensure the environmental sustainability of the industry, in particular by
addressing pollution from various sub-sectors.
Twenty two priority actions are recommended across the industry to achieve
these objectives.
9
On-farm poverty impacts based on VHLSS06 data. Note that this analysis does not assume any increase in the volume of
nuts sold or yields.
10
Job creation estimates are based on actual numbers of workers and factory capacities from interviews with business in
Ben Tre, Sri Lanka, the Philippines and Thailand for target products gathered, supplemented with data from
manufacturing experts on labour input needs for different manufacturing processes
11
against a $1.25 PPP extreme poverty line
Competition and
higher value added
should raise
coconut prices and
create jobs
Rising coconut
prices reduce
poverty
Combined impact
from:
On-farm income
Off-farm jobs
Strategic goal
Industry objectives

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