GEA Group Aktiengesellschaft
January 31, 2012
The GEA GroupGEA Mechanical EquipmentGEA Westfalia Separator
INTEGRATED FRESH COCONUT PROCESSING:IS THIS THE PHILIPPINES’ SILVER BULLET TO
ERADICATE POVERTY?
efficiency in food and energy processes.
OUTLINE
2 GEA Group Aktiengesellschaft
WHAT IS FRESH COCONUT PROCESSING?
GLOBAL TRENDS AFFECTING THE COCONUT INDUSTRY:WHAT ARE THE FACTORS DRIVING LONG-TERM DEMAND FOR FRESH COCONUT PRODUCTS?
SOCIO-ECONOMIC BENEFITS OF FRESH COCONUT PROCESSING: WHAT ARE THE BENEFITS TO THE FARMERS, COMMUNITY AND THE COUNTRY AND HOW WILL THE SHIFT TO INTEGRATED FRESH COCONUT PROCESSING REDUCE POVERTY IN THE COUNTRYSIDE?
VIABILITY OF GREENFIELD INTEGRATED FRESH COCONUT PROCESSING
efficiency in food and energy processes.
WHAT IS FRESH COCONUT PROCESSING?
3 GEA Group Aktiengesellschaft
IT IS NOT ABOUT YOUNG COCONUT
AND DEFINITELY NOT ABOUT COPRA!!!
efficiency in food and energy processes.
WHAT IS FRESH COCONUT PROCESSING?
4 GEA Group Aktiengesellschaft
efficiency in food and energy processes.
OUTLINE
5 GEA Group Aktiengesellschaft
WHAT IS FRESH COCONUT PROCESSING?
GLOBAL TRENDS AFFECTING THE COCONUT INDUSTRY:WHAT ARE THE FACTORS DRIVING LONG-TERM DEMAND FOR FRESH COCONUT PRODUCTS?
SOCIO-ECONOMIC BENEFITS OF FRESH COCONUT PROCESSING: WHAT ARE THE BENEFITS TO THE FARMERS, COMMUNITY AND THE COUNTRY AND HOW WILL THE SHIFT TO INTEGRATED FRESH COCONUT PROCESSING REDUCE POVERTY IN THE COUNTRYSIDE?
VIABILITY OF GREENFIELD INTEGRATED FRESH COCONUT PROCESSING
efficiency in food and energy processes.
GLOBAL TRENDS
6 GEA Group Aktiengesellschaft
DEMAND FOR NATURAL AND HEALTHY DRINKS DRIVES GROWTH OF NATURAL DRINKS LIKE COCONUT WATER BEVERAGES
HEALTH BENEFITS FROM COCONUT WATER•Immediate rehydration•Kidney cleansing•Low in calories & fat •Hangover fix
efficiency in food and energy processes.
GLOBAL TRENDS
7 GEA Group Aktiengesellschaft
GLOBAL PLAYERS LIKE PEPSICO & COCA COLA BELIEVE THE HEALTHY TREND IS FOR LONG TERM
efficiency in food and energy processes.
GLOBAL TRENDS
8 GEA Group Aktiengesellschaft
CELEBRITY INVESTMENTS AND ENDORSEMENTS FURTHER PROPEL THE POPULARITY OF COCONUT WATER DRINKS
• MADONNA INVESTED US$ 1.5MILLION IN VITACOCO
• OTHER CELEBRITY ENDORSERSARE DEMI MOORE, KIRK DOUGLAS,MATHEW McCONAUGHEY
efficiency in food and energy processes.
GLOBAL TRENDS
9 GEA Group Aktiengesellschaft
ENDORSEMENT BY OUR VERY OWN PRES. AQUINO MADE THE LOCAL MARKET AWARE OF PHIL.-MADE COCONUT WATER BEVERAGES
efficiency in food and energy processes.
OUTLINE
10 GEA Group Aktiengesellschaft
WHAT IS FRESH COCONUT PROCESSING?
GLOBAL TRENDS AFFECTING THE COCONUT INDUSTRY:WHAT ARE THE FACTORS DRIVING LONG-TERM DEMAND FOR FRESH COCONUT PRODUCTS?
SOCIO-ECONOMIC BENEFITS OF FRESH COCONUT PROCESSING: WHAT ARE THE BENEFITS TO THE FARMERS, COMMUNITY AND THE COUNTRY AND HOW WILL THE SHIFT TO INTEGRATED FRESH COCONUT PROCESSING REDUCE POVERTY IN THE COUNTRYSIDE?
VIABILITY OF GREENFIELD INTEGRATED FRESH COCONUT PROCESSING
efficiency in food and energy processes.
MEAT: 44%
WATER: 30%
RESOURCE MAXIMIZATION THRU RECOVERY OF HIGH VALUE, HIGHLY NUTRITIOUS, HEALTHY & NATURAL FOOD PRODUCTS FROM FRESH COCONUT
COPRA INTEGRATED FRESHCOCONUT PROCESSING
MEAT PRODUCTS: MEAT PRODUCTS:COPRA: 22% FROZEN COCONUT MEAT: 36%
COCONUT OIL: 14% DESSICATED COCONUT: 16%COPRA MEAL: 8% PARING OIL: 2%
COCONUT MILK: 17%
SKIM MILK: 9%
VIRGIN COCONUT OIL: 5%
COCONUT FLOUR: 7%
WHITE OIL FROM FLOUR: 1.5%
COCONUT WATER: 0% COCONUT WATER BEVERAGES: 26%
TOTAL: 22% TOTAL: 44%-62%
SOCIO-ECONOMIC BENEFITS
efficiency in food and energy processes.
SOCIO-ECONOMIC BENEFITS
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PRODUCTION IN 2010: ABOUT 2.863 MILLION MT COPRA TERMS, OR ABOUT 12MILLION MT NUTS
85
10 3 2NUT UTILIZATION, IN %
COPRA: 85%DCN: 10%FOODNUTS: 3%OTHERS: 2%
COCONUT WATER WASTED FROM COPRA
SKIM MILK WASTED FROM COPRA
ESTIMATED VOL.: 2.65 MILLION MT ESTIMATED VALUE: PhP 98.9 B
ESTIMATED VOL.: 0.92 MILLION MTESTIMATED VALUE: PhP 39.6 B
COCONUT OIL EXPORTS IN 2010: PHP 54 B EQUIV. EXPORTS IF VCO/PARING OIL WERE PRODUCED: PHP 30 B
efficiency in food and energy processes.
COPRA VS.INTEGRATED
FRESH COCONUT PROCESSING
MATURED COCONUT
DEHUSKING
BREAKING
DRYING
DE-SHELLING
PACKING
FARM-GATE PRODUCTS COPRA FRESH WHOLE NUTS
FARMER BENEFITS:
• LESS PROCESS STEPSMORE TIME FOR OTHER ACTIVITIES
• LESS TIME FROM HARVESTTO SELLING
• HIGHER PRICE FORFRESH WHOLE NUTS
ALL THESE COULD TRANSLATE TO HIGHER INCOME FOR FARMERS
SOCIO-ECONOMIC BENEFITS
efficiency in food and energy processes.
SOCIO-ECONOMIC BENEFITS
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COPRA: LOW PRICE, LESS PERISHABLE & LESS SHIPPING VOLUMECOPRA & OIL PROCESSING FACILITIES ARE LOCATED AWAY FROM PLANTATIONS
RESULT: COUNTRYSIDE REMAIN BACKWARD AND FARMERS ARE NOT MOTIVATED TO INCREASE FARM PRODUCTIVITY
FRESH COCONUT: HIGHER PRICE, MORE PERISHABLE & MORE SHIPPING VOLUMEVIRGIN COCONUT PROCESSING FACILITIES MUST BE LOCATED NEAR PLANTATIONS
EXPECTED RESULT: INDUSTRIALIZATION OF COUNTRYSIDE AND FARMERS HAVE MORE REASONS TO INCREASE FARM PRODUCTIVITY
COUNTRYSIDE DEVELOPMENT THRU INDUSTRIALIZATIONAND HIGHER FARM PRODUCTIVITY
efficiency in food and energy processes.
SOCIO-ECONOMIC BENEFITS FROM VIRGIN COCONUT PROCESSING:
COUNTRYSIDE DEVELOPMENT THROUGH AGRO-INDUSTRIAL DEVELOPMENT
EVERY 30,000 HAS. OF COCONUT FARM CAN SUPPORT FRESH COCONUT FEEDSTOCK REQMT. OF A 400TPD INTEGRATED FRESH COCONUT PROCESSING PLANT
PUTTING UP PROCESSING PLANTS CLOSER TO AREAS WHERE COCONUT IS ABUNDANT MEANS: IMPROVED INCOME IN DEPRESSED AREAS THRU EMPLOYMENT GENERATION AND BETTER PRICES FOR FARMERS WHO CAN SELL DIRECT TO PROCESSORS
ESTIMATED FIGURES:A. JOBS GENERATED BY THE PROCESSING PLANT:• MANAGEMENT/SUPERVISORY : 12
PERSONNEL• BLUE COLLAR JOBS : 36 PERSONNEL• LABOR : 1,200 PERSONNEL
B. FARMER-BENEFICIARY WITHIN 15 KM RADIUS OF PROCESSING PLANT:ABOUT 15, 000 FARMER BENEFICIARIES ASSUMING EACH FARMER HAS 2 HAS. OF FARM LOTS
MULTIPLIER EFFECT OF ITEMS A AND B TO IMMEDATE FAMILY MEMBERS AND UPSTREAM AND DOWNSTREAM SUPPLIERS AND SERVICE PROVIDERS
SOCIO-ECONOMIC BENEFITS
efficiency in food and energy processes.
SOCIO-ECONOMIC BENEFITS
16 GEA Group Aktiengesellschaft
THRU INCOME IMPROVEMENT OF ABOUT 3.5M FARMERS & 25M FILIPINOS THAT ARE DIRECTLY & INDIRECTLY DEPENDENT ON THE INDUSTRY THRU EMPLOYMENT OPPORTUNITIES IN TOP COCONUT PRODUCING REGIONS CURRENTLY RANKED AS THE POOREST REGIONS IN THE COUNTRY
HIGH IMPACT IN POVERTY ALLEVIATION SINCE PROJECTS BENEFIT THE MOST AFFECTED SECTOR AND AREAS:
THRU TAXES ON EARNINGS FROM RESOURCE MAXIMIZATION W/C COULD FLOW BACK FOR SOCIAL SERVICES AND INFRA DEVELOPMENT IN COCONUT PRODUCING REGIONS
efficiency in food and energy processes.
SOCIO-ECONOMIC BENEFITS
17 GEA Group Aktiengesellschaft
EXTENSION/EXPANSION PROJECTS OF EXISTING DCN PROCESSING FACILITIES: • FOUR EXTENSION/EXPANSION PROJECTS ARE
OPERATIONAL• TWO EXTENSION/EXPANSION PROJECTS ON-
GOING• THREE EXTENSION PROJECTS IN NEGO STAGES
CURRENT DEVELOPMENTS:
efficiency in food and energy processes.
SOCIO-ECONOMIC BENEFITS
18 GEA Group Aktiengesellschaft
GREENFIELD INTEGRATED PROJECTS: • TWO PROJECTS ARE ON-GOING, ONE EACH IN
SORSOGON AND CAMARINES SUR• ONE PROJECT IN CLOSING STAGE WITHIN 3
MONTHS IN ZAMBOANGA• >10 INQUIRIES WITH BUDGETARY QUOTES ALL ARE
LOOKING FOR AREAS WHERE COCONUT IS ABUNDANT LIKE LEYTE, SAMAR, SURIGAO, DAVAO, AURORA, PALAWAN, PANAY, CARAGA, ARMM, SARANGANI
CURRENT DEVELOPMENTS:
efficiency in food and energy processes.
SOCIO-ECONOMIC BENEFITS
19 GEA Group Aktiengesellschaft
CURRENT DEVELOPMENTS IN THE INDUSTRY: • TWO MULTINATIONAL COMPANIES ARE COMING OUT WITH
THEIR OWN BRAND OF COCONUT WATER-BASED DRINKS FOR LOCAL AND FOREIGN MARKETS
• TWO MORE MULTINATIONAL COMPANIES ARE SERIOUSLY CONSIDERING COMING OUT WITH THEIR OWN BRANDS ALSO FOR LOCAL AND FOREIGN MARKETS
• RTD COCONUT WATER IN ASEPTIC PACKAGING IS SALEABLE IN THE LOCAL MARKET EVEN AT PRICE RANGE OF PHP 60-180/LITER
• THE COCONUT FARMERS ARE BECOMING AWARE OF THEIR COLLECTIVE POWER AS FEEDSTOCK SUPPLIER
efficiency in food and energy processes.
OUTLINE
20 GEA Group Aktiengesellschaft
WHAT IS FRESH COCONUT PROCESSING?
GLOBAL TRENDS AFFECTING THE COCONUT INDUSTRY:WHAT ARE THE FACTORS DRIVING LONG-TERM DEMAND FOR FRESH COCONUT PRODUCTS?
SOCIO-ECONOMIC BENEFITS OF FRESH COCONUT PROCESSING: WHAT ARE THE BENEFITS TO THE FARMERS, COMMUNITY AND THE COUNTRY AND HOW WILL THE SHIFT TO INTEGRATED FRESH COCONUT PROCESSING REDUCE POVERTY IN THE COUNTRYSIDE?
VIABILITY OF GREENFIELD INTEGRATED FRESH COCONUT PROCESSING
efficiency in food and energy processes.
efficiency in food and energy processes.
WHAT IS FRESH COCONUT PROCESSING?
efficiency in food and energy processes.
FRESH COCONUT PROCESSINGESTIMATED INVESTMENT COST
PROJECT:400 TPD INTEGRATED FRESH COCONUT PROCESSING QTY
UNIT PRICE OR COST
TOTAL PRICE OR COST
INVESTMENTLAND, SQ.M. 50,000 250 12,500,000.00
SITE DEVELOPMENT 10,000 3,000 30,000,000.00 BUILDING & CIVIL WORKS 4,000 17,000 68,000,000.00
PROCESSING PLANT 1 576,701,400 576,701,400.00 INVESTMENT ON INFRA 687,201,400.00
WORKING CAPITAL, DAYS‐CYCLE 60 5,600,000 336,000,000.00
TOTAL INVESTMENT 1,023,201,400.00
efficiency in food and energy processes.
FRESH COCONUT PROCESSINGFINANCIAL FORECAST
PROJECT: 400TPD INTEGRATED FRESH COCONUT PROCESSING YEAR 0
YEAR 1‐60% CAP
YEAR 2‐75% CAP
YEAR 3‐90% CAP
YEAR 4‐100% CAP
YEAR 5‐100% CAP
INVESTMENT 687,201,400
SALES 1,684,500,000 2,105,625,000 2,526,750,000 2,807,500,000 2,807,500,000
EXPENSES 1,403,400,000 1,754,250,000 2,105,100,000 2,339,000,000 2,339,000,000
GROSS INCOME 281,100,000 351,375,000 421,650,000 468,500,000 468,500,000
INCOME TAX, 30% 84,330,000 105,412,500 126,495,000 140,550,000 140,550,000
NET INCOME 196,770,000 245,962,500 295,155,000 327,950,000 327,950,000
PAY BACK PERIOD, YEARS 2.8
efficiency in food and energy processes.
OUTLINE
25 GEA Group Aktiengesellschaft
WHAT IS FRESH COCONUT PROCESSING?
GLOBAL TRENDS AFFECTING THE COCONUT INDUSTRY:WHAT ARE THE FACTORS DRIVING LONG-TERM DEMAND FOR FRESH COCONUT PRODUCTS?
SOCIO-ECONOMIC BENEFITS OF FRESH COCONUT PROCESSING: WHAT ARE THE BENEFITS TO THE FARMERS, COMMUNITY AND THE COUNTRY AND HOW WILL THE SHIFT TO INTEGRATED FRESH COCONUT PROCESSING REDUCE POVERTY IN THE COUNTRYSIDE?
VIABILITY OF GREENFIELD INTEGRATED FRESH COCONUT PROCESSING
efficiency in food and energy processes.26 GEA Group Aktiengesellschaft
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