Description
The coconut tree (Cocos nucifera) is a member of the family Arecaceae (palm family) and the only species of the genus Cocos. The term coconut can refer to the whole coconut palm or the seed, or the fruit, which, botanically, is a drupe, not a nut.
Coconuts are known for their versatility ranging from food to cosmetics. They form a regular part of the diets of many people in the tropics and subtropics.
Coconuts are distinct from other fruits for their endosperm containing a large quantity of water (also called “milk”), and when immature, may be harvested for the potable coconut water.
When mature, they can be used as seed nuts or processed for oil, charcoal from the hard shell, and coir from the fibrous husk. When dried, the coconut flesh is called copra. The oil and milk derived from it are commonly used in cooking and frying, as well as in soaps and cosmetics.
The husks and leaves can be used as material to make a variety of products for furnishing and decorating.
Coconut is cultivated in about more than 90 countries all over the world and and a total of about 64.3 billion nuts is produced per annum as of 2013.
These nuts are mostly cultivated by the coastal and nearby region throughout the whole world and the demand is on the increase.
In Nigeria, the leading producing states out of the 20 are Niger, Kano, Jigawa, Zamfara, Kebbi, Sokoto, Katsina, Kaduna, Adamawa, Yobe, Borno, Taraba, Plateau, Nasarawa, Bauchi, Lagos and Ogun states.
Demand for coconuts has grown upwards of 500% in the last decade. This is because coconut-based derivatives, such as soaps, virgin coconut oil, health products and coconut water, have all seen large spikes in demand, so much so that producers may not be able to keep up.
Because demand for coconuts are not being met, European markets have taken a number of steps to curb their demand. Specifically, the European Union has proposed levies on vegetable imports to the EU, they have promoted the use of alternative vegetable oils, such as palm, canola and soya, and they have put stricter aflatoxin regulations into place within the copra production market. With the measures being taken to curb runaway demand, suppliers are still making a pretty penny.
Indeed, numerous foreign firms are looking to invest in the supply side of coconut production, especially in places such as Sri Lanka’s ultra-productive ‘Coconut Triangle’ region.
Nigeria currently can only boast of 265,000 metric tonnes of coconut production in 18th position of the world coconut production country index, a country that is bestowed with arable rain forest zone fertile for a crop that is non-indigenous to it. Thus, the nation can compete favorably in an increasing market.
This report seeks to examine the financial viability or otherwise of establishing a coconut plantation and virgin coconut oil production plant in Nigeria.
The size and locations of the farm is one hundred and ten (80) hectares of land. Seventy-five (75) hectares would be used for the farm while the remaining five (5) hectares would be used for the construction of the office, warehouse and other civil works.
The production capacity of the proposed plant is three (3) tons per day and would operate a shift of eight (8) hours each at eighty percent (80%) of installed capacity for three hundred (300) working day producing about ninety-six thousand (96,000) container of 500 ml container annually. Yield (From Dry Meat) is 60%.
In the sixth year after planting and when the tree starts fruiting, the plant would produce ninety-six thousand (96,000) container of 500 ml container of virgin coconut oil (VCO) annually at the eighty percent (80%) of installed capacity and sourcing it major raw material (coconut) from the farm.
