Introduction
The oil of the Cocos nucifera palm, commonly known as coconut oil, has incredible potential to be processed in Nepal for production as an export to Canada and other countries. Although coconut oil is not currently produced in Nepal, the opportunity does present itself.
Cultivation of coconut
Fossil evidence has shown C. nucifera to be an indigenous species of both the Indian and Pacific regions (Gunn et al, 2011). It is a very adaptable plant and can grow in a variety of soil types. An average temperature of 21-27° C, average rainfall of 1,500-2,000mm/year and elevations from sea level to below 1,000 feet provides excellent climate conditions for C.nucifera to grow (UNCTAD, 2012). The palms can reach up to 50-100 feet in height and are usually planted 25 feet in distance from each other. However they can be intercropped with other staple crops and it is recommended to do so for weed protection. The first fruit of the palm usually appears one year after planting and the palm is productive for 50-100 years, one tree yielding between 50-100 coconuts/year. C. nucifera can tolerate a salinity of 0.6%, which is fatal to many other crops (Duke, 1996). The palm however is quite sensitive to an excess of magnesium. No specific fertilizer is needed and liming is not necessary to ensure proper palm growth. Typically, the cheapest fertilizer of the region will suffice (Duke, 1996).This is a major economic benefit.
The productivity of C. nucifera can be affected by pests such as the palm weevil, coconut leaf caterpillars and others (UNCTAD, 2012). However integrated pest management can control the effects of these pests. Viruses and mycoplasmas are matters of greater concern as these can do the most damage to the crops. Strict regulations on plant material exchange between regions have helped to hinder the spread of lethal diseases (UNCTAD, 2012).
Given this information, it is clear to see that C.nucifera can in fact be harvested in Nepal. The sub-tropical climate of the Terai lowlands will provide ideal elevation and precipitation levels for the growth of C. nucifera (AgTrade Nepal). It has been recommended to disk-harrow for weed control at the end of the monsoon season; however, other cheaper weed control methods can be implanted as well. (Duke, 1996).
Uses of coconut
Coconut has a multitude of uses and is one among ten of the most useful trees in the world (Duke, 1996). Juice from the flowers can be boiled into a syrup called coconut molasses or fermented into beer. The coconut husk is also quite versatile and has been used for making rope, rugs, brushes, fire kindling, and more. The ash from the burnt husks can be mixed with topsoil when planning as a replacement for potash as an inexpensive alternative in subsistence agriculture. The shell of the coconut can be used as cups, bowl, and may be burned as fuel for domestic purposes. Two cups of coconut water can be produced by one five-month old coconut. The endosperm, or meat, of the kernel is used to make coconut milk. Virgin coconut oil (VCO) is also processed from this endosperm. After the oil is extracted, the protein-rich endosperm residue can be used as cattle fodder (Duke, 1996).
Coconut Oil Extraction Process
There are multiple ways in which coconut oil can be extracted from the endosperm. Refined coconut oil is processed from the dried endosperm whereas unrefined, or virgin, coconut oil is processed from the fresh meat of the coconut (Babu et al, 2014). Refined coconut is not preferred as it involves chemical use and bleaching which alters the health benefits of coconut oil. It also has a shorter shelf life compared to virgin coconut oil.
Of the multiple methods that can be used to process virgin coconut oil, the aqueous process has proven to be least time consuming and most cost-effective (Hamid et al, 2011). The aqueous process also produces the highest oil yields compared to the number of coconuts used in relation to other possible methods.
Method of the Aqueous Process
The endosperm of mature coconuts are grated and mixed with water to create coconut milk. The milk is then chilled or left to stand to make water and butter separation easier (Hamid et al 2011; FAO). The oil-rich cream is scooped from the top and is boiled. After he oil is extracted, it needs to be dried to “separate the non-oil fraction from the production VCO” (Hamid et al, 2011). This ensures a long shelf life for VCO as any remaining water causes it to go rancid (Bawalan et al, 2006). A cheap way to do this is to “place the extracted oil in a double boiler and heat for about fifteen minutes or until the oil has changed from turbid to water-clear colour. Oil temperature should not exceed 65°C “(Bawalan et al, 2006).
Sensory evaluation tests have found that VCO obtained by the aqueous process is highly superior in colour, aroma, taste, and lauric acid content than VCO that is obtained through a fermentation process (Hamid et al, 2011).
Nutritional Information
As previously mentioned, VCO that is obtained through the wet process method prevents the vitamins, minerals and antioxidants -such as vitamin E and polyphenols- from being lost (Babu et al, 2014). VCO is also rich in medium chain fatty acids which have been shown to speed up the metabolism (Hamid et al, 2011). A randomized trial found that overweight diabetic patients who took three months of medium change fatty acids showed improvements in waist circumference, body weight, and lipid profile (Babu et al, 2014). These results suggests that VCO “may have a role to play in reducing the risk of CVD (cardiovascular disease), thereby aiding in controlling the rising global burden of this noncommunicable disease”, however more research is needed to confirm this (Babu et al, 2014).
In addition to medical benefits, coconut oil has also demonstrated many cosmetic and dermatological benefits. It is the only oil that has been proven to reduce protein loss when used as a pre- and post-wash conditioning product on both damaged and healthy hair (Rele et al, 1998). Its fatty acid content, low molecular weight and straight linear chain allows it to penetrate inside the hair shaft, reducing the water retention index (Rele et al, 1999). VCO is also valuable in cream cosmetic preparations as it possesses skin softening and moisturizing properties (Rohman et al, 2009). Studies have also shown coconut oil to be more effective than mineral oils in preventing the development of eczema and strengthening the weakened skin barrier of atopic dermatitis (AD) patients (Evangelista et al, 2013).
Industry Status
Currently, Indonesia is the world’s leaders in coconut oil production, followed by the Philippines, Malaysia, the Netherlands, and Ghana (OEC, 2013). In 1999, the trade of coconut oil accounted for 6.4% of the trade of edible oil in the international market (Leonard et al, 1999). In 2013, 54% of Nepal’s coconut oil was imported from India and the remaining 46% was imported from Malaysia (OEC, 2013). Coconut oil import accounted for $623K of Nepal’s import value, 0.012% of Nepal’s total of $6.24B. Oils that were exported from Nepal in 2013 were vegetable, rapeseed, and soybean. The export value of these oils collectively accounted for 0.245% of Nepal’s total export value of $894M.
Although coconut oil has grown in importance on the international market, its competitive production rate has remained stagnant in comparison to palm oil (Leonard et al, 1999). The competition within countries that produce coconut oil varies based on the domestic costs of production (OEC, 2013).
However, these figures fail to take into account virgin coconut oil production as it is still a niche market (Chand, 2011). Only 3,000-5,000 tons are produced globally mostly through small scale extractions on a village scale that requires low capital input (Chand, 2011). If production of VCO remains small-scale, strong premiums can continue to be expected for it. Coconut milk production, also made from the fresh endosperm like VCO, is currently preferred on an industrial level (Chand, 2011). However, with the recent global interest in VCO this could change. Better market promotion efforts are few, but needed, if VCO is to be produced on a larger scale.
Social Impacts
There is potential for the production of VCO to engage and integrate multiple facets of society. Coconuts can either be harvested by letting them fall from the tree when ripe, by climbing, or by using a cheap tool such as a long bamboo pole with a knife attached to the end (Duke, 1996). The collection of the coconuts is typically done by the males and the husks are removed with machetes in the field. For now, as VCO continues to be a small- or village-scale production process, it can be done as a private home or village business alongside other normal work routines (Bawalan et al,2006). “A husband and wife team, using home utensils, can process 50 nuts per day to produce three to five litres of VCO”(Bawalan et al, 2006). Besides being a cash crop, coconuts not used for VCO production can also be another domestic resource for the family. On a larger scale, Nepal’s independent production of VCO will also help to reduce the portion of the nation’s import budget that is spent on coconut oil and more resources will be put into developing Nepalese economy.
Potential Importers
As VCO has a multitude of uses, the market potential is quite broad. Organic and health food stores as well as organic cosmetic and skin care suppliers in Canada are all viable customers. Because it is a niche market, socially aware stores and companies with a vision for fair trade and sustainable agriculture will be more interested in making such an investment. Larger chain stores that already carry natural or organic products should not be ignored.
The Stone Store:
14 Commercial Street
Guelph, ON N1H 2T7
Phone: 519-821-2120
Loblaw’s:
1 President’s Choice Circle
Brampton, ON L6Y 5S5
Phone:888-495-5111 FREE
Lush Handmade Cosmetics Ltd.:
63 Advance Road
Toronto, ON M8Z 2S6
Phone: 416-538-7360
Cheeky Cosmetics:
Okanagan Valley, BC
[email protected]
L’Oreal Canada
1500 Boulevard Robert-Bourassa #600,
Montréal, QC H3A 3S7
Phone: 514-287-4800
References
The oil of the Cocos nucifera palm, commonly known as coconut oil, has incredible potential to be processed in Nepal for production as an export to Canada and other countries. Although coconut oil is not currently produced in Nepal, the opportunity does present itself.
Cultivation of coconut
Fossil evidence has shown C. nucifera to be an indigenous species of both the Indian and Pacific regions (Gunn et al, 2011). It is a very adaptable plant and can grow in a variety of soil types. An average temperature of 21-27° C, average rainfall of 1,500-2,000mm/year and elevations from sea level to below 1,000 feet provides excellent climate conditions for C.nucifera to grow (UNCTAD, 2012). The palms can reach up to 50-100 feet in height and are usually planted 25 feet in distance from each other. However they can be intercropped with other staple crops and it is recommended to do so for weed protection. The first fruit of the palm usually appears one year after planting and the palm is productive for 50-100 years, one tree yielding between 50-100 coconuts/year. C. nucifera can tolerate a salinity of 0.6%, which is fatal to many other crops (Duke, 1996). The palm however is quite sensitive to an excess of magnesium. No specific fertilizer is needed and liming is not necessary to ensure proper palm growth. Typically, the cheapest fertilizer of the region will suffice (Duke, 1996).This is a major economic benefit.
The productivity of C. nucifera can be affected by pests such as the palm weevil, coconut leaf caterpillars and others (UNCTAD, 2012). However integrated pest management can control the effects of these pests. Viruses and mycoplasmas are matters of greater concern as these can do the most damage to the crops. Strict regulations on plant material exchange between regions have helped to hinder the spread of lethal diseases (UNCTAD, 2012).
Given this information, it is clear to see that C.nucifera can in fact be harvested in Nepal. The sub-tropical climate of the Terai lowlands will provide ideal elevation and precipitation levels for the growth of C. nucifera (AgTrade Nepal). It has been recommended to disk-harrow for weed control at the end of the monsoon season; however, other cheaper weed control methods can be implanted as well. (Duke, 1996).
Uses of coconut
Coconut has a multitude of uses and is one among ten of the most useful trees in the world (Duke, 1996). Juice from the flowers can be boiled into a syrup called coconut molasses or fermented into beer. The coconut husk is also quite versatile and has been used for making rope, rugs, brushes, fire kindling, and more. The ash from the burnt husks can be mixed with topsoil when planning as a replacement for potash as an inexpensive alternative in subsistence agriculture. The shell of the coconut can be used as cups, bowl, and may be burned as fuel for domestic purposes. Two cups of coconut water can be produced by one five-month old coconut. The endosperm, or meat, of the kernel is used to make coconut milk. Virgin coconut oil (VCO) is also processed from this endosperm. After the oil is extracted, the protein-rich endosperm residue can be used as cattle fodder (Duke, 1996).
Coconut Oil Extraction Process
There are multiple ways in which coconut oil can be extracted from the endosperm. Refined coconut oil is processed from the dried endosperm whereas unrefined, or virgin, coconut oil is processed from the fresh meat of the coconut (Babu et al, 2014). Refined coconut is not preferred as it involves chemical use and bleaching which alters the health benefits of coconut oil. It also has a shorter shelf life compared to virgin coconut oil.
Of the multiple methods that can be used to process virgin coconut oil, the aqueous process has proven to be least time consuming and most cost-effective (Hamid et al, 2011). The aqueous process also produces the highest oil yields compared to the number of coconuts used in relation to other possible methods.
Method of the Aqueous Process
The endosperm of mature coconuts are grated and mixed with water to create coconut milk. The milk is then chilled or left to stand to make water and butter separation easier (Hamid et al 2011; FAO). The oil-rich cream is scooped from the top and is boiled. After he oil is extracted, it needs to be dried to “separate the non-oil fraction from the production VCO” (Hamid et al, 2011). This ensures a long shelf life for VCO as any remaining water causes it to go rancid (Bawalan et al, 2006). A cheap way to do this is to “place the extracted oil in a double boiler and heat for about fifteen minutes or until the oil has changed from turbid to water-clear colour. Oil temperature should not exceed 65°C “(Bawalan et al, 2006).
Sensory evaluation tests have found that VCO obtained by the aqueous process is highly superior in colour, aroma, taste, and lauric acid content than VCO that is obtained through a fermentation process (Hamid et al, 2011).
Nutritional Information
As previously mentioned, VCO that is obtained through the wet process method prevents the vitamins, minerals and antioxidants -such as vitamin E and polyphenols- from being lost (Babu et al, 2014). VCO is also rich in medium chain fatty acids which have been shown to speed up the metabolism (Hamid et al, 2011). A randomized trial found that overweight diabetic patients who took three months of medium change fatty acids showed improvements in waist circumference, body weight, and lipid profile (Babu et al, 2014). These results suggests that VCO “may have a role to play in reducing the risk of CVD (cardiovascular disease), thereby aiding in controlling the rising global burden of this noncommunicable disease”, however more research is needed to confirm this (Babu et al, 2014).
In addition to medical benefits, coconut oil has also demonstrated many cosmetic and dermatological benefits. It is the only oil that has been proven to reduce protein loss when used as a pre- and post-wash conditioning product on both damaged and healthy hair (Rele et al, 1998). Its fatty acid content, low molecular weight and straight linear chain allows it to penetrate inside the hair shaft, reducing the water retention index (Rele et al, 1999). VCO is also valuable in cream cosmetic preparations as it possesses skin softening and moisturizing properties (Rohman et al, 2009). Studies have also shown coconut oil to be more effective than mineral oils in preventing the development of eczema and strengthening the weakened skin barrier of atopic dermatitis (AD) patients (Evangelista et al, 2013).
Industry Status
Currently, Indonesia is the world’s leaders in coconut oil production, followed by the Philippines, Malaysia, the Netherlands, and Ghana (OEC, 2013). In 1999, the trade of coconut oil accounted for 6.4% of the trade of edible oil in the international market (Leonard et al, 1999). In 2013, 54% of Nepal’s coconut oil was imported from India and the remaining 46% was imported from Malaysia (OEC, 2013). Coconut oil import accounted for $623K of Nepal’s import value, 0.012% of Nepal’s total of $6.24B. Oils that were exported from Nepal in 2013 were vegetable, rapeseed, and soybean. The export value of these oils collectively accounted for 0.245% of Nepal’s total export value of $894M.
Although coconut oil has grown in importance on the international market, its competitive production rate has remained stagnant in comparison to palm oil (Leonard et al, 1999). The competition within countries that produce coconut oil varies based on the domestic costs of production (OEC, 2013).
However, these figures fail to take into account virgin coconut oil production as it is still a niche market (Chand, 2011). Only 3,000-5,000 tons are produced globally mostly through small scale extractions on a village scale that requires low capital input (Chand, 2011). If production of VCO remains small-scale, strong premiums can continue to be expected for it. Coconut milk production, also made from the fresh endosperm like VCO, is currently preferred on an industrial level (Chand, 2011). However, with the recent global interest in VCO this could change. Better market promotion efforts are few, but needed, if VCO is to be produced on a larger scale.
Social Impacts
There is potential for the production of VCO to engage and integrate multiple facets of society. Coconuts can either be harvested by letting them fall from the tree when ripe, by climbing, or by using a cheap tool such as a long bamboo pole with a knife attached to the end (Duke, 1996). The collection of the coconuts is typically done by the males and the husks are removed with machetes in the field. For now, as VCO continues to be a small- or village-scale production process, it can be done as a private home or village business alongside other normal work routines (Bawalan et al,2006). “A husband and wife team, using home utensils, can process 50 nuts per day to produce three to five litres of VCO”(Bawalan et al, 2006). Besides being a cash crop, coconuts not used for VCO production can also be another domestic resource for the family. On a larger scale, Nepal’s independent production of VCO will also help to reduce the portion of the nation’s import budget that is spent on coconut oil and more resources will be put into developing Nepalese economy.
Potential Importers
As VCO has a multitude of uses, the market potential is quite broad. Organic and health food stores as well as organic cosmetic and skin care suppliers in Canada are all viable customers. Because it is a niche market, socially aware stores and companies with a vision for fair trade and sustainable agriculture will be more interested in making such an investment. Larger chain stores that already carry natural or organic products should not be ignored.
The Stone Store:
14 Commercial Street
Guelph, ON N1H 2T7
Phone: 519-821-2120
Loblaw’s:
1 President’s Choice Circle
Brampton, ON L6Y 5S5
Phone:888-495-5111 FREE
Lush Handmade Cosmetics Ltd.:
63 Advance Road
Toronto, ON M8Z 2S6
Phone: 416-538-7360
Cheeky Cosmetics:
Okanagan Valley, BC
[email protected]
L’Oreal Canada
1500 Boulevard Robert-Bourassa #600,
Montréal, QC H3A 3S7
Phone: 514-287-4800
References
- AgTrade Nepal Canada. “Introduction to Nepal”. Retrieved fromhttp://agtradenepalcan.weebly.com/get-started---learn-about-nepal.html on November 20, 2015.
- Babu AS, Veluswamy SK, Arena R, Guazzi M, Lavie CJ (2014). Virgin Coconut Oil and Its Potential Cardioprotective Effects. Postgraduate Medicine, 126(7):76-83. doi: 10.3810/pgm.2014.11.2835
- Bawalan DD, Chapman KR (2006). Virgin coconut oil: production manual for micro- and village-scale processing. Retrieved from ftp://ftp.fao.org/docrep/fao/009/ag094e/ag094e00.pdf on November 20, 2015.
- Chand, V (2011).Coconut the Crossroads. Indian Journal of Coconuts. Retrieved from http://www.ruraldevelopment.info/Pages/CoconutsAtTheCrossroads.aspx on November 20, 2015.
- Duke, JA (1996). Handbook of Energy Crops, “Cocos nucifera L.” Retrieved from https://www.hort.purdue.edu/newcrop/duke_energy/Cocos_nucifera.html#Harvesting on Nov 20, 2015.
- Evangelista MTP, Abad-Casintahan F, Lopez-Villafuerte L (2013). The effect of topical virgin coconut oil on SCORAD index, transpediermal water loss, and skin capacitance in mild to moderate pediatric atopic dermatitis: a randomized, double-blind, clinical trial. International Journal of Dermatology 53(1): 100-108. doi: 10.1111/ijd.12339.
- Food and Agriculture Organization of the United Nations. Coconut oil extraction: Intermediate moisture content method. Retrieved from http://teca.fao.org/technology/coconut-oil-extraction-intermediate-moisture-content-method on Nov 20, 2015.
- Gunn BF, Baudouin L, Olsen KM (2011). Independent Origins of Cultivated Coconut (Cocos nucifera L.) in the Old World Tropics. PLoS ONE 6(6): e21143. doi:10.1371/journal.pone.0021143
- Hamid MA, Sarmidi MR, Mokhtar TH, Sulaiman WRW, Aziz RA (2011). Innovative Integrated Wet Process for Virgin Coconut Oil Production. Journal of Applied Sciences 11 (13): 2467-2469.doi:10.3923/jas.2011.2467.2469.
- Leonard E., Perkins E.G, Cahn A (1999). Proceedings of the World Conference on Palm and Coconut Oils for the 21st Century: Sources, Processing, Applications, and Competition, pp 20. AOCS Press: Champaign, IL.
- Rele AS, Mohile RB (1998). Effect of mineral oil, sunflower oil, and coconut oil on prevention of hair damage. Journal of cosmetic science 54 (2), 175-192. Society of Cosmetic Chemists: New York, NY.
- Rele AS, Mohile RB (1999). Effect of coconut oil on prevention of hair damage. Part 1. Journal of Cosmetic Science 50, 327-339. Retrieved from http://journal.scconline.org//pdf/cc1999/cc050n06/p00327-p00339.pdf on Nov 20, 2015.
- Rohman, A., Y.B. Che Man, and Sismindari (2009). Quantitative analysis of virgin coconut oil in cream cosmetics preparations using fourier transform infrared (FTIR) spectroscopy. Pakistan Journal of Pharmaceutical Sciences 22 (4): 415.
- The Observatory of Economic Complexity (2013). “What does Nepal export?”, “What does Nepal import”, and “Where does Nepal import Coconut Oil from?” Retrieved from http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/npl/all/show/2013/ on Nov 20, 2015.
- United Nations Conference on Trade and Development (2012). “Infocomm- commodity profile, coconut”. Retrieved from http://www.unctad.info/en/Infocomm/AACP-Products/COMMODITY-PROFILE---Coconut2/ on Nov 20, 2015.