Cocofiber and Cocopeat Production-Production Period

After organizing the warehouse, the defibering machine, the workers and the suppliers of coconut husk comes the task of running the whole line of production. From what we have stockpiled of more than 250 bags of husks, we were now focused on fabricating it into fibers.

From the start, the defibering machine was not working to its fullest output as the adjustments have to be fixed first. Production was running slow at a rate of 10-15 bags of cocofiber per day. The inclement weather sometimes slow down the process as the workers need to adjust the scheduling of the production which starts from 7am to 4pm, with a 1 hour lunch break.

The task is tedious as the workers ( 1 operator, and 2 assistants) have to cope up with the noise, the dust that spews out of the machine, and the hot weather.

After almost a month of production, the workplace was already gaining its productivity level at the standard of 23 bags of cocofiber a day. Cocopeat was also accumulating fast. From my last visit on April 17, I was glad to know that all worked out well with the production.

Currently our stockpile for the cocofiber is around 600 bags (11kgs), and for cocopeat is around 1000 bags of 20 kgs each or 20 MT good enough for 1 x 40ft container. The quality of the cocofiber is high at 95% purity, with impurities around 3% only. The operator has to run the fibers for 2nd time to get the impurities out, and slows the production.

After more than a month of production, I noticed that the sacking of the cocofiber was slow, and we have to hire 2 additional workers. But then it was still not enough, so we have to contract additional labor paid on a per bag basis.

The availability of sacks was also hampering our productivity. And actually it increases the costs of operations. We have to contend with it for now as we are hoping to get a baling machine that will compress the cocofibers into 100 kgs bale for loading at the 40 ft container.

There are also concerns with the production output as the defibering machine can also produce 23 bags a day. Our marketing arm has already been talking to buyers from China asking for 300-1000 MT a month of purchase. We are structuring a deal that if they can give equipments as their equity on the transaction, we would be able to supply them that amount. We are looking at a machine manufactured from Malaysia that can process 1,500 kgs of coconut husk per hour. It will cost a lot of money like buying a new truck. But if it is worth the investment, we have to take it.

The entire process is bearing its fruit as we go along with the system. We do ran into delays like the weather which in the hinterlands has a rainfall that sustains the tropical rainforest surrounding the small valley.

For me the workers, the target production, my staff, the suppliers in the small villages nearby, are my small world. We think of economic theories in the numbers, but what we really look at here are the real people, and real living.

We may have good ideas of how production should work but at this stage of our organization, we can only subscribe to practicalities in running it.

For now, our company is starting a small step that will later on take bigger steps in managing a bigger enterprise and bigger production.

We are hoping that this enterprise will be successful for the future of the small villages surrounding it, the linkages we have outside the community, and the Samar island, for all its history of impoverishment which is actually mismanagement of its man-made and naturally-endowed resources.

Cocofiber and Cocopeat Production

Pre-production Period:

How we started the cocofiber and cocopeat production is a story that needs to be told to those enterpreneuers who value relationships with poor farmers and the families they have to support.

We started our cocofiber and cocopeat production on last week of January 2009. After 3 years of studying and surveying areas to put the production of cocofiber, we have finally decided that the best place to put up an experimental production area is to use existing old defibering machine in Samar Island where coconut trees grow abundantly.

My staff and I went to a small barangay in the hinterlands of Paranas, Samar, to inspect a defibering machine that has not been used for more than 3 years, owned by a multi-purpose cooperative, and badly needed repairs and rehabilitation. We negotiated for a 1 to 2 year contract to have it rented on a monthly basis, and with all costs of the repair and rehabilitation of the entire workplace deducted from the rent.

The defibering or decorticating machine was still working, but needed new battery, motor oil change, rubber belts, and spark plugs. The nipa roof, made of coconut leaves, of the workplace was worn out, and needed replacement.

Everything else was working. We just needed to put a new roof, and the muddy road going inside had to be topped up with rocks so that it does not get messy when we walk through.

The other machine which makes matting was not used because the market is too small for that. We are more involved into production of cocofiber as raw materials for use in the furniture industry, from beds to sofas, and to fiberboards.

After surveying the area, we decided immediately to sign contract for 1 year with extensions, and started to purchase the materials needed to rehabilitate the place. But then the multi-purpose cooperative took it upon themselves to do it and just pay them their cost (including their own coop members ). We did question this motive several times but then I understood that petty corruption in the cooperative is a way of life. How else will they keep moving if they do not earn what they needed for everyday living.

So the defibering machine was fixed, and after few days it was already up and running with minor delays.

Now we turned to our suppliers of coconut husk. We also surveyed the area where the multi-purpose cooperative was located. It is situated in a highly-dense coconut growing area. The main source of income the families are actually coconut- from copra to coco shell, and coco wine.

When we sent out fliers that we were buying coconut husk in sacks, a lot of families in the barangay responded with fervor. They wanted to sell the husks which was actually waste and used for smoking the coconut meat to turn into copra. But a lot of it are just waste. Here comes a company who will add an income for the family from their coconut trees. The selling was a frenzy. We organized a buying station where the farmers would sell their coconut husk along the road. Our staff would come to check the sacks full of husks, pay and load it, and deliver to our warehouse situated a block away from the cooperative.

We did have some initial difficulty in getting our pricing right. First we bought the husks at a higher price, and the quality low. After one load of around 250 sacks, I noticed that some of the husks were of low quality - rotten and full of mud. So the second time we picked up the sacks, we have to unload them first to check it, and then select the high quality husks. Our truck was always fully stacked up. I then noticed that we were running out of sacks as the farmers were asking for sacks themselves. I changed the system of buying after knowing that the sacks were expensive and runs out almost everyday at the market.

Our warehouse was stacked with more than 250 sacks of coconut husks in just 3 days of buying. It eventually went up to more than 500 sacks before we implemented the direct hauling and dumping system using only sacks that the families have provided for their stockpiling. As the defibering machine was running regularly, it became unnecessary to stockpile the coconut husks at the warehouse and instead we directly dump the collected coconut husks direct at the factory yard for processing into cocofibers.

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