GROWING THE COCONUT BUSINESS
IMMEDIATE MONEY IN EDIBLE COOKING OIL
It’s time we transform the copra production from a plantation-level exercise, tap into more of the diverse uses of coconuts, and turn Fijian coconut growing into the full-fledged industry it’s capable of becoming.
These were the words of the Prime Minister Voreqe Bainimarama during the commissioning of the new edible oil mill and the launch of a coconut cooking oil product on Thursday in Savusavu.
Health
The first step is achieving the commercial scale we need to be competitive, Mr Bainimarama added.
“Our people’s health will certainly benefit from the addition of healthy fats, like coconut oil, rather than highly processed oils and other foods.”
He said he wanted Fiji Coconut Millers Limited, and farmers there to think even bigger about the possibilities for this new product, and the potential of their new brand.
“As I speak, a great many Aussies are stuck at home, staring at old photos of their holidays to Fiji, dreaming of the day they can return to a Fijian beach toting a cold glass of bu.
“But Australians, Kiwis, Americans and other visitors shouldn’t have to spend hours in the air just to get a taste of Fiji, or Fijian coconuts; they should have that option at home in their kitchen pantries.
“And down the track we must get ambitious about launching new products –– such as coconut water –– which nations like Thailand and Indonesia are shipping around the world.
Strategic positioning
“We must position Fiji’s Coconut Industry to capture that massive market potential.” He reminded stakeholders there’s no doubt we’re living through a period of great uncertainty as COVID-19 continues to ravage countries around the world.
“While Fiji’s decisive actions spared us any loss of life from the virus, major sectors like tourism have taken a massive hit, and global supply chains have suffered from restrictions and falling consumer spending.
“But history has taught us that new companies –– and even entire industries –– often rise from the ashes of economic crises to seize on emerging opportunities.
“So, through the difficult months ahead, we should not be deterred from our vision for this Industry.
“Our farmers should keep planting palms, the board of Fiji Coconut Millers must keep innovating, and we must continue building this new brand by producing high quality products for the local market, and markets far beyond our shores.
He also noted that copra production in Fiji has been on the decline for some time.
“As cyclones have devastated plantations, pests and disease have claimed crops, international competition has stepped up and pricing has proved volatile, copra growers were faced with uncertain prospects.
“That’s why –– over the past few years –– my Government has steadily supported our farmers with a subsidised minimum price of $1,000 per ton, irrespective of the world market price.
“We also pay farmers $20 per new palm planted, in order to support the large-scale growing necessary to keep this brand price competitive in Fiji and overseas.”
Meanwhile, he said the new production facility would grant us a glimpse of the future of Fijian copra growing.
“Instead of supplying copra to this factory, farmers can provide whole coconuts, cutting their production costs.
“These coconuts will be hygienically de-husked, de-shelled and refined to produce highquality, chemical-free cooking oil.”
Mr Bainimarama said this new product, welcomed a 386,000- investment into its production –– a quarter million of which is supplied directly by Government.
Fiji Coconut Millers PTE Limited
Raj Sharma the chairman of the Fiji Coconut Millers PTE Limited is committed to enhance the industry during this difficult times.
Mr Raj noted with Tropical Cyclone Winston in 2016, it had a massive impact on Fiji and the coconut industry was no exception.
“Others likes of rice, cash crop and even sugar cane can pick within two years but coconut needs time and even time to replace with new plants to around six- seven years.
“We are committed and passionate in rebuilding the major initiatives and programmes and more so focused to naturally process edible oil.
“The statistics of 17,000 mt Vegetable oil is imported which equates to $20 million in local market.
“Total we produce around $3m sales but crude oil of which we get 20 per cent local share which is $0.600m against local import $20m.
“Next three years we are looking at to take least five- 10 per cent of the market as additional. “We seriously looking at inner focused of this sales with Coconut Cooking oil to replace others – Fiji’s coconut is regarded as finest oil.
“We also have livestock meal which is provided to dairy.”
Product development
Product development and diversification is also a key area of focus which the company is fully aware of, he says.
“The company has identified Edible Oil/Coconut Cooking Oil as the successor for Virgin Coconut Oil.
“Edible coconut oil is in high demand and with better price offers.
“The Company has taken steps into Food Grade Coconut Oil production.
“The machines are fully installed and operational and we shall witness the commissioning by Prime Minister.
‘’The stats of 17M mt oil imported which equates to $30m local market.
“Total that we produce around $3million sales but crude oil. We seriously looking at inner focused of this sales with Coconut Oil to replace others – Fiji’s coconut is regarded as finest oil.”
Fiji Coconut Oil Testing
Certificate of Analysis done at Australian Laboratory Services (ALS Lab)
The Oil quality meets the International Coconut Community Standards and is very close to Virgin Coconut Oil quality specifications.