The Philippine Center for Postharvest Development and Mechanization (PhilMech) on Wednesday turned over a coconut processing facility to a coconut farmers’ group in Placer, Surigao del Norte.
The PhilMech said the P5.17 million unit was funded by the SPF component of the Coconut Farmers and Industry Development Plan (CFIDP) and turned over to the Mabini United Farmers Cooperative in the locality.
Due to the large demand for geonets and coco peat, organic products used in hydroponics and seed sowing activities, the internal rate of return of the unit is pegged at 171.74 percent.
The project, established on land owned by 127 members, is also expected to generate a return of P10.30 for each peso invested within a payback period of 0.61 or less than a year.
PhilMech said the short payback period suggests the project generates sufficient cash flow to cover the initial investment within a reasonable timeframe.
Dionisio Alvindia, PhilMech director, said once production starts, the facility will reduce the volume of coconut husks generally discarded as farm waste. The facility processes 5,000 coconut husks per production run.
The agency said coconut husks, usually thrown away as waste or used to produce charcoal, are bought for P0.50 from coconut farmers as input to the SPF.
