Business Opportunities: Virgin Coconut Oil (VCO)

VCO into agribusiness products are more popular because of the potent believed to cure various diseases. Demand continues to increase, and the export market is still wide open. However, the standard of quality still a problem.

VCO or virgin coconut oil on the rise in Indonesia. In place of social gathering, at work, while hanging out with friends, hanging out until the event via Internet mailing lists also make the VCO as the talks that warm. The ads are also quite a lot of products adorn the media lately.

VCO is actually a kind of coconut oil. The difference is, if the common coconut oil on the market are made from copra (dried coconut), VCO is made from fresh coconut meat that is processed without chemicals. The manufacturing process is not through bleaching, filtering, or heating incredible natural benefits that can wash away the oil. So he spelled out as pure coconut oil.

Well, because the VCO busy talking nutritious for our bodies. This clear coconut oil contains lauric acid much, as much as 25% -45%. The existence of the main substances that are also contained in mother’s milk is what makes the VCO crowded touted as the exterminator of various diseases. Call it chicken pox, herpes, hepatitis and even HIV / AIDS; also help relieve cancer.

VCO also contains no cholesterol; even mentioned also can reduce the blockage of blood vessels, reducing excess weight, boost the immune system, and prevent premature aging. Some believe, take a teaspoon of VCO per day can make your skin and shining hair.

Along with the rise of various news about the greatness of VCO, the demand for palm oil is increasing also efficacious, but are quite expensive. Currently in Jakarta VCO price of between Rp 100,000 to Rp 300,000 per liter, while the export market for around U.S. $ 10 – U.S. $ 12 per liter. Not to mention if foreign producers and then package the VCO into medicine. “The price could be U.S. $ 18 per 16 ml (U.S. $ 1,125 per liter),” said Ridwan, owner Indokarta Lamas, VCO producer in Jakarta.

Unfortunately, there are no quality standards

If you do not want just to be a consumer, let alone make this VCO. There are three ways to separate the oil from coconut milk. First, the coconut juice is heated. Second, with the help of an enzyme or fermented with the use of VCO as a “starter” at low temperatures. Third, combining the two methods.

To open a business making the VCO with the enzyme method, it takes a huge capital, about USD 15 billion. Most of the capital ran out to buy various kinds of machinery and equipment.

But, the business scale is relatively small home-based capital could produce virgin coconut oil is through the method of heating or fermentation. At least you only need a coconut grater machine that cost about $ 1 million. Even if do not have the capital to buy the Sieve engine oil, your business still can walk. “Provide money to buy coconut only,” said Frans, VCO businessman in Jakarta.

Frans own, with simple equipment, claim to produce 20 liters of VCO per month. As for Maria Susana Hartanti, owner of PT Griwangi, actually produces the VCO without grater machine. “I worked on fission, pemarutan, and extortion of coconut without the machine, so the results can be better,” said producers who sell 100 liters of VCO per month. In fact, Ridwan, capable of producing 40 000 -50 000 liters per month VCO with labor-intensive system without a machine alias.

They admitted to not so difficult to market the VCO derivatives. Frank, for example, to market it to relatives or acquaintances, also through the mailing lists. So it is with Maria who peddle its oil via the Internet.

About the business of making profit from this VCO, let us try to count. To produce 1 liter of VCO is usually required at least 10 grains of fresh coconuts. When an oil price of Rp 4,000, the total cost of raw materials coconut Rp 40,000. Other costs that must be paid include fuel, labor, packaging, and delivery; a calculated count fall of less than Rp 20,000 per liter. Plus the cost of raw materials oil, the total production cost at least Rp 60,000 per liter. If the selling price is around Rp 100,000 per liter, meaning that its net margin of more than 40%.

How bikinnya simple, lucrative profit projections. But, remember, even though demand is increasing, but overall VCO have not really known by our society. Market had until recently been limited. The number of Indonesian people are so generous to buy palm oil for Rp 100,000 per liter certainly not much. Apart from a limited local market potential, lately the number of players continues to grow.

One more, according to a player, is actually present in the local market a lot of outstanding quality standard VCO is not clear. The content of lauric acid is also far below international standards; 25%. “VCO become a magic name which so easily claimed a lot of people. We also do not have a body that regulates standards of quality VCO,” said the source. In fact, if its lauric acid content below 25%, the VCO is not efficacious. In turn, if this condition is not addressed, people will begin to be disappointed and doubting the efficacy of the VCO, so that the selling price will fall.

The export market is still gaping

However, it does not mean the business prospects of the sunset, neither the VCO was already submerged. There is a niche market that is still wide open, ie, export markets, especially markets of Malaysia, Singapore, Taiwan, Japan and other Asian countries.

But, to penetrate the export market you can not rely on traditional methods of shooting more local buyers market. Therefore, these foreign buyers want products with strict quality standards. One of them, lauric acid content of at least 25%.

Well, to produce a VCO that meet export standards, we need a sizable capital. This is done Jake Dhama Limbang, one of the founders of PT Miracle Virgin Oil, which is located in Sei Itik, Pontianak. VCO-producing enzyme that uses this method to cost Rp 15 billion to buy German-made machine enzyme reactors and various other equipment. With engine capacity of 90,000 coconuts per day, Jaka believes its investment will return in 5-7 years.

Thanks to sophisticated machine that serves grating, squeezing, and mixing the enzyme with this computer system, Miracle Virgin Oil had no trouble throwing their products abroad at a price of U.S. $ 10 – U.S. $ 12 per liter. Miracle is currently exporting its products to Japan and Singapore. “With the sophisticated tools that our VCO quality standards, and we already have business contacts with Japanese businessmen,” said Jaka.

In addition to capital and production standards compliance, there are other factors that most determine the success or failure of efforts VCO: the availability and price stability of raw materials. As usual, anything that more and more sought’d shot up the price. No exception with fresh coconut. Currently the price of fresh palm-old is ready to harvest (approximately 2.5 months) have started creeping up. Call in Yogyakarta, which again hit VCO season, freshly picked coconut prices have gone up from Rp 2,000 to Rp 4,000 per item.

So, before opening this business, you should make sure you open a business in the center of Palm or in a location that many coconut populations. “The point is not far from the plantation site, so fresh coconuts,” said Jaka Dhama, who see in Jambi as one of the suitable locations to open a business VCO. Also, when produced in this region, you can reduce the cost of transportation.
Well, you’re interested in trying out business virgin oil from palm fruit juice this?