The Philippine Center for Post-harvest Development and Mechanization (PhilMech) turned over yesterday the first shared processing facility (SPF) for coconut to a farmers’ group in Placer, Surigao del Norte.
PhilMech said in a statement the P5.17-million facility was funded by the SPF component of the Coconut Farmers and Industry Development Plan.
The beneficiary is the Mabini United Farmers Cooperative which has 127 members. The SPF was established on land owned by the cooperative.
Due to the large demand for geonet and coco peat, internal rate of return of the facility is pegged at 171.74 percent. It is expected to generate a return of P10.30 for every peso investment with a payback period of 0.61 year or less than a year.
PhilMech said the relatively short payback period suggests the project can generate sufficient cash flows to cover its initial investment within a reasonable timeframe.
Dionisio Alvindia, PhilMech director, said once production commences, the facility will reduce the volume of coconut husks that are mostly discarded as farm waste or used to produce charcoal. The facility will require 5,000 coconut husks per production run.
The agency said coconut husk will be purchased at P0.50 each from coconut farmers as input.
