PROSPECTS OF COCONUT WOOD UTILIZATION AND COMMERCIALIZATION

There is substantial evidence to argue that coconut wood utilization and commercialization have considerable potential in the immediate future and in the long term. This scenario is driven by several factors. First, in many countries in Asia, the availability of preferred tropical hardwood has declined dramatically in recent years, especially in areas with high population density. Second, the extensive stands of senile and unproductive coconut trees in the Asia-Pacific region will have to be cut and replaced by high yielding varieties to sustain the coconut industries in these countries which often constitute a pillar of their rural economies. The coconut replanting programmes in all coconut producing countries within the region would certainly release huge volumes of raw materials for utilization. Third, coconut wood processing technologies have been developed, and appropriate machinery and equipment have been developed to enable efficient commercial operation on coconut wood utilization.

From the economic and environmental point of view, it is practical to process and add value to a potentially useful resource rather than see it go to waste and pose a hazard to the environment. From the forest conservation perspective, increased used of coconut wood could potentially reduce the pressure exerted on natural forests by providing alternative or complementary raw material for housing, building construction and other uses. There is also significant prospects for income and employment generation to be derived from increased utilization of coconut wood. This prospect is both socially and economically attractive since more than 80% of coconut landholdings in the Asia-Pacific region are owned by small farm-holders.

The demand for coconut wood for housing is very high in view of the fast growing population in the region. Tourism and the economic boom in the Pacific rim could also provide an increasing demand for coconut wood products in the form of furniture and other novelty items. Since the market is price driven, small but inexpensive and easy to sell cocowood items will find their way in the marketplace not only within the region but in European and North American countries. The environmental concern of most people in the world could create a push for an easily renewable resource like coconut wood. The idea of substituting the cutting of a forest tree with products derived from coconut lumber should fit well into the thinking and feelings of environmentally - friendly people world-wide.
The increasing trend of demand for coconut wood could very well follow the success achieved in the utilization and commercialization of rubberwood and even wood derived from mango trunks. After resolving the technological problems and constraints on raw material supply availability, rubberwood is now the raw material of choice for the Malaysian and Thai furniture industry.

To sustain the utilization and commercialization of coconut wood, it is therefore necessary that the governments and the private sector consider the following:

· ensure adequate raw material supply availability on a continuing and sustained basis;· maintain active research programme to overcome technical problems and expand product lines;
· support the training of potential sawmillers and other users to build confidence in the material and create a critical mass of investors and entrepreneurs in the coconut wood industry; and
· support a private sector led promotional campaign to convince all players in the industry and its potential users and consumers on the versatility of coconut wood.

Table 1 - Asia and Pacific: Coconut Area, 1991-1995 (in 1000 Ha)

Country		1991	1992	1993	1994	1995
A. APCC member Countries		10,071	10,105	10,090	10,272	10,437
	Asia	9,533	9,548	9,529	9,706	9,852
	India	1,514	1,529	1,538	1,635	1,669
	Indonesia	3,573	3,599	3,636	3,681	3,712
	Malaysia	320	315	310	305	290
	Philippines	3,093	3,077	3,075	3,083	3,164
	Sri Lanka	419	419	419	419	419
	Thailand	389	389	336	397	412
	Vietnam	225	220	215	186	186
	Pacific	538	557	561	566	585
	F.S. Micronesia	17	17	17	17	17
	Fiji	56	65	65	65	64
	Papua New Guinea	260	260	260	260	260
	Solomon Islands	59	59	59	59	59
	Vanuatu	96	96	96	96	96
	Western Samoa	36	46	50	55	75
	Palau	14	14	14	14	14
B. Other Countries		111	111	109	109	109
	Asia	63	63	64	64	64
	Bangladesh	31	31	31	31	31
	Myanmar	29	29	30	30	30
	Others	3	3	3	3	3
	Pacific	48	48	45	45	45
	French Polynesia	5	5	5	5	5
	Kiribati	26	27	25	26	25
	Others	17	16	15	15	15
	Total	10,182	10,216	10,199	10,381	10,546

Table 2: Cocowood Resources in Asia and Pacific

Country		Coconut Area: 1995 (in '000 Ha)	Estimated Area with Senile Palms (%)	Estimated Area with Senile Palms (in 000 Ha)	Est. No. of Senile Trees (in '000 Trees)*	Assumed Replanting Cycle (No. of years)	Est. No. of Trees Available per year (up to 2015 or beyond '000 trees)
A. APCC member Countries		10,437		3,691	369,100		9,940
	Asia	9,852		3,438	343,800		8,675
	India	1,669	20	334	33,400	20	167
	Indonesia	3,712	50	1,856	185,600	40	4,640
	Malaysia	290		93	9,300	20**	465
	Philippines	3,164	30	949	94,900	40	2,373
	Sri Lanka	419	15	63	6,300	20	315
	Thailand	412	30	124	12,400	20	620
	Vietnam	186	10	19	1,900	20	95
	Pacific	585		253	25,300		1,265
	F.S. Micronesia	17	60	10	1,000	20	50
	Fiji	64	60	38	3,800	20	190
	Papua New Guinea	260	50	130	13,000	20	650
	Solomon Islands	59	20	12	1,200	20	60
	Vanuatu	96	50	48	4,800	20	240
	Western Samoa	75	16	12	1,200	20	60
	Palau	14	20	3	300	20	15
B. Other Countries		109		22	2,200		110
	Asia	64	20	13	1,300	20	65
	Bangladesh	31
	Myanmar	30
	Others	3
	Pacific	45	20	9	900	20	45
	French Polynesia	5
	Kiribati	25
	Others	15
	Total	10,546		3,713	371,300		10,050

*Estimated at 100 tress per hectare
** Malaysia's current policy will not involve replanting but coconut area is on a decreasing trend and to be maintained at approx. 285,000 hectare-level/n the year 2000
Source: APCC Statistical Yearbook 1995.
APCC Coconut Industry Country Studies.
Personal Communications from country experts.

Table 3: Comparative physical properties of cocowood and some conventional wood

	Cocowood (Cocos Nucifera)			Apitong (Dipterocarpus grandiflorus)	White Lauan (Pentacme concorta)	Tanguile (Shorea polysperma)
Properties	Dermal	Sub-Dermal	Core
Moisture content (%)	87	182	356	83	85	88
Basic Density (kg/m3)	697	473	286	619	441	466
Shrinkage (Green to Oven-dry)
Radial	6.3	5.9	5.6	6.8	3.7	4.1
Tangential	6.6	6.1	5.8	12.7	7.5	7.7

 Table 4: Mechanical and related properties of cocowood

		Static Bending			Compression Parallel To Grain		Compression Perpendicular To Grain
Basic Density (Kg/A3)	Moisture Content (%)	Modulus Of Elasticity (MPa)	Modulus Of Rupture (MPa)	Stress At Proportional Limit (MPa)	Modulus Of Elasticity (MPa)	Maximum Crushing Strength (MPa)	Stress At Proportional Limit (MPa)	Impact Bending (N)
600 and above	57	10,857	86	51.6	7,988	49	8.3	20.2
	12	11,414	104	61.7	9,747	57	9.0	20.1
	107	6,880	53	30.4	5,151	31	2.8	18.3
400 to 599
	12	7,116	63	38.4	5,282	38	3.4	10.1
	240	3,100	26	13.1	2,287	15	1.3	8.4
250 to 399
	12	3,633	33	15.4	2,914	19	1.7	9.0

Sources FAO, Assessed on 21 February 2016

ECONOMICS OF COCONUT WOOD UTILIZATION

Coconut wood has proven to be comparable to conventional wood in terms of durability, sturdiness, and versatility often at a considerably lower cost. The use of cocowood as a substitute material for building construction could bring down the cost of housing units. This is because its cost is half or a little more than half the price of conventional wood. 

The key to profitability in the utilization of coconut wood, given availability of raw material supply and product demand, is the mechanical conversion of coconut logs into lumber. The mechanical methods of primary conversion of coconut logs into lumber are the chainsaw, the mounted portable and stationary sawmills. The preference of using chainsaw over mounted portable or stationary sawmills is its low investment cost and complete portability by a single operator. Mounted portable sawmills, although could be operated near the raw material source, require a number of personnel. The use of stationary sawmills or portable ones, although efficient in terms of lumber recovery, is as yet very limited because of prohibitive initial investment in putting them up coupled with the perceived irregularity of raw material supply availability which may delay the recovery of investment and the desired profit.

Coconut Lumber Production 
It should be emphasized that an essential pre-requisite for the establishment of a coconut wood industry is an assurance of an adequate supply of over mature or otherwise disposable stems of known volume. A precise estimate of the availability of the raw material must be made if industrial investment is contemplated.

Coconut lumber production among smallholders' is usually done by chainsaw. In the Philippines where a significant number of cocowood lumber producers and sellers are operating on a small scale, coconut lumber is usually produced by a team who cut the coconut trees and saw the logs by the use of chainsaw. These operators either sell the lumber to a lumber yard owner or sell them directly to big buyers. The cost of coconut lumber manufacturing by chainsaw per crew per day at material source is broken down as follows (case study based in the Philippines):

Cost Components		Per Cent Distribution
1. Raw Material Cost of Coconut Trunk		54%
2. Hired Labour:
	- One Chainsaw Operator	17%
	- Two Helpers	9%
3. Full/Lubricant
	a. 8 litres gasoline	4%
	b. 3 litres oil	8%
4. Equipment Depreciation
	-chainsaw	2%
5. Replacement/Maintenance of Chainsaw Parts		6 %
		100%

Assumptions:

· No of trunks processed	= 5 logs per day
· Gross volume	= 4.5 cu.m
· Average Diameter	= 22 cm
· Lumber Recovery Per Log	=.30 cu.m
· Chainsaw Unit owned by chainsaw operator
· Excludes transportation cost as distance of plantation to lumber yard varies

A Chainsaw-Table Saw Coconut Lumber Manufacturing System and Preservative Treatment by Soaking Method exists for which the technology has been commercialized since 1988 (developed in the Philippines). It has been proven to be economically feasible with an ROI of 32%.

Experience shows that sawmilling is the most difficult aspect in the processing of coconut stems. Sawing of coconut trunks is more efficiently done by portable sawmills. As in the case of Tonga, the Philippines and other countries, where adequate supply of senile trees are available for cutting and where the market can absorb the lumber produced, portable sawmills with an output capacity of 1.6 cu.m per day (5 hours per day) are being deployed. These sawmills are specifically designed to coconut wood. Power unit can be either a stationary motor or a tractor. The latter is much preferred as it increases the portability of the sawmill. Tractor driven sawmill requires only 3 operators to do both harvesting and milling. The two operations can be programmed so that one activity can be done in a certain day(s) of the week. In this way all labour, harvesting and milling facilities are fully utilized throughout the year. The system requires only a standard tractor fitted with lifting forks; one chainsaw, and a one piece portable sawmill fitted with a single detachable axle.

In isolated districts where senile palms are abundant but the hauling distance is becoming too far to the stationary sawmill and or the market place, portable sawmills with an output capacity of 3-4 cu.m per day can be deployed to support the central stationary sawmill. Once again the choice of power unit is optional. The type that is used in Tonga comes in 3 pieces; the power unit is optional. The type that is used in Tonga comes in pieces; the power unit with its own set of wheels; the breakdown saw and a separate breast bench. Both saws are attached to the power unit with shafts. Only 5 labourers are required to operate the sawmill.

Source FAO, Assessed 21 February 2016

USES OF COCONUT WOOD AND MARKETS

Use in Construction
One of primary uses of coconut timber is for building construction. Coconut timber is suitable for housing components like trusses, purlins, walls, joists, doors, window frames and jalousies. Low density coconut wood materials (from the centre of the stem) should be used only in non-load structures like walls and panels while high density coconut wood (from the perimeter of the stem) can be used for load-bearing structures like trusses and joints. Table 6 could serve as a guide for prospective users of coconut timber for building construction. Table 7 lists the different coconut timber derived products and the recommended characteristics of raw materials to use.

The small diameter of coconut stem limits the size of sawn lumber, hence the optimum width and thickness of boards that are usually recovered are 25mm and 50mm, respectively. For structures requiring bigger sizes of lumber, glued lamination of the wood to the desired dimensions solves this particular problem.

High density coconut wood could also be used as posts, power and telecommunication poles, trusses, floor tiles (parquet), girts, floor joists, purlins, balustrades and railings and other load bearing structures. When coconut logs are to be used in ground contact under exposed conditions (e.g. as posts or as poles for electrical wires) they must be properly treated.

Medium density boards can be effectively used for walling, horizontal studs, ceiling joists and door/window frames. As a rule, coconut wood with density below 400 kg/m³ should not be used as structural framing materials. However, they can be used in the internal parts of a building as ceiling and wall lining in the form of boards and shingles. A problem related to structural application of cocowood is the difficulty of nailing and subsequently splitting of high density wood finishes.

Use in Furniture in High Value Products 
Coconut wood can be a promising material for the manufacture of furniture, novelties and other handicrafts due to its beautiful grain and attractive natural appearance. High value coconut wood products which include furniture, decorative interior walls, parquet floors, various novelties and curio items like walking sticks, ash trays, hammer handles, egg cups, plates, bowls, vases, etc. are equally, if not more than, comparable to the traditional wood species commonly used in the furniture industry as far as appearance is concerned. Hence, with effective product promotion, quality furniture and other high value coconut wood products can have a potential share not only in the domestic but also in the world markets.

Coconut wood has potential for the manufacture of high value and export-quality finished products. However, like many other conventional wood species untreated freshly-cut lumber can be easily attacked by mould and staining fungi especially if the material is not properly stacked and is exposed to humid environment during the air drying process. Further degradation during air drying can also be caused by decay fungi and pinhole borers. Hence, prophylactic treatment is necessary if it is used for the production of high value products for export.
Checks and cracks develop on the surface of improperly dried coconut wood or in response to variation of relative humidity; hence kiln drying should be done to bring its moisture content to the level most appropriate for equilibrium with its location in service.

Charcoal 
Coconut trunk and other sawmill residues are readily usable for charcoal making and for the production of energy. Coconut wood is similar to other woods in its characteristics as fuel, although the range of densities within the stem leads to variation in the energy potential.
Studies using the 2-cord double walled masonry block kiln showed the production of good quality charcoal for domestic use at an average yield of 25 % based on the oven-dry weight. Charcoal and charcoal briquettes have higher heating value. They are easily handled and produce less smoke compared to wood.

For fuel purposes, coconut trunk charcoal must be converted into briquettes to increase its strength and density as well as to improve its shipping properties. A technology for briquetting coconut trunk charcoal has already been developed. A briquetting plant in the Philippines produces ovoid type briquettes of 1.5 oz size at 500 lb/hr. The briquettes have good crushing strength and burning properties. Sorghum grain is an effective binder for charcoal briquettes of coconut trunk.

Chemicals 
Activated carbon can also be made from coconut trunk charcoal. The product can be a reliable source of carbon for the manufacture of various chemicals such as carbon disulphide, calcium carbide, silicon carbide, carbon monoxide, paint pigments, pharmaceuticals, moulding resins, black powder, electrodes, catalyst reactor, brake linings, and gas cylinder absorbent. Ethanol can also be produced from coconut waste products.

Market Profile 
The construction industry provides the bulk of the demand for coconut lumber. In the construction of big buildings, coconut lumber is used in large volumes as scaffolding and as form lumber. Selected and graded coconut lumber is also used as house posts, girders, trusses, door jambs and sidings. It has also been proven to be a suitable material for pallets. In the Philippines, a significant volume of coconut lumber was used in the government's low cost housing programme, as well as in other government buildings and various resorts throughout the country. This involves some 1.0 to 2.0 million cubic meter of coconut lumber annually.

Field observations could indicate that demand for coconut lumber is increasing. One indicator is the increase in the number of coconut lumber producers and dealers. Another indicator of rising demand in the increasing price trend of coconut trees. Ten years ago in the Philippines, coconut trees could be had for free. In 1995, one trunk was priced as high as P800 (US$29.00) depending on accessibility or nearness to highway or buying/processing centre and the quality of the trunks. The usual buying price in the Philippines could be pegged at a national average of P500 per trunk (US$15.00) with the buyer doing the logging operation, handling and transport. In Fiji, coconut logs of 8ft × 8" diameter are bought on the farm at US$6.00 each.

When compared to the local mainstream lumber species, coconut wood has a remarkably lower price. Philippine data reveal that the commercial hard wood apitong (Dipterocarpus grandiflorus) would cost P 38.00 (US$1.38) per board foot (bd. ft.) as compared to P800 (US$0.29) per bd. ft for coconut lumber. Tanguile (Shorea polysperma), a common commercial wood of lesser basic density as apitong is still comparatively much higher in price than cocowood, at P 26.00 (US$0.95) per bd. ft.

Demand
The actual and potential demand for coconut wood could be derived from actual and projected needs for housing, the construction of big high-rise buildings, electrical and telecommunication poles, poultry and other livestock buildings, grocery pallets, and demand for house/office furniture, novelty items and curious for both the domestic and export markets within and outside the Asia-Pacific region.

Table 11 shows the potential demand for coconut lumber based on the housing requirements of 1% and 5% of most of the Asia-Pacific countries, respectively. With an estimated population in coconut growing countries in Asia and the Pacific of about 1.5 billion people and assuming that 1% of the population would need housing facilities, made from coconut wood, some 15 million housing units would then be required, equivalent to demand for some 226 million cubic meters of coconut wood assuming that one housing unit would require at least 15 cubic meters of coconut wood. Some 75 million housing units would be required if one assumes that 5 % of the present population would immediately need coconut-based housing facilities. This requirement would create a demand of some 1.132 billion cubic meters of coconut wood.

It may be noted that even at 1 % level, the demand of coconut wood for housing within the coconut growing countries in the Asia-Pacific region would exceed the supply. Thus, for housing needs alone, cocowood could have a big demand. The demand of coconut wood for other uses, e.g. construction of high rise buildings, furniture, novelties, etc., would have to compete for the demand of the wood for basic housing units.

The demand for coconut lumber in the construction industry is in the form of scaffoldings and form lumber. The construction industry, a vital industry in stimulating economic growth, is currently developing at a fast pace in many centuries in Asia and the Pacific creating an increasing demand for coconut lumber. The growth in tourism in the region and the economic development of the Pacific rim are perceived to contribute to the increasing trend in demand for cocowood novelty items, curious, and similar items. Europe and the North American countries have been observed to have gained a liking for coconut wood furniture and other small and inexpensive novelty items considering its natural sensuous beauty, attractive clear-grained appearance and lasting integrity.

Source FAO Report , Assessed on 21 February 2016