Introduction

Coconut oil is the oil extracted from the edible, fleshy “meat” of a coconut, which is actually the “kernel”
of the coconut. This oil is extracted through a variety of methods, which is why you’ll find different types
of coconut oil available for purchase, including refined and unrefined.

A. Product

Coconut oil, also known as coconut butter, is a vegetable oil extracted from copra (the dried inner flesh of
coconuts) with many applications. Coconut oil constitutes seven percent of the total export income of
the Philippines, the world's largest exporter of the product. Coconut oil is a fat consisting of about
90% saturated fat. The oil contains predominantly triglycerides with 86.5% saturated fatty acids, 5.8%
monounsaturated fatty acids, and 1.8% polyunsaturated fatty acids. Of the saturated fatty acids, coconut
oil is primarily 44.6% lauric acid, 16.8% myristic acid and 8.2% palmitic acid, although it contains seven
different saturated fatty acids in total. Its only monounsaturated fatty acid is oleic acid while its only
polyunsaturated fatty acid is linoleic acid.

Unrefined coconut oil melts at 20-25 °C and smokes at 170 °C (350 °F)., while refined coconut oil has a
higher smoke point of 232 °C (450 °F).

Coconut oil has a long shelf life compared to other oils, lasting up to two years due to its resilience to
high temperatures. Coconut oil is best stored in solid form - i.e. at temperatures lower than 24.5 °C (76°F)
in order to extend shelf life. However, unlike most oils, coconut oil will not be damaged by warmer
temperature

Despite its high saturated fat content, coconut oil is commonly used in baked goods, pastries, and sautés,
having a "haunting, nutty", flavor with a touch of sweetness.[57] Used by movie theatre chains to pop
popcorn, coconut oil adds considerable saturated fat and calories to the snackfood while enhancing flavor,
possibly a factor increasing further consumption of high-calorie snackfoods, energy balance, and weight
gain. In hair, Coconut oil has been used for hair grooming. In industry, Coconut oil has been tested for
use as a feedstock for biodiesel to use as a diesel engine fuel. In this manner, it can be applied to power
generators and transport using diesel engines. Biodiesel fuel derived from coconut oil is currently used as
a fuel for transport in the Philippines. Acids derived from coconut oil can be used as herbicides. Coconut
oil is an important base ingredient for the manufacture of soap.

B. Manufacturing Process

Dry processing requires that the meat be extracted from the shell and dried using fire, sunlight, or kilns to
create copra. The copra is pressed or dissolved with solvents, producing the coconut oil and a high-
protein, high-fiber mash. The mash is of poor quality for human consumption and is instead fed to
ruminants; there is no process to extract protein from the mash.

C. Plant Size and Production Schedule

The daily production capacity of the plant is 6300 kg and 1971.9 tons per year. The project operation per
year is 313 days. In determining the plant size, the factor considered is the amount of the product
produced per day. The expected attainable annual production volume for the next five (5) years
considering start-up and technical factors is 9859.9 tons.

D. Machinery Layout

The dimension of oil expeller machine is 2900 mm X 960 mm X 2150 mm and 1054 mm x972 mm x
1117 mm for hammer mill. These machines can be ordered to Gobind Oil Expeller Company with their
famous motto, “Virtue in everything we do”.

E. Plant Location

The plant is located in the municipality of Sapian in province of Capiz. The location is very desirable in
terms of distance to source of raw materials and markets since Sapian is one of the highest producers of
Copra in Capiz Market and only kilometers aways from the City.

F. Plant Layout

Lay out chart has great effect in the materials flow. It helps the constructor to know where to install the
right equipment in the right locations. When it comes to troubleshooting, workers can easily locate the
problem and repair it therefore consuming lesser time. Provision for Expansion is a future preparation if
the plant has been decided to go bigger or have some development. It includes installation of another
equipment or machine and another facility to be used by the workers.

G. Structure

Construction is the process of constructing a building or infrastructure. Construction starts with planning,

design, and financing; it continues until the project is built and ready for use. T he buildings should be
constructed are production site building, manufacturing office and warehouse. Having a nice looking
plant should also be considered since it will attract buyers and also investors.

H. Raw Materials

Coconut copra was subjected to aqueous and solvent extractions (using n-hexane). Additionally, oil was
extracted from the copra in Soxhlet assembly using petroleum ether (b.p. 60–80°C). Physicochemical and
phytochemical analyses were conducted for the extracts and the oil, with commercial coconut oil as the
experimental control. The physicochemical analyses showed that the aqueous extract of copra was milky-
white in color with a sweet odor, while the solvent extract was pale yellow and odorless. The commercial
oil had 0.08 ± 0.02% oleic acid and a TOTOX value of 7.73 ± 0.78, lower than the Soxhlet extracted oil.
Among all the extracts and oils, best phytochemical properties, antioxidant activity (DPPH activity,
IC50 value 0.04 ± 0.01 mg/mL), total phenol (0.96 ± 0.04 mg gallic acid eq./g dry copra), reducing power
(40.49 ± 1.84 mg BHT eq./g dry copra), and anti-inflammatory activity (NO activity, IC50  value 0.77 ±
0.06 mg/mL) were obtained in the commercial coconut oil, followed by the Soxhlet extracted oil, aqueous
extract, and solvent extract. Fatty acid composition analyses showed mainly medium chain fatty acids in
the copra oil with lauric acid as the predominant fatty acid (51.88% and 44.84% in Soxhlet extracted and
commercial oils)

CURRENT SOURCE

Capiz Small Coconut Farmers Marketing Cooperative

I. Utilities

The coconut oil milling industry, which started during over a century ago, is still active and exporting to
other countries. This industry seems to have a huge potential for profit in both the local and global setting.
Producing millions of metric tons of coconut oil, the Philippines is the top exporter of coconut oil; hence,
the firms producing them are highly profitable.

The coconut industry is the biggest agricultural industry. Based on 2002 Census from the Department of
Agriculture, the industry compromises roughly 1.4 million or at least 30% of the total farms in the
Philippines. The production of coconut oil heavily rests on the coconut grown by the millions of farmers.
The land that grows coconuts is totaled to be roughly 3.32 million ha which surprisingly is even bigger
than the land used to produce rice (Dy, 2006). There are 65 coconut oil mills which have the capacity to
crush 4.54 million tons of coconut a year (Dy, 2006).

Figure Coconut Oil ProductionThe Philippines, Indonesia, and India are the leading exporters of coconut
oil in the Asia Pacific. They account for more 75% of the total production of coconut oil in the world
(Smith & Nyugen, 2009). It is estimated that the Philippines alone produces around 13 billion coconuts
which is refined to oil (Dhanuraj, 2004). In 2011, the production of coconut oil in the Philippines was
estimated to be roughly 1.7 million metric tons (Index Mundi, 2011). In the past five years, more and
more coconut oil is being produced due to the efficiency of equipment and cultivation of land.

The continuous trend in production of coconut oil is an indication of how stable the industry is. The fact
that the industry can manufacture almost the same amount of coconut oil per year would show us how
stable the industry is.

According to the research done Roland Dy, Ph.D, the coconut oil industry is important to the economy of
the Philippines. First, coconut farms are located in 68 out of the 79 provinces of the Philippines. Second,
30% of the total farmlands in the Philipines are coconut farms. Third, coconuts contribute half of the
agricultural exports. Fourth, coconut farming lands have the largest potential of diversification. Fifth, it is
a huge untapped resource pool for industry development (Dy, 2006).

Not only has coconut oil been sold abroad as exports, but it also used as cooking oil. Coconut oil is also
used in homes (Isip, 2012). A significant percentage of the market uses coconut oil. It is not only used by
homes but also by biscuit industries.

J. Waste Disposal

There will be no waste disposal since the only raw material needed is the copra which the designers buy
to the market. All the products being produced are being sold to the market including the copra cake
which is used in poultry, the crude oil and the cooking oil.