Integrated Coconut Processing FULL PDF

Integrated Coconut Processing
by
Djhoanna S. Bautista
Lorie Jane L. Dadural
Mary Ann S. Demition
Mary Ariane S. De Dios
Mary Ann E. Ferrer
Maria Rica A. Fiesta
Catherine N. Firmase
Rodel P. Marcelo
A Feasibility Study Submitted to the School

of Chemical Engineering and Chemistry
in Partial Fulfillment of the Requirements for the Degree
B.S. Chemical Engineering

(CHHK 583D A41)
Mapúa Institute of Technology

June 2005
Acknowledgement
The completion of the study had not been easy. It had rough roads and it was a product of
hard work and motivation. The great success of this study would have not been possible if
not for the all the people who helped and influenced us. The group would like to take this
opportunity to thank all those people who assisted and inspired us during this undertaking.
To our beloved course adviser Engr. Winston B. Flora, who challenged us to

undertake this very rigorous study and yet was always there for us to share his knowledge
and guidance that led to the accomplishment of this report.
To our dear adviser Engr. Jane Pulido for inspiration, guidance and whole hearted
support and acceptance, but especially for having faith in us. Words would not suffice our
gratitude for all the help and time you’ve voluntarily extended to us and for being the best
“adviser” a group can ever find. Sincerely, thank you Maam!
To our fellow groupmates:

Djhoanna S. Bautista
Lorie Jane L. Dadural
Mary Ann S. Demition
Mary Ariane S. De Dios
Mary Ann E. Ferrer
Maria Rica A. Fiesta
Rodel P. Marcelo
For being the best groupmates, one can ever ask and hope for. For always complying
with the deadlines set and for being understanding and supportive of each other’s tasks. The
great deal of success on this study can only be attributed to the people who paved the road
painstakingly towards it.
To Maricon Laurio, our 9th group member! Thanks for providing venue for our
overnight projects and welcoming us to your warm home, for providing the light moments and
for always being there.
To Engr. Henry Firmase, for sharing industry experiences and facts, and for teaching
us how to look at things thru a chemical engineers point of view.
To Mr. Nilo Princena, for wholeheartedly welcoming us to your shop, and sharing and
providing us the necessary information about coconut processing equipment..
To Marjorie Chan, Mila Binosa & Ivan Fidel for preparing the Environmental
Assessment Impact of the Project.
To “Ate Karen Evangelista” for sharing their study and “crucial” design tips and
suggestions.
To Philip Buen, for lending us your laptop during our presentation… without you, we
would have never had the chance to present.
To Michael Firmase, our “system administrator” and dear brother whom has put up
with us during design overnights.
To Mr. Paul Barly Chito for designing Cocos Processing Co.’s corporate logo and
product packaging.
To all UCAP, DOST-ITDI FPD, PCA, and DTI Employees, for entertaining all our
inquiries with regards to our topic and for being cordial and helpful during our data gathering.
To all our classmates, thanks for putting up with us with the long consultation waits,
and sharing with design tips and knowledge. Just for the simple thought that we are going
through the same challenges is relieving.
To All our Friends whom served as inspiration and strength to never give up and just
keep on going. You’re the best guys!
To All our professors, whom without, this study would have never been possible. Sir
and Maam, thank you for equipping us with knowledge.
To Our Loving Parents & Family, thank you for your undying support may it be
financial or moral. Your love, inspiration and guidance has brought us where we are today.
And to our Lord Almighty whom without His divine grace would not be where we are
today. He is real source of all goodness and the moving hand that puts everything in its
appropriate place.
Again Thank You…


Table of Contents
ACKNOWLEDGEMENT 2
LIST OF FIGURES 7
CHAPTER I 9
INTRODUCTION 9
THE COCONUT INDUSTRY 9
STATEMENT OF THE PROBLEM 9
OBJECTIVES OF THE STUDY 10
FEASIBILITY CRITERIA 11
CHAPTER II 12
REVIEW OF RELATED LITERATURE 12
THE COCONUT 12
ACTIVATED CARBON (AC) 16
VIRGIN COCONUT OIL (VCNO) 18
COCO VINEGAR (CV) 20
COCO BURGER 25
CHAPTER III 26
COMPANY PROFILE 26
NAME OF THE ENTERPRISE 26
NAME OF THE PRODUCTS 26
VISION 27
MISSION 27
OBJECTIVES 27
PROJECT DESCRIPTION 27
CHAPTER IV 28
MARKET STUDY 28
CURRENT MARKET SITUATION 28
PRODUCT DESCRIPTION, USES AND APPLICATIONS 29
Activated Carbon (AC) 29
Virgin Coconut Oil (VCNO) 31
Coco vinegar 33
Coco Burger 35
Philippine Coconut Situation 36
Historical Demand: Activated Carbon 37
Projected Demand : Activated Carbon 39
Historical Demand: Virgin Coconut Oil 40
Projected Demand : Virgin Coconut Oil 42
Historical Demand: Coco Vinegar 43
Projected Demand : Coconut Vinegar 45
Annual Average Burger Consumption for 2004 46
MARKETING STRATEGIES 47
Potential Market 47
TARGET MARKET 49
DISTRIBUTION CHANNELS 49
COMPARATIVE ANALYSIS OF MARKET SHARE 50

Industry Analysis 50
SWOT ANALYSIS 54
PROFITABILITY STUDY 55
Market Share 55
Population 55
Product Prices 58
CHAPTER V 59
TECHNICAL STUDY 59
TECHNICAL STUDY OVERVIEW 59
OPERATIONS STRATEGY 59
PRIMARY PROCESSING SECTION 60
Operations and Process Description 60
Over All Process Flow Chart: Primary Process 61
Overall Material Balance 62
Over All Material Balance : Primary Process 63
Equipment Specifications 66
Equipment Optimization 69
Power Requirement 70
ACTIVATED CARBON 73
Process Description 73
Plant Operations Strategy 74
Process Flow Chart: Activated Carbon 75
Material Balance : Activated Carbon 76
Energy Balance 78
Electricity Projections 88
Water Projections 90
VIRGIN COCONUT OIL 92
Process Flow Diagram : Virgin Coconut Oil 93
Material Balance: Virgin Coconut Oil 94
Energy Balance for the Double Jacketed Kettle 96
Water projections 102
COCO VINEGAR 104
Process Flow Chart: Coco Vinegar 105
Material Balance: Coco Vinegar 106
Energy Balance: Coco Vinegar 112
COCO BURGER 123
Process Flow Diagram: Coco Burgers 124
Material Balance : Coco Burger 125
Energy Balance at the Boiling Tank 128

CHAPTER VI 134
PROJECT PLANNING 134
PLANT LOCATION 134
Background of Pagbilao 134
Raw Materials 134
Market 136
Power and Fuel Supply 136
Climate and Topography 136
Transportation Facilities 137
PLANT LAYOUT 137
EQUIPMENT LAYOUT 139
Primary Processing Section 139
Activated Carbon Section 140
Virgin Coconut Oil Section 143
Coco Vinegar Section 144
Coco Burger Section 145
LAND AREA 146
ORGANIZATIONAL CHART 147
Department Definitions 148
Job Descriptions 149
GANTT CHART 154
INVENTORY 155
Main Raw Material 155
Other Raw Materials 155
Finished Goods 161
Finished Goods Packaging 162
Trial Run Material Requirement 165
UTILITIES 166
WASTE MANAGEMENT 169
CHAPTER VII 171
FINANCIAL STUDY 171
TOTAL PROJECT COST 172
Building & Land Development Cost 174
Processing Equipment & Transportation Purchase Cost 175
Processing Equipment & Transportation Depreciation & Repair and Maintenance 182
Projected Depreciation and Repair & Maintenance Cost 185
Office & Laboratory Equipment and Supplies 186
Pre-Operating Salaries & Wages 188
Pre-Operating Salaries & Wages 188
Operating Salaries & Wages 189
COST OF SALES 192
Utility Costs 196
ADMINISTRATIVE AND MARKETING EXPENSES 198
INCOME STATEMENT 199
CASH FLOW 200
CASH FLOW 200
BALANCE SHEET 201
BALANCE SHEET 201
BREAKEVEN SELLING PRICES 202
BREAKEVEN SALES VOLUME 217
PAYBACK PERIOD 220
RETURN ON INVESTMENT 220

AMMORTIZATION 221
CHAPTER VIII 222
SOCIO ECONOMIC ENVIRONMENTAL IMPACT 222
Consumer Benefits 222
Economic Benefits 223
CHAPTER IX 224
CONCLUSION & RECOMMENDATION 224
APPENDIX I 225
MATERIAL SAFETY DATA SHEET : ACTIVATED CARBON 225
MATERIAL SAFETY AND DATA SHEET: VIRGIN COCONUT OIL 231
MATERIAL SAFETY AND DATA SHEET: COCO VINEGAR 233
APPENDIX II 237
ENVIRONMENTAL ASSESSMENT IMPACT 237
List of Figures
FIGURE 1: ANNUAL BURGER CONSUMPTION 46

FIGURE 5-2: OVERALL MATERIAL BALANCE 62
FIGURE 5-3: ACTIVATED CARBON PROCESS FLOW CHART 75
FIGURE 5-4: VIRGIN COCONUT OIL PROCESS FLOW CHART 93
FIGURE 5-5: COCO VINEGAR PROCESS FLOW CHART 105
FIGURE 5-6: COCO BURGER PROCESS FLOW CHART 124
FIGURE 6-7: MAP OF PAGBILAO 136
FIGURE 6-8: VIRGIN COCONUT OIL SECTION 143
FIGURE 6-9: COCO VINEGAR SECTION 144
FIGURE 6-10: COCO BURGER SECTION 145
List of Tables
TABLE 2-1: PRODUCTS FROM THE WHOLE NUT (PCA) 13

TABLE 2-2: PHILIPPINE COCONUT HARVEST BY MAJOR PRODUCING REGION 14
TABLE 2-3: COMPARISON BETWEEN VCNO & REFINED COCONUT OIL 19
TABLE 3-4: ACTIVATED CARBON PRODUCT SPECIFICATIONS 30
TABLE 4-5: VIRGIN COCONUT OIL PRODUCT SPECIFICATIONS 32
TABLE 4-6: COCO VINEGAR PRODUCT SPECIFICATIONS 33
TABLE 4-7: COCO BURGER PRODUCT SPECIFICATIONS 35
TABLE4 8: PHILIPPINE COCONUT STATISTICS 36
TABLE 4-9: ACTIVATED CARBON EXPORT MARKET 47
TABLE 4-10: DISTRIBUTION CHANNELS 49
TABLE 4-11: PHILIPPINE ACTIVATED CARBON MANUFACTURERS 51
TABLE 4-12: VIRGIN COCONUT OIL MANUFACTURERS & DISTRIBUTORS 52
TABLE 4-13: SWOT ANALYSIS 54
TABLE 4-14: PROJECTED MARKET SHARES 55
TABLE 4-15: POPULATION DISTRIBUTION BY CITY/MUNICIPALITY RANKING AND DENSITY, QUEZON 2000 56
TABLE 4-16: PRODUCT & RAW MATERIAL PRICES 58
TABLE 6-17: HISTORICAL AND PROJECTED RAW MATERIAL AVAILABILITY IN THE REGION 135
TABLE 6-18: LAND AREA 146
TABLE 6-19: ORGANIZATIONAL CHART: 147
TABLE 6-20: GANTT CHART 154
TABLE 6-21: INVENTORY OF COCONUTS 155

TABLE 6-22: INVENTORY OF AC RAW MATERIALS 155
TABLE 6-23: INVENTORY OF CV RAW MATERIALS 156
TABLE 6-24: INVENTORY OF CB RAW MATERIALS 157
TABLE 6-25: INVENTORY OF FINISHED GOODS 161
TABLE 6-26: INVENTORY OF AC PACKAGING 162
TABLE 6-27: INVENTORY OF VCNO PACKAGING 163
TABLE 6-28: INVENTORY OF CV PACKAGING 163
TABLE 6-29: INVENTORY OF CB PACKAGING 164
TABLE 6-30: TRIAL RUN RAW MATERIALS REQUIREMENT 165
TABLE 6-31: OFFICE & PLANT FIXED ELECTRICITY CONSUMPTION 166
TABLE 6-32: LIGHTING ELECTRICITY CONSUMPTION 167
TABLE 6-33: FIXED WATER CONSUMPTION 167
TABLE 6-34: TELECOMMUNICATIONS 168
TABLE 6-35: FUEL CONSUMPTION 168
TABLE 6-36: SOLID WASTE TREATMENT COST 169
TABLE 6-37: WASTE WATER GENERATED 169
TABLE 6-38: WASTE WATER TREATMENT COST 170
TABLE 6-39: WATER TREATMENT COST 170
TABLE 7-40: PRODUCT YIELD & RAW MATERIAL REQUIREMENT 171
TABLE 7-41: TOTAL PROJECT COST 173
TABLE 7-42: LAND DEVELOPMENT & BUILDING COST 174
TABLE 7-43: PROCESSING EQUIPMENT & TRANSPORTATION PURCHASE COST 175
TABLE 7-44: ADDITIONAL EQUIPMENT PURCHASE 178
TABLE 6-45: DEPRECIATION & REPAIR & MAINTENANCE 182
TABLE 7-46: OFFICE & LABORATORY EQUIPMENT & SUPPLIES 186
TABLE 6-47: PRE-OPERATING SALARIES & WAGES 188
TABLE 6-48: OPERATING SALARIES & WAGES 189
TABLE 7-49: COST OF SALES FOR ACTIVATED CARBON 192
TABLE 7-50: COST OF SALES FOR VIRGIN COCONUT OIL 193
TABLE 7-51: COST OF SALES FOR COCO VINEGAR 194
TABLE 7-52: COST OF SALES FOR COCO BURGER 195
TABLE 7-53: UTILITIES COST 196
TABLE 7-54: ADMINISTRATIVE & MARKETING EXPENSES 198
TABLE 7-55: INCOME STATEMENT 199
TABLE 7-56: CASH FLOW 200
TABLE 7-57: BALANCE SHEET 201
TABLE 7-58: BREAKEVEN SELLING PRICES 202
TABLE 7-59: BREAKEVEN SALES VOLUME 217
TABLE 7-60: PAYBACK PERIOD 220
TABLE 7-61: RETURN ON INVESTMENT 220
TABLE 7-62: AMORTIZATION 221
Chapter I
Introduction
The Coconut Industry
The coconut may perhaps be one of the most versatile plant species in the Philippines.
Every part of the coconut can be utilized, from the trunk to the nut, and because of its flexibility
and abundance it has been a part of Philippine Culture and life. Coconut production makes up
one of the four major sectors of Philippine agriculture and about a third of the country’s
population is involved in coconut production as their main source of livelihood.
The coconut Industry has been established as early as the Spanish Era, Copra and
Coconut Coir fiber was already traded and used. Coconut, as an export crop developed rapidly
during the closing years of Spanish Rule and during the early years of the American occupation.
This rapid development was triggered largely by the growing margarine and soap industry in
Europe. Coconut export industry gained a virtual monopoly of the US market even up to the mid
seventies because of preferential tariff, which disallowed the entry of copra and coconut oil from
outside the Philippines. During the Japanese occupation copra and coconut oil shipment was
disrupted but US coconut oil demands was still strong despite the blockades. The Philippine
Coconut Industry proved that it could stand on its own feet even after the expiration of US
preferential treatment. The principal products the country exports are: copra (dried coconut
meat), crude coconut oil, desiccated coconut, activated carbon, oleo-chemicals and most
recently virgin coconut oil.
Statement of the Problem
As a result of industrialization and growing environmental awareness, the demand for

coconut products such as activated carbon, virgin coconut oil and oleo-chemicals have grown
rapidly. Currently, the coconut industry in the country is not being fully utilized and is passing out
a very promising opportunity. Usually coconut products manufacturers such as coconut oil
producers discard the shell, water & meal. Instead manufacturers can further these parts into
more high valued products. Because of this, the need for a process that can fully utilize the
coconut products arises.
Recent studies have already been made, but only to the extent of recycling the coconut
water to form vinegar and coconut meal to desiccated coconut. Further processing of the
coconut shell has been constrained to charcoal, since further processing to activated carbon is
9
complicated and capital intensive. Present production of activated carbon is based and
capitalized by foreign firms that also mostly utilize production.
Objectives of the Study
The objective of this study is to design a process where all coconut parts can be
processed into useful products with the production of activated carbon as our front-runner.
The products to be produced in this study are: activated carbon from the coconut shell, virgin
coconut oil from the coconut meat, coco vinegar from the coconut water, coco burger from the
coconut meal and utilization of the coconut husk as primary fuel for activated carbon production.
The main product will be activated carbon, since it has the most value and has a very attractive
demand, so the quantity of other products will depend on the production of activated carbon.
This study will cover the processes involved in the manufacture of activated carbon, the
fresh-dry process for virgin coconut oil, coconut vinegar, and coco burger production. The
coconut husk will be used as fuel for the production of activated carbon. Included in this study is
a concise market study of the products covering a ten-year historical demand and a twelve-year
projected demand, detailed material and energy balances, overall process flow chart utilizing
whole nuts as raw materials, equipment specifications, materials of construction of equipment,
equipment optimization, energy requirement, water projections, equipment and plant layout,
plant location evaluation, Gantt chart of pre-operating activities, organizational chart &
department & job definitions, inventories of raw materials, finished goods, packaging materials &
trial run raw requirements, and a detailed financial study which includes the total project cost,
individual cost of sales for all products, utility costs, land, land improvement & building cost,
equipment purchase, additional equipment purchase, depreciation and maintenance, office &
laboratory supplies, pre-operating & operating salaries & wages, income statement, cash flow,
balance sheet, return on investment, payback period and amortization.
10
Feasibility Criteria
Conception of this project is a result of the unutilized waste and energy losses produced
in traditional coconut product processing plants. The notion of an Integrated Coconut Processing
Plant will be very beneficial for the following reasons:
1. Waste Production will be greatly reduced.
2. Cost from waste disposal and treatment will be reduced.
3. Processing equipment will be fully utilized.
4. Coconut product processing will be more cost efficient.
5. Raw Materials consumption will reach full potential.
The products to be produced in this study: Activated Carbon, Virgin Coconut Oil, Coconut
Vinegar and Coco Burger have a well-established market demand and future value and worth for
these products are constantly increasing, further establishing the need for an Integrated Coconut
Processing Plant.
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Chapter II
Review of Related Literature
The Coconut1
Scientific Name : Cocos nucifera
Family : Arecaceae (or Palmaceae)
Cocos nucifera is the scientific name of common coconut. Cocos means "spectre,goblin"
or "grinning face" and Nucifera means "bearing nuts". The coconut palm is widely distributed
throughout Asia, Africa, Latin America, and the Pacific Region.
The ripe fruit of the coconut palm has a hard shell covered by a fibrous outer coat and
contains an edible kernel with the coconut in the center. The shell itself is lined with a layer of
rich white "meat", and the hollow at the center is filled with a thin, slightly sweet liquid that can be
used as a beverage. The dried meat, called copra, is then subjected to pressing or extraction.
The residue is known as copra meal. People call coconut a variety of names, which reflect its
usefulness to societies - Tree of Life, Tree of Abundance, Tree of heaven. Almost every part of
coconut palm is used. It is a primary source of food, drink, fuel, animal feed, and shelter.
Description
Tree
Palm tree with a smooth, columnar, light grayish brown trunk, and topped
with a terminal crown of leaves. Tall selections may attain a height of 80
to 100 feet while dwarf selections are shorter in stature. The trunk is
slender and slightly swollen at the base. It is usually erect but may be
leaning or curved.
1
www.dipbot.unict.it/Palms/Descr01.html
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Leaves
The pinnate leaves are feather-shaped, up to 18 feet long and 6

feet wide. The leaf stalks are 3 to 5 feet in length and thorn less.
Fruit
Roughly void, up to 15 inches long and 12 inches wide, composed

of a thick, fibrous husk surrounding a somewhat spherical nut with a
hard, brittle hairy shell. The nut is 6 to 8 inches in diameter and 10
to 12 inches long. It weighs around 1-2 kg. Each, depending on the
nut's maturity and will comprise 35-45% of the total weight. Three
sunken holes of softer tissue called "eyes" are at one end of the nut.
Inside the shell is a thin, white, fleshy layer known as the "meat". The interior of the nut is hollow
but partially filled with a watery liquid. The fruits are green at first turning brownish as they
mature. Yellow varieties go from yellow to brown. Average coconut shell life last for 8 hours.
Products from the Whole Nut

(Philippine Coconut Authority Conversion Table)2
% to Weight of
Items Weight (g)
Whole Nut
Whole Nut 1200 100%

1.Husk 400 33.33
Mattress Coir 80 6.67
Coir Bristle 40 3.33
Coir Dust/Shorts 280 23.33
2. Shell 180 15
Shell Flour 131 10.92
Charcoal 50 4.17
3. Meat (fresh) 30
* oil content (35.5%) 360
4. Coconut Water 260 21.67
Table 2-1: Products from the Whole Nut (PCA)
2
Coconut Technical Handbook, PCA
13
Varieties
Variations are based on height; tall or dwarf; color of plant or fruit; size of nut; shape of
nuts; thickness of husk or shell; type of inflorescence; and time required to reach maturity.
Two major classes of coconuts are typically recognized on the basis of stature: tall and
dwarf. The ones most commonly planted for commercial purposes are the tall varieties, which
are slow to mature and first flower 6-10 years after planting. They produce medium-to-large size
nuts and have a life span of 80-90 years. The dwarf varieties may have originated as a mutation
of tall types. The tall varieties are extensively cultivated, constituting an estimated 90% of all
planted coconuts. On the other hand, the dwarf variety may grow to a height of 25-30 feet and
begin flower after 3 years, being only about 3 feet tall. Their life span is only about 30-40 years.
In term of yield, the dwarf is slightly more superior due to the higher planting density achievable
with smaller varieties. Although highly difficult to grow, the dwarf varieties are valued because
they bear early and are resistant to lethal yellowing disease.
Availability
Fresh coconuts are available year round, with peak supplies from September to January.
Philippine Coconut Harvest By Major Producing Region3

(In Million Nuts)
1993 1999 2000 2001 2002 2003
Philippines 11669 11589 12995 13146 13895 14059
Southern Tagalog & Bicol 2761 2670 2926 2907 3119 3147
Rest of Luzon 131 190 204 220 252 239
Visayas 1546 2130 2274 2279 2524 2571
Mindanao 7232 6600 7590 7741 8000 8102
Table 2-2: Philippine Coconut Harvest By Major Producing Region
3
Coconut Industry Kit 2003, UCAP
14
Uses, applications and market aspects of the coconut
All four components of the fruit such as the meat, husk, shell, and water can be used.
The most valuable part of the meat is its content extracted from dried meat copra. Its commercial
uses include soap-making, confectionery, cooking oils and margarine. An important by-product
of oil extraction from copra is the cake, which contains 19-22 % protein and used for animal
feeds.
The hard shell surrounding the kernel is used for fuel; charcoal and grades of activated
carbon are produced for industrial use. It is also popular as a container or vessel and used for
ornamental and domestic purposes. The fibers from the husk yield coir, which are widely used
for cordage, mats, stuffing and bags.
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Activated Carbon (AC)
The Beginnings of Activated Carbon and the Problems of Ecology
Historically speaking, the phenomenon of adsorption as it is understood today, was first

discovered and recorded in the year 1873 from a report on an experiment on gases exposed to
charcoal. In gas adsorption, the great capacity of coconut shell charcoal was reported first by
Hunter in 1865. This discovery became the forerunner to the development of gas mask for war
and industrial uses.
The world is experiencing an unprecedented industrial growth and that a sort of by- product air
and water pollution accompanied such industrial expansion. These ecological problems,
generated by modern technological advances are expected to increase in the years to come.
The solution to these ecological problems could lie in the usage of activated carbon if a serious
research and development program could be undertaken.
What is Activated Carbon?
Activated carbons are essentially porous materials prepared by carbonizing and

activating carbonaceous feedstock to produce a structure on the internal surfaces of which
gases and liquids can be adsorbed. Most carbonaceous materials have a certain degree of
porosity but during activation the internal surface area of the material becomes more highly
developed and extended by controlled oxidation of carbon atoms.
In the past, wood has been the major raw material for the manufacture of activated
carbon coconut shell is introduced as a raw material largely because of cheaper availability of
their particular agricultural waste, which would otherwise be consumed exclusively as a fuel.
Coconut shell is readily available in abundant supply from any desiccated coconut plant or where
copra is being produced.
Coconut Shell Activated Carbon
Coconut shell, a by- product in the processing of copra, is one phase of the coconut
industry where potential as an industrial raw material is now being realized. Coconut shell when
16
properly carbonized into charcoal has an enormous economic value as the primary raw material
for the production of activated carbon.
The availability of an assured supply of feedstock in sufficient quantity and at an

appropriate price is a prerequisite for the establishment of a successful operation for the
production of high quality activated carbons. In the Asian and Pacific area coconut shells meet
this requirement on the coconut industry is well developed and the availability of large quantities
of coconut shell is assured.
It has been estimated that between 10 and 15% of the total world production of activated
carbon is based on coconut shell and this quantity is growing as other suitable feedstocks
become scarcer and more expensive. In addition coconut shell carbon is very hard and durable
and is suitable for specific applications. It is also capable of regeneration and thus the economics
of various processes are improved.
Properties and Characteristics of Coconut Shell-based Activated Carbon
The properties of activated carbon are governed by its primary carbon and by the method
of activation employed. Coconut shell-based activated carbon has a small macropore structure
and for this reason it is superior for gas/vapor phase applications and has the removal of taste
and odor compounds. In addition, it has more resistance to abrasion, higher capability for
absorption and higher purity in ash.
The Philippines is the only major world producer of coconut shell-based activated carbon.
Since the country started exporting in 1974, this product has reached ten country-markets.
Japan is the dominant exporter. The United States, France, and Singapore are also consistent
importers.
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Virgin Coconut Oil (VCNO)
Virgin coconut oil is the naturally processed, chemically free and additive-free product
from fresh coconut meat or its derivative (coconut milk and coconut milk residue), which has not
undergone any chemical processing after extraction
It is the purest form of coconut oil, water white in color, contains natural Vitamin E with
very low free fatty acid content and peroxide value. It has a mild to intense fresh coconut scent
depending on the type of process used for production.
There are currently two main processes of manufacturing Virgin Coconut Oil.
Quick drying of fresh coconut meat, which is then used to press, out the oil. Using
this method, minimal heat is used to quick dry the coconut meat, and the oil is
then pressed out via mechanical means.
Wet-milling. With this method the oil is extracted from fresh coconut meat without
drying first. “Coconut milk” is expressed first by pressing. The oil is then further
separated from the water. Methods, which can be used to separate the oil from
the water, include boiling, fermentation, refrigeration, enzymes and mechanical
centrifuge.
Virgin coconut oil contains medium chain fatty acids similar to the fats in mother’s milk
that gives babies immunity from diseases. According to experts, medium chain fatty acids have
anti-viral, antimicrobial, antifungal and anti-protozoal properties. The lauric acid (C12) and its
monoglyceride form monolaurin are the most potent against lipid-coated microorganisms, which
are not normally cured by ordinary antibiotics. Among the vegetable oils traded in the world,
coconut oil is the riches source of MCFA (64%) and lauric acid (48-53%).4
Difference of Virgin Coconut Oil from other Oils
The determining characteristic of Virgin Coconut Oils is that they are made from fresh
coconuts, and they have a distinct aroma and taste of coconuts present. Tasteless coconut oils
are probably made from copra, not fresh coconuts. Virgin coconut oils start out with fresh
4
J. Kabara, Department of Pharmacology, Michigan State University
18
coconuts, and do not need further refining as their natural antioxidant properties make them very
stable oils.
VCNO REFINED
fresh coconut meat from copra
retains fresh scent and taste of coconut no taste at all
process under low heat and no chemicals process under high heat
and with added chemicals
purest form of coconut oil standard end product is

RBD coconut oil (refined,
bleached and deodorized)
Table 2-3: Comparison Between VCNO & Refined Coconut Oil
"Coconut oil is the healthiest oil on earth”
Modern research seems to back up this bold statement. Once wrongly accused of
increasing cholesterol levels, doctors in the treatment of a variety of disorders are now actually
using coconut oil. Clinical studies have shown that coconut oil has anti-microbial and anti-viral
properties, and is now even being used in treating AIDS patients. Studies conducted in the
Philippines last year showed that coconut oil does indeed reduce the viral load in AIDS patients.
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Coco Vinegar (CV)
Vinegar is considered to be one of the oldest fermentation products known to mankind.

Literally, vinegar means sour wine, as the word was derived from the French vinaigre (from vin
meaning wine, plus aigre meaning sour or sharp). Kutzing first demonstrated the oxidation of
ethyl alcohol to acetic acid by microorganisms in 1837.
Prescott and Dunn (1959) noted that vinegar manufacture cannot rely solely on the
natural flora of the raw material because spontaneous fermentation can occur and yield varied
quality products. The use of selected wine yeast strains such as Saccharomyces cerevisiae var
ellipsoidues for the alcoholic fermentation, and efficient acetic acid bacteria like Acetobacter
aceti, A. rancens, and others will guarantee a high quality and uniform product.
In the Philippines, the substrates commonly used for vinegar production are sap from the
coconut (Cocos nucifera linn.), nipa (Nypha fruticans Wurmb.), buri (Corypha elata Roxb.), and
kaong (Arenga pinnata), coconut water, sugarcane juice, and pineapple juice.
Definition of Coconut Vinegar
Coconut vinegar is the product/liquid produced by alcoholic and/ or acetous fermentation of the
coco water (Coconut board, 1986). The matured coconut water consisting of about 3 per cent sugar
content is concentrated to 10 per cent level by fortifying with sugar. Inoculating the solution with yeast,
Saccharomyces cerevisae, then ferments the fortified coconut water.
Types of Vinegar
There are several types of vinegar depending on the raw material used. These are:
1. Tuba Vinegar. This is the product of spontaneous fermentation of coconut sap to ethanol and
acetic acid. The supply of such vinegar is now limited due to the utilization of coconut sap into
lambanog, a distilled spirit from alcoholic coconut sap or tuba.
2. Nipa Vinegar. This is popularly known as Paombong vinegar in reference to the town in Bulacan,
which is the first and largest producer of vinegar from nipa sap. Similar to that for coconut sap vinegar,
the process involves spontaneous fermentation. The nipa sap vinegar has its own peculiar aroma and
color.
3. Coco vinegar. The product is made by alcoholic fermentation of coconut water augmented with 10-
12% sugar, due to the deficiency in sugar of coconut water. The acetous fermentation starts after 5%
ethanol is produced. Starter cultures are used, such as Saccharomyces cerevisiae for ethanol
fermentation and Acetobacter aceti for the acetic acid fermentation. A huge amount of coconut water
from copra and desiccated coconut processing is available for vinegar manufacture.
20
4. Sugarcane Vinegar. This is also popularly known as sukang iloco or Ilocano vinegar in reference to
the place where it is commonly prepared. Sugarcane juice is used as substrate for the production of
ethanol and subsequent fermentation to acetic acid. This type of vinegar has higher acetic acid
content (8-10%).
5. Fruit Vinegar. It is a product made by alcoholic and acetous fermentation of fruit juices. Pineapple
juice is the most commonly used substrate in preparing this type of vinegar. Starter cultures are also
used.
6. Vinegar from Starchy Materials. The raw materials used in this type of vinegar are rice, corn, and
rootcrops. The process of manufacture involves three stages, namely, saccharification of starch to
fermentable sugars, conversion of sugars to ethanol, and oxidation of ethanol to acetic acid. Starter
cultures are needed in the fermentation process.
7. Synthetic Vinegar. This is the vinegar, which is commonly compounded by simply mixing water
with nonfood – grade glacial acetic acid. A colloidal solution (such as milk) is added to make it look
cloudy. This type is also called fake, adulterated, or artificial vinegar.
Standard quality of Coconut Vinegar
The standard of identity and quality for vinegars as prescribed by Department of Health are as
follows (Cruz, 1970):
a) All vinegar shall have an acidity of not less than 4% by weight of absolute acetic acid
except neap-sap vinegar, which shall have an acidity of not less than 3%.
b) All vinegar shall contain not less than 1.5% w/v of total solids and 0.18% of ash, except
nipa-sap vinegar, which shall contain not less than 2.2% of solids and not less than 0.4%
of ash.
c) All vinegar shall contain foreign substances, drugs, sulfuric acid or other mineral acids.
d) All vinegar shall contain not more than 18 parts per million of lead, 66 parts per million of
copper and 1.5 parts per million of arsenic.
e) Vinegar containing any artificial matter such as synthetic acetic acid, or cloudifying agent
shall be deemed to be adulterated and its sale is thereby prohibited.
21
Mechanism of Acetic Acid Fermentation5
The manufacture of vinegar from saccharine materials involves two steps: (1) fermentation of
sugar into ethanol, and (2) oxidation of ethanol into acetic acid.
The first step is an anaerobic process carried out by yeast (Saccharomyces cerevisiae)
either naturally present in the raw material or, preferably, added as pure culture. The
alcoholic fermentation is expressed in the Gay-Lussac equation:
C2H12O6 + O2 2C2H5OH + 2CO2

(glucose) (from yeast) (ethanol) (carbon dioxide)
During fermentation of sugar, a series of intermediate reaction takes place, and small
amounts of other final products are produced such as glycerol and aceti acid.
The second step involves the oxidation of ethanol to acetic acid by acetic acid bacteria,
which is expressed in the equation:
(acetic acid bacteria)

CH3CH2OH + O2 CH3COOH + H2O
(ethanol) (oxygen) (acetic acid) (water)
This reaction is finally accomplished through a series of intermediate reactions. The first step
is the conversion of ethanol into aldehyde brought about by H2O2 through a medium, either of
catalase (Leilin and Hartree 1945) or of peroxidase (Weiland and Pistor 1936). These oxidases
are present in all Acetobacter species. Their reaction produces acetaldehyde.
The acetic acid can be further oxidized into carbon dioxide and water. In vinegar production,
this is known as over oxidation causing a great loss of acetic acid.
5
Philippine Coconut Authority
22
Requirements in the Manufacture of Vinegar
There are several requirements in the manufacture of high quality vinegar. These are as
follows:
1. Selection of Microorganism
There are several strains of bacteria that can be chosen for their ability to produce high
quality bacteria. Some of these strains are Acetobacter aceti, A. xyylinum, A. ascendans,
and A. acetigenum. The design will make use of Saccharomyces cerevisiae or more
popularly known as the baker’s yeast because of its cheap cost, availability, and a
relative high percentage yield of acetic acid.
2. Nature of the Raw Material

Vinegar may be manufactured from almost any material capable of producing alcohol
through the action of yeast. The quality of the vinegar depends on the quality of the raw
material used.
3. Concentration of Acid
Initial acidification is needed to inhibit the development of undesirable types of bacteria
and to supply desirable acetic-acid producing bacteria for seed purposes. Vinegars made
from incompletely fermented substrates are usually low in acetic acid and are of poor
quality.
4. Amount of Oxygen Supplied

Since the conversion of ethanol into acetic acid is primarily an oxidation process or a
dehydrogenation, in which atmospheric oxygen acts as the hydrogen acceptor. The
success of the fermentation depends on the availability of large quantities of oxygen. The
amount of oxygen, however, must be optimum for the maximum conversion of ethanol
into acetic acid. An excess amount of oxygen will result in the further conversion of acetic
acid to carbon dioxide and water.
5. Temperature of Fermentation
The exact temperature to be used will depend on the microorganism and process being
employed. The use of low temperature favors a slow fermentation, while the use of too
23
high temperature favors the loss through evaporation of alcohol, acetic acid and volatile
substances that are important in the production of flavor and aroma.
6. Aging and Storage

The storage condition should provide exclusion of oxygen to prevent further oxidation of
vinegar which results in the conversion of acetic acid into carbon dioxide and water and,
thus, in the lowering of the acid content.
7. Bottling and Pasteurization

The bottle of vinegar should be completely filled and tightly capped or corked to prevent
access of air.
8. Character and Composition of Containers and Equipment in Contact with the Vinegar
during the Manufacture
Since vinegar is corrosive, containers made from iron, zinc, and some other metals
should be avoided in the manufacture, storage, and distribution. Iron is readily attached
and eventually dissolved and may cause clouding and browning of vinegar.
Coconut Water Vinegar Manufacture
Coco vinegar manufacture in the design will make use of the slow vinegar process. The
slow vinegar process or the Orleans Process is one of the oldest commercial methods of vinegar
making. It is still the best way to make high-grade table vinegar. Other processes include the
Quick Process or German Process and the Submerged Methods. These processes are not the
commonly used methods in the Philippines’ Vinegar Industry because it makes use of an
expensive and elegant technology.
24
Coco Burger
Man cannot live without food. There have been many varieties of food, which are
continuously being established to fit the rapid changing lifestyle of people brought about by rapid
industrialization. Life has been so busy that many people prefer to buy snacks that they can eat
while doing other activities like hamburgers.
Burger patties have been known for ages. They were discovered many years ago that
today burger stands and food houses existed rapidly. The usual burger patty is composed or is
made of pork. The utilization of different material other than pork as raw material of burger
patties is now being realized.
Coconut residue or sapal is the solid material after coconut milk is extracted from the
fresh grated or comminuted coconut meat. It represents approximately 25- 40% of the weight of
freshly grated meat in a waste basis depending on the coconut milk extraction process that is
used. The production of coco flour is just one of the possible transformation of this coconut
residue into a usable product. Coconut residue has a potential to be used in the production of
coco burgers. Coco burgers are just like ordinary burger patties, only they are more economical
and healthy.
The abundance of raw materials in the country is a major factor for the production of coco
burgers to be feasible. Coco burger, being a newly discovered product from coconut residue is
now being established to be a competitive and economical substitute to the usual burger patties
that we have today.
25
Chapter III
Company Profile
Name of the Enterprise
Cocos Processing Co.

Corporate Logo :
Name of the Products
Activated Carbon : Co-Carbon
Virgin Coconut Oil : Vircoil
26
Coco Vinegar : Cocos Vinaigre
Coco burger : Cocoyum
Vision
Industrialize and Modernize the present coconut industry in the country by instituting a
system where the coconut parts are fully consumed & converted into products.
Mission
Revolutionize the Coconut Industry by developing an integrated processing system from
which optimum utilization of the nut is carried out.
Objectives
1. Establish a successful Integrated Coconut Processing Industry in the Country

2. Enhance coconut-processing technology and modernize the Industry
3. Promote the Integrated Coconut Process and help alleviate status of coconut farmers
4. Reduce solid and liquid waste from unprocessed parts of the nut
Project Description
The project is designed to maximize the use of the parts of coconut like the coco shell,
coco meal, coco water, and husk. It is aimed in utilizing coconuts as the Philippines primary raw
material because of its relative abundance. It is conceived to establish an integrated processing
plant where the immense flexibility of coconuts as resource will be shown.
27
Chapter IV
Market Study
Current Market Situation
In 1993, the Philippines ranked 3rd among world coconut product producers, today we
contribute roughly around 60% of the coconut products consumed worldwide. At present, the
Country’s Coconut Industry contributes to a fourth of the country’s entire agricultural sector and
provides the largest number of jobs. Currently, the largest coconut-producing region is
Mindanao, followed by Southern Tagalog, Visayas and the rest of Luzon. 6
Increasing demands of coconut products, mainly activated carbon, VCNO, geotextiles

and Oleochemicals has urged the mushrooming of oil refineries and plants. Recently, the
Philippine Government signed a memorandum with China National Technical Import and Export
Corp. (CNTIC) for a coconut commodity development project wherein China will fund the
development of some 400,000 hectares of our coconut lands to enable us to commercially
produce geotextiles, coco peat and other high-value coconut products for export to China for
antidesertification and soil erosion applications. All these high- value export products will be
coming from the coconut husk, which is a usual waste product from copra makers. Usually the
waste product from oil refineries and VCNO makers are the shells. Another waste product with
very high-potential is the coconut shell, this is the raw material for activated carbon, which today
is very highly priced for its use in water treatment and adsorption. According to studies activated
carbon has one of the largest demands in the export market and the profit from production of
activated carbon shows to be very lucrative.
6
Coconut Industry Kit 2003, PCA
28
Product Description, Uses and Applications
Activated Carbon (AC)
A. Product Description
Activated carbons are essentially porous materials prepared by carbonizing and

activating carbonaceous feedstocks to produce a structure on the internal surfaces of which
gases and liquids can be adsorbed. Most carbonaceous materials have certain degree of
porosity but during activation, the internal surface area of the material becomes more highly
developed and extended by controlled oxidation of carbon atoms. The internal surface area must
be accessible to the passage of fluid or air, as a good activated carbon requires not only a highly
developed internal surface but also rapid access via a network of pores.
Most shell-based carbons contain a structure that is predominantly micropore. This
makes activated carbons produced from coconut shells possess certain natural outstanding
properties and for some specific purposes, it is superior to other amorphous carbon. It has more
resistance to abrasion, higher purity in ash and most suitable for adsorption of small molecular
weight species and applications where contaminant concentration is low.
29
B. Product Specification7
Characteristics Low Density High Density

Apparent density at room 0.44-0.48 0.52-0.56
temperature
Hardness No., % min 92 92

Iodine Value, mg / g. min 1200 700
Moisture, % max 3 3
Ash, % max 4 4
CCl4, % min 60 40
Benzene, % min 36 23
Table 3-4: Activated Carbon Product Specifications
C. Uses and Applications of Coconut Shell-based Activated Carbon
Activated carbon, which comes in powdered and granular forms, is extensively used as
an agent for filtering, refining, deodorizing, decolorizing, and purifying different substances. The
applications of Coconut shell-based activated carbon are as follows:
• For deodorizing industrial products like vegetable oils, syrups from starch, alcoholic
beverages, detergents and glycerin
• Purification and decolorization of petroleum oils
• For water purification, such as removal of unwanted tastes, odors, colors, chlorine, and
contaminants from water and other liquids
• For air purification, such as sulfur removal and purification of monochlorobenzene
• For refining of sugar, coal gas, medicine, ammonium and acetylene
• Recovery of gold from gold containing ore
• For pharmaceutical and medical reagents and preparations
• Removal of bitter or musty flavors from wines
• Recovery of petroleum from natural gas
• Recovery of organic solvents
• Catalyst support for mercuric chloride in the manufacture of vinyl chloride from acetylene
and hydrochloric acid
7
Roberson S., Activated Carbon Technology, 1991, PCA
30
Virgin Coconut Oil (VCNO)
VIRGIN COCONUT OIL (VCNO) is also called “WHITE COCONUT OIL”. It is extracted
from freshly shredded and first-pressed coconut meat of choice and mature coconuts. It was
termed VIRGIN because no heat or small amount of heat is applied VCNO is thick and sweet
tastes that retains the distinct aroma and favor of coconuts.
Virgin Coconut Oil is the most versatile oil of all vegetable oils. It is composed primarily of
medium chain fatty acids (MCFA) or triglycerides. MCFA are quickly digested and the body
transforms it immediately this also means that VCNO does not produce fat and cholesterol.
Saturated fats found in VCNO are actually good and promotes health.
VCNO has anti-microbial properties its high lauric acid content makes it a natural
antibacterial antiviral and antifungal substance. As a result Vitamins A, C and E, which
strengthen the body’s immune system are not depleted. Vitamin E in the soil also makes the hair
and skin smooth.
Lauric acid, which is found in VCNO, is only available naturally from mother’s milk store’s
perfect food it helps to improve nutrient absorption and digestion functions of the body. They also
help in regulating food sugar level and more importantly protect the body from harmful
microorganisms in a sense, VIRGIN COCONUT OIL can be considered a “low-fat” fat.
31
B. Product Specification8
ANALYTE (per 100g) Virgin Coconut Oil

Moisture, g 0.2
Protein, g 0
Total Fat, g 99.84
Ash, g 0
Total Carbohydrate 0.7
Energy, kcal 895
Free Fatty Acids*, % 0.18
Specific Gravity 0.919
Table 4-5: Virgin Coconut Oil Product Specifications
C. Product Uses and Application

VIRGIN COCONUT OIL (VCNO) can do the following:
Provide immediate source of energy
Helps in stabilizing cholesterol and blood sugar level
Support immune system function
Help keep skin soft and smooth
Protect skin from cancer, promote scalp and produce strong silky hair
Can ease tension and relax the entire body
Can be applied directly to the skin for conditioning
Eliminate dandruff
VIRGIN COCONUT OIL can be taken, as liquid vitamin the recommended therapeutic daily
dosage is three to four tablespoons. It also serves as a healthy cooking oil because it is highly
resistant to heat and does not break into free radical easily it is also a perfect food seasoning.
Virgin Coconut Oil is also great for digestive disorders such as Crohn's disease, IBS, and Colits.
Thyroid sufferers are finding that Virgin Coconut oil boosts the metabolism and raises body
temperatures. And there is exciting research showing that the MCTs (medium chain
triglycerides) in coconut oil act to kill Candida Albicans. These MCTs are also responsible for
revving up metabolism and giving energy, which holds promise for Chronic Fatigue Syndrome
sufferers, as well as others who need to boost their energy. It is also great as a carrier for
massage oils, and is highly valued as an ingredient in natural soaps and skin care products.
8
Coconut Industry Kit 2003, PCA
32
Coco vinegar
Coconut vinegar is a product of alcoholic fermentation of coconut water augmented with

10-12% sugar using Saccharomyces cerevisiae. The acetous fermentation with Acetobacter
aceti starts after 5% ethanol is produced. It is seen in the market as the best alternative to
synthetic vinegar. Coco vinegar is the product made by the alcoholic and subsequent acetous
fermentations of the sap of coconut palm.
B. Product Specifications
Acidity as acetic (%) 5%
Total ash and solids (%) 1.83 - 1.92
Sp. gravity 1.012 - 1.008
Alcohol Nil
Table 4-6: Coco Vinegar Product Specifications
33
C. Product Uses
Vinegar is a commodity indispensable in every household. It is important in food
preparation and preservation and as a condiment. Coco vinegar has an extensive use as a
preservative in the pickle industry and flavoring agent in food processing sector. It is used as a
seasoning for meat, fish, and vegetables, in manufacturing of vegetable pickles, catsup,
mayonnaise, mustard, dressing, sauces, and as additives in many manufactured foods to
enhance flavor. Now natural vinegar enjoys export market in place of synthetic vinegar.
Coco vinegar has been used a wide variety of applications (King, 1999). This includes:
• It is used in pickle industry, salads, sauces and various condiments preparations as a

preservative and flavoring agent
• It is used to aid in digestion
• It is used for domestic purposes like improving laundry, deodorizing and cleaning home.
• It is used to soothe and treat ailments like arthritis.
34
Coco Burger
Coconut residue- based burger patty is a product with a high degree of nutrition. It is very
economical that it is produced from a readily available and an abundant raw material. In addition
to that, coco burgers have a high potential of becoming a highly competitive burger patty in the
market.
B. Product Specification
Composition %
Ash 1.8
Carbohydrates 30.8
Dietary Fiber 30.0
Fat 18.3
Protein 15.1
Moisture 4.0
Table 4-7: Coco Burger Product Specifications
C. Uses
The patties made from dried coconut meat or the coco burger can be used as an alternative
to ground beef that is used as the primary ingredient. It can be used
• For sandwich or can be served with various condiments inside a bun baked specially for
this purpose
• As steak (together with rice)
35
Philippine Coconut Situation
A situational study of Philippine coconuts depicts the history and projected behavior of
the harvest and Area of Coconuts planted in the Country. Determining the sustainability and
availability of the main raw material is important in order for such a project to push through. The
Situational Study includes the Land Area of Coconuts plantations and Nuts Gathered in the
entire country covering a nine-year history and a twelve-year (12) forecast.
Philippine Coconut Situation (in '000 units)
18000
16000
14000
12000
10000
millions
8000
6000
4000
2000
0
1990 1995 2000 2005 2010 2015 2020
year
Areas (Has.) Nuts Gathered Linear (Areas (Has.)) Linear (Nuts Gathered)
Table4 8: Philippine Coconut Statistics
The illustration above indicates the relative increase of gathered nuts through the years.
This signifies that the availability of the raw material can be dependable and that the coconut
industry will continue to thrive because of the abundance of raw materials in the country.
Production of the products will be based on the projected demand. Demand studies and
projections include a ten-year (10) historical demand period, which is sufficient enough to create
a twelve-year (12) projected demand. All demand projections were made by Least Squares
Method then projecting for 12 years.
36
Historical Demand: Activated Carbon9
Actual Historical Demand

Historical Demand: Activated Carbon
: Activated Carbon
35,000.00
32,344.00
31,344.00 30,901.00
Year Volume (MT) 30,000.00 29,585.00 30,331.00
28,335.00 28,051.00
1 15,806.00
25,000.00
2 9,489.00
V o lu m e ( M T )
3 19,934.00 20,000.00 19,934.00
4 28,335.00 15,000.00
15,806.00
5 28,051.00
10,000.00
6 32,344.00 9,489.00
7 31,344.00 5,000.00
8 29,585.00
0.00
9 30,331.00 0 1 2 3 4 5 6 7 8 9 10 11
10 30,901.00 Year
Arranged Data
Deviation (d=y-
Year Volume (MT) (y) 25,612) D2
1 9,489.00 -16,123.00 259,951,129.00
2 15,806.00 -9,806.00 96,157,636.00
3 19,934.00 -5,678.00 32,239,684.00
4 28,051.00 2,439.00 5,948,721.00
5 28,335.00 2,723.00 7,414,729.00
6 29,585.00 3,973.00 15,784,729.00
7 30,331.00 4,719.00 22,268,961.00
8 30,901.00 5,289.00 27,973,521.00
9 31,344.00 5,732.00 32,855,824.00
10 32,344.00 6,732.00 45,319,824.00
Total 256,120.00 0.00 545,914,758.00
Standard Deviation
2 Arithmetic Mean 25612
σ=
∑( y y)
−
Median 28960
n Standard Deviation 7388.604456
Rationale:
The standard deviation is a measure of the dispersion, or scatter of the variable; it is
approximately equal to the amount by which a given value of the variable may be
expected to differ from the arithmetic mean in either direction. The variance is the square
of the standard deviation.
9
Coconut Statistics , PCA
37
Curve Fitting via Least Squares Method (LSM)
x y x*y x^2 y^2 Y

1 15,806.00 15,806.00 1.00 249,829,636.00 24,966.81
2 9,489.00 18,978.00 4.00 90,041,121.00 25,110.19
3 19,934.00 59,802.00 9.00 397,364,356.00 25,253.56
4 28,335.00 113,340.00 16.00 802,872,225.00 25,396.94
5 28,051.00 140,255.00 25.00 786,858,601.00 25,540.31
6 32,344.00 194,064.00 36.00 1,046,134,336.00 25,683.69
7 31,344.00 219,408.00 49.00 982,446,336.00 25,827.06
8 29,585.00 236,680.00 64.00 875,272,225.00 25,970.44
9 30,331.00 272,979.00 81.00 919,969,561.00 26,113.81
10 30,901.00 309,010.00 100.00 954,871,801.00 26,257.19
55 256,120.00 1,580,322.00 385.00 7,105,660,198.00
x average = 5.5 Where:
y average = 25612 b = Y intercept
slope (m) = 2080.751515 m = slope of the line
y-intercept (b) = 14167.86667 x = x value of each data point
n= 10 y = Y value of each data point
n = number of data points

Y = value of dependent variable
computed with the regression equation
Equations
m=
∑ xy − nx * y b = y − mx Y = b + mx
2
∑ x − nx
2
Projected Demand : Activated Carbon
27,800.00
27,690.94
27,600.00
27,547.57
27,400.00 27,404.19
27,260.82
27,200.00
Volume (MT)
27,117.44
27,000.00 26,974.07
26,800.00 26,830.69
26,687.31
26,600.00
26,543.94
26,400.00 26,400.56
26,200.00
11 12 13 14 15 16 17 18 19 20 21
Year
38
Dispersion of New Demand Curve
x Y Deviation (d=Y-25,612) D2
1 24,966.81 -645.19 416,268.80
2 25,110.19 -501.81 251,816.93
3 25,253.56 -358.44 128,478.03
4 25,396.94 -215.06 46,252.09
5 25,540.31 -71.69 5,139.12
6 25,683.69 71.69 5,139.12
7 25,827.06 215.06 46,252.09
8 25,970.44 358.44 128,478.02
9 26,113.81 501.81 251,816.92
10 26,257.19 645.19 416,268.79
Total 256,120.00 0.00 1,695,909.91
Standard Deviation :
Arithmetic Mean 25,612.00
2
σ=
∑( y y)
−
Median
Standard Deviation
25,612.00
411.81
n
Projected Demand : Activated Carbon
28,200.00
Year (x) Volume MT (Y)
11 26,400.56 28,000.00 27,977.69
12 26,543.94 27,800.00 27,834.32
13 26,687.31 27,690.94
27,600.00 27,547.57
14 26,830.69
Volume (MT)
27,400.00 27,404.19
15 26,974.07
27,260.82
16 27,117.44 27,200.00
27,117.44
17 27,260.82 27,000.00 26,974.07
18 27,404.19 26,800.00 26,830.69
19 27,547.57 26,687.31
26,600.00
20 27,690.94 26,543.94
21 27,834.32 26,400.00 26,400.56
22 27,977.69 26,200.00
11 12 13 14 15 16 17 18 19 20 21 22 23
Year
Rationale:
The least squares method is a Time series forecasting analysis where we fit a straight line to past
data generally relating the data value to time. LSM tries to fit the line to the data that minimizes the
sum of the squares of the vertical distance between each data point and its corresponding point on
the line. Thus creating a more linear curve with smaller dispersion providing a more rationale basis
for data projection.
39
Historical Demand: Virgin Coconut Oil10
Actual Histor i cal Demand (LSM) : Vir gin Coconut Oil
Actual Historical 3,500.00
3,280.50
Demand : Virgin
Coconut Oil 3,000.00
2,500.00
Volume
Year (MT) 2,000.00
1 1.80 1,500.00
2 19.10 1,000.00
3 694.70 500.00
694.70
4 3,280.50
0.00 1.80 19.10
0 1 2 3 4 5
-500.00
Year
Dispersion
Arranged Data
Year Volume (MT) (y) Deviation (d=y-999.025) D2

1 1.80 -997.23 994,457.70
2 19.10 -979.93 960,253.01
3 694.70 -304.33 92,613.71
4 3,280.50 2,281.48 5,205,128.18
Total 3,996.10 0.00 7,252,452.59
Standard Deviation
Arithmetic Mean 999.025
2
Median 356.9
σ=
∑( y y)
−
Standard Deviation 1346.5189
n
Rationale:
approximately equal to the amount by which a given value of the variable may be expected to
differ from the arithmetic mean in either direction. The variance is the square of the standard
deviation.
10
Coconut Statistics, PCA
40
x y x*y x^2 y^2 Y

1 1.80 1.80 1.00 3.24 773.73
2 19.10 38.20 4.00 364.81 923.93
3 694.70 2,084.10 9.00 482,608.09 1,074.12
4 3,280.50 13,122.00 16.00 10,761,680.25 1,224.32
10 3,996.10 15,246.10 30.00 11,244,656.39

y average = 999.025 b = Y intercept
y-intercept (b)
= 623.5375 x = x value of each data point
Y = value of dependent variable computed with the
regression equation
Equations:
∑ xy − nx * y b = y − mx Y = b + mx
m= 2
∑ x − nx 2
Manipulated Historical Demand (LSM) : Virgin Coconut Oil
1,400.00
1,200.00 1,224.32
1,074.12
1,000.00
923.93
Volume (MT)
800.00 773.73
600.00
400.00
200.00
0.00
0 1 2 3 4 5
Year
41
1 773.73 -225.29 50,756.71
2 923.93 -75.10 5,639.63
3 1,074.12 75.10 5,639.63
4 1,224.32 225.29 50,756.71
Total 3,996.10 0.00 112,792.69
Standard Deviation
2
Median 999.03
σ=
∑( y y)
−
n
Projected Demand : Virgin Coconut Oil
Projected Demand : Virgin Coconut Oil
4,500.00
Year (x) Volume MT (Y)
11 2,275.68 4,000.00 3,927.83
12 2,425.88 3,777.63
3,500.00 3,627.44
3,477.24
13 2,576.07 3,327.05
3,176.85
14 2,726.27 3,000.00 3,026.66
2,876.46
Vo lu m e (M T )
2,726.27
15 2,876.46 2,500.00 2,576.07
2,425.88
16 3,026.66 2,275.68
17 3,176.85 2,000.00
18 3,327.05 1,500.00
19 3,477.24
1,000.00
20 3,627.44
21 3,777.63 500.00
22 3,927.83
0.00
11 12 13 14 15 16 17 18 19 20 21 22 23
Year
Rationale:
42
Historical Demand: Coco Vinegar11

Actual Historical
Demand : Activated Historical Demand: Cocnut Vinegar
Carbon
Year Volume (MT) 2,500.00
1 521.45
2,000.00 1,973.95
2 961.97
3 1,049.43
V o lu m e ( M T )
1,500.00
4 784.64 1,375.79
5 826.83 1,049.43 1,079.23

1,000.00 961.97
6 682.92 784.64 826.83 823.86
682.92
7 823.86 500.00 521.45
8 1,079.23
9 1,375.79 0.00
10 1,973.95 0 1 2 3 4 5 6 7 8 9 10 11
Year
Dispersion
Arranged Data
Volume (MT)
Year (y) Deviation (d=y-25,612) D2
1 1,521.45 453.44 205,611.10
2 961.97 -106.04 11,243.93
3 1,049.43 -18.58 345.19
4 784.64 -283.37 80,299.35
5 826.83 -241.18 58,166.54
6 682.92 -385.08 148,288.45
7 823.86 -244.14 59,605.51
8 1,079.23 11.22 125.92
9 1,375.79 307.79 94,732.59
10 1,573.95 505.94 255,973.87
Total 10,680.06 0.00 914,392.46
Standard Deviation
2
Median 754.8765
σ=
∑( y y)
−
n
Rationale:
approximately equal to the amount by which a given value of the variable may be
expected to differ from the arithmetic mean in either direction. The variance is the square
of the standard deviation.
11
Coconut Statistics, PCA
43
x y x*y x^2 y^2 Y

1 521.45 521.45 1.00 271,910.10 569.14
2 961.97 1,923.94 4.00 925,384.36 666.67
3 1,049.43 3,148.28 9.00 1,101,297.03 764.20
4 784.64 3,138.54 16.00 615,652.08 861.73
5 826.83 4,134.15 25.00 683,646.20 959.26
6 682.92 4,097.54 36.00 466,385.19 1,056.79
7 823.86 5,767.05 49.00 678,751.89 1,154.32
8 1,079.23 8,633.82 64.00 1,164,733.08 1,251.85
9 1,375.79 12,382.14 81.00 1,892,806.38 1,349.38
10 1,973.95 19,739.45 100.00 3,896,458.86 1,446.91
55 10,080.06 63,486.36 385.00 11,697,025.16

y average = 1008.0064 b = Y intercept
y-intercept (b) = 471.6060667 x = x value of each data point
Y = value of dependent variable computed with the
regression equation
Equations:
∑ xy − nx * y b = y − mx Y = b + mx
m= 2
∑ x − nx 2
Manipulated Historical Demand (LSM) : Coco Vinegar
1,600.00
1,446.91
1,400.00
1,349.38
1,251.85
1,200.00
1,154.32
1,056.79
1,000.00
Volume (MT)
959.26
861.73
800.00 764.20
666.67
600.00 569.14
400.00
200.00
0.00
0 1 2 3 4 5 6 7 8 9 10 11
Year
44
1 569.14 -438.89 192,620.04
2 666.67 -341.36 116,523.24
3 764.20 -243.83 59,450.63
4 861.73 -146.30 21,402.23
5 959.26 -48.77 2,378.03
6 1,056.79 48.77 2,378.03
7 1,154.32 146.30 21,402.23
8 1,251.85 243.83 59,450.63
9 1,349.38 341.36 116,523.24
10 1,446.91 438.89 192,620.04
Total 10,080.25 0.00 784,748.32
Standard Deviation
2 Arithmetic Mean 1,008.03
σ=
∑( y y)
−
Median 1,008.03
n Standard Deviation 280.13
Projected Demand : Coconut Vinegar

Projected Demand : Coco Vinegar
Year (x) Volume MT (Y) 3,000.00

11 1,544.41
2,617.21
12 1,641.93 2,500.00 2,422.15
2,519.68
2,324.63
13 1,739.46 2,227.10
2,129.57
14 1,836.99 2,000.00 1,934.52
2,032.04
Volume (MT)
1,836.99
15 1,934.52 1,739.46
1,641.93
16 2,032.04 1,500.00 1,544.41
17 2,129.57
18 2,227.10 1,000.00
19 2,324.63
20 2,422.15 500.00
21 2,519.68
22 2,617.21 0.00
11 12 13 14 15 16 17 18 19 20 21 22 23
Year
Rationale:
45
Annual Average Burger Consumption for 200412
Annual Burger Consumption (PhP)
Total Household Consumption: PhP 180,000,000

Out of Home Food Consumption = PhP 118,800,000 = (66% of THC)
47520000, 40%
71280000, 60%
Burger Consumption Share Other Food Consumptions
Figure 1: Annual Burger Consumption
Demand Respondents:
1 Jolibee
2 McDonalds
3 Burger King
4 Wendy's
5 Burger Machine
6 KFC
7 Tropical Hut
8 Brothers
Annual Average Burger Consumption per Establishment: PhP 8,910,000
Coco burger demand will be based on the annual average burger consumption; no direct
demand is available since it is a new product. The demand we considered was from 8 food
establishments: Jolibee, McDonalds, Burger King, Wendy’s, Burger Machine, KFC, Tropical Hut,
and Brother’s Burger. Figure 3.9 shows the annual household out of home food consumption
with a total of Php 118,800,000. Sixty percent (60%) of households consume burgers and the
12
National Statistics Office
46
remaining 40% consume non-burger products. This analysis only represents 66% of total out of
home food consumptions.
Marketing Strategies
Potential Market
Activated Carbon
About 97% of the Philippine total production of Activated Carbon is directed to foreign
markets. Estimated world consumption is 5million MT with the automobile industry absorbing
80% of which 60% goes to tires and 20% for hoses, belts etc. The estimated demand for
activated Carbon is estimated to grow at 0.5% per year.
Domestic Consumption of AC is in the end-use markets such as potable water, industrial
& municipal wastewater treatment, air purification, solvent vapor recovery & the mining industry.
Activated Carbon Export Market13
% Share in
Major Markets Volume % Share in Value
Japan 30.72 27.06
USA 27.82 35.34
Singapore 6.79 6.77
France 6.35 5.75
United Kingdom 5.75 7.11
Australia 3.23 2.76
South Africa 2.75 1.84
Table 4-9: Activated Carbon Export Market
13
47
Virgin Coconut Oil

Virgin Coconut Oil is mainly used for therapeutic purposes, weight loss, liquid vitamins
and carrier oil for aromatherapy. At present, domestic consumption is about 70% of VCNO
production and the rest is export. Research shows that VCNO is shows to be more effective for
AIDS treatment compared to more expensively priced medicines, demand from the US, Europe
and Africa has sky rocketed and seemingly local production is not meeting demand.
Major Export Markets14
1. USA
2. Europe
3. Japan
4. South Africa
Coconut Vinegar
The potential market for coconut vinegar may not be that promising as compared to AC
and VCNO, but the local and international trend on organic food products has slightly catalyzed
the demand.
Major Export Markets
1. USA
2. Saudi Arabia
3. Australia
4. Netherlands
5. Japan
Coco Burger
Coco burger potential as substitute meat burger patties shows to be very promising.
Coco burgers are a lot cheaper and are high in protein. Potential market will be food
establishments consuming and selling meat burgers.
14
48
Target Market
A total of four products will be produced: Activated Carbon, Virgin Coconut Oil, Coco
Vinegar and Coco burger. Since production will be in large quantities, the target market will be
the distributing companies. Activated carbon will be sold for export packaged in 25kg bags.
Virgin Coconut Oil production will be sold to Herbal Medicine Distributors, Pharmaceuticals and
other medical establishments and VCNO whole sellers. VCNO will be packed in 250mL bottles
for easier distribution. Coco Vinegar will also be sold to distributors and retailers that will also be
packed in 500mL bottles, Coco Burgers will be packed in 12 pieces, 60 gram patty packs which
will be sold to supermarket and meat product distributors. Target Markets for Coco burgers are
the fast food establishments selling burgers and frozen food distributors.
Distribution Channels
COCOS Processing Co. WHOLESALER/ END USER/

(MANUFACTURER) DISTRIBUTOR GROCERIES CONSUMER
Table 4-10: Distribution Channels
Cocos Processing Co. will be manufacturing and distributing our products to the market
via distribution channels or distributors. In this way, we’ll be able to maximize the reach of our
products to the target marketplace.
Quality products such as activated carbon (which will be sold in 25-kg sack), virgin
coconut oil (250 ml), coco vinegar (500-mL bottle) and coco burger (60x12-pieces per pack); and
these merchandises will be properly marketed depending on their buyers.
For human-consumable products such as the virgin coconut oil, coco vinegar, and coco
burger, they will be passed on to product distributors and a 2 month inventory will be maintained.
Since we will be introducing a new product to the market our products will be sold 49% cheaper
than existing products. Distributors will be selling the products to wholesalers and grocery store
chains, private label food distributors and food service companies particularly in Manila, Lucena
and other neighboring towns near Quezon Province.
49
For activated carbon, it will be sold as export to industrial companies in which activated
carbon are used as significant component in their processes.
Comparative Analysis of Market Share
Industry Analysis
The coconut industry in the Philippines earns around 90% of its income from only 10% of
the whole nut. Coconut oil, which only account for some 90% of total Philippine exports volumes
in copra equivalent. This is ironic, should we consider the other products, which could possibly
be larger and more stable sources of income from exports.
According to the PCA, until today there is no successful processing plant that can
process all parts of the coconut. Studies have been made but they never did materialize because
of the high cost and complication of integrated processing. Indeed, integrated processing is
complicated but it has many advantages. Aside from the increase in profit, full utilization of the
equipment and raw material is achieved. This study concerns the production of Activated
Carbon, Virgin Coconut Oil, Vinegar Coco burger and Coconut Husks we studied the existing
manufacturers and competitors.
50
Activated Carbon
15
Philippine Activated Carbon Manufacturers
Annual
Nature of
Capacity
Investment
Name of Firm Plant Location (MT)
1. TNCC International Corp. Pasig NCR Fil - Chi 1,950
2. Filipinas Activated Carbon Carmona, Cavite Filipino 5,100
3. A-One Corp. Phils. Tiaong, Quezon Fil-S.Korean 2,400
4. Good Neighbor Corp. Palo, Leyte Fil-S.Korean 2,880
5. Green Carbon Inc. Baybay, Leyte Fil-American 450
6. Cenapro Cheml Corp. Jagobioa, Mandaue City Fil-Japanese 10,834
7. Davao Central Chem Corp. Bunawan, Davao City Fil-Japanese 5,400
8. BF Industries, Inc. Toril, Davao City Filpino 1,300
9. Pacific Activated Carbon Tigoloan, Misamis Oriental Fil-French 10,070.5
10. Phil-Japan AC Corp. Panacan, Davao City Fil-Japanese 10,600
11. Premium AC Corp. Ma-A, Davao City Filipino 1,200
Table 4-11: Philippine Activated Carbon Manufacturers
A majority of Activated Carbon Manufacturers is located in Mindanao; this is due to the

large coconut supply in the region.
15
51
Virgin Coconut Oil16
Annual Capacity (MT)

Name of Firm Brand Plant Location
1 Atson Coco Inc. Nature's Gift San Pablo, Laguna 100MT/day

Bancer Multi Purpose
2 Cooperative Indang, Cavite
Batangas Natural
3 Products Las Piñas City, NCR
Carica Herbal Health Carica Virgin
4 Products Coconut Oil Catanauan, Quezon 1000kg/day
Cervantes Technologies
5 Inc. Rejuven Oil San Pablo, Laguna 200 liters/day
Coconut Haven
6 Philippines Inc. Viviendo Las Piñas City,NCR 3MT/month
Coco Monde niyog at iba
7 pa Sampaloc, Manila
Doran Forest Fairview, Quezon
8 CRD Herbal Products Inc. Magic City
Elixirs Pacific International EPiC Virgin Batangas &
9 Corp. Coconut Oil Camarines Sur
10 Gemma Coco Foods Corp. CocoGem Sta. Cruz, Laguna 10drums/week

IAT Coconut
11 IAT Coconut Products Products Calauag, Quezon
12 Internatural Pasig City, NCR
13 Jofe Coconut Corporation Virac, Catanduanes

Manila Herbal & Essential
14 Oils Corp. Thera, Primo Toril, Davao City
Matling Industrial & Matling Coco Malabang, Lanao
15 Commercial Corp. Royal del Sur 1000L/month
16 Mt. Mayon Living Products Laureate Ligon, Albay
17 Natural Wonders Opta Quezon City 360L/month
18 Pasciolco-Agri Ventures Quezon's Best Tiaong, Quezon
19 St. Bernadette Trading Tiaong, Quezon
20 San Benito-The Farm Lipa City, Batangas 1200L/month

Table 4-12: Virgin Coconut Oil Manufacturers & Distributors
A large percentage of Virgin coconut oil manufacturers are situated in the Southern
Tagalog Area. It is not advisable to establish a VCNO plant in this region since it is already
saturated of competitors and scarcity of raw materials may likely happen.
16
52
Coco Vinegar
Leading Coconut manufacturers in local market
• UFC Coconut Vinegar
Product Description
A typical sour seasoning obtained by fermentation of dilute alcoholic liquids and mainly
used as a condiment or preservative. This vinegar is made from pure naturally fermented
coconut water
Product application
Flavoring in meal preparation and cooked meals. Seasoning. Sauce. Vegetable and meat salad
dressings.
• Datu Puti Coconut Vinegar
Product Description
Vinegar is a typical sour seasoning obtained by fermentation of dilute alcoholic liquids and
mainly used as a condiment or preservative. This vinegar is made from naturally fermented
coconut water with 5.0% natural acidity and undergone the natural process of fermentation.
Product application
Flavoring in meal preparation and cooked meals. Seasoning. Sauce. Vegetable and meat salad
dressings
53
SWOT Analysis
STRENGTHS
WEAKNESSES OPPORTUNITIES THREATS
The availability of coconut in the Only very few companies The launch of a new type of burger in The presence of a number of
Philippine Market as a raw material have succeeded in producing the industry provides a healthy activated carbon plants in the
is the strongest facet of the study. integrated coconut products, alternative to the typical meat burgers. Philippines poses a competitive
thus the statistics are against challenge.
us.
The high market value of The capital-intensive The chance of being among the few The consumers may not be
activated carbon and VCNO is technology for producing organizations to develop a technology of attracted with the launch of a new
considered in the study. activated carbon is a utilizing several parts of the coconut is a type of burger.
drawback. major breakthrough.
The study is environmental- The production of coco The development of a technology for The presence of quite a number of
friendly considering its usage of vinegar can encounter effective production of coco products that VCNO makers is a considerable
almost every parts of the coconut several problems associated is cost-effective serves as an opportunity threat.
even the ones that can be with its fermentation process. to attract customers.
considered as wastes.
The introduction of a new The development of technology for
product in the market such as the production of activated carbon that is
coco burger is a major boost to the not capital demanding poses a
Burger Industry. serious test.
Table 4-13: SWOT Analysis
54
Profitability Study
Market Share
The market share includes the analysis of set of interdependent total market share of
activated carbon, VCNO, and coco vinegar. The total Market share represents the share of our
product sales as compared to the total projected demand.
Projected Market Shares
Market Shares
AC (MT) VCNO (MT) CV (MT)
Demand Sales % Demand Sales % Demand Sales %
26,400.56 3,528.00 13.36 2,275.68 258.88 11.38 1,544.41 782.12 50.64
26,543.94 3,776.40 14.23 2,425.88 323.60 13.34 1,641.93 977.65 59.54
26,687.31 3,965.22 14.86 2,576.07 339.78 13.19 1,739.46 1,026.53 59.01
26,830.69 4,163.48 15.52 2,726.27 356.77 13.09 1,836.99 1,077.86 58.68
26,974.07 4,371.66 16.21 2,876.46 374.61 13.02 1,934.52 1,131.75 58.50
27,117.44 4,590.24 16.93 3,026.66 393.34 13.00 2,032.04 1,188.34 58.48
27,260.82 4,819.75 17.68 3,176.85 413.01 13.00 2,129.57 1,247.76 58.59
27,404.19 5,060.74 18.47 3,327.05 433.66 13.03 2,227.10 1,310.15 58.83
27,547.57 5,313.77 19.29 3,477.24 455.34 13.09 2,324.63 1,375.65 59.18
27,690.94 5,579.46 20.15 3,627.44 478.11 13.18 2,422.15 1,444.44 59.63
27,834.32 5,858.44 21.05 3,777.63 502.01 13.29 2,519.68 1,516.66 60.19
27,977.69 6,151.36 21.99 3,927.83 527.11 13.42 2,617.21 1,592.49 60.85
Table 4-14: Projected Market Shares
Population
Discussing the population data of the province of Quezon will be vital in planning and
decision making process of the government and private businesses alike in determining what,
where, when, and how public and private services and facilities will be placed.
Based on the population census conducted in the year 2000, 1,679,030 people live in
Quezon (that is, 18 percent of CALABARZON’s total population). It is the least populated
province in the CALABARZON Region (National Statistics Coordination Board, October 2004).
55
Density
Percentage
Municipality/City Numbers (person/ Ranking
Distribution
hectare)
1. Agdangan 9,946 0.600 2.85 40
2. Alabat 14,204 0.850 1.55 34
3. Atimonan 56,716 3.377 3.53 10
4. Buenavista 22,840 1.360 1.54 27
5. Burdeos 19,635 1.170 2.32 31
6. Calauag 65,907 3.925 1.66 7
7. Candelaria 92,429 5.504 6.36 3
8. Catanauan 57,736 3.440 3.30 9
9. Dolores 23,649 1.408 2.48 25
10. General Luna 21,068 1.250 1.53 29
11. General Nakar 23,678 1.410 0.18 24
12. Guinayangan 37,164 2.213 2.57 19
13. Gumaca 60,191 3.580 2.80 8
14. Infanta 50,992 3.036 3.92 12
15. Jomalig 5,817 0.346 1.12 41
16. Lopez 78,694 4.686 2.01 4
17. Lucban 38,834 2.313 5.81 18
18. Macalelon 22,935 1.365 2.45 26
19. Mauban 50,134 2.986 1.22 13
20. Mulanay 45,903 2.934 1.50 15
21. Padre Burgos 18,962 1.129 2.76 32
22. Pagbilao 53,442 3.182 3.17 11
23. Panukulan 11,311 0.674 0.46 36
24. Patnanungan 11,034 0.657 1.24 31
25. Perez 10,454 0.622 1.78 38
26. Pitogo 20,558 1.224 2.28 30
27. Plaridel 9,501 0.565 2.87 39
28. Polillo 24,105 1.435 0.84 23
29. Quezon 14,594 0.870 2.70 33
30. Real 30,684 1.827 0.55 20
31. Sampaloc 12,858 0.766 1.23 35
32. San Andres 27,184 1.619 1.38 21
33. San Antonio 26,419 1.573 4.89 22
34. San Francisco 48,310 2.877 1.05 14
35. San Narciso 38,474 2.291 1.90 17
36. Sariaya 114,368 6.823 4.77 2
37. Tagkawayan 44,290 2.638 0.69 16
38. Tayabas 70,985 4.227 2.28 6
39. Tiaong 75,498 4.496 6.51 5
40. Unisan 21,252 1.265 2.33 28
41. Lucena City 196,075 11.678 28.82 1
Table 4-15: Population Distribution by City/Municipality Ranking and Density, Quezon 2000
Source: National Statistics Office, 2000
56
Lucena City, a highly urbanized city has 11% of the total population of Quezon, followed
by Sariaya and Candelaria with 6.82% and 5.50% respectively. These are the most populous
areas in the province. (Pagbilao, the municipality in Quezon province the group is targeting, is
ranked as 11 for having a population number of 53,442 people).
With this population, it can be projected that population in the province will reach more
than 2.5 million on the next 2 years. Thus, there is a need to provide adequate support to the
growing working population, with quality employment opportunities and productive activities that
would benefit the province’s people.
Quezon is the one of the country’s leading coconut producer and considering this positive
aspect of the province will give rise to the feasibility of establishing a manufacturing plant that
would utilize the coconut and transform into something useful that would benefit its people and
other neighboring town.
Cocos Processing Co., will not only provide employment for the people of the province
particularly in Pagbilao but will be using coconut as primary raw materials to produce activated
carbon, virgin coconut oil, coco vinegar, and coco burger to aid the province make use of its rich
supply of coconut in a sagacious manner.
Activated carbon is used as an agent for filtering, refining, deodorizing, decolorizing and
purifying different substances by most of the companies. The group is aiming to produce high
volume of the product in order to contribute to the dependencies of many firms to this product.
Our produced coco vinegar, virgin coconut oil (VCNO) and coco burger, which are
termed as consumable foods, are capable of satisfying up the needs of the people with such
products and can also provide enough shares to present market (of vinegar, VCNO and burger)
based on the market study that we did.
57
Product Prices
Market Product Prices

Product Quantity Price
Activated USD 36 =
Carbon 25 kg Sack PhP 2000
Virgin Coconut
Oil 250 m L PhP 70
Coconut
Vinegar 500mL PhP 10
Coco Burger 12 pcs /pack 60 g/pc PhP30
Raw Material Prices

Raw Materials Quantity Price
Whole
Coconuts* 1 Kg PhP 4
Coconut Shells* shell PhP0.54
Table 4-16: Product & Raw Material Prices
Assumption:
1 USD = 55.56 PhP
*Delivered Prices (transportation cost included)
According to the Philippine Coconut Authority, prices change daily. Main factor affecting
the price of coconuts are the location, season and weather.
58
Chapter V
Technical Study
Technical Study Overview
In Integrated Coconut Processing, all usable parts of the nut are consumed. The Husk
which comprises 33.33% wt of the whole nut is used as fuel for the production of activated
carbon which comes from the shell. The water collected will be processed into vinegar. From the
fresh meat, virgin coconut oil will be extracted and the coco meal turned made into coco burger.
In this section the Process Description, Process Flow Chart, Material and Energy
Balances, Equipment Specifications, Optimizations and Electricity Projections for each product
are discussed.
Operations Strategy
Processing will start with the whole nut, which will be husked, shelled, paired, grounded
then the resulting components will be processed to the four end products. In order to optimize
equipment and time the system will be operational for 24 hours, 360 days a year.
Shifting :
• 6 am to 2 pm
• 2 pm to 10 pm
• 10 pm to 6 pm
Material Balances are all based on one shift operation (8 hrs).
Daily Operations :
• Operation : 360 days a year, 24 hours a day
• Process 22,500 pcs / 27 MT of Whole Coconuts & 48MT kg coco shell
• Production:
1. Activated Carbon : 10MT = 400 25 kg sacks
2. Virgin Coconut Oil : 939 L = 3,760 250 mL bottles
3. Coco Vinegar : 4920 L = 9,840 500 mL bottles
4. Coco Burger : 6507.9 kg = 9,039 12x60 kg packs
59
Primary Processing Section
Operations and Process Description
The whole coconut will be procured from coconut farms then either brought or delivered
to the plant. Primary processing involves separating the husk, shell, coco meat, and coco water
recovery for the manufacturing of the end products: activated carbon, virgin coconut oil, coco
vinegar, and coco burger. The processes involved are:
1. Dehusking – Separation of the husk from the nut via manual means. The thick outer layer
of the nut is pierced by striking it against a sharp pointed piece of metal. The fibrous
husk is then torn from the hard shell of the nut. Leaving the husked nut intact.
2. Deshelling – Deshellilng is carried out via the shelling machine. The husked nut is
pressed against the rotating blade of the machine and the hard shell of the nut is
grounded and separated from the white meat with the water intact. Coco water losses are
experienced during this process. The collected shells are then transported to the
activated carbon feed section via belt conveyor.
3. Splitting – Splitting of the shelled nut is done via splitter. This machine splits the shelled
nut in half and collects and the fresh coco water, which will then be processed into
vinegar. The collected water is filtered using a filter screen.
4. Paring – The split coco meat is then removed of its paring or testa, via manual means.
5. Washing – The white coco meat is then placed on a counter current screw type conveyor
for washing.
6. Grinding – Grinding of the washed white coco meat is then done via the power grinder.
The ground meat is then transported to the coco mil extractor for VCNO processing.
60
Over All Process Flow Chart: Primary Process
Whole Coconuts
Husked Nuts Shelled Nuts
Dehusking Shelling Splitter

(Manual) Machine
Husk Coco Shell

• Coir Coco Water
• Charcoal • Coco Vinegar
• Coco Peat • Activated Carbon
• Geo-textiles Halves Coco
• Coco Fiber Meat
Ground Coco Meat White Coco

• Virgin Coconut Oil Meat
• Coco Meal Paring
• Coco Burger Grinding (Manual)
Paring
Figure 5-1: Primary Processing Process Flow Chart
Whole Coconuts will be processed into 4 products: Activated Carbon, Coco Vinegar, Virgin Coconut Oil & Coco
Burger. The husk will be used as fuel for activated carbon processing. The paring is treated as a waste product.
61
Overall Material Balance

Basis : 8 hours Operation
Whole Coconuts = 9,000 kg
Husked Nuts = 6,000 kg Shelled Whole

Nuts = 3,210 kg
Shelling Splitter
Dehusking
Machine
(Manual)
Husk = 3,000 kg
• Coir Produced Coco Shells = 1559.7 kg Halves Coco
Coco Water = 720 kg Meat = 2,490 kg
• Coco Peat *Purchased Coco Shells = 43,420.9 kg • Coco Vinegar= 2,459.54 L
• Geo-textiles • Activated Carbon=10,000 kg
• Coco Fiber
White Coco
Ground Coco Meat = 2,070 kg Meat = 2,070 kg
• Virgin Coconut Oil = 313.38 L
• Coco Meal = 1080 kg Grinding Paring
• Coco Burger = 2169.2973 kg (Manual)
Figure 5-2: Overall Material Balance
* Daily purchase of coco shells required to produce 10 MT of activated carbon.
62
Over All Material Balance : Primary Process
Whole Coconuts = 9,000 kg Husked Nuts = 6,000 kg

Dehusking
FI (Manual) P1
• Average Weight of Husk = 3,000 kg

Coconut = 1.2 kg
P2
• 7,500 pcs of Coconuts • Husk = 33.33 % of Whole Nut
• Coir
• Fiber
• Geotextiles
OMB : • Coco peat
F1 = P1 + P2
Husked Nuts Balance :
P1 = 9,000 kg x 0.6667 = 6,000 kg
Husk Balance:
P2 = 9,000 kg x0.3333 = 3,000 kg
Husked Nuts = 6,000 kg

F2
Coco Water = 1,230 kg Coco Shell = 1,560 kg

Shelling
P3 Machine P5
• Shell = 26% of husked nut

• Wasted Coco water = 20.5% • Charcoal
• Activated Carbon
P4
Shelled Whole Nuts = 3,210

• Shelled Nut w/ testa = 53.5%
OMB :
F2 = P5 + P3 + P4
Shell Balance :
P5 = 6,000 kg x 0.26 = 1,560 kg
Waste Coco Water Balance:
P3 = 6,000 kg x 0.205 = 1,230 kg
Shelled Whole Nut Balance:
P4 = 6,000 kg x 0.535 = 3,210 kg 63
Shelled Whole Nuts = 3,210 kg
F3
Coco Water = 720 kg Halves Coco Meat = 2,490 kg
P6 Splitter P7
• Halves Coco meat with

• Recovered Coco water = 12% ave Paring
• Vinegar
OMB :
F3 = P7 + P6
Coco Water (recovered) Balance :
P6 = 6,000 kg x 0.12 = 720 kg
Halves Coco Meat Balance :
P7 = 3,210 kg – 720 kg = 2490 kg
Halves Coco Meat = 2,490 kg

Paring = 420 kg
F4 Paring P9
(Manual)
• Paring = 7%
White Meat = 2,070 kg

P8
OMB :
F4 = P9 + P8
Paring Balance :
P9 = 6,000 kg x 0.07 = 420 kg
White Meat Balance :
P8 = 2,490 kg – 240 kg = 2,070 kg
64
White Meat = 2,070 kg Ground Coco Meat = 2,070 kg
F5 Grinder P10
• Virgin Coconut Oil

• Coco Mill
• Coco Burger
OMB :
F5 = P10
P10 = 2,070 kg
Product Conversion
Product conversion is based on equipment performance sourced from 1Princena

Machine Shop, San Pablo Laguna and 2Philippine Coconut Authority Coconut
Conversion Table.
1
Basis: 6,000 kg of husked nuts/ 8 hrs operation
1800 kg fresh meat - 30%

1080 kg Coco meal (Sapal) - 18%
1560 kg Coco shell - 26%
720 kg Coco water - 12% (ave recovery)
2
Philippine Coconut Authority Coconut Conversion Table:
Average weight of Whole Nut - 1.2 kg
Husk - 33.33 % wt of Whole Nut
65
Equipment Specifications
1.
NAME OF M.S. Sheller Bin complete with SS

EQUIPMENT: Chute for shell nuts
NUMBER REQUIRED: 4
FUNCTION: To hold the husked nuts
CAPACITY: 500 kg nuts per bin
LENGTH: 3.2 ft
WIDTH: 3.2 ft
HEIGHT: 72 in.
MATERIAL OF
CONSTRUCTION: Carbon Steel
2.
NAME OF Man Operated De-shelling
EQUIPMENT: machine
NUMBER REQUIRED: 4
To remove the shell of the husked
FUNCTION: nut
CAPACITY: 200 kg nuts per hour
LENGTH: 14 in
WIDTH; 28 in
HEIGHT: 14 in
MOTOR: 1 unit-1/2 Hp Gear Motor
FRAME: Mild Steel
8-¾ in. diameter with 56 pcs. momax
ROTARY BLADE: tool bit
BEARING: Flange Bearing
66
3.
NAME OF Unit- SST 304 Rotary Splitter with catch
EQUIPMENT: pan and ss screw
NUMBER
REQUIRED: 1
To remove the coco water and to cut
FUNCTION: the shelled nuts into halves
OPERATION TIME: 1 hour
LENGTH: 22 in
WIDTH; 14 in
MOTOR: 1 unit- 1 Hp Gear Motor
MATERIAL OF Stainless Steel
CONSTRUCTION
. & 5.
NAME OF SST 304 Washing Screw conveyor

EQUIPMENT:
NUMBER 1
REQUIRED:
To transport and wash the coco meat to
FUNCTION: the grinder
LENGTH: 12 ft.
WIDTH; 18 in.
MOTOR: 1 unit- 1 ½ Hp Gear Motor
CONSTRUCTION
NAME OF Inspector Table

EQUIPMENT:
NUMBER 1
REQUIRED:
FUNCTION: To hold the coco halves for paring
LENGTH: 6 ft.
WIDTH; 24in.
CONSTRUCTION
67
6.
NAME OF
EQUIPMENT: Unit- Power Grinder
NUMBER 1
REQUIRED:
FUNCTION: To grind the coco meat
MATERIALS: SST 304 for materials contact parts
LENGTH: 60 in.
WIDTH; 30 in.
HEIGTH: 36 in
1 unit- 15 Hp electric induction motor,
for spindle drive, and one (1) unit- ½ Hp
MOTOR: gear motor, for screw feeder
7.
NAME OF Transfer Belt Conveyor

EQUIPMENT:
NUMBER 1
REQUIRED:
To transport the ground coco meat to
FUNCTION: the extractor
LENGTH: 8 ft.
WIDTH; 12 in.
68
Equipment Optimization
SHELLER BIN DESHELLING MACHINE

No. of New No. of New
Year kg nuts/day Equipment Equipment Year kg nuts/day Equipment Equipment
0 4 0 4
1 18000 4 1 18000 4
2 18,900.00 4 2 18,900.00 4 1
3 19,845.00 4 1 3 19,845.00 5
4 20,837.25 5 4 20,837.25 5
5 21,879.11 5 5 21,879.11 5
6 22,973.07 5 6 22,973.07 5 1
7 24,121.72 5 1 7 24,121.72 6
8 25,327.81 6 8 25,327.81 6
9 26,594.20 6 9 26,594.20 6
10 27,923.91 6 10 27,923.91 6
11 29,320.10 6 1 11 29,320.10 7 1
12 30,786.11 7 12 30,786.11 7
Capacity: 500 kg nuts per bin Capacity: 200 kg nuts per hour
SPLITTER POWER GRINDER

0 1 0 1
1 18000 1 1 18000 1 1
2 18,900.00 1 2 18,900.00 2
3 19,845.00 1 3 19,845.00 2
4 20,837.25 1 4 20,837.25 2
5 21,879.11 1 5 21,879.11 2
6 22,973.07 1 1 6 22,973.07 2
7 24,121.72 2 7 24,121.72 2
8 25,327.81 2 8 25,327.81 2
9 26,594.20 2 9 26,594.20 2
10 27,923.91 2 10 27,923.91 2
11 29,320.10 2 11 29,320.10 2
12 30,786.11 2 12 30,786.11 2
Capacity: 1000 kg nuts per hour Capacity: 750 kg nuts per hour
69
Power Requirement
DESHELLING MACHINE SPLITTER

Year Kw h Kw-h Year Kw h Kw-h
1 1.39 24 33.42 1 0.58 24 14.03
2 1.46 24 35.09 2 0.61 24 14.73
3 1.55 24 37.12 3 0.64 24 15.47
4 1.62 24 38.97 4 0.68 24 16.24
5 1.71 24 40.92 5 0.71 24 17.05
6 1.79 24 42.97 6 0.75 24 17.9
7 1.88 24 45.01 7 0.75 24 17.96
8 1.97 24 47.26 8 0.79 24 18.85
9 2.07 24 49.62 9 0.82 24 19.8
10 2.17 24 52.1 10 0.87 24 20.79
11 2.29 24 54.91 11 0.91 24 21.83
12 2.4 24 57.65 12 0.95 24 22.92
*power requirement = 1/2 hp *power requirement = 1 hp
POWER GRINDER
Year Kw h Kw-h
1 11.56 24 277.51
2 12.21 24 293.03
3 12.82 24 307.69
4 13.46 24 323.07
5 14.13 24 339.22
6 14.84 24 356.18
7 15.58 24 373.99
8 16.36 24 392.69
9 17.18 24 412.33
10 18.04 24 432.94
11 18.94 24 454.59
12 19.89 24 477.32
*power requirement = 15.5 hp
TOTAL ANNUAL ELECTRIC CONSUMPTION
Year Kw-h
1 116,985.60
2 123,426.00
3 129,700.80
4 136,180.80
5 142,988.40
6 150,138.00
7 157,305.60
8 165,168.00
9 173,430.00
10 182,098.80
11 191,278.80
12 200,840.40
70
VARIABLE WATER PROJECTION (Personnel Based)
DEHUSKING (MANUAL) SHELLER BIN & DESHELLING MACHINE

Water Water
# of # of Consumption # of # of Consumption
year Equipment Personnel (L) Year Equipment Personnel (L)
1 8 27 2430000 1 4 12 1080000
2 8 27 2430000 2 4 12 1080000
3 8 27 2430000 3 4 12 1080000
4 10 30 2700000 4 5 15 1350000
5 10 30 2700000 5 5 15 1350000
6 10 30 2700000 6 5 15 1350000
7 10 30 2700000 7 5 15 1350000
8 12 36 3240000 8 6 18 1620000
9 12 36 3240000 9 6 18 1620000
10 12 36 3240000 10 6 18 1620000
11 12 36 3240000 11 6 18 1620000
12 14 42 3780000 12 7 21 1890000
PARING (Manual) SPLITTER

Water Water
year Equipment Personnel (L) year Equipment Personnel (L)
1 NA 12 1080000 1 1 3 270000
2 NA 12 1080000 2 1 3 270000
3 NA 12 1080000 3 1 3 270000
4 NA 15 1350000 4 1 3 270000
5 NA 15 1350000 5 1 3 270000
6 NA 15 1350000 6 1 3 270000
7 NA 15 1350000 7 2 6 540000
8 NA 18 1620000 8 2 6 540000
9 NA 18 1620000 9 2 6 540000
10 NA 18 1620000 10 2 6 540000
11 NA 18 1620000 11 2 6 540000
12 NA 21 1890000 12 2 6 540000
SUMMARY OF WATER CONSUMPTION
PROJECTED WATER
YEAR CONSUMPTION (L)
1 4,860,000.00
2 4,860,000.00
3 4,860,000.00
4 5,670,000.00
5 5,670,000.00
6 5,670,000.00
7 5,940,000.00
8 7,020,000.00
9 7,020,000.00
10 7,020,000.00
11 7,020,000.00
12 8,100,000.00
71
VARIABLE WATER PROJECTION (Process Requirement Based)
SUMMARY OF WATER
COUNTER CURRENT SCREW CONVEYOR CONSUMPTION
Water
No. of Consumption Projected Water Consumption
Year Nuts/day (L) Year (L)
1 22,500.00 2,025,000.00 1 2,025,000.00
2 23,625.00 2,126,250.00 2 2,126,250.00
3 24,806.25 2,232,562.50 3 2,232,562.50
4 26,046.56 2,344,190.63 4 2,344,190.63
5 27,348.89 2,461,400.16 5 2,461,400.16
6 28,716.34 2,584,470.16 6 2,584,470.16
7 30,152.15 2,713,693.67 7 2,713,693.67
8 31,659.76 2,849,378.36 8 2,849,378.36
9 33,242.75 2,991,847.27 9 2,991,847.27
10 34,904.88 3,141,439.64 10 3,141,439.64
11 36,650.13 3,298,511.62 11 3,298,511.62
12 38,482.64 3,463,437.20 12 3,463,437.20
Assumption
1. Water requirement, 250 mL per pc of nut
72
Activated Carbon
Process Description
1. Section 1: Feed reception, preparation and retort charging

The coconut shell halves are fed to the primary crusher and further to the
secondary crusher to produce a product of 100% - 50mm crushed coconut shell. After
grinding, the crushed coconut shells are then send to the carbonization- activation retort
through a screw conveyor.
2. Section 2: One step carbonization- activation process

The principle of carbonizing the coconut shell involves the slow carbonization of
the material in the absence of air at a temperature of around 300º C to remove natural
volatile components and residual moisture levels. It takes 40 minutes to carbonize the
shells.
After carbonization, the steam valve automatically opens to activate the charcoal.
Activation is done by oxidizing the carbonized material in a controlled atmosphere of
steam at 800-1000º C. the steam opens up the pores of the charcoal thereby creates an
enormous internal surface area which makes the charcoal such an effective adsorbent.
3. Section 3: Packaging and Filling

The produced activated carbon is cooled while passing through the evaporative
and discharge coolers respectively. Cooled activated carbon will be accommodated by the
double deck screen shaker for packing.
Conversions17:
Charcoal from Shell = 27.8%
Fixed Carbon from Charcoal = 75%
17
PCA Industry Kit
73
Plant Operations Strategy
SECTIONS:
1. Feed reception, preparation and retort charging

2. One step carbonization and activation
3. Activated carbon cooling, screening and packaging
SCHEDULE:
Section 1
3 Shifts
8 hours/ shift
4 hours/ batch
Section 2
3 Shifts
8 hours/ shift
12 batches
2 hours/ batch
Section 3
2 Shifts
8 hours/ shift
COCONUT SHELL FEED:
48,000kg shell/ day
ACTIVATED CARBON PRODUCTION:
10,000kg/ day
74
Process Flow Chart: Activated Carbon
Combustible
Gas
Grinding mill Carbonization

Coconut Shell Process
Waste Gas
and Water
Steam Charcoal
Grinding Activation
Furnace
Activated Waste Gas

Carbon and Water
Figure 5-3: Activated Carbon Process Flow Chart
75
Material Balance : Activated Carbon
Grinder:
Coconut shell=48,000 kg Crushed coconut shell=48,000 kg

11% moisture 11% moisture
Grinder
F1 P1
OMB:
48,000 kg coconut shell = 48,000 kg crushed coconut shell
Carbonization Process:
Crushed coconut shell=48,000 kg Charcoal = 13,333.33 kg

Carbonization
F2 Process P2
Waste gas = 30,720.003 kg

L2 Water = 3946.67
OMB:
F2 = P2 + L2
Charcoal = 48,000 kg crushed coconut shell x 50 kg charcoal

180 kg shell
= 13,333.33 kg charcoal
H2O balance:
water in L2 = 0.11(48,000 kg) – 0.10(13,333.33 kg)
= 3,946.67 kg
Waste gas: from OMB

L2 = 48,000 kg – 13,333.33 kg
= 34,666.67 kg
L2 = waste gas + water
Waste gas = 34,666.67 kg – 3,946.67 kg
76
=30,720.003 kg
Activation Furnace:
Charcoal = 13,333.33 kg Activated carbon = 10,000 kg

Activation
F3 Furnace P3
Waste gas = 2,300 kg

L3 Water = 1,033.33 kg
OMB:
F3 = P3 + L3
Activated carbon = 13,333.33 kg charcoal x 0.75

= 10,000 kg activated carbon
H2O balance:
water in L3 = 0.10(13,333.33 kg) – 0.03(10,000 kg)
= 1,033.33 kg
Waste gas: from OMB

L3 = 13,333.33 kg – 10,000 kg
= 3,333.33 kg
L3 = waste gas + water
Waste gas = 3,333.33 kg – 1,033.33 kg
=2,300 kg
Grinder:
Activated carbon = 10,000 kg Activated carbon = 10,000 kg

Grinder
F4 P4
OMB:
F4 = P4
10,000 kg activated carbon = 10,000 kg crushed activated carbon
77
Energy Balance
Balance per batch (4000kg coconut shell)
ONE STEP CARBONIZATION ACTIVATION
Q= Qshell- charcoal + Qcharcoal-activated carbon
Qshell- charcoal = mcp∆T

= 4000kg (1700J/kg-°C)(300- 25)
= 1.89*10^9 J/batch
Qcharcoal- activated carbon = mcp∆T

= 1111.1108kg (1000J/kg-
°C)(1000- 300)
= 7.7778*10^8 J/batch
Q = 1.89*10^9 J/batch + 7.7778*10^8 J/batch

= 2.6478*10^9 J/ batch
Qhusk = m*Heating Value

= 749.925kg (20*10^6J/kg)
= 1.49985*10^10 J/batch
78
BOILER
Qboiler = mcp∆Tw-w100°C + mcp∆Tw100°C-s

= 37.5(2) [ 4.1883kJ/kg-K(100-25) + 4.21332kJ/kg-K(800-100)
+ 40.69 kJ/mol/18g/mol*1000g/kg]
= 414300.1542 kJ/batch
79
SECTION 1: Feed Reception, Preparation and Retort Charging
CONVEYOR BELT
Number of Equipment 1
It transports the coconut shell from the
Function rectangular storage to the crushers.
Width 0.2m
Height 0.2m
Length 4
Capacity 2100kg coconut shell/hr

Material of Construction Stainless Steel
Motor 1.5 Hp
SCREW CONVEYOR
To transport coconut shell in the feed
Function hopper .
Diameter 0.2m
Length 4m
Capacity 2810kg coconut shell/hr
Motor 1.5 Hp
CRUSHER
Number of Equipment 2 (1 Primary and 1 Secondary Crusher)
To grind the coconut shell into smaller
Function pieces.
Diameter 0.75m
Height 0.5m
Capacity 2000kg coconut shell /hr
Motor 30.34 Hp
80
SECTION 2: One Step Carbonization- Activation Process
FEED HOPPER
It accommodates the coconut shell
Function before entering the carbonization/activation
area.
Diameter 1m
Height 1m
Capacity 4000kg coconut shell/ batch
Motor NA
CARBONIZATION/ACTIVATION
It is where the coconut shells are
Function converted into charcoal and further to
activated carbon.
Diameter 1.5m
Height 7m
Capacity 4470kg coconut shell/batch
Motor NA
BOILER
It boils the water to steam which the main

Function heat source for activation.
Diameter 1m
Height 1.5m
Capacity 100kg water/ batch

Motor 125 Hp
81
COOLING TOWER
It holds the water to be used in cooling the
Function
activated carbon
Diameter 1m
Height 1.5m
Capacity 100kg water/ batch
Material of Construction Fiberglass cooling tower
Motor 20 Hp
AIR BLOWER
Function It blows air to the system.
Diameter 0.5m
Height 0.3m
Capacity 3000kg air/batch

Motor 30 Hp
MAIN BURNER
It combusts the fuel that is to be used for the
Function
carbonization and activation process.
Width 0.9m
Height 0.9m
Length 0.9m
Capacity 56.291kg diesel/batch

Motor 50 Hp
82
AFTERBURNER
The after burner is fitted following
the main zone of combustion in order to
Function
obtain virtually complete combustion,
thus decreasing emission levels of air pollutants.
Width 0.75m
Height 2m
Length 0.75m
Motor NA
BAG FILTER
Function It collects the dust particles
Diameter 0.5m
Height 5m
QUENCH TOWER
Water is sprayed in the quench tower to
Function
scrub the volatile particles from the hot gas.
Diameter 1m
Height 1.5m
Capacity 3166.66 kg mixed gas/ batch
83
SECTION 3: Packaging and Filling
DOUBLE DECK SCREEN SHAKER
It serves as separator of big and small
Function particles of activated carbon and as filling
machine.
Diameter 1m
Height 2.6m
Capacity 15000 kg activated carbon/ shift

Motor 30 Hp
RECEIVING HOPPER
It accommodates the activated carbon
Function that will enter the double deck screen
shaker.
Width 0.2m
Height 0.2m
Length 0.2m
RECEIVING TANK
It accommodates the activated carbon that
Function
is discharged by the discharge cooler.
Width 3m
Height 3m
Length 3m
Material of Construction Rectangular Stainless Steel
84
EVAPORATIVE COOLER
Function It serves as primary cooler of the activated carbon.
Diameter 0.2m
Length 5m
Capacity 15000kg activated carbon/ shift
DISCHARGE COOLER
It serves as secondary cooler of the activated
Function
Carbon.
Diameter 0.2m
Length 0.5m
Capacity 15000kg activated carbon/ shift
85
FEED HOPPER MAIN BURNER

Capacity: 2000kg/hr Capacity: 700L/day * multiplied by the factor 2
Year Kg Shells/day Equipment Equipment Year L Diesel/day Equipment Equipment
0 0.00 0 1 0 0.00 0 1
1 45,696.00 1 1 470.54 1
2 47,980.80 1 1 2 494.07 1
3 50,379.84 2 3 518.77 1
4 52,898.83 2 4 544.71 1
5 55,543.77 2 5 571.95 1
6 58,320.96 2 6 600.55 1
7 61,237.01 2 7 630.57 1
8 64,298.86 2 8 662.10 1
9 67,513.80 2 9 695.21 1 1
10 70,889.49 2 10 729.97 2
11 74,433.97 2 11 766.47 2
12 78,155.67 2 12 804.79 2
FEED HOPPER MAIN BURNER

Capacity: 2000kg/hr Capacity: 700L/day * multiplied by the factor 2
Year Kg Shells/day Equipment Equipment Year L Diesel/day Equipment Equipment
0 0.00 0 1 0 0.00 0 1
1 45,696.00 1 1 470.54 1
2 47,980.80 1 1 2 494.07 1
3 50,379.84 2 3 518.77 1
4 52,898.83 2 4 544.71 1
5 55,543.77 2 5 571.95 1
6 58,320.96 2 6 600.55 1
7 61,237.01 2 7 630.57 1
8 64,298.86 2 8 662.10 1
9 67,513.80 2 9 695.21 1 1
10 70,889.49 2 10 729.97 2
11 74,433.97 2 11 766.47 2
12 78,155.67 2 12 804.79 2
86
1- STEP CARBONIZATION/ACTIVATION RETORT BOILER

Capacity: 4470kg/batch Capacity: 1200kg/day* multiplied by the factor 2
Year Kg Shells/day Equipment Equipment Year Kg Water/day Equipment Equipment
0 0.00 0 1 0 0.00 0 1
1 4,000.00 1 1 900.00 1
2 4,200.00 1 2 945.00 1
3 4,410.00 1 1 3 992.25 1
4 4,630.50 2 4 1,041.86 1
5 4,862.03 2 5 1,093.96 1
6 5,105.13 2 6 1,148.65 1 1
7 5,360.38 2 7 1,206.09 2
8 5,628.40 2 8 1,266.39 2
9 5,909.82 2 9 1,329.71 2
10 6,205.31 2 10 1,396.20 2
11 6,515.58 2 11 1,466.01 2
12 6,841.36 2 12 1,539.31 2
COOLING TOWER AIR BLOWER

Capacity: 1200kg/day * multiplied by the factor 2 Capacity: 3000 kg/hr * multiplied by the factor 2
Year Kg Water/day Equipment Equipment Year Kg Water/day Equipment Equipment
0 0.00 0 1 0 0.00 0 1
1 900.00 1 1 2,648.80 1
2 945.00 1 2 2,781.24 1
3 992.25 1 3 2,920.30 1 1
4 1,041.86 1 4 3,066.32 2
5 1,093.96 1 5 3,219.63 2
6 1,148.65 1 1 6 3,380.61 2
7 1,206.09 2 7 3,549.65 2
8 1,266.39 2 8 3,727.13 2
9 1,329.71 2 9 3,913.48 2
10 1,396.20 2 10 4,109.16 2
11 1,466.01 2 11 4,314.62 2
12 1,539.31 2 12 4,530.35 2

DOUBLE DECK SCREENS EVAPORATIVE/DISCHARGE COOLER
Capacity: 50kg/min Capacity: 10000kg/day
Year kgAC/shift Equipment Equipment Year Kg AC/day Equipment Equipment
0 0.00 0 1 0 0.00 0 1
1 10,000.00 1 1 10,000.00 1 1
2 10,500.00 1 2 10,500.00 2
3 11,025.00 1 3 11,025.00 2
4 11,576.25 1 4 11,576.25 2
5 12,155.06 1 5 12,155.06 2
6 12,762.82 1 6 12,762.82 2
7 13,400.96 1 7 13,400.96 2
8 14,071.00 1 8 14,071.00 2
9 14,774.55 1 9 14,774.55 2
10 15,513.28 1 10 15,513.28 2
11 16,288.95 1 11 16,288.95 2
12 17,103.39 1 12 17,103.39 2
87
Electricity Projections
PRIMARY CRUSHER SECONDARY CRUSHER

Power: 30.34 hp Power: 30.34 hp
1 21.52 24 516.57 1 21.52 24 516.57
2 22.60 24 542.40 2 22.60 24 542.40
3 29.14 24 699.27 3 29.14 24 699.27
4 30.59 24 734.24 4 30.59 24 734.24
5 32.12 24 770.95 5 32.12 24 770.95
6 33.73 24 809.49 6 33.73 24 809.49
7 35.42 24 849.97 7 35.42 24 849.97
8 37.19 24 892.47 8 37.19 24 892.47
9 39.05 24 937.09 9 39.05 24 937.09
10 41.00 24 983.95 10 41.00 24 983.95
11 43.05 24 1,033.14 11 43.05 24 1,033.14
12 45.20 24 1,084.80 12 45.20 24 1,084.80
CONVEYOR
Power: 1.5 hp
Year Kw h Kw-h
1 0.65 24 15.70
2 0.69 24 16.49
3 0.72 24 17.31
4 0.76 24 18.18
5 0.80 24 19.09
6 0.84 24 20.04
7 0.88 24 21.04
8 0.92 24 22.09
9 0.97 24 23.20
10 1.01 24 24.36
11 1.07 24 25.58
12 1.12 24 26.86
COOLING TOWER AIR BLOWER

Power: 20 hp Power: 30 hp
1 11.69 24 280.57 1 20.30 24 487.18
2 12.27 24 294.59 2 21.31 24 511.54
3 12.89 24 309.32 3 22.38 24 537.12
4 13.53 24 324.79 4 30.30 24 727.09
5 14.21 24 341.03 5 31.81 24 763.44
6 14.92 24 358.08 6 33.40 24 801.61
7 23.38 24 561.13 7 35.07 24 841.70
8 24.55 24 589.19 8 36.82 24 883.78
9 25.78 24 618.65 9 38.67 24 927.97
10 27.07 24 649.58 10 40.60 24 974.37
11 28.42 24 682.06 11 42.63 24 1,023.09
12 29.84 24 716.16 12 44.76 24 1,074.24
88
MAIN BURNER BOILER

Power: 50 hp Power: 125 hp
1 25.25 24 605.91 1 73.06 24 1,753.53
2 26.51 24 636.20 2 76.72 24 1,841.21
3 27.83 24 668.01 3 80.55 24 1,933.27
4 29.23 24 701.41 4 84.58 24 2,029.93
5 30.69 24 736.48 5 88.81 24 2,131.43
6 32.22 24 773.31 6 93.25 24 2,238.00
7 33.83 24 811.97 7 146.13 24 3,507.06
8 35.52 24 852.57 8 153.43 24 3,682.42
9 37.30 24 895.20 9 161.11 24 3,866.54
10 67.66 24 1,623.95 10 169.16 24 4,059.86
11 71.05 24 1,705.14 11 177.62 24 4,262.86
12 74.60 24 1,790.40 12 186.50 24 4,476.00
DOUBLE DECK SCREEN SHAKER TOTAL ANNUAL ELECTRIC CONSUMPTION

Power: 30 hp Year Kw-h
Year Kw h Kw-h 1 1,616,426.94
1 13.09 24 314.04 2 1,697,248.28
2 13.74 24 329.75 3 1,875,531.96
3 14.43 24 346.23 4 2,028,028.85
4 15.15 24 363.54 5 2,129,430.29
5 15.91 24 381.72 6 2,235,901.80
6 16.70 24 400.81 7 2,830,928.21
7 17.54 24 420.85 8 2,972,474.62
8 18.41 24 441.89 9 3,121,098.36
9 19.33 24 463.98 10 3,523,388.08
10 20.30 24 487.18 11 3,699,557.49
11 21.31 24 511.54 12 3,884,535.36
12 22.38 24 537.12
OTHERS
Equipment Capacity, kg/hr Power, hp KWH KWH/Y
Conveyor 1 2100 1.5 38.422193 13831.989
Conveyor 2 2100 1.5 38.422193 13831.989
Conveyor 3 2100 1.5 38.422193 13831.989
Screw Conveyor 2810 1.5 30.20085 10872.306
TOTAL 6 145.46743 52368.274
89
Water Projections
Variable Water Projection (Personnel Based)
MAINBURNER PRIMARY CRUSHER & SECONDARY CRUSHER

Water Water
Year Equipment Personnel (L) Year Equipment Personnel (L)
1 1 3 270,000 1 1 3 270,000
2 1 3 270,000 2 1 3 270,000
3 2 6 540,000 3 2 6 540,000
4 2 6 540,000 4 2 6 540,000
5 2 6 540,000 5 2 6 540,000
6 2 6 540,000 6 2 6 540,000
7 2 6 540,000 7 2 6 540,000
8 2 6 540,000 8 2 6 540,000
9 2 6 540,000 9 2 6 540,000
10 2 6 540,000 10 2 6 540,000
11 2 6 540,000 11 2 6 540,000
12 2 6 540,000 12 2 6 540,000
CCI FEED HOPPER

Water Water
1 1 3 270,000 1 1 3 270,000
2 1 3 270,000 2 1 3 270,000
3 1 3 270,000 3 2 6 540,000
4 2 6 540,000 4 2 6 540,000
5 2 6 540,000 5 2 6 540,000
6 2 6 540,000 6 2 6 540,000
7 2 6 540,000 7 2 6 540,000
8 2 6 540,000 8 2 6 540,000
9 2 6 540,000 9 2 6 540,000
10 2 6 540,000 10 2 6 540,000
11 2 6 540,000 11 2 6 540,000
12 2 6 540,000 12 2 6 540,000
PACKING MEZZANINE
Water Water
1 1 9 810,000 1 NA 6 540,000
2 1 9 810,000 2 NA 6 540,000
3 1 9 810,000 3 NA 6 540,000
4 1 9 810,000 4 NA 6 540,000
5 1 9 810,000 5 NA 6 540,000
6 1 9 810,000 6 NA 6 540,000
7 1 9 810,000 7 NA 6 540,000
8 1 9 810,000 8 NA 6 540,000
9 1 9 810,000 9 NA 6 540,000
10 1 9 810,000 10 NA 6 540,000
11 1 9 810,000 11 NA 6 540,000
12 1 9 810,000 12 NA 6 540,000
90
PROJECTED WATER
1 2,430,000.00
2 2,430,000.00
3 3,240,000.00
4 3,510,000.00
5 3,510,000.00
6 3,510,000.00
7 3,510,000.00
8 3,510,000.00
9 3,510,000.00
10 3,510,000.00
11 3,510,000.00
12 3,510,000.00
Variable Water Projection (Process Based)
SUMMARY OF WATER
BOILER CONSUMPTION
Water
# of Consumption (L) Projected Water
YEAR Equipments YEAR Consumption (L)
1 1 420,000 1 5,145,000
2 1 420,000 2 5,145,000
3 1 420,000 3 5,145,000
4 1 420,000 4 5,145,000
5 1 420,000 5 5,145,000
6 1 420,000 6 5,145,000
7 2 840,000 7 8,163,750
8 2 840,000 8 8,163,750
9 2 840,000 9 8,163,750
10 2 840,000 10 8,163,750
11 2 840,000 11 8,163,750
12 2 840,000 12 8,163,750
COOLING TOWER
Water
# of Consumption (L)
YEAR Equipments
1 1 4,725,000
2 1 4,725,000
3 1 4,725,000
4 1 4,725,000
5 1 4,725,000
6 1 4,725,000
7 2 7,323,750
8 2 7,323,750
9 2 7,323,750
10 2 7,323,750
11 2 7,323,750
12 2 7,323,750
91
Virgin Coconut Oil
Virgin Coconut Oil can only be produced using the fresh coconut or non-copra meat.
One aspect of the production of virgin oil, which is constant regardless of the method
used, is the need to reduce the final moisture content of the oil to 0.1% or less. This is
necessary to prevent the oil from becoming rancid.
Process Description
Fresh Dry Process, Wet Milling Route

- involves deshelling the meat either manually or by de-shelling machine, splitting and
slicing the deshelled meat, washing, grinding, extracting the oil using a screw type
press, filtering, separating the water protein layer and wet oil layer using centrifuge
then drying (vacuum) to produce virgin coconut oil and food grade full protein,
medium fat coconut flakes. The flakes are further grinded to produce coconut flour
with testa. (source from Philippine Coconut Authority)
1. Deshelling – coconut meat is separated to coconut shell either manually or by

deshelling machine.
2. Washing/Grinding – coconut meat is washed with water and grinded through
the use of motorized granulator.
3. Extraction – extracting the coconut milk from the granulated coconut meat by
screw-type press. The coconut milk contains the coconut oil.
4. Centrifugation – the water protein layer (skimmed milk) and wet oil layer is
separated using centrifuge machine with the addition of water with 3 – 5%
weight of coco cream.
5. Heating – the wet oil layer is slightly heated at 90°C for a very short duration
(10-15 minutes).
6. Filtering – the crude VCNO is filtered to remove unnecessary particles.
7. Oil drying – the vcno is then dried using vacuum dryer to ensure that all
residual water in the oil is recovered.
92
Process Flow Diagram : Virgin Coconut Oil
• moisture
• Purified water
EXPELLING HEATING
CENTRIFUGATION
• coco cream • Wet oil
• Ground Coco
layer
meat • Crude
VCNO
• coco meal • Skimmed
milk
STORAGE VACUUM FILTERING

PACKAGING DRYING
• VCNO
• DRY
VCNO
• Filter Cake
• Moisture
STORAGE • VCNO
Figure 5-4: Virgin Coconut Oil Process Flow Chart
93
Material Balance: Virgin Coconut Oil
Basis: Per batch (8 hr-operation)
Coco meal
Ground Coco Meat EXPELLING 6,000 x 0.18 = 1080 kg
2,070 kg
Coco cream
990 kg
Purified water
990 x 0.04=
39.6 kg
Coco cream Wet Oil Layer

990 kg CENTRIFUGATION 717.6 kg
(32.69%-moisture)
Skimmed milk
6000 x 0.052 = 312 kg
Moisture
320.39 kg
Wet Oil Layer Crude VCNO

717.6 kg HEATING 397.21 kg
94
Crude VCNO FILTERING Filter cake

397.21 kg 106.29 kg
VCNO
290.92 kg
Moisture
2.92 kg
Wet Oil Layer

290.92 kg VACUUM
DRYING
VCNO
6,000 x 0.048 = 288 kg
Specific Gravity of VCNO = 0.919

VCNO = 313.38L
SOURCE: PRINCENA’S MACHINE SHOP
IMPORTANT DETAILS FOR THE DESIGNED VIRGIN COCONUT OIL MANUFACTURING

PLANT WITH THE CAPACITY OF 6000 KILOS PER 8 HOURS
PERCENT VCNO RECOVERY: 4.8%

BY PRODUCTS:
350 kilos Packing meat (brown) - 7%
900 kilos Residues - 18%
260 kilos skimmed milk - 5.2%
95
Energy Balance for the Double Jacketed Kettle
Q = mC∆T + mLv
= [717.6 kg (1000g/1 kg) (4.18 J/g °C) (90°C-25°C) + (2256 x 10^3 J/kg)
(1435.2)] (1 kg/1000J)
Q = 3,432,783.12 KJ
1.
NAME OF
EQUIPMENT: SST 304 Coco milk Extractor
NUMBER 1
REQUIRED:
FUNCTION: To expel the coco cream from the coco
meat
LENGTH: 48 in.
WIDTH: 24 in.
MATERIAL OF
CONSTRUCTION Stainless Steel
2.
NAME OF Assembly SST 304
EQUIPMENT: Discharge Container with Screen,
Pump and Pipe Installation
NUMBER 1
REQUIRED:
FUNCTION: To hold the coco cream and discharge
it to the filter screen
LENGTH: 24 in.
WIDTH: 25 in.
MATERIAL OF
CONSTRUCTION: Carbon Steel
96
3.
NAME OF
EQUIPMENT: Filter (Screen)
NUMBER 1
REQUIRED:
FUNCTION: To filter the coco cream
CAPACITY: 750 L
DIAMETER: 18 in.
MOTOR: ¼ hp
DESCRIPTION: 10 Mesh Screen
MATERIAL OF Stainless Steel Double deck
CONSTRUCTION:
4.
NAME OF
EQUIPMENT: SST 304 Holding Tank (Elevated)
with valve
NUMBER 1
REQUIRED:
FUNCTION: To hold the meal-free coco cream
CAPACITY: 200 L
DIAMETER: 30.5 in.
HEIGHT: 48 in,
CONSTRUCTION:
5.
NAME OF Centrifuge, WESTFALIA from Germany
EQUIPMENT:
NUMBER 3
REQUIRED:
To separate the wet oil layer and the
FUNCTION: water protein layer (skimmed milk)
CAPACITY: 300 L
DIAMETER: 30 in.
HEIGHT: 40 in.
MATERIAL OF Carbon Steel
CONSTRUCTION:
97
6.
.
NAME OF SST 304 Holding Tank for Skimmed
EQUIPMENT: Milk with pump
NUMBER 1
REQUIRED:
FUNCTION: To hold the skimmed milk
CAPACITY: 600 L
DIAMETER: 30.5 in.
HEIGHT: 48 in.
CONSTRUCTION:
7.
NAME OF SSt 304 Holding Tank for Cream or oil
EQUIPMENT: with pump and pipe installation
NUMBER 1
REQUIRED:
FUNCTION: To hold the cream and oil
CAPACITY: 600 L
DIAMETER: 30.5 in.
HEIGHT: 48 in.
CONSTRUCTION:
8. NAME OF EQUIPMENT: Double Jacketed Kettle

Fabricator Machinery and Equipment, Inc.
San Francisco, Ca
Number required 1
Function To prevent further esterification
of vinegar
3
Capacity of each (per batch) 0.90 m (900 L)
Type Jacketed Kettle with
recirculating pump, timer, and
lift & swing cover
Diameter 0.80 m
Height 1.40 m
Motor 2 hp
Temperature required 355.15 K (82°C)
98
9.
NAME OF EQUIPMENT: Vacuum dryer

NUMBER REQUIRED: 1
FUNCTION: To dry the wet oil
CAPACITY: 350 L
MOTOR: 2 hp
DESCRIPTION: Vacuum Dryer Tower complete with sight
glass, Electric illumination
Spray Nozzle Stainless Steel
Float Liquid Level Control Stainless Steel
Feed Tank Mild Steel
Float Valve Stainless Steel
10.
NAME OF Storage Tank for VCNO with pump and SS
EQUIPMENT: installation complete with valve and faucet
NUMBER 4
REQUIRED:
FUNCTION: To store the VCNO
CAPACITY: 600 L
DIAMETER: 30.5 in.
HEIGTH 48 in.
CONSTRUCTION:
99
COCO MILK EXTRACTOR CENTRIFUGE
0 1 0 3
1 18000 1 1 1 18000 3
2 18,900.00 2 2 18,900.00 3
3 19,845.00 2 3 19,845.00 3 1
4 20,837.25 2 4 20,837.25 4
5 21,879.11 2 5 21,879.11 4
6 22,973.07 2 6 22,973.07 4
7 24,121.72 2 7 24,121.72 4
8 25,327.81 2 8 25,327.81 4 1
9 26,594.20 2 9 26,594.20 5
10 27,923.91 2 10 27,923.91 5
11 29,320.10 2 11 29,320.10 5
12 30,786.11 2 12 30,786.11 5
Capacity: 750 kg nuts per hour Capacity: 300 L
FILTER (SCREEN) VACUUM DRYER

0 1 0 1
1 18,000.00 1 1 1 18,000.00 1
2 18,900.00 2 2 18,900.00 1
3 19,845.00 2 3 19,845.00 1 1
4 20,837.25 2 4 20,837.25 2
5 21,879.11 2 5 21,879.11 2
6 22,973.07 2 6 22,973.07 2
7 24,121.72 2 7 24,121.72 2
8 25,327.81 2 8 25,327.81 2
9 26,594.20 2 9 26,594.20 2
10 27,923.91 2 10 27,923.91 2
11 29,320.10 2 11 29,320.10 2
12 30,786.11 2 12 30,786.11 2
Capacity: 700 L Capacity: 850 L
DOUBLE JACKETTED KETTLE

Year kg nuts/day No. of Equipment New Equipment
0 1
1 18,000.00 1
2 18,900.00 1
3 19,845.00 1
4 20,837.25 1 1
5 21,879.11 2
6 22,973.07 2
7 24,121.72 2
8 25,327.81 2
9 26,594.20 2
10 27,923.91 2
11 29,320.10 2
12 30,786.11 2
Capacity: 850 L
100
COCO MILK EXTRACTOR CENTRIFUGE

1 3.73 24 89.52 1 2.03 24 48.72
2 3.94 24 94.53 2 2.13 24 51.15
3 4.14 24 99.25 3 2.24 24 53.71
4 4.34 24 104.22 4 2.16 24 51.85
5 4.56 24 109.43 5 2.27 24 54.44
6 4.79 24 114.90 6 2.38 24 57.16
7 5.03 24 120.64 7 2.50 24 60.02
8 5.28 24 126.68 8 2.63 24 63.02
9 5.54 24 133.01 9 2.77 24 66.50
10 5.82 24 139.66 10 2.91 24 69.83
11 6.11 24 146.64 11 3.06 24 73.32
12 6.42 24 153.97 12 3.21 24 76.99
*power requirement = 5 hp *power requirement = 1 hp
FILTER (SCREEN) VACUUM DRYER

1 0.93 24 22.38 1 5.15 24 123.65
2 0.98 24 23.50 2 5.41 24 129.84
3 1.03 24 24.67 3 5.60 24 134.28
4 1.08 24 25.91 4 5.68 24 136.33
5 1.13 24 27.20 5 5.96 24 143.15
6 1.19 24 28.56 6 6.26 24 150.30
7 1.25 24 29.99 7 6.58 24 157.82
8 1.31 24 31.49 8 6.90 24 165.71
9 1.38 24 33.07 9 7.25 24 173.99
10 1.45 24 34.72 10 7.61 24 182.69
11 1.52 24 36.46 11 7.99 24 191.83
12 1.59 24 38.28 12 8.39 24 201.42
*power requirement = 1/4 hp *power requirement = 7.5 hp
DOUBLE JACKETTED KETTLE TOTAL ANNUAL ELECTRIC CONSUMPTION

Year Kw h Kw-h Year Kw
1 1.74 24 41.87
1 102,338.20
2 1.83 24 43.97
2 107,646.54
3 1.92 24 46.16
4 2.02 24 48.47 3 112,291.23
5 2.12 24 50.90 4 114,588.69
6 2.23 24 53.44 5 120,318.12
7 2.34 24 56.11 6 126,334.03
8 2.45 24 58.92 7 132,650.73
9 2.58 24 61.86 8 139,283.26
10 2.71 24 64.96 9 146,366.68
11 2.84 24 68.21 10 153,685.01
12 2.98 24 71.62 11 161,369.26
*power requirement = 2hp 12 169,437.73
101
OTHERS:
Equipment Units KW Hours Kw-h KWH/Y
WHITE MEAT BELT CONVEYOR 1 0.33 24 8.95 3222
SST 304 WASHING SCREW CONVEYOR 2 1.2 24 26.86 9669.6
TRANSFER SCREW CONVEYOR 1 0.75 24 17.9 6444
DISCHARGE SCREW CONVEYOR 1 0.33 24 8.95 3222
TOTAL 62.66 22557.6
Water projections
Fixed Water Projection (Personnel Based)
(1) COCOMILK EXTRACTOR (2) FILTER SCREEN

Water Water
1 1 3 270,000 1 1 3 270,000
2 2 6 540,000 2 2 6 540,000
3 2 6 540,000 3 2 6 540,000
4 2 6 540,000 4 2 6 540,000
5 2 6 540,000 5 2 6 540,000
6 2 6 540,000 6 2 6 540,000
7 2 6 540,000 7 2 6 540,000
8 2 6 540,000 8 2 6 540,000
9 2 6 540,000 9 2 6 540,000
10 2 6 540,000 10 2 6 540,000
11 2 6 540,000 11 2 6 540,000
12 2 6 540,000 12 2 6 540,000
(3) CENTRIFUGE (4) VACUUM DRYER

Water Water
1 3 3 270,000 1 1 3 270,000
2 3 3 270,000 2 1 3 270,000
3 3 3 270,000 3 1 3 270,000
4 4 6 540,000 4 2 6 540,000
5 4 6 540,000 5 2 6 540,000
6 4 6 540,000 6 2 6 540,000
7 4 6 540,000 7 2 6 540,000
8 4 6 540,000 8 2 6 540,000
9 5 9 810,000 9 2 6 540,000
10 5 9 810,000 10 2 6 540,000
11 5 9 810,000 11 2 6 540,000
12 5 9 810,000 12 2 6 540,000
102

(5) PACKING
Water PROJECTED WATER
# of # of Consumption YEAR CONSUMPTION (L)
Year Equipment Personnel (L)
1 1,890,000.00
1 1 9 810,000 2 2,430,000.00
2 1 9 810,000 3 2,430,000.00
3 1 9 810,000 4 2,970,000.00
4 1 9 810,000 5 2,970,000.00
5 1 9 810,000 6 2,970,000.00
6 1 9 810,000 7 2,970,000.00
7 1 9 810,000 8 2,970,000.00
8 1 9 810,000 9 3,240,000.00
9 1 9 810,000 10 3,240,000.00
10 1 9 810,000 11 3,240,000.00
11 1 9 810,000 12 3,240,000.00
12 1 9 810,000
Variable Water Projection
Water Tank SUMMARY OF WATER CONSUMPTION

# of Water Consumption
YEAR YEAR PROJECTED WATER CONSUMPTION (L)
Equipments (L)
1 1 216,000 1 892,080
2 1 216,000 2 873,300
3 1 216,000 3 873,300
4 1 216,000 4 873,300
5 1 216,000 5 873,300
6 1 216,000 6 873,300
7 2 216,000 7 873,300
8 2 216,000 8 873,300
9 2 216,000 9 873,300
10 2 216,000 10 873,300
11 2 216,000 11 873,300
12 2 216,000 12 873,300
Note
1. Daily water requirement : 600L
Packaging
Water Consumption
YEAR # of Bottles
(L)
1 3,756 676,080.00
2 3,756 657,300.00
3 3,756 657,300.00
4 3,756 657,300.00
5 3,756 657,300.00
6 3,756 657,300.00
7 3,756 657,300.00
8 3,756 657,300.00
9 3,756 657,300.00
10 3,756 657,300.00
11 3,756 657,300.00
12 3,756 657,300.00
103
Coco Vinegar
Process Description
In producing coco vinegar, the study will be adapting the Accelerated Coco
Vinegar Processing as conducted by the DOST-ITDI Food Processing Division. The process
is designed to accelerate the traditional fermentation of vinegar making. It makes use of an
acetator kit as provided by the said organization. The acetator kit accelerates the production
of vinegar such that daily production can be made after the fermentation period.
The coconut water is strained through the use of rotary filter to remove any solid
or foreign particles. The filtered coco water is fed to the mixer where sugar is added to adjust
the concentration to approximately 11-12%. Nutrients are also added to the mixer where it will
be subjected to agitation for the effective catalysis of microorganisms.
The mixture is pasteurized by heating to 82°C to remove microorganisms and

contaminants in the sugar mash solution. Overheating must be avoided as it affects the flavor.
The mixture is transferred to the fermentation container and allowed to cool at

ambient temperature. In the fermenter, NH4OH is added for a hastened oxidation of glucose in
the sugar mash solution to ethanol. After alcoholic fermentation for about 4 days, the clear liquid
is fed to the acetator and inoculated with mother vinegar containing acetobacter bacteria. Here
the alcoholic ferment is oxidized to acetic acid.
104
Process Flow Chart: Coco Vinegar
Nutrients Brown Sugar Vaporized Sugar Mash

Fresh Coconut Water Filtered Coco Water Sugar Mash
Pasteurized Sugar Mash

Pasteurizer 1
Filter Press Mixer
82°°C
Filter Cake
Exhaust Gases
Exhaust Gases
Bottled Vinegar Product Vinegar Vinegar Alcohol Mash
Packing/ Fermenter
Pasteurizer 2 Acetator**
Labeling
82°°C
O2 Nutrients Cooling Water Hot Water
NH4OH
Figure 5-5: Coco Vinegar Process Flow Chart
* The process flow chart is based upon the study of the DOST-ITDI Food Processing Division regarding the
accelerated vinegar making.
** The acetator equipment will be bought to the DOST-ITDI Food Processing Division with an installed oil-water
separator, pressure gauge, air filter, and other related equipments.
105
Material Balance: Coco Vinegar
Basis: Per batch (8-hour operation)
Fresh Coconut Water Filtered Coconut Water

720 kg Filter Press 718.56 kg
(99.8% of the Feed)
Filter Cake (0.2% of the Feed)
1.44 kg
Fresh Coconut Filtered

Water Coconut Water
Component Mass (kg) % Composition Component Mass (kg) % Composition
Sucrose 2.664 0.37% Sucrose 2.659 0.37%
Invert Sugar 27.576 3.83% Invert Sugar 27.521 3.83%
Water 687.6 95.50% Water 686.225 95.50%
Organic solids 2.16 0.30% Organic solids 2.156 0.30%
Filtered Coco Water

718.56 kg Sugar Mash
Mixer
811.99 kg
Nutrients
Filtered 0.60 kg Sugar Mash Component Mass (kg)
Coconut Water
Component Mass (kg) % Composition Sucrose 92.704
Invert Sugar 29.006
Sucrose 2.659 0.37%
Water 686.847
Invert Sugar 27.521 3.83%
Organic solids 2.156
Water 686.225 95.50% Ash 0.678
Organic solids 2.156 0.30% (NH4)2SO4 0.600
106
Vaporized Sugar Mash

Component Mass (kg)
Sucrose 0.01854
Invert Sugar 0.00580
Water 0.13734
Organic solids 0.00043
Ash 0.00014
(NH4)2SO4 0.00012
Vaporized Sugar Mash (0.02% of the Feed)
0.162 kg
Sugar Mash, 25°C Pasteurized Sugar Mash, 82°C
811.99 kg (99.98% of the Feed)
Pasteurizer 1 811.828 kg
82°°C
Sugar Mash Pasteurized Sugar

Component Mass (kg) Mash Component Mass (kg)
Sucrose 92.704 Sucrose 92.68523
Invert Sugar 29.006 Invert Sugar 29.00033
Water 686.847 Water 686.70939
Organic solids 2.156 Organic solids 2.15557
Ash 0.678 Ash 0.67786
(NH4)2SO4 0.600 (NH4)2SO4 0.59988
*There will be three shifts per day; the first pasteurized alcohol mash batch will be stored first in
a storage tank. It will not be directly processed to the fermenter but be combined with the second
batch of alcohol mash produced from the pasteurizer. Thus, the fermenter will process a larger
amount of alcohol mash. The third batch will wait for the first batch of the next day before fed to
the fermenter.
107
Exhaust Mass %
Gases (kg) Composition
Component
CO2 111.725 97.43%
C2H50H 0.940 0.82%
H2O 2.007 1.75%
Exhaust Gases (6.95% of the Feed)

114.672 kg
Pasteurized Sugar Mash, 25°C Alcohol Mash, 25°C (93.05% of the Feed)
1,623.656 kg 1,535.287 kg
Fermenter
Hot H2O, 25°C Cooling H2O, 15°C

2,490.121 kg 2,490.121 kg
NH4OH
26.3032 kg
NH40H Mass %
Solution (kg) Composition
NH3 2.8881 10.98%
H2O 23.4151 89.02%
Pasteurized Sugar Alcohol Mash Mass %

Mash Component Mass (kg) Component (kg) Composition
Sucrose 92.68523 C2H5OH 118.064 7.69%
(NH4)2SO4 1.228 0.08%
Invert Sugar 29.00033
Unreacted Sugar 7.676 0.50%
Water 686.70939 Yeast 22.415 1.46%
Organic solids 2.15557 Water 1356.733 88.37%
Ash 0.67786 By-product 12.436 0.81%
(NH4)2SO4 0.59988 Ash and Solids 16.735 1.09%
108
*The Acetator is a continuous process unlike the all other processes that are operated per batch.
**The amount of alcohol mash from the fermenter will be divided into two tanks, tanks with a
volumetric capacity of 900 L. The two tanks will be the main feed to the two acetator kits as
provided by the DOST-ITDI Food Processing Division.
Exhaust
Gases Mass %
Component (kg) Composition
N2 162.098 88.53%
O2 16.973 9.27%
C2H50H 2.765 1.51%
H2O 1.263 0.69%
Exhaust Gases (17.47% of the feed to acetator)

183.10 kg
Vinegar, 32°C (82.53% of the feed to acetator)
Alcohol Mash, 25°C
767.644 kg 869.213 kg
Acetator
Air (27.2% of the Alcohol Mash) Mother Vinegar (10% of the Alcohol Mash)
208.80 kg 76.764 kg
Air Mass %
Component (kg) Composition Vinegar Mass %
N2 160.150 76.70% Component (kg) Composition
O2 48.650 23.30% H2O 793.070 91.24%
CH3COOH 43.461 5.00%
Unreacted Ethanol 9.735 1.12%
By-Product 9.822 1.13%
109
Vinegar Mass %
H2O 0.159 91.24%
CH3COOH 0.046 5.00%
Unreacted Ethanol 0.002 1.12%
By-Product 0.002 1.13%
Vaporized Vinegar (0.02% of the Feed)
0.174 kg
Vinegar, 32°C Product Vinegar, 82°C
869.213 kg (99.98% of the Feed)
Pasteurizer 2 869.039 kg
82°°C
Product Vinegar Mass %

Vinegar Mass % Component (kg) Composition
H2O 792.911 91.24%
H2O 793.070 91.24%
CH3COOH 43.452 5.00%
CH3COOH 43.461 5.00%
Unreacted Sugar 13.125 1.51% Unreacted Sugar 13.122 1.51%
Unreacted Ethanol 9.735 1.12% Unreacted Ethanol 9.733 1.12%
By-Product 9.822 1.13% By-Product 9.820 1.13%
110
Product Vinegar Bottled Vinegar

869.039 kg 869.039 kg
Packing/ Labeling
Product Vinegar Mass % Bottled Vinegar Mass %

Component (kg) Composition Component (kg) Composition
H2O 792.911 91.24% H2O 792.911 91.24%
CH3COOH 43.452 5.00% CH3COOH 43.452 5.00%
Unreacted Sugar 13.122 1.51% Unreacted Sugar 13.122 1.51%
Unreacted Ethanol 9.733 1.12% Unreacted Ethanol 9.733 1.12%
By-Product 9.820 1.13% By-Product 9.820 1.13%
After 1 day of production:
Density (ρ) of Coco Vinegar = 1.06 g/mL

Total Volume of Product Vinegar = m / ρ
= 2,607.117 kg * 1000 g
1 kg
1.06 g/mL
Total Volume of Product Vinegar = 2,459,544.34 mL
1 Ordinary Bottle = 500 mL

# of Bottles = 2,459,544.34 mL
500 mL
# of Coco Vinegar Bottles produced = 4,919.09
Or approximately,
# of Coco Vinegar Bottles produced = 4,919
111
Energy Balance: Coco Vinegar

Energy Balance at the Pasteurizer 1:
Q = mCpT
Pasteurized
Sugar Mash
Component Mass (kg) Cp (kcal/kg-K) ∆T, K Q, kcal
Sucrose 92.68523 0.299 57 1579.634
Invert Sugar 29.00033 0.3 57 495.906
Water 686.70939 1 57 39142.435
Organic solids 2.15557 1 57 122.867
Ash 0.67786 1 57 38.638
(NH4)2SO4 0.59988 0.39 57 13.335
NET Q = 41392.816 kcal
Energy Balance at the Pasteurizer 2:
Pasteurized Vinegar
Component Mass (kg) Cp (kcal/kg-K) ∆T, K Q, kcal
H2O 792.911 1 50 39,645.550
CH3COOH 43.452 0.509 50 1,105.853

Unreacted Sugar 13.122 1 50 656.100
Unreacted Ethanol 9.733 1 50 486.650
By-Product 9.82 1 50 491.000
NET Q = 42,385.15 kcal
112
Energy Balance at the Fermenter:
Q (H2O) = mCpT
= (1245.061 kg) (1 kcal/kg-K) (298.15-285.15)
Q (H2O) = 16,185.793 kcal
Q (H2O) = H rxn at fermenter
∴H rxn at fermenter = 16,185.793 kcal
113
1.
Filter Press
Fabricator Machinery and Equipment, Inc. San
Francisco, Ca
Number required 1
Function To clarify the fresh coco water from
suspended and foreign particles
3
Type Rotary Filter
Diameter 0.6096 m (24 in)
Height 0.635 m (25 in)
Motor 1/3 hp
Material of Construction Carbon Steel
2.
Mixing Tank with Agitator
Francisco, Ca
Number required 1
Function To produce a homogenous mixture of
coconut water and brown sugar
3
Diameter 0.80 m
Height 1.40 m
Agitator 6-blade turbine
Motor 3 hp
3.
Pasteurizer 1
Francisco, Ca
Number required 1
Function To pasteurize and kill unwanted
microorganisms in the sugar mash
solution
3
Type Jacketed Kettle with recirculating
pump, timer, and lift & swing cover
Diameter 0.80 m
Height 1.40 m
Motor 2 hp
Material of Construction Stainless Steel 114
4.
Fermenter
Fabricator Princena Machine Shop
Number required 6
Function To ferment sugar mash solution
3
Type Enclosed stainless steel tank with
internal cooling
Diameter 1.10 m
Height 1.60 m
Motor 3 hp
5.
Acetator
Fabricator DOST-ITDI FPD
Number required 4
Function To convert the alcohol mash into
vinegar
3
Type As provided by the DOST-ITDI FPD
Diameter 0.85 m
Height 1.60 m
Motor 1 hp
Material of Construction Polypropylene Drums
6.
Pasteurizer 2
Francisco, Ca
Number required 1
Function To prevent further esterification of
vinegar
3
Type Jacketed Kettle with recirculating
pump, timer, and lift & swing cover
Diameter 0.80 m
Height 1.40 m
Motor 2 hp
Material of Construction Stainless Steel 115
7. Packing Equipments
Rotary Rinser
Fabricator ELGIE PACKING EQUIPMENT INC.
Number required 1
To rinse and remove dirt in the
Function
bottles before filling
Capacity of each (per batch) 15 bottles per minute
Type Stainless steel semi-automatic
rinser
Height 1.80 m
Motor 3 hp
Material of Construction Stainless steel
Filler
Number required 1
To fill the bottles with the coco
Function
vinegar in 500 mL volumes
Type Stainless steel semi-automatic in
line 12 nozzle filler
Height 2.20 m
Motor 3 hp
Screw capper
Number required 1
To close the container with plastic
Function
caps to ensure quality
Type Stainless steel semi-automatic
single head screw capper
Height 1.40 m
Motor 3 hp
Stainless Steel Working/Packing Table
∗ Conveyor with Shrink Tunnel for body label and cap seal
∗ Stainless Steel Roller Conveyor 12" x 8 feet long
∗ 3¼" x 10 feet long TTC conveyor
116
Packing equipments are to be provided by ELGIE Packaging Equipment, Inc. (Diamond Street,
Interville Subdivision Talipapa, Kalookan City, Philippines 1400)
8.
Coconut Water Storage
Tank
Number required 1
Function To store a week supply of
coconut water
3
Capacity of each 0.80 m (800 L)
Diameter 0.80 m
Height 1.60 m
Material of Construction Polypropylene
9.
Brown Sugar Storage Bin
Number required 1
Function To store a week supply of
brown sugar
3
Capacity of each 15 m
Type Cylindrical with conical
hopper bottoms
Diameter 2.68 m
Height 2.68 m
10.
Nutrients (NH4)2SO4 Bin

Number required 1
Function To store a month supply of
(NH4)2SO4
Capacity of each 30 kg storage
hopper bottoms
Diameter 0.3 m
Height 0.4 m
117
11.
Pasteurized Sugar Mash
Storage Tank
Number required 1
Function To store the first batch of
pasteurized sugar mash
3
Capacity of each 0.70 m (700 L)
Diameter 0.80 m
Height 1.40 m
Material of Construction Polypropylene
12.
NH4OH Storage Bin
Number required 1
Function To store a month supply of
NH4OH
Capacity of each 700 kg storage
hopper bottoms
Diameter 0.55 m
Height 0.7 m
FILTER PRESS* MIXER *
Input/ day # of New Input/ day # of New
YEAR (liters) Equipments equipment YEAR (liters) Equipments equipment
0 1 0 1
1 2,117.64 1 1 1,982.07 1
2 2,223.52 1 1 2 2,081.17 1 1
3 2,334.70 2 3 2,185.23 2
4 2,451.43 2 4 2,294.49 2
5 2,574.00 2 5 2,409.22 2
6 2,702.70 2 6 2,529.68 2
7 2,837.84 2 7 2,656.16 2
8 2,979.73 2 8 2,788.97 2
9 3,128.72 2 9 2,928.42 2
10 3,285.15 2 10 3,074.84 2
11 3,449.41 2 11 3,228.58 2
12 3,621.88 2 12 3,390.01 2
* capacity = 750 liters/ 8 hr = 93.75 liters/hr * capacity = 700 liters/ 8 hr = 87.5 liters/hr
* specific gravity = 1.02 (coconut water) * specific gravity = 1.229 (sugar mash)
118
FERMENTER * 1st PASTEURIZER *

YEAR (liters) Equipments Equipments YEAR (liters) Equipments Equipments
0 6 0 1
1 2,019.62 6 1 1,982.07 1
2 2,120.60 6 2 2,081.17 1 1
3 2,226.63 6 1 3 2,185.23 2
4 2,337.96 7 4 2,294.49 2
5 2,454.86 7 5 2,409.22 2
6 2,577.60 7 6 2,529.68 2
7 2,706.48 8 1 7 2,656.16 2
8 2,841.81 8 8 2,788.97 2
9 2,983.90 8 9 2,928.42 2
10 3,133.09 9 10 3,074.84 2
11 3,289.75 9 1 11 3,228.58 2
12 3,454.24 10 12 3,390.01 2
* capacity = 1500 liters/ day ( alcohol mash) * capacity = 700 liters/ 8 hr = 87.5 liters/hr
* refer to visual presentation * specific gravity= 1.229 (sugar mash)
ACETATOR * 2nd PASTEURIZER *
YEAR (liters) Equipments Equipments YEAR (liters) Equipments Equipments
0 4 1 2,460.03 1
1 2,460.03 4 2 2,583.03 1 1
2 2,583.03 4 2 3 2,712.18 2
3 2,712.18 6 4 2,847.79 2
4 2,847.79 6 5 2,990.18 2
5 2,990.18 6 6 3,139.69 2
6 3,139.69 6 7 3,296.68 2
7 3,296.68 6 8 3,461.51 2
8 3,461.51 6 9 3,634.58 2
9 3,634.58 6 10 3,816.31 2
10 3,816.31 6 2 11 4,007.13 2
11 4,007.13 8 12 4,207.49 2
12 4,207.49 8 * capacity = 900 liters/ 8 hr
* capacity = 900 liters/ day * specific gravity= 1.08
* specific gravity = 1.06 (acetic acid)
FILTER PRESS* MIXER *
1 0.24 24 5.68 1 2.13 24 51.15
2 0.25 24 5.96 2 2.24 24 53.71
3 0.26 24 6.20 3 2.33 24 55.86
4 0.27 24 6.51 4 2.44 24 58.65
5 0.28 24 6.84 5 2.57 24 61.59
6 0.30 24 7.18 6 2.69 24 64.67
7 0.31 24 7.54 7 2.83 24 67.90
8 0.33 24 7.91 8 2.97 24 71.29
9 0.35 24 8.31 9 3.12 24 74.86
10 0.36 24 8.72 10 3.28 24 78.60
11 0.38 24 9.13 11 3.44 24 82.53
12 0.40 24 9.59 12 3.63 24 87.01
* power requirement = 0.333
hp * power requirement = 3 hp
119
1st FERMENTER * 1st PASTEURIZER *

1 13.43 24 322.27 1 2.13 24 51.15
2 13.43 24 322.27 2 2.24 24 53.71
3 13.43 24 322.27 3 2.33 24 55.86
4 13.94 24 334.63 4 2.44 24 58.65
5 14.64 24 351.36 5 2.57 24 61.59
6 15.37 24 368.92 6 2.69 24 64.67
7 16.24 24 389.75 7 2.83 24 67.90
8 17.05 24 409.23 8 2.97 24 71.29
9 17.90 24 429.70 9 3.12 24 74.86
10 18.70 24 448.70 10 3.28 24 78.60
11 19.63 24 471.13 11 3.45 24 82.87
12 20.61 24 494.69 12 3.63 24 87.01
* power requirement = 3 hp *power requirement = 2 hp
2nd FERMENTER * 2nd PASTEURIZER *

1 13.43 24 322.27 1 2.13 24 51.15
2 13.43 24 322.27 2 2.24 24 53.71
3 13.43 24 322.27 3 2.33 24 55.86
4 13.94 24 334.63 4 2.44 24 58.65
5 14.64 24 351.36 5 2.57 24 61.59
6 15.37 24 368.92 6 2.69 24 64.67
7 16.24 24 389.75 7 2.83 24 67.90
8 17.05 24 409.23 8 2.97 24 71.29
9 17.90 24 429.70 9 3.12 24 74.86
10 18.70 24 448.70 10 3.28 24 78.60
11 19.63 24 471.13 11 3.45 24 82.87
12 20.61 24 494.69 12 3.63 24 87.01
* power requirement = 3 hp *power requirement = 2 hp
TOTAL ELECTRIC CONSUMPTION

ACETATOR *
YEAR KW-HR
Year Kw h Kw-h
1 316,949.91
1 3.20 24 76.73
2 321,195.61
2 3.36 24 80.57
3 324,044.40
3 3.41 24 81.80
4 337,539.54
4 3.58 24 85.89
5 354,416.52
5 3.76 24 90.18
6 372,137.34
6 3.95 24 94.69
7 392,454.78
7 4.14 24 99.43
8 412,077.52
8 4.35 24 104.40
9 432,681.40
9 4.57 24 109.62
10 452,526.53
10 4.80 24 115.10
11 475,385.62
11 5.04 24 120.85
12 498,886.70
12 5.24 24 125.79
*power requirement = 1.125
hp
120
OTHER POWER REQUIREMENTS

KW-
PACKING EQUIPMENTS KILOWATT HOUR HR KWH/Y
*Semi-Automatic Rotary Rinser 2.13 24 51.12 18403.2
*Semi-Automatic In-Line 12 Nozzle Filler 2.13 24 51.12 18403.2
*Semi-Automatic Single Head Screw Capper 2.13 24 51.12 18403.2
^3¼” x 10 feet long TTC conveyor 0.24 24 5.76 2073.6
^Stainless Steel Working/Packing Table Conveyor 0.24 24 5.76 2073.6
^Stainless Steel Roller Conveyor 12” x 8 feet long 0.24 24 5.76 2073.6
* power requirement = 3 hp TOTAL 170.64 61430.4
^power requirement = 0.3333 hp
Water Projections
Variable Water Projection (Personnel Based)
*Average water consumption per day per person = 250 L
(1) FILTER PRESS (2) MIXER

Water Water
year Equipment Personnel (L) Year Equipment Personnel (L)
1 1 3 270,000 1 1 3 270,000
2 1 3 270,000 2 1 3 270,000
3 2 6 540,000 3 2 6 540,000
4 2 6 540,000 4 2 6 540,000
5 2 6 540,000 5 2 6 540,000
6 2 6 540,000 6 2 6 540,000
7 2 6 540,000 7 2 6 540,000
8 2 6 540,000 8 2 6 540,000
9 2 6 540,000 9 2 6 540,000
10 2 6 540,000 10 2 6 540,000
11 2 6 540,000 11 2 6 540,000
12 2 6 540,000 12 2 6 540,000
(6) PACKING (4) FERMENTER

Water Water
1 1 3 270,000 1 6 3 270,000
2 1 3 270,000 2 6 3 270,000
3 1 3 270,000 3 6 3 270,000
4 1 3 270,000 4 7 3 270,000
5 1 3 270,000 5 7 3 270,000
6 1 3 270,000 6 7 3 270,000
7 1 3 270,000 7 8 6 540,000
8 1 3 270,000 8 8 6 540,000
9 1 3 270,000 9 8 6 540,000
10 1 3 270,000 10 9 6 540,000
11 1 3 270,000 11 9 6 540,000
12 1 3 270,000 12 10 6 540,000
121
PROJECTED WATER
1 1,080,000.00
2 1,080,000.00
3 1,620,000.00
4 1,620,000.00
5 1,620,000.00
6 1,620,000.00
7 1,890,000.00
8 1,890,000.00
9 1,890,000.00
10 1,890,000.00
11 1,890,000.00
12 1,890,000.00
Variable Water Projection (Equipment Bases)
SUMMARY OF WATER
FERMENTER CONSUMPTION
# of Water Projected Water

YEAR Year
Fermenter Consumption (L) Consumption (L)
1 6 15,956,688.96 1 16,841,928.96
2 6 15,956,688.96 2 16,886,190.96
3 6 15,956,688.96 3 17,728,248.96
4 7 18,616,137.12 4 20,476,275.12
5 7 18,616,137.12 5 20,388,057.12
6 7 18,616,137.12 6 20,476,653.12
7 8 21,275,585.28 7 23,047,865.28
8 8 21,275,585.28 8 23,136,479.28
9 8 21,275,585.28 9 23,048,225.28
10 9 23,935,033.44 10 25,796,305.44
11 9 23,935,033.44 11 25,889,369.04
12 10 26,594,481.60 12 28,646,533.98
Packaging
Water
YEAR # of Bottles
Consumption (L)
1 2,459 885,240.000
2 2,582 929,502.000
3 4,921 1,771,560.000
4 5,167 1,860,138.000
5 4,922 1,771,920.000
6 5,168 1,860,516.000
7 4,923 1,772,280.000
8 5,169 1,860,894.000
9 4,924 1,772,640.000
10 5,170 1,861,272.000
11 5,429 1,954,335.600
12 5,700 2,052,052.380
Assumption
1. Water consumption is 0.5L/bottle
122
Coco Burger
Process Description
1. Boiling
The pressed coconut meat or the residue, which is the vital ingredient for making the
coco burger, will be boiled (along with other ingredients, which include crushed pepper,
granulated garlic, and Knorr cube (pork)) in desired heat until all of the water content is
evaporated to soften the meal.
2. Mixing
The softened coconut residue will be mixed with other seasonings to add flavor. These
seasonings include egg, minced onions, flour, soy sauce, tomato sauce, and baking
powder.
3. Patty Forming
The mixture of coconut residue and other seasonings will be formed into patty using the
patty machine.
4. Packaging
The formed patties will be packed in packaging plastic. Each pack contains 12 pieces of
coco burger patties.
123
Process Flow Diagram: Coco Burgers

Eggs,
Flour,
Crushed Pepper,
Soy Sauce,
Granulated Garlic,
Minced Onion,
Distilled Water
Tomato Sauce,
Knorr Cube (Pork)
Baking Powder
Softened
Pressed Coco meal Ground Coco Burger
Coconut with added Coco Patties
Meal flavor Burger
PATTY PACKAGING
BOILING
MACHINE
TANK MIXER
Packed Coco
Burger patties
STORAGE
Water (evaporated)
Figure 5-6: Coco Burger Process Flow Chart
124
Material Balance : Coco Burger
Distilled Water 1044 L/ 1044 kg
Granulated Garlic 23.4031 kg

Crushed Pepper 10.0841 kg
Knorr Cube (Pork) 720 pcs./ 7.92 kg
1121.4072 kg.
softened coco
1080 kg. pressed meal with
coconut added
Meal ingredients
BOILING
TANK
(105ºC)
1044 kg. Water

(evaporated)
OMB: input = output
1080 kg Pressed Coconut meal + 1044 kg Distilled Water + 23.4031 kg Granulated

Garlic + 10.0841 kg Crushed Pepper + 7.92 kg Knorr Cubes (Pork) = 1121.4072 kg
Softened coco meal with added ingredients + 1044 kg water
2165.4072 kg = 2165.4072 kg
125
Eggs 7102 pcs/ 284.08 kg
Flour 178.2253 kg
Soy Sauce 216.0293 L/ 158.4241 kg
Minced Onions 171.1026 kg
Tomato Sauce 117.8648 L/ 103.7210 kg
Baking Powder 152.3371 kg
1121.4072 kg. softened

coco meal with added 2169.2973 Ground
ingredients Coco meal Burger
MIXER
OMB: Input = Output
1121.4072 kg Softened Coco meal + 284.08 kg Eggs + 158.4241 kg Soy Sauce +

171.1026 kg Minced Onions + 178.2253 kg Flour + 103.7210 kg Tomato Sauce +
152.3371 kg Baking Powder = 2169.2973 kg Ground Coco meal Burger
2169.2973 kg = 2169.2973 kg
126
2169.2973 Ground 36,155 pcs. of

Coco meal Burger Coco Burger patties
PATTY
MACHINE
# of burger patty = 2169.2973 kg = 36,155 pcs. coco burger patties

60g x 1 kg
1000g
36,155 pcs. of 3013 packs of Coco

Coco Burger patties Burger patties
PACKAGING
# of packs = 36,155 = 3013

12
127
Energy Balance at the Boiling Tank
Q = mCp ∆T
Boiling Tank Mass (kg)/ Cp T1 T2 ∆T (ºC) Q (KJ)

Components batch (KJ/kg- (ºC) (ºC)
K)
Pressed Coconut 1080 2.520 25 105 80 217,728.00
Meal
Distilled Water 1044 4.185 25 105 80 349,531.20
Garlic 23.4031 1.670 25 105 80 3,126.6542
Pepper 10.0814 1.840 25 105 80 1,483.9821
Knorr Cubes 7.9200 1.300 25 105 80 823.68
Net Q (kJ) 572,693.5163
Net Q (kcal) 136,877.0354
BOILING TANK
st th
Number(s) 4 (for 1 to 4 year)
th th
required 5 (for 5 to 9 year)
th th
6 (for 10 to 12 year)
Function To soften the coconut meal

Capacity 80 kg/hr
Height 2.07 m.
Diameter 1.18 m.
Material of Stainless steel

construction
Motor 1.5 Hp
128
MIXER
st rd
Number(s) required 2 (for 1 to 3 year)
th th
3 (for 4 to 8 year)
th h
Function To produce the product

(coco burger) from the
soften pressed meal and
other ingredients
Capacity 100 kg/h
Height 2.13 m.
Diameter 1.27 m.

Construction
Motor 3 Hp
PATTY-FORMING MACHINE
st th
Number(s) required 1 (for 1 to 8 year)
th th
Function To produce or form the

coco burger patty
Capacity 400 kg/h
Length 0.914 m.
Width 0.330 m.
Height 0.508 m.
Construction
Motor 0.75
129
BOILING TANK PATTY MACHINE

input capacity: 80 input capacity: 400
kg/hr kg/hr
Ground
Pressed
# of # of new Coco # of # of new
year Coco meal year
equipment equipment burger per equipment equipment
Kg
day
0 0
1 6496.2216 4 1 6507.8919 1
2 6821.0327 4 2 6833.2865 1
3 7162.0843 4 3 7174.9508 1
4 7520.1885 4 1 4 7533.6984 1
5 7896.1980 5 5 7910.3833 1
6 8291.0079 5 6 8305.9024 1
7 8705.5582 5 7 8721.1976 1
8 9140.8362 5 8 9157.2574 1 1
9 9597.8780 5 1 9 9615.1203 2
10 10077.7719 6 10 10095.8763 2
11 10581.6605 6 11 10600.6701 2
12 11110.7435 6 12 11130.7037 2
MIXER
input capacity: 100
kg/hr
Softened
# of # of new
year Coco meal
equipment equipment
Kg
0
1 6507.8919 2
2 6833.2865 2
3 7174.9508 2 1
4 7533.6984 3
5 7910.3833 3
6 8305.9024 3
7 8721.1976 3
8 9157.2574 3 1
9 9615.1203 4
10 10095.8763 4
11 10600.6701 4
12 11130.7037 4
130
BOILING TANK (1.5 Hp) PATTY MACHINE (0.75 Hp)

Power Power
Operating Operating
year Requirement, Kwh/day Year Requirement, Kwh/day
Hours Hours
KW KW
1 3.87 24.00 92.80 1 0.40 24.00 9.54
2 4.06 24.00 97.44 2 0.42 24.00 10.02
3 4.26 24.00 102.31 3 0.44 24.00 10.52
4 4.48 24.00 107.42 4 0.46 24.00 11.05
5 4.60 24.00 110.47 5 0.48 24.00 11.60
6 4.83 24.00 116.00 6 0.51 24.00 12.18
7 5.07 24.00 121.80 7 0.53 24.00 12.79
8 5.33 24.00 127.89 8 0.56 24.00 13.43
9 5.60 24.00 134.28 9 0.97 24.00 23.20
10 6.09 24.00 146.16 10 1.01 24.00 24.36
11 6.39 24.00 153.46 11 1.07 24.00 25.58
12 6.71 24.00 161.14 12 1.12 24.00 26.86
MIXER (3 Hp) TOTAL ELECTRIC CONSUMPTION

Power YEAR KW-HR
Operating
Year Requirement, Kwh/day 1 71,919.60
Hours
KW
2 75,515.58
1 4.06 24.00 97.44
3 79,291.35
2 4.26 24.00 102.31
4 90,373.76
3 4.48 24.00 107.42
5 94,056.28
4 5.52 24.00 132.57
6 98,759.09
5 5.80 24.00 139.20
7 103,697.04
6 6.09 24.00 146.16
8 108,881.90
7 6.39 24.00 153.46
9 123,506.28
8 6.71 24.00 161.14
10 131,539.59
9 7.73 24.00 185.59
11 138,116.57
10 8.12 24.00 194.87
12 145,022.40
11 8.53 24.00 204.62
12 8.95 24.00 214.85
131
Water Projections
FIXED WATER PROJECTIONS (PERSONNEL BASED)
BOILING TANK PATTY MACHINE

Water Water
# of
# of # of Consumption # of Consumption
Personnel
Year Equipment Personnel (L) year Equipment (L)
1 1 3 270,000.00 1 1 3 270,000.00
2 1 3 270,000.00 2 1 3 270,000.00
3 1 3 270,000.00 3 1 3 270,000.00
4 1 3 270,000.00 4 1 3 270,000.00
5 1 3 270,000.00 5 1 3 270,000.00
6 1 3 270,000.00 6 1 3 270,000.00
7 1 3 270,000.00 7 1 3 270,000.00
8 1 3 270,000.00 8 1 3 270,000.00
9 1 3 270,000.00 9 1 3 270,000.00
10 1 3 270,000.00 10 1 3 270,000.00
11 1 3 270,000.00 11 1 3 270,000.00
12 1 3 270,000.00 12 1 3 270,000.00
MIXER PACKAGING SECTION

Water Water
year Equipment Personnel (L) year Equipment Personnel (L)
1 1 3 270,000.00 1 - 3 270,000.00
2 1 3 270,000.00 2 - 3 270,000.00
3 1 3 270,000.00 3 - 3 270,000.00
4 2 6 540,000.00 4 - 3 270,000.00
5 2 6 540,000.00 5 - 3 270,000.00
6 2 6 540,000.00 6 - 3 270,000.00
7 2 6 540,000.00 7 - 3 270,000.00
8 2 6 540,000.00 8 - 3 270,000.00
9 2 6 540,000.00 9 - 3 270,000.00
10 2 6 540,000.00 10 - 3 270,000.00
11 2 6 540,000.00 11 - 3 270,000.00
12 2 6 540,000.00 12 - 3 270,000.00
PROJECTED WATER
1 1,080,000.00
2 1,080,000.00
3 1,080,000.00
4 1,350,000.00
5 1,350,000.00
6 1,350,000.00
7 1,350,000.00
8 1,350,000.00
9 1,350,000.00
10 1,350,000.00
11 1,350,000.00
12 1,350,000.00
132
VARIABLE WATER CONSUMPTION (PROCESS BASED)
SUMMARY OF WATER
BOILING TANK CONSUMPTION
# of Water Projected Water

YEAR Year
Equipment Consumption (L) Consumption (L)
1 4 4,510,080.000 1 4,510,080.00
2 4 4,510,080.000 2 4,510,080.00
3 4 4,510,080.000 3 4,510,080.00
4 4 4,510,080.000 4 4,510,080.00
5 5 5,637,600.000 5 5,637,600.00
6 5 5,637,600.000 6 5,637,600.00
7 5 5,637,600.000 7 5,637,600.00
8 5 5,637,600.000 8 5,637,600.00
9 5 5,637,600.000 9 5,637,600.00
10 6 6,765,120.000 10 6,765,120.00
11 6 6,765,120.000 11 6,765,120.00
12 6 6,765,120.000 12 6,765,120.00
133
Chapter VI
Project Planning
PLANT LOCATION
The Integrated Coconut Processing Plant will be situated in Silangan Malikboy,

Pagbilao Quezon Province. The major factors for the selection of the location are (1) raw
material availability in the area, (2) markets, (3) power and fuel, (4) climate, (5)
transportation facilities.
Background of Pagbilao
A coastal town lying on the China Sea coast of Quezon Province. It is approximately
145 km. from Metro Manila and is lying 8km east of Lucena City. Urbanization has already
spread to several barangays in this town due to its close proximity to the highly urbanized
City of Lucena. It is presently tagged as the Power capital of Southern Tagalog being the
site of the 700MW Mirant Philippines Coal Fired Thermal Plant. As such, commercial and
business establishments have also set up shop in this municipality.
The municipality of Pagbilao devotes its rich natural resources to agricultural use
such as crop plantation and forestry in which coconut plantation occupying a large portion of
its area. In addition to these, it is rich in natural tourist spots such as falls, beaches and
mountaineering trails.
The total land area devoted to agriculture consists of 12,377 hectares and has a total
area irrigated of 1,889.40 hectares. All in all the total capable area consists of 681.5462
hectares.
Raw Materials
Pagbilao is included in the Southern Tagalog Region, and the Southern Tagalog and
Bicol area ranks 2nd among the largest coconut producing regions in the country (UCAP
2003) so it is easy to avail products from the abundant supply of neighboring towns and
barrios. Figure 6.1 shows historical and projected Coconut Harvest in the region for a 12
year period (UCAP 2003)
134
Philippine Coconut Harvest : Southern Tagalog and Bicol Region

5000
4750
4500
4250
4000
3750
Million Nuts
3500
3250
3000
2750
2500
2250
2000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Year
Southern Tagalog and Bicol Region Linear (Southern Tagalog and Bicol Region)
Table 6-17: Historical and Projected Raw Material Availability in the Region
Year 1999 2000 2001 2002 2003 2004 2005 2006 2007
Million
Nuts 2670 2,926.00 2,907.00 3,119.00 3,147.00 3,297.90 3,374.52 3,472.90 3,571.28
Year 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million
Nuts 3,669.66 3,768.04 3,866.42 3,964.80 4,063.18 4,161.56 4,259.94 4,358.32 4,456.70
Computer generated projections using Microsoft Excel for a 12 year period was based on
historical data from 1999 to 2003. Figure and tables show a steady increase of 3% for the
first 5 years and 2% for the remaining 7 years.
Coconut Increase of Required

Coconut Harvest
Year Harvest(Million Coconut Coconuts Share(%)
(MT)
Nuts) Harvest(%) (MT)
2004 3,247.47 3,896,960.00 - 3,600.00 0.09
2005 3,340.55 4,008,662.86 0.03 3,780.00 0.09
2006 3,433.64 4,120,365.71 0.03 3,969.00 0.10
2007 3,526.72 4,232,068.57 0.03 4,167.45 0.10
2008 3,619.81 4,343,771.43 0.03 4,375.82 0.10
2009 3,712.90 4,455,474.29 0.03 4,594.61 0.10
2010 3,805.98 4,567,177.14 0.03 4,824.34 0.11
2011 3,899.07 4,678,880.00 0.02 5,065.56 0.11
2012 3,992.15 4,790,582.86 0.02 5,318.84 0.11
2013 4,085.24 4,902,285.71 0.02 5,584.78 0.11
2014 4,178.32 5,013,988.57 0.02 5,864.02 0.12
2015 4,271.41 5,125,691.43 0.02 6,157.22 0.12
2016 4,364.50 5,237,394.29 0.02 6,465.08 0.12
Table 6-2: Raw Material Availability
From the data above, this just shows that raw material availability in the region is
stable, and that it can accommodate enough coconuts for such a project in which its small
135
percent share for raw material requirement gives enough share for other competitors, thus
assuming the elimination for the possibility of any shortages and competition for raw
materials. For procured shells for activated carbon processing, the abundance of copra
makers and VCNO plants in the northern parts of Quezon will provide ample coco shells.
Market
The larger demand for the various coco products is concentrated in the more
developed areas of the country. Thus, having the plant situated in the main Island of the
country provides easier access to prospective markets. The site is approximately 8km east
of Lucena City, the capitol of Quezon and approximately 145 km from Manila.
Power and Fuel Supply
The municipality of Pagbilao is renowned as the "Power Capital of Southern

Tagalog" because of Mirant Philippines. Thus, there is no need for installation of a power
generating facility. Fuel sources are readily available and can be easily accessed through
land or by sea via Lucena Port.
Climate and Topography
The municipality of Pagbilao has two types of climate – dry and wet seasons with
very pronounce maximum rainfall from November to January, which is due to its nearness to
the eastern coast and that it is not sheltered from the northeast monsoon, trade winds and
storm.
The municipality is located eight kilometers from Lucena City, the Provincial Capital
of Quezon. It is bounded on the northeast by the municipality of Tayabas, northeast by
Atimonan, southeast by Padre Burgos and southwest by the city of Lucena.
Pagbilao is located in a hill side with a slope of 0-3% that is surrounded by
agricultural crops like coconuts and rice paddies while a small percentage that of within the
boundary of Mauban, has 8-15% slope.
Figure 6-7: Map of Pagbilao
136
Transportation Facilities
The site can be accessed easily since there are already established transportation
facilities. The national highway traverses through Silangnan Malikboy leading to Quezon
National Park and Bicol and it is approximately 8km away from Lucena Port.
Being located in the province of Quezon, the cost of land and labor is relatively
cheap and considering all the factors stated on the previous pages, the location is very ideal
for an Integrated Coconut Processing Plant.
PLANT LAYOUT
The plant layout for the Cocos Processing Co. has five primary manufacturing
sections – Activated Carbon (A.C.), Primary Processing, Virgin Coconut Oil, Cocovinegar,
and Cocoburger Sections. Basically, the last four sections that mostly correspond to
consumable foods are separated from the A.C. section for the following reasons: (1) A.C.
production will deteriorate the production of other goods, (2) to strictly control the pollution
and prevent contamination, and (3) to have organized plant layout design.
The primary processing section is the heart of the operation because this is where all
parts of the coconut (such as the husk, shell, cocomeat, and cocowater) are separated
using several equipments. These coconut parts will then be delivered to their respective
areas as raw materials.
The ground coconut meat will directly go to the virgin coconut oil section via transfer
belt conveyor. The pressed coconut meal, which is one of the by-products in this section will
be utilized in the manufacture of cocoburger.
The cocowater will be received by the cocovinegar section from the splitters to rotary
filters.
The shell will be transported to the A.C. section via the conveyor.
The figures shown on the proceeding pages are the plant and equipment layout of
the Cocos Processing Co. The dashed lines, which can be seen in the equipment layout
indicates expansion or installation of new equipment since the plant production will be
increasing at a rate of 5 % per year.
137
Plant Layout
N 90° 0' 0" E 130.000
Loading Area
Virgin Coconut Oil Activated Carbon
Coco Burger Section Section
Section
Finished Goods
Warehouse
Process Control
2'-6"
Coco Vinegar
Section
Primary Processing
Section
Quality Control &
98.380
98.375
Product Development
Raw Materials
Laboratory
Warehouse
S 0° 34' 57" E
20" Rise: 20' Run
S 0° 0' 0" E
Activated Carbon
Finished Goods Warehouse
Strip Dimensions
8m. x 10000mm. Loading Dock
E1.5m
Stall Width 2500mm.
Administration Building Stall Length 5000mm.
w/ 2nd floor Stall Angle 90deg.
Loading Area
No. Stalls 6
Water Treatment
Plant
Canteen
Clinic Solid Waste Waste Water Treatment
Collection Facility Plant
2'-6"
Security Office
PLANT LAYOUT
LEGEND:
0.0 m. 6.1 m. 10.2 m. 20.5 m.
E# - Elevation (m)
2mm : 5 m
Figure 6-2: Plant Layout
138
EQUIPMENT LAYOUT
Primary Processing Section
To Virgin Coconut Oil

Section
6'-1 5/16"
White Meat
Belt Conveyor
To Activated Carbon
Counter Current Section
Screw Conveyor
Power Grinder
5.1 m.
Inspector Table Inspector Table
1.5 m. 2.5 m.
To Coco Vinegar Splitter Splitter
down
Section
0.0 m.
Primary Processing Area
up
1
Conveyor
4
Sheller Bin & 2

Shelling
Machine 5
E 1.0 m
Bench
6
Expansion
E#m - Elevation
7
Legend:
Trolley Trolley
Supervisor’s Office
up down up down
Scale: 1/100 : 1
Dehusking
Section
E 1.5 m
Figure 6-3: Primary Processing Layout
139
Activated Carbon Section
Feed Section
Conveyor 1 Conveyor 2
(1F) (1F)
Primary Crusher Secondary Crusher
Conveyor 1 Conveyor 2
(1F) (1F)
Primary Crusher Secondary Crusher
Screw Conveyor
Loader
(LG)
Screw Conveyor
Feed Section
Legend:
LG- LowerGround
To section 2
1F -FirstFloor
2F -SecondFloor (8melevation)
E#-Elevation
Expansion
0.0 m. 1.1 m. 1.8 m. 3.6 m.
LocatedonFirstFloor
Scale: 1/50 : 1
Figure 6-4: Activated Carbon Feed Section
140
CCI Section
From Section 1 Main Burner

(1F)
Air Blower
Main Burner
(1F)
Air Blower
Quench
Hopper Hopper
Tower
(10m elevation) (10m elevation)
(1F)
Quench
Tower
CCI Retort CCI Retort (1F)
(1F) (1F) Second Floor
Second Floor After

Burner
(1F)
After
Burner
(1F)
Evaporative Cooler Evaporative Cooler

(1F) (1F)
Carbonization and
Activation Section
Quench
Tower
(1F)
Bag
Boiler Filter
(2F) (1F)
Discharge Valve Discharge Valve

(2F) (2F)
Boiler
(2F)
Discharge Cooler Discharge Cooler Water Tank
(1F) (1F) (1F)
Cooling Tower
(2F)
Cooling Tower
(2F)
From Section 3
Figure 6-5: Activated Carbon CCI Section
141
Packaging and Filling Section
From Section 3
Elevator Second Floor
Double Deck
Activated Carbon Storage
Shaker
(2m elevation)
Granulated AC Screw Conveyor
(1F)
Powdered AC
Packaging & Filling

Section
Packaging
Figure 6-6: Activated Carbon Packaging & Filling Section
142
Virgin Coconut Oil Section
Skimmed milk
TrolleyTrolley
Pump Holding Tank

Double Jacketed keetle
Pump
Centrifuge Centrifuge Double Jacketed keetle
Packaging
Residue Holding Tank
Centrifuge Centrifuge
VCNO Storage
Centrifuge
Holding Tank
(E5m) Vacuum Dryer
Vacuum Dryer
Covered Tank for Coco Meal
Coco Milk Extractor
Pump Pump
Filter Screen
Transfer Belt Conveyor

Pump Oil Holding Tank
Moisture Collector
Discharge Container
Water Tank
Covered Tank for Coco Meal
Discharge Container (E5m)

Coco Milk Extractor
Pump
Virgin Coconut Oil Section

Legend: 0.0 m. 1.5 m. 2.5 m. 5.1 m.

Scale: 1/100 : 1 Expansion
E#m - Elevation
Figure 6-8: Virgin Coconut Oil Section
143
Coco Vinegar Section
Rotary Filter
Rotary Filter
8
Filtered Filtered
Coco Water
CocoHolding
Water Holding
Tank Tank
7 8 9 10
Mixer w/ Agitator
Mixer w/ Agitator
6
Acetators
5 Pasteurizer Pasteurizer
Fermenters
3
Pasteurizer
Pasteurizer
2 2
2
1 2 3 4 5 6
Packing Section
0.0 m. 1.5 m. 2.5 m. 5.1 m.
Legend:
Scale: 1/100 : 1
Expansion
Figure 6-9: Coco Vinegar Section
144
Coco Burger Section
packaging
Coco Burger Section
Patty Machine Patty Machine
Trolley
Mixer Mixer Mixer Mixer
Boiling TankBoiling Tank

Boiling Tank
Boiling Tank
Boiling TankBoiling Tank
Scale : 1 cm - 1 m 0.0 m. 1.5 m. 2.5 m. 5.1 m.

Legend:
Expansion
E#m - Elevation
Figure 6-10: Coco Burger Section
145
LAND AREA
Land and Site Development Cost
Length Width Area

Building/ Section (m) (m) (m^2) Cost (PhP)/ m^2 Cost (PhP)
Plant Area
Primary Processing 15.00 25.00 375.00 10,000.00 3,750,000.00
Activated Carbon 13.00 32.50 422.50 10,000.00 4,225,000.00
Virgin Coconut Oil 20.00 17.00 340.00 10,000.00 3,400,000.00
Coco Vinegar 27.00 20.50 553.50 10,000.00 5,535,000.00
Coco Burger 17.26 20.50 353.83 10,000.00 3,538,300.00
Quality Control 10.00 10.00 100.00 10,000.00 1,000,000.00
Process Control 10.00 10.00 100.00 10,000.00 1,000,000.00
Finished Goods Warehouse 15.00 25.00 375.00 9,000.00 3,375,000.00
Raw Materials Warehouse 25.00 15.00 375.00 9,000.00 3,375,000.00
Finished Goods Warehouse (AC) 10.05 16.30 163.82 9,000.00 1,474,335.00
RM Loading Area 15.00 10.00 150.00 9,000.00 1,350,000.00
Loading (AC) 10.00 10.00 100.00 9,000.00 900,000.00
Water Treatment Plant 10.00 10.00 100.00 10,000.00 1,000,000.00
Waste Water Treatment Plant 10.00 5.00 50.00 10,000.00 500,000.00
Solid Waste Collection Facility 10.00 7.00 70.00 8,000.00 560,000.00
Total 3,628.65 34,982,635.00
Office Area
Administration Building 20.00 15.00 300.00 15,000.00 4,500,000.00
Administration Building 2nd Floor 20.00 15.00 300.00 11,000.00 3,300,000.00
Total 600.00 7,800,000.00
Others
Canteen 10.00 10.00 100.00 9,000.00 900,000.00
Clinic 8.00 7.00 56.00 15,000.00 840,000.00
Security Office 5.00 5.00 25.00 15,000.00 375,000.00
Total 181.00 2,115,000.00
Land Improvement
Fence 120.00 90.00 420.00 2,500.00 1,050,000.00
Gate - 5.00 - - 500,000.00
Roads and Drainage 311.00 2.00 622.00 1,000.00 622,000.00
Total 2,172,000.00
TOTAL LAND COST 120.00 90.00 10,800.00 2,500.00 27,000,000.00
TOTAL COST 74,069,635.00
Total Covered Land Area 4,409.65

Total Open Land Area 6,390.36
Perimeter 420.00
Open Space/Total Land Area 0.59
Table 6-18: Land Area
Assumptions:
1. Cost of Land in Pagbilao is 2,500 PhP
146
ORGANIZATIONAL CHART
Total No. of Employees : 270
Table 6-19: Organizational Chart:
147
Department Definitions
Finished Goods Control Department – is an area where finished goods are ready to be
shipped and represents the highest level of bill of materials component that directly
corresponds to a product. The warehouse manager is the person who is in control of the
operation inside this department.
Purchasing Department – is highly responsible to the acquisition of materials, supplies,

and services adhering to ethical purchasing policies and principles of the company.
Manufacturing Department – is a vital part of the company where raw materials are being
transformed into consumable products. Production heads and operators are the people
usually found in this working place.
Quality Assurance Department – an area in the company that develops a planned and
systematic pattern of all actions necessary to provide adequate confidence that the product
optimally fulfills customer’s expectation.
Maintenance and Utilities Services Department – includes all action taken to retain
equipments and other materials in a serviceable condition. It engages inspection, testing,
servicing, and classification as to serviceability, repair, rebuilding and reclamation.
Waste Management Department – is an area of core business for councils. It

encompasses all activities and services that revolve around collecting, disposing and
reducing waste. In dealing with waste management, council uses the most effective
technologies and methods available while also striving to protect environmental and public
health.
Research and Development Department – is distinguishable from other departments by

the presence of an appreciable element of novelty and by the resolution of problems and
uncertainties using scientific or technological means. It allocates creative work, which is
undertaken on a systematic basis in order to create new or improved products, processes,
services or other applications.
Accounting Department – an area that includes issuing of payments for goods and
services provided to the bank.
Treasury Department – acts as an internal consultant for the company, which is involved in
investment and borrowing, investor relations, leasing activities, internal consulting, and
strategic financial planning.
Human Resource Department – is responsible for employee selection, development,

evaluation, compensation, and employee relations.
Marketing Department - is fundamental area that devises successful creation, distribution,

promotion, and pricing of goods, services and ideas in company.
Selling Department – is an area whose activities involved in selling goods and services.
Promotion Department – is engage in the publicity or in advertising the product.
148
Job Descriptions
President - Plans, develops, and establishes policies and objectives of business

organization in accordance with board directives and corporation charter: Directs and
coordinates formulation of financial programs to provide funding for new or continuing
operations to maximize returns on investments, and to increase productivity. May serve as
chairman of committees, such as management, executive, engineering, and sales.
Vice President for Finance & Administration - Directs and coordinates, through
subordinate managerial personnel, activities of department, region, administrative division,
such as lending, trusts, mortgages, investments, acting under authority and responsibility
delegated by corporate executive officer: determines methods and procedures for carrying
out program, and assists in interpreting policies and practices.
Vice President for Operations - Directs and coordinates activities of one or more
departments, such as engineering, operations, or sales, or major division of business
organization, and aids chief administrative officer in formulating and administering
organization policies:
Vice President for Marketing - Directs and coordinates activities of one or more
departments, such as engineering, operations, or sales, or major division of business
organization, and aids chief administrative officer in formulating and administering
organization policies.
Technical Service Engineer - Directs, coordinates, and exercises functional authority

under the VP for Operations for planning, organization, control, integration, and completion
of engineering project within area of assigned responsibility: Reviews product design for
compliance with engineering principles, company standards, customer contract
requirements, and related specifications. Controls expenditures within limitations of project
budget. Prepares interim and completion project reports.
Project Accountant - Applies principles of accounting to analyze financial information and

prepare financial reports: Compiles and analyzes financial information to prepare entries to
accounts, such as general ledger accounts, documenting business transactions. Audits
contracts, orders, and vouchers, and prepares reports to substantiate individual transactions
prior to settlement.
Accounting Clerk - Performs any combination of following calculating, posting, and

verifying duties to obtain financial data for use in maintaining accounting records: Compiles
and sorts documents, such as invoices and checks, substantiating business transactions.
Verifies and posts details of business transactions, such as funds received and disbursed,
and totals accounts, using calculator or computer.
Finance Officer - Directs financial planning, and investment of funds for an organization.
Delegates authority for receipt, disbursement, banking, protection and custody of funds,
securities, and financial instruments. Analyzes financial records to forecast future financial
position and budget requirements. Advises management on investments and loans for
short- and long-range financial plans. Prepares financial reports for management. Develops
policies and procedures for account collections and extension of credit to customers. Signs
notes of indebtedness as approved by management
149
Treasury/Personnel/Warehouse Clerk - Performs any combination of following and similar

clerical duties requiring limited knowledge of systems or procedures: Writes, types, or enters
information into computer, using keyboard, to prepare correspondence, bills, statements,
receipts, checks, or other documents, copying information from one record to another.
Proofreads records or forms. Receives money from customers and deposits money in bank.
Answers telephone, conveys messages, and runs errands. Stamps, sorts, and distributes
mail. Stamps or numbers forms by hand or machine. Photocopies documents, using
photocopier.
Human Resource Director - Provides establishment personnel assistance in identifying,

evaluating, and resolving human relations and work performance problems within
establishment to facilitate communication and improve employee human relations skills and
work performance: Develops and conducts training to instruct establishment managers,
supervisors, and workers in human relation skills, such as supervisory skills, conflict
resolution skills, interpersonal communication skills, and effective group interaction skills.
Doctor - Diagnoses, treats, and cares for patients, using system of practice that bases
treatment of physiological functions and abnormal conditions on natural laws governing
human body: Excludes major surgery, therapeutic use of x ray and radium, and use of
drugs, except those assailable substances containing elements or compounds which are
components of body tissues and are physiologically compatible to body processes for
maintenance of life.
Nurse - Provides general nursing care to patients/ employees. Administers prescribed

medications and treatments in accordance with approved nursing techniques. Prepares
equipment and aids physician during treatments and examinations of patients.
Manager, Sales - Manages sales activities of establishment: Directs staffing, training, and
performance evaluations to develop and control sales program. Coordinates sales
distribution by establishing sales territories, quotas, and goals and advises dealers,
distributors, and clients concerning sales and advertising techniques. Assigns sales territory
to sales personnel. Analyzes sales statistics to formulate policy and to assist dealers in
promoting sales. Reviews market analyses to determine customer needs, volume potential,
price schedules, and discount rates, and develops sales campaigns to accommodate goals
of company.
Manager, Promotions - Plans and executes advertising policies of organization: Confers

with department heads to discuss possible new accounts and to outline new policies or
sales promotion campaigns. Reviews and approves television and radio advertisements
before release. Reviews rates and classifications applicable to various types of advertising
and provides authorization. May authorize information for publication, such as interviews
with reporters or articles describing phases of establishment activity.
Manger, Production - Develops schedules establishing sequence and timeframe of

manufacturing operations in order to meet production requirements. Reviews orders,
shipping needs, plant capacity, and inventory before drawing up schedules. Set up
operational series to guide production work. This is an intermediate level position requiring
1-2 years previous related experience in scheduling and production processes.
150
Manager, Warehouse - Directs warehousing activities for commercial or industrial

establishment: Establishes operational procedures for activities, such as verification of
outgoing shipments, handling and disposition of Finished Goods, and keeping warehouse
inventory current. Inspects physical condition of warehouse and equipment and prepares
work order for repairs and requisitions for replacement of equipment. Confers with
department heads to ensure coordination of warehouse activities with such activities as
production, sales, records control, and purchasing. Screens and hires warehouse personnel
and issues work assignments
Materials Controller - Directs and coordinates activities of personnel engaged in

purchasing and distributing raw materials, equipment, machinery, and supplies. Prepares
instructions regarding purchasing systems and procedures. Prepares and issues purchase
orders and change notices to Purchasing Agents. Arranges for disposal of surplus materials.
Quality Assurance Head - Plans, coordinates, and directs quality control program designed
to ensure continuous production of products consistent with established standards.
Develops and analyzes statistical data and product specifications to determine present
standards and establish proposed quality and reliability expectancy of finished product.
Formulates and maintains quality control objectives and coordinates objectives with
production procedures in cooperation with other plant managers to maximize product
reliability and minimize costs.
Maintenance & Safety Engineer - Directs and coordinates activities of workers engaged in
mechanical and electrical repair and maintenance of equipment, and transmission,
distribution, and control equipment of Confers with management and other department
heads to plan preventive maintenance programs and to schedule inspections and major
overhauls in coordination with other operating activities. May prepare annual departmental
budget.
Maintenance Mechanic - Repairs and maintains, in accordance with diagrams, sketches,

operation manuals, and manufacturer's specifications, machinery and mechanical
equipment, such as engines, motors, pneumatic tools, conveyor systems, and production
machines and equipment, using handtools, power tools, and precision-measuring and
testing instruments.
Maintenance Electrician - Installs and repairs electrical systems, apparatus, and electrical
and electronic components of industrial machinery and equipment, following electrical code,
manuals, schematic diagrams, blueprints, and other specifications, using handtools, power
tools, and electrical and electronic test equipment. Tests malfunctioning machinery, using
test equipment, and discusses malfunction with other maintenance workers.
Janitor - Keeps office building, or similar building in clean and orderly condition and tends
furnace, air-conditioner, and boiler to provide heat, cool air, and hot water for tenants,
performing any combination of following duties:
Materials Checker - Compiles and maintains records of quantity, cost, and type of material
received, stocked, and issued, and prepares material requisitions. May inspect, accept, or
reject material received. May mark identifying information on material.
Loader - Loads and unloads equipment or materials from trucks.
151
Chemist - Conducts research, analysis, synthesis, and experimentation on substances, for

such purposes as product and process development and control, quantitative and qualitative
analysis, and improvement of analytical methodologies. Confers with scientists and
engineers regarding research, and prepares technical papers and reports. Prepares
standards and specifications for processes, facilities, products, and tests.
Safety Health & Environment Engineer - Develops and implements safety program to
prevent or correct unsafe environmental working conditions, utilizing knowledge of industrial
processes, mechanics, chemistry, psychology, and industrial health and safety laws:
Customer Care Representative - Investigates customer complaints about merchandise,

service, billing, or credit rating: Examines records, such as bills, computer printouts,
microfilm, meter readings, bills of lading, and related documents and correspondence, and
converses or corresponds with customer and other company personnel, such as billing,
credit, sales, service, or shipping, to obtain facts regarding customer complaint. Notifies
customer and designated personnel of findings, adjustments, and recommendations, such
as exchange of merchandise, refund of money, credit of customer's account, or adjustment
of customer's bill.
Section Head (Primary Processing, Activated Carbon, Virgin Coconut Oil, Coco
Vinegar & Cocoburger) - Supervises and coordinates activities of workers engaged in
production, equipment operations & packaging. Computes quantities of chemicals required
for specific batches, following laboratory formulas. Verifies processing of chemical products
at specified checkpoints to ensure that formulas are followed, pressure and temperature
specifications are within tolerance, and chemical batches are within standard limits. Trains
employees in job duties
Forklift & Truck Drivers - Drives truck or automobile over established route to deliver and
sell products or render services, Drives truck to deliver Finished Goods.
Sales Representative - Collects money from customers, makes change, and records
transactions on customer receipt. Writes customer order and instructions. Records sales or
deliveries information on daily sales or delivery record. Prepares order forms and sales
contracts
Shift Supervisor (Primary Processing, Activated Carbon, Virgin Coconut Oil, Coco
Vinegar & Coco burger) - Supervises Production workers during shifts, and monitors
smooth production and process. Monitors Process Control and instrumentation. Reports any
problems to Section Head.
Document Controller - Organizes and controls all documentation and paper work of the
organization. Gives instructions to documentation clerks. Functions as Organization
Secretary. May carry out typing jobs, filing and other clerical duties.
Documentation Clerk - Assists Document Controller in organizing organizations

documents. Carries out typing and filing jobs and other clerical duties.
152
Section Operators (Primary Processing, Activated Carbon, Virgin Coconut Oil, Coco
Vinegar & Coco burger) - Operates production equipment and carries out production work.
Water Treatment Tender - Monitors water treatment equipment, reports any abnormal
occurrences and conditions to Maintenance & Safety Engineer & Technical Service
Engineer.
Waste Water Treatment Tender - Monitors waste water treatment equipment, reports any
abnormal occurrences and conditions to Maintenance & Safety Engineer & Technical
Service Engineer.
Solid Waste Tender - Monitors Solid waste collection and oversees waste collection facility.
Research & Development Head - Conceptualizes for new ideas, developments and
innovations for product or process. Studies market opportunities and conducts experiments
and surveys for market research.
Researchers - Assists the R&D Head , carries out surveys, tests for market research.
153
GANTT CHART
Activities 2005 2006 2007

No
JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE
1 Completion of Study
2 Incorporation and Registration of
Company
3 DENR Permit (ECC)
4 Rent an Office Space
5 Purchasing Office Equipment
6 Recruitment and Hiring of
Personnel
7 Plant Site Acquisition
8 Fencing and Land Development
9 Plant & Building Construction
10 Ordering of Machinery & Equipment
11 Installation of Equipment
12 Ordering of Transport Vehicles
13 Training of Personnel’s
14 Transfer to the Office Building
15 Purchasing of Raw Materials
16 Product Launching & Trial Run
17 Start of Operation
Table 6-20: Gantt Chart
154
INVENTORY
Main Raw Material

Table 6-21: Inventory of Coconuts
MAIN RAW MATERIAL
Whole nuts (kg) 0.04 in pesos

YEAR B.I. PURCHASE USAGE E.I UNIT COST B.I. PURCHASE USAGE E.I.
1 186,923 9,729,346 9,720,000 196,269 4.00 747,692 38,917,385 38,880,000 785,077
2 196,269 10,215,813 10,206,000 206,083 4.16 785,077 42,497,784 42,466,381 816,480
3 206,083 10,726,604 10,716,300 216,387 4.33 816,480 46,407,580 46,287,884 936,176
4 216,387 11,262,934 11,252,115 227,206 4.50 936,176 50,677,077 50,590,949 1,022,304
5 227,206 11,826,081 11,814,721 238,566 4.68 1,022,304 55,339,369 55,245,317 1,116,356
6 238,566 12,417,385 12,405,457 250,495 4.87 1,116,356 60,430,591 60,327,886 1,219,061
7 250,495 13,038,254 13,025,730 263,020 5.06 1,219,061 65,990,205 65,878,051 1,331,215
8 263,020 13,690,167 13,677,016 276,171 5.26 1,331,215 72,061,304 71,938,832 1,453,686
9 276,171 14,374,675 14,360,867 289,979 5.47 1,453,686 78,690,944 78,557,205 1,587,425
10 289,979 15,093,409 15,078,910 304,478 5.69 1,587,425 85,930,510 85,784,467 1,733,469
11 304,478 15,848,080 15,832,856 319,702 5.92 1,733,469 93,836,117 93,676,638 1,892,948
12 319,702 16,304,797 16,624,499 0 6.16 1,892,948 100,401,941 102,294,889 0
Note: 1 Week Inventory
Note: 1-Week Inventory
Other Raw Materials
Activated Carbon
Table 6-22: Inventory of AC Raw Materials
COCO SHELLS
MT pesos
YEAR B.I. PURCHASE USAGE E.I PRICE BI PURCHASE USAGE EI
1 2,599 15,725 15,595 2,729 3000.00 7,797,600 47,175,480 46,785,600 8,187,480
2 2,729 16,511 16,375 2,866 3120.00 8,187,480 51,515,624 50,762,376 8,940,728
3 2,866 17,337 17,194 3,009 3244.80 8,940,728 56,255,062 55,432,515 9,763,275
4 3,009 18,204 18,053 3,159 3374.59 9,763,275 61,430,527 60,532,306 10,661,496
5 3,159 19,114 18,956 3,317 3509.58 10,661,496 67,082,136 66,101,278 11,642,354
6 3,317 20,070 19,904 3,483 3649.96 11,642,354 73,253,692 72,182,596 12,713,451
7 3,483 21,073 20,899 3,657 3795.96 12,713,451 79,993,032 78,823,394 13,883,088
8 3,657 22,127 21,944 3,840 3947.80 13,883,088 87,352,391 86,075,147 15,160,332
9 3,840 23,233 23,041 4,032 4105.71 15,160,332 95,388,811 93,994,060 16,555,083
10 4,032 24,395 24,193 4,234 4269.94 16,555,083 104,164,581 102,641,514 18,078,150
11 4,234 25,615 25,403 4,446 4440.73 18,078,150 113,747,723 112,084,533 19,741,340
12 4,446 22,228 26,673 0 4618.36 19,741,340 102,654,970 122,396,310 0
Note: 2 Months Inventory 0.04
0.04
Assumption
1. Annual increase of Cost of Raw Materials is 4%, based on average core inflation rate.
http://www.nscb.gov.ph/secstat/d_price.asp
155
Coco Vinegar
Table 6-23: Inventory of CV Raw Materials
BROWN SUGAR
kg pesos
1 16,709 99,142 100,256 17,545 15.00 250,641 1,487,137 1,474,605 263,173
2 17,545 106,146 105,269 18,422 15.60 263,173 1,655,885 1,631,673 287,385
3 18,422 111,454 110,533 19,343 16.22 287,385 1,808,226 1,781,787 313,824
4 19,343 117,026 116,059 20,310 16.87 313,824 1,974,583 1,945,711 342,696
5 20,310 122,878 121,862 21,326 17.55 342,696 2,156,245 2,124,717 374,224
6 21,326 129,022 127,955 22,392 18.25 374,224 2,354,619 2,320,191 408,653
7 22,392 135,473 134,353 23,512 18.98 408,653 2,571,244 2,533,648 446,249
8 23,512 142,246 141,071 24,687 19.74 446,249 2,807,799 2,766,744 487,304
9 24,687 149,359 148,124 25,922 20.53 487,304 3,066,116 3,021,284 532,136
10 25,922 156,827 155,531 27,218 21.35 532,136 3,348,199 3,299,242 581,092
11 27,218 164,668 163,307 28,579 22.20 581,092 3,656,233 3,602,773 634,553
12 28,579 142,894 171,472 0 23.09 634,553 3,299,675 3,934,228 0
Note: 2 Months Inventory
(NH4)2SO4
kg pesos
1 107 646 641 112 15 1,602 9,692 9,612 1,682
2 112 678 673 118 15.60 1,682 10,584 10,429 1,837
3 118 712 706 124 16.22 1,837 11,557 11,388 2,006
4 124 748 742 130 16.87 2,006 12,621 12,436 2,190
5 130 785 779 136 17.55 2,190 13,782 13,580 2,392
6 136 825 818 143 18.25 2,392 15,050 14,830 2,612
7 143 866 859 150 18.98 2,612 16,434 16,194 2,852
8 150 909 902 158 19.74 2,852 17,946 17,684 3,115
9 158 955 947 166 20.53 3,115 19,597 19,311 3,401
10 166 1,002 994 174 21.35 3,401 21,400 21,087 3,714
11 174 1,052 1,044 183 22.20 3,714 23,369 23,028 4,056
12 183 913 1,096 0 23.09 4,056 21,090 25,146 0
NH4OH
kg pesos
1 4,682 28,326 28,092 4,916 25.00 117,049 708,148 702,295 122,902
2 4,916 29,742 29,496 5,162 26.00 122,902 773,298 761,991 134,209
3 5,162 31,229 30,971 5,420 27.04 134,209 844,441 832,094 146,556
4 5,420 32,791 32,520 5,691 28.12 146,556 922,129 908,646 160,039
5 5,691 34,430 34,146 5,976 29.25 160,039 1,006,965 992,242 174,763
6 5,976 36,152 35,853 6,274 30.42 174,763 1,099,606 1,083,528 190,841
7 6,274 37,959 37,646 6,588 31.63 190,841 1,200,770 1,183,213 208,398
8 6,588 39,857 39,528 6,917 32.90 208,398 1,311,241 1,292,068 227,571
9 6,917 41,850 41,504 7,263 34.21 227,571 1,431,875 1,410,938 248,507
10 7,263 43,943 43,580 7,626 35.58 248,507 1,563,607 1,540,745 271,370
11 7,626 46,140 45,759 8,008 37.01 271,370 1,707,459 1,682,493 296,336
12 8,008 40,039 48,047 0 38.49 296,336 1,540,947 1,837,283 0
156
MOTHER VINEGAR
Kg pesos
1 13,664 82,667 81,984 14,347 8 109,312 661,337 655,872 114,778
2 14,347 86,801 86,083 15,065 8.32 114,778 722,180 711,621 125,337
3 15,065 91,141 90,387 15,818 8.65 125,337 788,621 777,090 136,868
4 15,818 95,698 94,907 16,609 9.00 136,868 861,174 848,582 149,460
5 16,609 100,482 99,652 17,439 9.36 149,460 940,402 926,652 163,210
6 17,439 105,507 104,635 18,311 9.73 163,210 1,026,919 1,011,904 178,226
7 18,311 110,782 109,866 19,227 10.12 178,226 1,121,395 1,104,999 194,622
8 19,227 116,321 115,360 20,188 10.53 194,622 1,224,564 1,206,659 212,528
9 20,188 122,137 121,128 21,197 10.95 212,528 1,337,224 1,317,671 232,080
10 21,197 128,244 127,184 22,257 11.39 232,080 1,460,248 1,438,897 253,432
11 22,257 134,656 133,543 23,370 11.84 253,432 1,594,591 1,571,275 276,747
12 23,370 116,850 140,220 0 12.32 276,747 1,439,086 1,715,833 0
Coco Burger
Table 6-24: Inventory of CB Raw Materials
ONION
kg Pesos
YEAR B.I. PURCHASE USAGE E.I PRICE B.I. PURCHASE USAGE E.I.
1 30,798 186,331 184,791 32,338 80 2,463,877 14,906,459 14,783,265 2,587,071
2 32,338 195,647 194,030 33,955 83 2,587,071 16,277,853 16,039,842 2,825,082
3 33,955 205,430 203,732 35,653 87 2,825,082 18,664,186 18,404,278 3,084,989
4 35,653 215,701 213,918 37,436 90 3,084,989 19,410,753 19,126,934 3,368,808
5 37,436 226,486 224,614 39,308 94 3,368,808 21,196,543 20,886,612 3,678,739
6 39,308 237,810 235,845 41,273 97 3,678,739 23,146,625 22,808,181 4,017,183
7 41,273 249,701 247,637 43,337 101 4,017,183 25,276,114 24,906,533 4,386,764
8 43,337 262,186 260,019 45,503 105 4,386,764 27,601,517 27,197,934 4,790,346
9 45,503 275,295 273,020 47,779 109 4,386,764 30,140,856 29,296,562 5,231,058
10 47,779 289,060 286,671 50,167 114 5,231,058 32,913,815 32,432,557 5,712,315
11 50,167 303,513 301,005 52,676 118 5,712,315 35,941,886 35,416,353 6,237,848
12 52,676 263,379 316,055 0 123 6,237,848 32,436,809 38,674,657 0
FLOUR
Kg Pesos
1 32,081 194,087 192,483 33,685 30 962,417 5,822,621 5,774,500 1,010,537
2 33,685 203,792 202,107 35,369 31 1,010,537 6,358,302 6,265,332 1,103,507
3 35,369 213,981 212,213 37,137 32 1,103,507 6,943,265 6,841,743 1,205,030
4 37,137 224,680 222,824 38,994 34 1,205,030 7,582,046 7,471,183 1,315,892
5 38,994 235,914 233,965 40,944 35 1,315,892 8,279,594 8,158,532 1,436,954
6 40,944 247,710 245,663 42,991 36 1,436,954 9,041,317 8,909,117 1,569,154
7 42,991 260,096 257,946 45,141 38 1,569,154 9,873,118 9,728,756 1,713,516
8 45,141 273,100 270,843 47,398 39 1,713,516 10,781,445 10,623,801 1,871,160
9 47,398 286,755 284,386 49,767 41 1,713,516 11,773,338 11,443,547 2,043,307
10 49,767 301,093 298,605 52,256 43 2,043,307 12,856,485 12,668,500 2,231,291
11 52,256 316,148 313,535 54,869 44 2,231,291 14,039,281 13,834,002 2,436,569
12 54,869 274,343 329,212 0 46 2,436,569 12,670,161 15,106,731 0
157
SOY SAUCE
Liters Pesos
1 38,885 235,256 233,312 40,830 20 777,705 4,705,118 4,666,233 816,591
2 40,830 247,019 244,977 42,871 21 816,591 5,137,989 5,062,863 891,717
3 42,871 259,370 257,226 45,015 22 891,717 5,610,684 5,528,646 973,755
4 45,015 272,338 270,087 47,265 22 973,755 6,126,867 6,037,281 1,063,341
5 47,265 285,955 283,592 49,629 23 1,063,341 6,690,539 6,592,711 1,161,168
6 49,629 300,253 297,771 52,110 24 1,161,168 7,306,068 7,199,241 1,267,995
7 52,110 315,265 312,660 54,715 25 1,267,995 7,978,227 7,861,571 1,384,651
8 54,715 331,029 328,293 57,451 26 1,384,651 8,712,223 8,584,836 1,512,039
9 57,451 347,580 344,708 60,324 27 1,384,651 9,513,748 9,247,252 1,651,146
10 60,324 364,959 361,943 63,340 28 1,651,146 10,389,013 10,237,107 1,803,052
11 63,340 383,207 380,040 66,507 30 1,803,052 11,344,802 11,178,921 1,968,933
12 66,507 332,535 399,042 0 31 1,968,933 10,238,449 12,207,382 0
BAKING POWDER
kg Pesos
1 27,421 165,895 164,524 28,792 80 2,193,654 13,271,608 13,161,925 2,303,337
2 28,792 174,190 172,750 30,231 83 2,303,337 14,492,596 14,280,689 2,515,244
3 30,231 182,899 181,388 31,743 87 2,515,244 15,825,915 15,594,512 2,746,646
4 31,743 192,044 190,457 33,330 90 2,746,646 17,281,899 17,029,208 2,999,338
5 33,330 201,647 199,980 34,997 94 2,999,338 18,871,834 18,595,895 3,275,277
6 34,997 211,729 209,979 36,746 97 3,275,277 20,608,043 20,306,717 3,576,602
7 36,746 222,315 220,478 38,584 101 3,576,602 22,503,982 22,174,935 3,905,650
8 38,584 233,431 231,502 40,513 105 3,905,650 24,574,349 24,215,029 4,264,970
9 40,513 245,103 243,077 42,538 109 3,905,650 26,835,189 26,083,492 4,657,347
10 42,538 257,358 255,231 44,665 114 4,657,347 29,304,026 28,875,550 5,085,823
11 44,665 270,226 267,992 46,899 118 5,085,823 31,999,997 31,532,101 5,553,718
12 46,899 234,493 281,392 0 123 5,553,718 28,879,336 34,433,054 0
KNORR CUBE FLAVORED PORK

Pieces Pesos
1 129,600 784,080 777,600 136,080 4.50 583,200 3,528,360 3,499,200 612,360
2 136,080 823,284 816,480 142,884 4.68 612,360 3,852,969 3,796,632 668,697
3 142,884 864,448 857,304 150,028 4.87 668,697 4,207,442 4,145,922 730,217
4 150,028 907,671 900,169 157,530 5.06 730,217 4,594,527 4,527,347 797,397
5 157,530 953,054 945,178 165,406 5.26 797,397 5,017,223 4,943,863 870,758
6 165,406 1,000,707 992,437 173,676 5.47 870,758 5,478,808 5,398,698 950,868
7 173,676 1,050,742 1,042,058 182,360 5.69 950,868 5,982,858 5,895,379 1,038,347
8 182,360 1,103,279 1,094,161 191,478 5.92 1,038,347 6,533,281 6,437,753 1,133,875
9 191,478 1,158,443 1,148,869 201,052 6.16 1,038,347 7,134,343 6,934,499 1,238,192
10 201,052 1,216,365 1,206,313 211,105 6.40 1,238,192 7,790,703 7,676,789 1,352,105
11 211,105 1,277,184 1,266,628 221,660 6.66 1,352,105 8,507,447 8,383,054 1,476,499
12 221,660 1,108,300 1,329,960 0 6.93 1,476,499 7,677,796 9,154,295 0
158
EGGS
Pieces Pesos
1 1,278,360 7,734,078 7,670,160 1,342,278 3.00 3,835,080 23,202,234 23,010,480 4,026,834
2 1,342,278 8,120,782 8,053,668 1,409,392 3.12 4,026,834 25,336,840 24,966,371 4,397,303
3 1,409,392 8,526,821 8,456,351 1,479,861 3.24 4,397,303 27,667,829 27,263,277 4,801,855
4 1,479,861 8,953,162 8,879,169 1,553,855 3.37 4,801,855 30,213,269 29,771,498 5,243,625
5 1,553,855 9,400,820 9,323,127 1,631,547 3.51 5,243,625 32,992,890 32,510,476 5,726,039
6 1,631,547 9,870,861 9,789,284 1,713,125 3.65 5,726,039 36,028,236 35,501,440 6,252,834
7 1,713,125 10,364,404 10,278,748 1,798,781 3.80 6,252,834 39,342,833 38,767,573 6,828,095
8 1,798,781 10,882,624 10,792,685 1,888,720 3.95 6,828,095 42,962,374 42,334,189 7,456,280
9 1,888,720 11,426,756 11,332,320 1,983,156 4.11 7,456,280 46,914,912 46,228,935 8,142,258
10 1,983,156 11,998,093 11,898,936 2,082,314 4.27 8,142,258 51,231,084 50,481,997 8,891,345
11 2,082,314 12,597,998 12,493,882 2,186,429 4.44 8,891,345 55,944,344 55,126,340 9,709,349
12 2,186,429 10,932,147 13,118,577 0 4.62 9,709,349 50,488,615 60,197,964 0
TOMATO SAUCE
kg Pesos
1 18,670 112,952 112,019 19,603 40 746,791 4,518,085 4,480,745 784,130
2 19,603 118,600 117,620 20,583 42 784,130 4,933,748 4,861,608 856,270
3 20,583 124,530 123,501 21,613 43 856,270 5,387,653 5,308,876 935,047
4 21,613 130,756 129,676 22,693 45 935,047 5,883,317 5,797,293 1,021,072
5 22,693 137,294 136,159 23,828 47 1,021,072 6,424,583 6,330,644 1,115,010
6 23,828 144,159 142,967 25,019 49 1,115,010 7,015,644 6,913,063 1,217,591
7 25,019 151,367 150,116 26,270 51 1,217,591 7,661,084 7,549,065 1,329,610
8 26,270 158,935 157,621 27,584 53 1,329,610 8,365,903 8,243,579 1,451,934
9 27,584 166,882 165,503 28,963 55 1,451,934 9,135,566 9,001,988 1,585,512
10 28,963 175,226 173,778 30,411 57 1,585,512 9,976,038 9,830,171 1,731,379
11 30,411 183,987 182,467 31,932 59 1,731,379 10,893,834 10,734,547 1,890,665
12 31,932 159,658 191,590 0 62 1,890,665 9,831,460 11,722,125 0
GROUND PEPPER
Kg Pesos
1 1,815 10,979 10,888 1,905 80 145,172 878,292 871,033 152,431
2 1,905 11,528 11,432 2,001 83 152,431 959,094 945,071 166,454
3 2,001 12,104 12,004 2,101 87 166,454 1,047,331 1,032,017 181,768
4 2,101 12,709 12,604 2,206 90 181,768 1,143,686 1,126,963 198,491
5 2,206 13,345 13,234 2,316 94 198,491 1,248,905 1,230,643 216,752
6 2,316 14,012 13,896 2,432 97 216,752 1,363,804 1,343,863 236,693
7 2,432 14,712 14,591 2,553 101 236,693 1,489,274 1,467,498 258,469
8 2,553 15,448 15,320 2,681 105 258,469 1,626,287 1,602,508 282,248
9 2,681 16,220 16,086 2,815 109 282,248 1,775,905 1,749,939 308,215
10 2,815 17,031 16,891 2,956 114 308,215 1,939,289 1,910,933 336,571
11 2,956 17,883 17,735 3,104 118 336,571 2,117,703 2,086,739 367,535
12 3,104 15,518 18,622 0 123 367,535 1,911,183 2,278,719 0
159
GRANULATED GARLIC
kg Pesos
1 4,213 25,486 25,275 4,423 85 358,067 2,166,308 2,148,405 375,971
2 4,423 26,760 26,539 4,644 88 375,971 2,365,608 2,331,019 410,560
3 4,644 28,098 27,866 4,877 92 410,560 2,583,244 2,545,473 448,332
4 4,877 29,503 29,259 5,120 96 448,332 2,820,903 2,779,656 489,578
5 5,120 30,978 30,722 5,376 99 489,578 3,080,426 3,035,385 534,619
6 5,376 32,527 32,258 5,645 103 534,619 3,363,825 3,314,640 583,804
7 5,645 34,154 33,871 5,927 108 583,804 3,673,297 3,619,587 637,514
8 5,927 35,861 35,565 6,224 112 637,514 4,011,240 3,952,589 696,166
9 6,224 37,654 37,343 6,535 116 696,166 4,380,274 4,316,227 760,213
10 6,535 39,537 39,210 6,862 121 760,213 4,783,259 4,713,320 830,152
11 6,862 41,514 41,171 7,205 126 830,152 5,223,319 5,146,945 906,526
12 7,205 36,025 43,229 0 131 906,526 4,713,938 5,620,464 0
Assumption
1. Annual increase of Cost of Raw Materials is 4%, based on average core inflation rate.
http://www.nscb.gov.ph/secstat/d_price.asp
160
Finished Goods
Table 6-25: Inventory of Finished Goods
Activated Carbon (25 kg sacks)

YEAR B.I. PRODUCTION SALES E.I. SELLING PRICE SALES
1 0 144,000 141,120 2,880 2,000 282,240,000
2 2,880 151,200 151,056 3,024 2,100 317,217,600
3 3,024 158,760 158,609 3,175 2,205 349,732,404
4 3,175 166,698 166,539 3,334 2,315 385,579,975
5 3,334 175,033 174,866 3,501 2,431 425,101,923
6 3,501 183,785 183,610 3,676 2,553 468,674,870
7 3,676 192,974 192,790 3,859 2,680 516,714,044
8 3,859 202,622 202,429 4,052 2,814 569,677,234
9 4,052 212,754 212,551 4,255 2,955 628,069,150
10 4,255 223,391 223,179 4,468 3,103 692,446,238
11 4,468 234,561 234,337 4,691 3,258 763,421,977
12 4,691 246,289 246,054 4,926 3,421 841,672,730
Virgin Coconut Oil (250 ml Bottles)

1 0 1,352,160 1,126,800 225,360 70 78,876,000
2 225,360 1,419,768 1,408,500 236,628 74 103,524,750
3 236,628 1,490,756 1,478,925 248,459 77 114,136,037
4 248,459 1,565,294 1,552,871 260,882 81 125,834,981
5 260,882 1,643,559 1,630,515 273,926 85 138,733,066
6 273,926 1,725,737 1,712,041 287,623 89 152,953,205
7 287,623 1,812,024 1,797,643 302,004 94 168,630,909
8 302,004 1,902,625 1,887,525 317,104 98 185,915,577
9 317,104 1,997,756 1,981,901 332,959 103 204,971,924
10 332,959 2,097,644 2,080,996 349,607 109 225,981,546
11 349,607 2,202,526 2,185,046 367,088 114 249,144,655
12 367,088 2,312,652 2,294,298 385,442 120 274,681,982
Coco Vinegar (500 ml bottles)

1 0 1,770,840 1,475,700 295,140 10 14,757,000
2 295,140 1,859,382 1,844,625 309,897 11 19,368,563
3 309,897 1,952,351 1,936,856 325,392 11 21,353,840
4 325,392 2,049,969 2,033,699 341,661 12 23,542,609
5 341,661 2,152,467 2,135,384 358,745 12 25,955,726
6 358,745 2,260,090 2,242,153 376,682 13 28,616,188
7 376,682 2,373,095 2,354,261 395,516 13 31,549,347
8 395,516 2,491,750 2,471,974 415,292 14 34,783,155
9 415,292 2,616,337 2,595,573 436,056 15 38,348,429
10 436,056 2,747,154 2,725,351 457,859 16 42,279,143
11 457,859 2,884,512 2,861,619 480,752 16 46,612,755
12 480,752 3,028,737 3,004,700 504,790 17 51,390,562
161
Coco Burger (60g x 12 patty packs)

1 0 3,254,040 2,711,700 542,340 30 81,351,000
2 542,340 3,416,742 3,389,625 569,457 32 106,773,188
3 569,457 3,587,579 3,559,106 597,930 33 117,717,439
4 597,930 3,766,958 3,737,062 627,826 35 129,783,477
5 627,826 3,955,306 3,923,915 659,218 36 143,086,283
6 659,218 4,153,071 4,120,110 692,179 38 157,752,627
7 692,179 4,360,725 4,326,116 726,787 40 173,922,271
8 726,787 4,578,761 4,542,422 763,127 42 191,749,304
9 763,127 4,807,699 4,769,543 801,283 44 211,403,608
10 801,283 5,048,084 5,008,020 841,347 47 233,072,478
11 841,347 5,300,488 5,258,421 883,415 49 256,962,407
12 883,415 5,565,513 5,521,342 927,585 51 283,301,053
Note
1. Prices increase 5% annually, as a result of 4% increase in Raw Materials
2. All selling prices are in PhP
Finished Goods Packaging
Activated Carbon
Table 6-26: Inventory of AC Packaging
25 KG SACKS
YEAR PRODUCTION SACKS PRICE / SACK COST
1 3,600,000 144,000 12.00 1,728,000.00
2 3,780,000 151,200 12.24 1,850,688.00
3 3,969,000 158,760 12.48 1,982,086.85
4 4,167,450 166,698 12.73 2,122,815.01
5 4,375,823 175,033 12.99 2,273,534.88
6 4,594,614 183,785 13.25 2,434,955.86
7 4,824,344 192,974 13.51 2,607,837.72
8 5,065,562 202,622 13.78 2,792,994.20
9 5,318,840 212,754 14.06 2,991,296.79
10 5,584,782 223,391 14.34 3,203,678.86
11 5,864,021 234,561 14.63 3,431,140.06
12 6,157,222 246,289 14.92 3,674,751.00
Assumption
1. Price increases 2% annually
162
Virgin Coconut Oil
Table 6-27: Inventory of VCNO Packaging
250 mL BOTTLES w/ CAP

YEAR PRODUCTION PRICE/BOTTLE COST
1 1,352,160 7.50 10,141,200.00
2 1,419,768 7.65 10,861,225.20
3 1,490,756 7.80 11,632,372.19
4 1,565,294 7.96 12,458,270.61
5 1,643,559 8.12 13,342,807.83
6 1,725,737 8.28 14,290,147.18
7 1,812,024 8.45 15,304,747.63
8 1,902,625 8.62 16,391,384.72
9 1,997,756 8.79 17,555,173.03
10 2,097,644 8.96 18,801,590.32
11 2,202,526 9.14 20,136,503.23
12 2,312,652 9.33 21,566,194.96
CARTONS (24 BOTTLES)

YEAR PRODUCTION CARTONS PRICE/CARTON COST
1 1,352,160 56,340 8.00 450,720.00
2 1,419,768 59,157 8.16 482,721.12
3 1,490,756 62,115 8.32 516,994.32
4 1,565,294 65,221 8.49 553,700.92
5 1,643,559 68,482 8.66 593,013.68
6 1,725,737 71,906 8.83 635,117.65
7 1,812,024 75,501 9.01 680,211.01
8 1,902,625 79,276 9.19 728,505.99
9 1,997,756 83,240 9.37 780,229.91
10 2,097,644 87,402 9.56 835,626.24
11 2,202,526 91,772 9.75 894,955.70
12 2,312,652 96,361 9.95 958,497.55
Assumption
Coco Vinegar
Table 6-28: Inventory of CV Packaging
500 mL BOTTLES w/ CAP

YEAR PRODUCTION PRICE/BOTTLE COST
1 1,770,840 1.50 2,656,260.00
2 1,859,382 1.53 2,844,854.46
3 1,952,351 1.56 3,046,839.13
4 2,049,969 1.59 3,263,164.70
5 2,152,467 1.62 3,494,849.40
6 2,260,090 1.66 3,742,983.71
7 2,373,095 1.69 4,008,735.55
8 2,491,750 1.72 4,293,355.77
9 2,616,337 1.76 4,598,184.03
10 2,747,154 1.79 4,924,655.10
11 2,884,512 1.83 5,274,305.61
12 3,028,737 1.87 5,648,781.31
163
CARTONS (24 BOTTLES)

YEAR PRODUCTION CARTONS PRICE/CARTON COST
1 1,770,840 73,785 6.00 442,710.00
2 1,859,382 77,474 6.12 474,142.41
3 1,952,351 81,348 6.24 507,806.52
4 2,049,969 85,415 6.37 543,860.78
5 2,152,467 89,686 6.49 582,474.90
6 2,260,090 94,170 6.62 623,830.62
7 2,373,095 98,879 6.76 668,122.59
8 2,491,750 103,823 6.89 715,559.30
9 2,616,337 109,014 7.03 766,364.01
10 2,747,154 114,465 7.17 820,775.85
11 2,884,512 120,188 7.31 879,050.94
12 3,028,737 126,197 7.46 941,463.55
Assumption
Coco Burger
Table 6-29: Inventory of CB Packaging
PATTY DIVIDER
YEAR PRODUCTION *8 PCS DIVIDER PRICE COST
1 3,254,040 3,254,040 0.01 32,540.40
2 3,416,742 3,416,742 0.01 34,850.77
3 3,587,579 3,587,579 0.01 37,325.17
4 3,766,958 3,766,958 0.01 39,975.26
5 3,955,306 3,955,306 0.01 42,813.50
6 4,153,071 4,153,071 0.01 45,853.26
7 4,360,725 4,360,725 0.01 49,108.84
8 4,578,761 4,578,761 0.01 52,595.57
9 4,807,699 4,807,699 0.01 56,329.86
10 5,048,084 5,048,084 0.01 60,329.28
11 5,300,488 5,300,488 0.01 64,612.66
12 5,565,513 5,565,513 0.01 69,200.15
Note
• The dividers will be placed in-between the first & second patty and in-between the second
and third patty. Packaging scheme is illustrated in the Market Study, based on the illustration
a total of 8 divider pieces will be used.
•
PLASTIC
YEAR PRODUCTION PLASTIC PRICE COST
1 3,254,040 3,254,040 0.05 162,702.00
2 3,416,742 3,416,742 0.05 174,253.84
3 3,587,579 3,587,579 0.05 186,625.86
4 3,766,958 3,766,958 0.05 199,876.30
5 3,955,306 3,955,306 0.05 214,067.52
6 4,153,071 4,153,071 0.06 229,266.31
7 4,360,725 4,360,725 0.06 245,544.22
8 4,578,761 4,578,761 0.06 262,977.86
9 4,807,699 4,807,699 0.06 281,649.29
10 5,048,084 5,048,084 0.06 301,646.39
11 5,300,488 5,300,488 0.06 323,063.28
12 5,565,513 5,565,513 0.06 346,000.77
Assumption
164
Trial Run Material Requirement
Trial Run Raw Material Requirement

Duration : 3 months (12 Weeks)
Weeks
Weekly Unit Price
Units 1-3 4-6 7-9 10 - 12 Cost
Requirement (PhP)
Operations Complexity 0.20 0.40 0.80 1.00 -
Main Raw Material
Whole Coconut 189.00MT 4,000.00 113 227 454 567 5,443,200.00
Activated Carbon
Coco Shell 336.00MT 201.60 403.20 806.40 1,008.00 -
Produced 32.75MT 19.65 39.30 78.61 98.26 -
Purchased 303.25MT 3,000.00 181.95 363.90 727.79 909.74 6,550,120.08
Total 403.20 806.40 1,612.80 2,016.00 6,550,120.08
Virgin Coconut Oil
Coco Meat 43,470.00Kg 26,082.00 52,164.00 104,328.00 130,410.00 -
Coco Vinegar
Coco Water 15,120.00Kg 9,072.00 18,144.00 36,288.00 45,360.00 -
Mother Vinegar 1,612.04Kg 8.00 967.23 1,934.45 3,868.91 4,836.13 92,853.73
Brown Sugar 1,949.43Kg 15.00 1,169.66 2,339.32 4,678.63 5,848.29 210,538.44
(NH4)2SO4 12.60Kg 15.00 7.56 15.12 30.24 37.80 1,360.80
NH4OH 552.37Kg 25.00 331.42 662.84 1,325.68 1,657.10 99,426.10
Total 11,547.86 23,095.73 46,191.46 57,739.32 404,179.07
Coco Burger
Coco Meal 22680Kg 13608 27216 54432 68040 -
Eggs 149142pcs 3.00 89485.2 178970.4 357940.8 447426 3,221,467.20
Tomato Sauce 2178Kg 40 1306.8846 2613.7692 5227.5384 6534.423 627,304.61
Ground Pepper 212Kg 80 127.02564 254.05128 508.10256 635.1282 121,944.61
Granulated Garlic 491Kg 85 294.87906 589.75812 1179.5162 1474.3953 300,776.64
Minced Onions 3593Kg 80 2155.8928 4311.7855 8623.571 10779.4638 2,069,657.05
Flour 3743Kg 30 2245.6388 4491.2776 8982.5551 11228.1939 808,429.96
Soy Sauce 4537L 20 2721.9692 5443.9384 10887.877 13609.8459 653,272.60
Baking Powder 3199Kg 80 1919.4475 3838.8949 7677.7898 9597.2373 1,842,669.56
Knorr Cubes (Pork) 15120pcs 4.50 9072 18144 36288 45360 489,888.00
Total 122,936.94 245,873.87 491,747.75 614,684.69 10,135,410.24
Total 135,001.40 270,002.80 540,005.61 675,007.01 22,532,909.39
Table 6-30: Trial Run Raw Materials Requirement
165
UTILITIES
Managing and optimizing utilities costs are critical to meeting profitability targets.
The challenge to operate the utilities system with minimum cost and maximum reliability
is thus highly priorities in this study. The following tables show the electricity cost
consumed by the utilities used in the office and plant; lightning cost in all buildings of the
plant, and the cost of water, telephone, and fuel used in the operation.
Table 6-31: Office & Plant Fixed Electricity Consumption
OFFICE (KWH)
Electricity Days per Year Power Price per
Equipment Units Hours Annual Cost
Consumption (W) Used (KWH/Yr) KWH
Air conditioning Unit 20 2,664.00 12.00 312.00 199,480.32 6.30 1,256,726.02
Computer 20 225.00 12.00 312.00 16,848.00 6.30 106,142.40
Exhaust Fan 10 92.00 12.00 312.00 3,444.48 6.30 21,700.22
Photocopier/Scanner/Printer 2 175.00 12.00 312.00 1,310.40 6.30 8,255.52
Telefax Machine 10 7.00 12.00 312.00 262.08 6.30 1,651.10
Refrigerator 1 800.00 24.00 312.00 5,990.40 6.30 37,739.52
Water Dispenser 5 550.00 12.00 312.00 10,296.00 6.30 64,864.80
Oven Microwave 1 1,200.00 4.00 312.00 1,497.60 6.30 9,434.88
Television 5 130.00 4.00 312.00 811.20 6.30 5,110.56
Total 239,940.48 Php 1,511,625.02
PLANT (KWH)
Electricity Days per Year Power Price per
Equipment/Section Units Hours Annual Cost
Consumption (W) Used (KWH/Yr) KWH
Exhaust Fan 20 92.00 12.00 360.00 7,948.80 6.30 50,077.44
Telefax Machine 5 7.00 12.00 360.00 151.20 6.30 952.56
Electric Fan 10 160.00 24.00 360.00 13,824.00 6.30 87,091.20
Computers 10 225.00 24.00 360.00 19,440.00 6.30 122,472.00
Air conditioning
Unit 8 2,664.00 24.00 360.00 184,135.68 6.30 1,160,054.78
Total 225,499.68 Php 1,420,647.98
166
Table 6-32: Lighting Electricity Consumption
LIGHTING
AREA Days per Year Electricity Price per
BUILDING/SECTION Hours Usage Annual Cost
(m2) Used (KWH/Yr) KWH
Manufacturing Section 0.02 KWH/m2
Primary Processing 375.00 24.00 360.00 64,800.00 6.30 408,240.00
Activated Carbon 422.50 24.00 360.00 73,008.00 6.30 459,950.40
Virgin Coconut Oil 340.00 24.00 360.00 58,752.00 6.30 370,137.60
Coco Vinegar 553.50 24.00 360.00 95,644.80 6.30 602,562.24
Coco Burger 353.83 24.00 360.00 61,141.82 6.30 385,193.49
Quality Control 100.00 24.00 360.00 17,280.00 6.30 108,864.00
Process Control 100.00 24.00 360.00 17,280.00 6.30 108,864.00
Quality Control 100.00 24.00 360.00 17,280.00 6.30 108,864.00
Process Control 100.00 24.00 360.00 17,280.00 6.30 108,864.00
Water Treatment Plant 100.00 24.00 360.00 17,280.00 7.30 126,144.00
Waste Water Treatment Plant 50.00 24.00 360.00 8,640.00 8.30 71,712.00
Solid Waste Collection Facility 70.00 24.00 360.00 12,096.00 9.30 112,492.80
Warehouse 360 days/Year 0.0025 KWH/m2
Finished Goods Warehouse 375.00 24.00 360.00 8,100.00 6.30 51,030.00
Raw Materials Warehouse 375.00 24.00 360.00 8,100.00 6.30 51,030.00
Finished Goods Warehouse
(AC) 163.82 24.00 360.00 3,538.40 6.30 22,291.95
RM Loading Area 150.00 12.00 360.00 1,620.00 6.30 10,206.00
Loading (AC) 100.00 12.00 360.00 1,080.00 6.30 6,804.00
Office 312 days/Year 0.035 KWH/m2
Administration Building 600.00 8.00 312.00 52,416.00 6.30 330,220.80
Canteen 100.00 8.00 360.00 10,080.00 6.30 63,504.00
Clinic 56.00 8.00 360.00 5,644.80 6.30 35,562.24
Guard House 360 days/Year 0.035 KWH/m2
Security Office 25.00 24.00 360.00 8,640.00 6.30 54,432.00
Perimeter and Roads 360 days/Year 0.1KWH/50m
Perimeter 420.00 12.00 360.00 302.40 6.30 1,905.12
Total Lighting Electricity
Consumption 560,004.23 Php 3,598,874.64
1. Amount of Electricity is 6.30 Php per KWH as the prescribed average electricity rate
Table 6-33: Fixed Water Consumption
PERSONNEL WATER CONSUMPTION

Water
Water
No. of Rate
Department Consumption Daily Cost Annual Cost
Personnel per cu.
cu. m/day
Meter
General & Administrative 25 6.25 12.00 75.00 26,250.00

Sales & Marketing 9 2.25 12.00 27.00 9,450.00
Indirect Labor 44 11.00 12.00 132.00 46,200.00
Direct Labor (Non Equipment Based) 65 16.25 12.00 195.00 68,250.00
Total 143 35.75 Php 429.00 150,150.00
Assumptions:
1. Region IV Water Rate, 12Php/ cu. Meter
2. 350 working days a year
3. Average Personnel Water Consumption is 250 L/day
167
No. of
Average Monthly Total Cost /
DEPARTMENTS Telephone Total Cost (Php)
cost (Php) Year (Php)
Line
Administration 4
Office of the President 1 1,200.00 1,200.00 14,400.00
Office of the VP's 3 1,000.00 3,000.00 36,000.00
Operations 6
Purchasing 1 950.00 950.00 11,400.00
Production Control 1 950.00 950.00 11,400.00
Quality Assurance 1 950.00 950.00 11,400.00
Waste Management 1 950.00 950.00 11,400.00
R&D 1 950.00 950.00 11,400.00
Production/Manufacturing 5
AC Head 1 800.00 800.00 9,600.00
VCNO Head 1 800.00 800.00 9,600.00
CV Head 1 800.00 800.00 9,600.00
CB Head 1 800.00 800.00 9,600.00
Process Control 1 800.00 800.00 9,600.00
Other Offices 10
HR 2 1,000.00 2,000.00 24,000.00
Sales and Marketing 2 1,000.00 2,000.00 24,000.00
Treasury 1 850.00 850.00 10,200.00
Health & Safety 1 800.00 800.00 9,600.00
Security 1 1,000.00 1,000.00 12,000.00
Technical Services 1 950.00 950.00 11,400.00
TOTAL 24 20,550.00 246,600.00
Table 6-34: Telecommunications
FUEL CONSUMPTION
Daily Fuel Monthly
No of Price of fuel Daily usage of Annual price
Transportation Requirement Usage of
Units per liter (Php)* fuel (Php) of fuel (Php)
L fuel (Php)
Delivery Truck (diesel) 5 20 27.10 2,710.00 81,300.00 975,600.00
Company Bus (diesel) 2 10 27.10 542.00 16,260.00 195,120.00
Forklift 1 10 27.10 271.00 8,130.00 97,560.00
Loader 3 10 27.10 813.00 24,390.00 292,680.00
TOTAL 7 3,523.00 105,690.00 1,560,960.00
Table 6-35: Fuel Consumption

Note*
The price of fuel is based from the Shell's May 14, 2005 rate of 27.10 Php per Liter of Diesel
168
WASTE MANAGEMENT
Effective waste management requires an integrated approach that includes

strategies for achieving waste reduction and recycling goals and increasing marketing
development. This study provides quantitative data on the costs of managing solid
wastes and wastewaters, and the costs of water and wastewater treatment.
SOLID WASTE COSTS

COST of
SOLID WASTES GENERATED (Kg) DISPOSAL
PRIMARY
YEAR VCNO VINEGAR TOTAL pHp / kg TOTAL
PROCESSING
1 453,600.00 114,793.20 1,555.20 569,948.40 0.50 284,974.20
2 476,280.00 120,532.86 1,632.96 598,445.82 0.51 305,207.37
3 500,094.00 126,559.50 1,714.61 628,368.11 0.52 326,877.09
4 525,098.70 132,887.48 1,800.34 659,786.52 0.53 350,085.36
5 551,353.64 139,531.85 1,890.36 692,775.84 0.54 374,941.43
6 578,921.32 146,508.44 1,984.87 727,414.63 0.55 401,562.27
7 607,867.38 153,833.87 2,084.12 763,785.37 0.56 430,073.19
8 638,260.75 161,525.56 2,188.32 801,974.63 0.57 460,608.38
9 670,173.79 169,601.84 2,297.74 842,073.37 0.59 493,311.58
10 703,682.48 178,081.93 2,412.63 884,177.03 0.60 528,336.70
11 738,866.60 186,986.03 2,533.26 928,385.89 0.61 565,848.61
12 775,809.93 196,335.33 2,659.92 974,805.18 0.62 606,023.86
Table 6-36: Solid Waste Treatment Cost
WASTE WATER GENERATED

WASTEWATER GENERATED (kg) TOTAL
YEAR AC VCNO VINEGAR COCOBURGER Kg Cu. Meters
1 5,378,400.00 336,960.00 2,689,330.68 133.48 8,404,824.16 8,404.82
2 5,647,320.00 353,808.00 2,823,797.21 140.15 8,825,065.36 8,825.07
3 5,929,686.00 371,498.40 2,964,987.07 147.16 9,266,318.63 9,266.32
4 6,226,170.30 390,073.32 3,113,236.43 154.51 9,729,634.56 9,729.63
5 6,537,478.82 409,576.99 3,268,898.25 162.24 10,216,116.29 10,216.12
6 6,864,352.76 430,055.84 3,432,343.16 170.35 10,726,922.11 10,726.92
7 7,207,570.39 451,558.63 3,603,960.32 178.87 11,263,268.21 11,263.27
8 7,567,948.91 474,136.56 3,784,158.34 187.81 11,826,431.62 11,826.43
9 7,946,346.36 497,843.39 3,973,366.25 197.20 12,417,753.20 12,417.75
10 8,343,663.68 522,735.56 4,172,034.57 207.06 13,038,640.86 13,038.64
11 8,760,846.86 548,872.33 4,380,636.29 217.42 13,690,572.91 13,690.57
12 9,198,889.20 576,315.95 4,599,668.11 228.29 14,375,101.55 14,375.10
Table 6-37: Waste Water Generated
169
COST OF WASTEWATER TREATMENT18

EQUIPMENT TREATMENT SERVICE
YEAR TOTAL
RENTAL COST COST
1 300,000.00 8,404,824.16 180,000.00 8,884,824.16
2 300,000.00 8,825,065.36 183,600.00 9,308,665.36
3 300,000.00 9,266,318.63 187,272.00 9,753,590.63
4 300,000.00 9,729,634.56 191,017.44 10,220,652.00
5 300,000.00 10,216,116.29 194,837.79 10,710,954.08
6 300,000.00 10,726,922.11 198,734.54 11,225,656.65
7 300,000.00 11,263,268.21 202,709.24 11,765,977.45
8 300,000.00 11,826,431.62 206,763.42 12,333,195.04
9 300,000.00 12,417,753.20 210,898.69 12,928,651.89
10 300,000.00 13,038,640.86 215,116.66 13,553,757.52
11 300,000.00 13,690,572.91 219,419.00 14,209,991.90
12 300,000.00 14,375,101.55 223,807.38 14,898,908.93
Table 6-38: Waste Water Treatment Cost
Considerations:
share-cost of wastewater
equipment rental = 300,000 pHp / year
ac 0.64 treatment cost = 1000 pHp / m3 of wastewater
vcno 0.04 treatment cost increases by 2% / year
cv 0.32 service cost = 15,000 pHp / month = 180,000 pHp/ year
service cost increase by 2% per year
cb 0.00
WATER TREATMENT COST19

WATER CONSUMPTION ( cu. m) TREATMENT COST
YEAR AC VINEGAR COCO TOTAL COST OF TREATMENT SERVICE TOTAL
BURGER CHEMICALS COST COST*
1 5,145.00 15,956.69 4,510.08 25,611.77 25,611.77 180,000.00 505,611.77
2 5,402.25 16,754.52 4,735.58 26,892.36 26,892.36 183,600.00 510,492.36
3 5,672.36 17,592.25 4,972.36 28,236.98 28,236.98 187,272.00 515,508.98
4 5,955.98 18,471.86 5,220.98 29,648.82 29,648.82 191,017.44 520,666.26
5 6,253.78 19,395.46 5,482.03 31,131.27 31,131.27 194,837.79 525,969.05
6 6,566.47 20,365.23 5,756.13 32,687.83 32,687.83 198,734.54 531,422.37
7 6,894.79 21,383.49 6,043.94 34,322.22 34,322.22 202,709.24 537,031.46
8 7,239.53 22,452.66 6,346.14 36,038.33 36,038.33 206,763.42 542,801.75
9 7,601.51 23,575.30 6,663.44 37,840.25 37,840.25 210,898.69 548,738.94
10 7,981.58 24,754.06 6,996.61 39,732.26 39,732.26 215,116.66 554,848.92
11 8,380.66 25,991.76 7,346.45 41,718.87 41,718.87 219,419.00 561,137.87
12 8,799.70 27,291.35 7,713.77 43,804.82 43,804.82 223,807.38 567,612.19
Table 6-39: Water Treatment Cost
share-water treatment Considerations:

ac 0.20 equipment rental = 300,000 pHp / year
treatment chemicals = 1kg/m3 water
vinegar 0.62 treatment chemicals cost = 1000 pHp / kg Chemicals
coco burger 0.18 service cost = 15,000 pHp / month = 180,000 pHp / year
service cost increase by 2% per year
Note
• Total cost already includes equipment rental
• Typical Treatment Dosage is 1000ppm/cu. M water
18
Cost Estimation from Nalco Philippines
19
Cost Estimation from Nalco Philippines
170
Chapter VII
Financial Study
The Financial study evaluates the feasibility and risk level of the investment.
Included in this chapter are the corporations: Annual Balance Sheet, Income Statement,
Cash Flow, Cost of Sales, Administrative & Marketing Expenses, Utility Cost, Salaries
and Fringe Benefits, Pre-operating Salaries, Equipment Cost, Depreciation of Fixed
Assets, Land Improvement and Building Costs
Product Yield and Raw Materials Requirement
DAILY PRODUCTION
BULK PRODUCTS FINISHED GOODS RAW MATERIALS whole nut (%) Unit whole nut (%)
Activated Carbon 10.00 MT 400.00 25 Kg bags Coconuts 27.00 MT 100.00
Virgin Coconut Oil 0.86 MT 940.00 250 mL bottles Shells* 4.68 MT 17.33
Coco Vinegar 2.61 MT 4,919.00 500 mL bottles Ground Coco Meat 6,210.00 kg 23.00
Coco Burger 6.51 MT 9,039.00 12x60g packs Coco Water 2,160.00 kg 8.00
Husk 9.00 MT Coco Meal 3,240.00 kg 12.00
Coco Husk 9,000.00 kg 33.33
Note: Losses 1.80 6.67
1. 24 Hrs Operation
2. Whole nut % are based on fabricator
3.*Produced from whole nut
ANNUAL PRODUCTION
WORKING DAYS : 360.00
PRODUCTS RAW MATERIALS Unit whole nut (%)
Activated Carbon 3,600.00 MT Coconuts 9,720.00 MT 100.00
Virgin Coconut Oil 338,400.00 250 mL bottles Shells* 1,684.80 MT 17.33
Coco Vinegar* 3,502,328.00 500mL bottles Ground Coco Meat 2,235,600.00 kg 23.00
Coco Burger 3,254,040.00 12x60g packs Coco Water 777,600.00 kg 8.00
Husk 3,240.00 MT Coco Meal 1,166,400.00 kg 12.00
Note:
*Annual operations covers 346 working days
*Shells include procured and produced shells. Produced shells amount to 4,679.1kg and 43,320kg bought.
*Coco Shell weight = 208g, 1 half weighs 104g
Table 7-40: Product Yield & Raw Material Requirement
171
TOTAL PROJECT COST
TOTAL PROJECT COST
FIXED CAPITAL EXPENDITURES

Cost
Land 27,000,000
Buildings
Plant 34,982,635
Office 7,800,000
Others 2,115,000
Land Improvement
Fence 1,050,000
Gate 500,000
Roads & Drainage 622,000
Equipment
Processing Equipment 98,168,733
Office Equipment 2,330,125
Laboratory Equipment 385,699
Total 174,954,192
PRE-OPERATING EXPENSES
Salaries & Fringe Benefits 16,932,400
Office Rental 510,000
Utilities
Electricity 5,333,613
Water 159,800
Telecommunications 62,100
Fuel 390,240
Supplies
Office 34,700
Trial Run : Raw Materials
Coconuts 5,443,200
Coco Shell 6,550,120
Coco Vinegar Raw Materials 404,179
Coco Burger Raw Materials 10,135,410
Waste Disposal
Solid Waste 71,244
Waste Water Treatment 1,880,973
Total 47,907,979
ORGANIZATIONAL EXPENSES
Registration
Registration Fee with SEC 1,909,512
Registration Fee with DTI 100,000
ECC 1,000,000
Marketing
Packagin Conceptualization 400,000
Setting Up a sales Network 500,000
Initial Advertising 300,000
Recruitment
Recruitment & Training 300,000
Organizational expenses 150,000
172
Total 4,659,512
TAXES & LICENSES*
Land Acquisition
Capital Gain Stock -
Documentary Stamp Tax -
Building Permit
Sanitation Permit -
Fire Permit -
Plumbing Permit -
Electrical Permit -
Business Permit
Barangay Clearance -
Fire Clearance -
Electrical Clearance -
Location Clearance -
Pollution Clearance -
Land 27,000,000
Buildings 44,897,635
Land Improvement 2,172,000
Total 1,111,045
OPERATING CAPITAL
Cost of Sales less depreciation 34,959,452
Administrative & Marketing Expenses less depreciation & amortization 30,721,723
Depreciation 0
Total 65,681,175
TOTAL PROJECT COST 294,313,903

EQUITY 189,951,245
LOAN 104,972,515
Table 7-41: Total Project Cost
173
Building & Land Development Cost
Land and Site Development Cost
Building/ Section Length (m) Width (m) Area (m^2) Cost (PhP)/ m^2 Cost (PhP)
Plant Area
Primary Processing 15.00 25.00 375.00 10,000.00 3,750,000.00
Activated Carbon 13.00 32.50 422.50 10,000.00 4,225,000.00
Virgin Coconut Oil 20.00 17.00 340.00 10,000.00 3,400,000.00
Coco Vinegar 27.00 20.50 553.50 10,000.00 5,535,000.00
Coco Burger 17.26 20.50 353.83 10,000.00 3,538,300.00
Quality Control 10.00 10.00 100.00 10,000.00 1,000,000.00
Process Control 10.00 10.00 100.00 10,000.00 1,000,000.00
Finished Goods Warehouse 15.00 25.00 375.00 9,000.00 3,375,000.00
Raw Materials Warehouse 25.00 15.00 375.00 9,000.00 3,375,000.00
Finished Goods Warehouse (AC) 10.05 16.30 163.82 9,000.00 1,474,335.00
RM Loading Area 15.00 10.00 150.00 9,000.00 1,350,000.00
Loading (AC) 10.00 10.00 100.00 9,000.00 900,000.00
Water Treatment Plant 10.00 10.00 100.00 10,000.00 1,000,000.00
Waste Water Treatment Plant 10.00 5.00 50.00 10,000.00 500,000.00
Solid Waste Collection Facility 10.00 7.00 70.00 8,000.00 560,000.00
Total 3,628.65 34,982,635.00
Office Area
Administration Building 20.00 15.00 300.00 15,000.00 4,500,000.00
Administration Building 2nd Floor 20.00 15.00 300.00 11,000.00 3,300,000.00
Total 600.00 7,800,000.00
Others
Canteen 10.00 10.00 100.00 9,000.00 900,000.00
Clinic 8.00 7.00 56.00 15,000.00 840,000.00
Security Office 5.00 5.00 25.00 15,000.00 375,000.00
Total 181.00 2,115,000.00
Land Improvement
Fence 120.00 90.00 420.00 2,500.00 1,050,000.00
Gate - 5.00 - - 500,000.00
Roads and Drainage 311.00 2.00 622.00 1,000.00 622,000.00
Total 2,172,000.00
TOTAL LAND COST 120.00 90.00 10,800.00 2,500.00 27,000,000.00
TOTAL COST 74,069,635.00
Total Covered Land Area 4,409.65

Total Open Land Area 6,390.36
Perimeter 420.00
Open Space/Total Land Area 0.59
Assumptions:
1. Cost of Land in Pagbilao is 2,500 PhP
Table 7-42: Land Development & Building Cost
174
Processing Equipment & Transportation Purchase Cost
Table 7-43: Processing Equipment & Transportation Purchase Cost
EQUIPMENT & TRANSPORTATION COST
PRIMARY PROCESSING
Equipment Name Unit Cost Units Equipment Cost FOB Cargo & Freight CIF Import Duty Σ Factor* Total
Local PhP PhP 5% 2% 10% PhP PhP
M.S. Sheller Bin 25,500.00 4 102,000.00 na na na na 102,000.00 1.19 121,380.00
Man Operated De-Shelling Machine 30,500.00 4 122,000.00 na na na na 122,000.00 1.19 145,180.00
SST 304 Rotary Splitter 105,000.00 1 105,000.00 na na na na 105,000.00 1.19 124,950.00
Inspection Table or Chute 26,000.00 1 26,000.00 na na na na 26,000.00 1.19 30,940.00
SST 304 Washing Screw Conveyor 295,000.00 1 295,000.00 na na na na 295,000.00 1.19 351,050.00
Power Grinder 340,000.00 1 340,000.00 na na na na 340,000.00 1.19 404,600.00
Transfer Screw Conveyor 78,000.00 1 78,000.00 na na na na 78,000.00 1.19 92,820.00
Generator 1,344,000.00 1 1,344,000.00 na na na na 1,344,000.00 1.19 1,599,360.00
Installation & Commissioning 130,000.00 na na na na 130,000.00 1.19 154,700.00
Total 3,024,980.00
* Table 9-51 Perry's Chemical Engineering Handbook
ACTIVATED CARBON**
Equipment Name Equipment Cost FOB Cargo & Freight CIF Import Duty Σ Factor* Total
Import $ PhP 5% 2% 10% PhP PhP
Feed Crushing and Handling 137,100.00 7,677,600.00 383,880.00 153,552.00 767,760.00 8,982,792.00 1.21 10,869,178.32
Carbonization and Activation 412,300.00 23,088,800.00 1,154,440.00 461,776.00 2,308,880.00 27,013,896.00 1.21 32,686,814.16
Product packing and Storage 67,350.00 3,771,600.00 188,580.00 75,432.00 377,160.00 4,412,772.00 1.21 5,339,454.12
Heat Recovery and Flue Gas Disposal 253,980.00 14,222,880.00 711,144.00 284,457.60 1,422,288.00 16,640,769.60 1.21 20,135,331.22
Piping 3,130.00 175,280.00 8,764.00 3,505.60 17,528.00 205,077.60 1.00 205,077.60
Instrumentation 8,660.00 484,960.00 24,248.00 9,699.20 48,496.00 567,403.20 1.00 567,403.20
Electrical 9,380.00 525,280.00 26,264.00 10,505.60 52,528.00 614,577.60 1.00 614,577.60
Insulation, Painting, Protective Coatings 3,126.00 175,056.00 8,752.80 3,501.12 17,505.60 204,815.52 1.00 204,815.52
Delivery Cost*** 72,000.00

Total 70,694,651.74
** Coal and Carbon Industry Study
***RSB Trucking International, Inc.
175
VIRGIN COCONUT OIL

SST 304 Coco milk Extractor 340,000.00 1 340,000.00 na na na na 340,000.00 1.19 404,600.00
Assembly SST 304 Discharge Container with
Screen, Pump and Pipe Installation 68,000.00 na na na na 68,000.00 1.09 74,120.00
68,000.00 1
Filter Compressor 25,000.00 1 25,000.00 na na na na 25,000.00 1.09 27,250.00
SST 304 Holding Tank (Elevated) 38,000.00 1 38,000.00 na na na na 38,000.00 1.09 41,420.00
Centrifuge 1,610,000.00 3 4,830,000.00 na na na na 4,830,000.00 1.09 5,264,700.00
SSt 304 Holding Tank for Skimmed Milk
75,000.00 na na na na 75,000.00 1.09 81,750.00
75,000.00 1
Holding Tank for Cream or oil 85,000.00 1 85,000.00 na na na na 85,000.00 1.09 92,650.00
Vacuum Dryer 50,000.00 1 50,000.00 na na na na 50,000.00 1.09 54,500.00
Storage for VCNO 85,000.00 4 340,000.00 na na na na 340,000.00 1.09 370,600.00
Stainless Steel Semi-Automatic Rotary Rinser
complete with stainless steel tank, stainless
steel pump and cartridge filter. 251,125.00 na na na na 251,125.00 1.09 273,726.25
251,125.00 1
Stainless Steel Semi-Automatic In-Line 12
Nozzle Filler complete with 3¼" x 10 feet long 399,167.00 na na na na 399,167.00 1.09 435,092.03
TTC conveyor.
399167.00 1
Stainless Steel Semi-Automatic Single Head
Screw Capper. 345,000.00 na na na na 345,000.00 1.19 410,550.00
345,000.00 1
Conveyor with Shrink Tunnel for body label and 141,667.00 na na na na 141,667.00 1.19 168,583.73
cap seal.
141,667.00 1
Stainless Steel Roller Conveyor 12" x 8 feet
long. 22,083.00 na na na na 22,083.00 1.19 26,278.77
22,083.00 1
Import $ $ PhP 5% 2% 10% PhP PhP
Double Jacketed Kettle 7,594.64 1 7,594.64 425,300.00 21,265.00 8,506.00 42,530.00 497,601.00 2.59 1,288,786.59
Delivery Cost** 30,000.00
Total 9,174,607.37
**RSB Trucking International, Inc.
176
COCO VINEGAR
Fermenter 800,000.00 6 4,800,000.00 na na na na 4,800,000.00 1.09 5,232,000.00
Acetator 25,000.00 4 100,000.00 na na na na 100,000.00 1.09 109,000.00
Coconut Water Storage Tank 850.00 1 850.00 na na na na 850.00 1.09 926.50
Brown Sugar Storage Bin 15,000.00 1 15,000.00 na na na na 15,000.00 1.19 17,850.00
Nutrients (NH4)2SO4 Bin 3,000.00 1 3,000.00 na na na na 3,000.00 1.09 3,270.00
Pasteurized Sugar Mash Storage Tank 800.00 1 800.00 na na na na 800.00 1.09 872.00
NH4OH Storage Bin 1,200.00 1 1,200.00 na na na na 1,200.00 1.09 1,308.00
Stainless Steel Semi-Automatic Rotary Rinser

complete with stainless steel tank, stainless 251,125.00 na na na na 251,125.00 1.09 273,726.25
steel pump and cartridge filter
251,125.00 1
Stainless Steel Semi-Automatic In-Line 12
Nozzle Filler complete with 3¼" x 10 feet long 399,167.00 na na na na 399,167.00 1.09 435,092.03
TTC conveyor 399,167.00 1
Stainless Steel Semi-Automatic Single Head
345,000.00 na na na na 345,000.00 1.19 410,550.00
Screw Capper 345,000.00 1
Conveyor with Shrink Tunnel for body label and 141,667.00 na na na na 141,667.00 1.19 168,583.73
cap seal 141,667.00 1
Stainless Steel Roller Conveyor 12" x 8 feet long 22,083.00 na na na na 22,083.00 1.19 26,278.77
22,083.00 1
Import $ $ PhP 5% 2% 10% PhP PhP
Filter Press 803.57 1 803.57 45,000.00 40.18 16.07 80.36 45,136.61 2.31 104,265.56
Mixing Tank with Agitator 4,017.86 1 4,017.86 225,000.00 200.89 80.36 401.79 225,683.04 1.96 442,338.75
Pasteurizer 7,594.64 1 7,594.64 425,300.00 379.73 151.89 759.46 426,591.09 2.31 985,425.42
Total 8,371,487.01
* Table 9-51 Perry's Chemical Engineering Handbook
COCO BURGER
Boiling Tank 21,250.00 4 85,000.00 na na na na 85,000.00 2.31 196,350.00
Mixer 180,000.00 2 360,000.00 na na na na 360,000.00 1.96 705,600.00
Patty Machine 74,000.00 1 74,000.00 na na na na 74,000.00 1.64 121,056.60
Total 1,053,006.60
177
TRANSPORTATION
Price per unit in Total Price in

Equipment Unit
Php Php
Delivery Truck 4 300,000.00 1,200,000.00
Service Bus 2 1,000,000.00 2,000,000.00
Forklift 1 250,000.00 250,000.00
Loader 3 200,000.00 600,000.00
Company Car 4 450,000.00 1,800,000.00
Total 14 5,850,000.00
TOTAL
Section Total Equipment Cost
Primary Processing 3,024,980.00
Activated Carbon 70,694,651.74
Virgin Coconut Oil 9,174,607.37
Coco Vinegar 8,371,487.01
Coco Burger 1,053,006.60
Transportation 5,850,000.00
TOTAL 98,168,732.71
Table 7-44: Additional Equipment Purchase
ADDITIONAL EQUIPMENT PURCHASE
PRIMARY PROCESSING
2nd Year 3rd Year

Equipment Name Repair and
Units Added Price Depreciation Repair and Maintenance Units Added Price Depreciation
Maintenance
M.S. Sheller Bin - - - - - - - -

Man Operated
De-Shelling - - - - 1 33,626 2,242 1,009
Machine
SST 304 Rotary
- - - - - - - -
Splitter
Power Grinder 1 357,000 23,800 10,710 - - - -
Total 357,000 23,800 10,710 33,626 2,242 1,009

Total 391,510 Total 36,877
4th Year 7th Year

Maintenance
M.S. Sheller Bin 1 29,519 1,968 886 - - - -

Man Operated
De-Shelling - - - - 1 40,873 2,725 1,226
Machine
SST 304 Rotary
- - - - 1 140,710 9,381 4,221
Splitter
Power Grinder - - - - - - - -
Total 29,519 1,968 886 181,583 12,106 5,447

Total 32,373 Total 199,136
178
8th Year 12th Year

Maintenance
M.S. Sheller Bin 1 35,881 2,392 1,076 1 43,614 2,908 1,308

Man Operated De-
- - - - 1 40,873 2,725 1,226
Shelling Machine
SST 304 Rotary
- - - - - - -
Splitter
Power Grinder - - - - - - - -
Total 35,881 2,392 1,076 84,487 5,632 2,535

Total 39,350 Total 92,654
Activated Carbon
2nd Year 3rd Year

Maintenance
Primary Crusher - - - - 1 937,125 46,856 18,743

Secondary Crusher - - - - 1 937,125 46,856 18,743
Feed Hopper - - - - 1 385,875 19,294 7,718
Main Burner - - - - - - - -
CCI Retort - - - - - - - -
Boiler - - - - - - - -
Cooling Tower - - - - - - - -
Air Blower - - - - - - - -
Evaporative &
1 3,675,000 183,750 73,500 - - - -
Discharge Cooler
Total 3,675,000 183,750 73,500 2,260,125 113,006 45,203

Total 3,932,250 Total 2,418,334
4th Year 7th Year

Maintenance
Primary Crusher - - - - - - - -
Secondary Crusher - - - - - - - -
Feed Hopper - - - - - - - -
Main Burner - - - - - - - -
CCI Retort 1 8,103,375 405,169 162,068 - - - -
Boiler - - - - 1 1,608,115 80,406 32,162
Cooling Tower - - - - 1 1,474,105 73,705 29,482
Air Blower 1 289,406 14,470 5,788 - - - -

Evaporative &
- - - - - - - -
Discharge Cooler
Total 8,392,781 419,639 167,856 3,082,220 154,111 61,644

Total 8,980,276 Total 3,297,975
10th Year
Equipment Name
Units Added Price Depreciation Repair and Maintenance
Primary Crusher - - - -
Secondary Crusher - - - -
Feed Hopper - - - -
Main Burner 1 2,637,258 131,863 52,745
CCI Retort - - - -
Boiler - - - -
Cooling Tower - - - -
Air Blower - - - -
Evaporative &
- - - -
Discharge Cooler
Total 2,637,258 131,863 52,745

Total 2,821,866
179
VIRGIN COCONUT OIL
2nd Year 4th Year

Maintenance
SST 304 Coco milk
Extractor 1 357,000 23,800 10,710 - - - -
Centrifuge - - - - 1 1,863,776 124,252 55,913

Filter Compressor 1 26,250 1,750 788 - - - -
Vacuum Dryer - - - - 1 57,881 3,859 1,736
Double Jacketed
Kettle - - - - - - - -
Total 383,250 25,550 11,498 1,921,658 128,111 57,650

Total 420,298 Total 2,107,418
5th Year 9th Year

Maintenance
SST 304 Coco milk
Extractor - - - - - - - -
Centrifuge - - - - 1 2,378,703 158,580 71,361

Filter Compressor - - - - - - - -
Vacuum Dryer - - - - - - - -
Double Jacketed
Kettle 1 516,955 25,848 15,509 - - - -
Total 516,955 25,848 15,509 2,378,703 158,580 71,361

Total 558,311 Total 2,608,645
COCO VINEGAR
3rd Year 4th Year

Maintenance
Filter Press 1 49,613 2,481 1,488 - - - -
Fermenter - - - - 1 926,100 61,740 27,783

Mixing Tank with
1 248,063 12,403 7,442 - - - -
Agitator
1st Pasteurizer 1 468,893 23,445 14,067 - - - -
2nd Pasteurizer 1 468,893 23,445 14,067 - - - -
Acetator 2 55,125 3,675 1,654 - - - -
Total 1,290,587 65,448 38,718 926,100 61,740 27,783

Total 1,394,752 Total 1,015,623
8th Year 11th Year

Maintenance
Filter Press - - - - - - - -
Fermenter 1 1,125,680 56,284 33,770 - - - -

Mixing Tank with
- - - - - - - -
Agitator
Pasteurizer - - - - - - - -
Pasteurizer - - - - - - - -
Acetator - - - - 2 81,445 5,430 2,443
Total 1,125,680 56,284 33,770 81,445 5,430 2,443

Total 1,215,735 Total 89,318
180
12th Year
Equipment Name
Units Added Price Depreciation Repair and Maintenance
Filter Press - - - -
Fermenter 1 1,368,271 68,414 41,048

Mixing Tank with
- - - -
Agitator
Pasteurizer - - - -
Pasteurizer - - - -
Acetator - - - -
Total 1,368,271 68,414 41,048

Total 1,477,733
COCO BURGER
4th Year 5th Year

Maintenance
Boiling Tank - - - - 1 25,830 1,722 775
Patty Machine - - - - - - - -
Mixer 1 208,373 13,892 6,251 - - - -
Total 208,373 13,892 6,251 25,830 1,722 775

Total 228,515 Total 28,326
9th Year 10th Year

Maintenance
Boiling Tank - - - - 1 32,966 2,198 989
Patty Machine 1 109,332 7,289 3,280 - - - -

Mixer 1 265,942 17,729 7,978 - - - -
Total 375,274 25,018 11,258 32,966 2,198 989

Total 411,550 Total 36,152
Additional Equipment Cost
YEAR COST
0 0.00
1 4,415,250.00
2 3,584,337.75
3 11,478,430.69
4 542,784.32
5 0.00
6 3,263,802.93
7 1,161,561.40
8 2,753,976.95
9 0.00
10 81,444.73
11 1,452,758.06
181
Processing Equipment & Transportation Depreciation & Repair and Maintenance
Table 6-45: Depreciation & Repair & Maintenance

DEPRECIATION & MAINTENANCE
EQUIPMENT
PRIMARY PROCESSING
Equipment Name Equipment Cost Life Depreciation Repair and Maintenance
Local PhP years PhP PhP
M.S. Sheller Bin 102,000.00 15.00 6,800.00 3,060.00
Man Operated De-Shelling Machine 122,000.00 15.00 8,133.33 3,660.00
SST 304 Rotary Splitter 105,000.00 15.00 7,000.00 3,150.00
Inspection Table or Chute 26,000.00 15.00 1,733.33 780.00
SST 304 Washing Screw Conveyor 295,000.00 15.00 19,666.67 8,850.00
Power Grinder 340,000.00 15.00 22,666.67 10,200.00
Transfer Screw Conveyor 78,000.00 15.00 5,200.00 2,340.00
Generator 1,344,000.00 20.00 67,200.00 40,320.00
TOTAL 138,400.00 72,360.00
ACTIVATED CARBON
Feed Crushing and Handling 20 383,880 153,552
7,677,600
Carbonization and Activation 23,088,800 20 1,154,440 461,776
Product packing and Storage 20 188,580 75,432
3,771,600
Heat Recovery and Flue Gas Disposal 20 711,144 284,458
14,222,880
TOTAL 2,438,044.00 975,217.60
VIRGIN COCONUT OIL

SST 304 Coco milk Extractor 340,000.00 15.00 22,666.67 10,200.00
Assembly SST 304 Discharge Container with Screen, Pump
and Pipe Installation 68,000.00 15.00 4,533.33 2,040.00
Filter Compressor 25,000.00 15.00 1,666.67 750.00

SST 304 Holding Tank (Elevated) 38,000.00 15.00 2,533.33 1,140.00
Centrifuge 4,830,000.00 15.00 322,000.00 144,900.00
SSt 304 Holding Tank for Skimmed Milk 75,000.00 15.00 5,000.00 2,250.00
Holding Tank for Cream or oil 85,000.00 15.00 5,666.67 2,550.00
Vacuum Dryer 50,000.00 15.00 3,333.33 1,500.00
Storage for VCNO 339,999.00 15.00 22,666.60 10,199.97
Stainless Steel Semi-Automatic Rotary Rinser complete
with stainless steel tank, stainless steel pump and cartridge
filter. 251,125.00 15.00 16,741.67 7,533.75
Stainless Steel Semi-Automatic In-Line 12 Nozzle Filler

complete with 3¼" x 10 feet long TTC conveyor. 399,167.00 15.00 26,611.13 11,975.01
Stainless Steel Semi-Automatic Single Head Screw Capper.

345,000.00 15.00 23,000.00 10,350.00
Stainless Steel Working/Packing Table Conveyor with

Shrink Tunnel for body label and cap seal. 141,667.00 15.00 9,444.47 4,250.01
Stainless Steel Roller Conveyor 12" x 8 feet long. 22,083.00 15.00 1,472.20 662.49
Double Jacketed Kettle 425,300.00 20.00 21,265.00 8,506.00
TOTAL 488,601.07 218,807.23
182
VIRGIN COCONUT OIL

SST 304 Coco milk Extractor 340,000.00 15.00 22,666.67 10,200.00
Assembly SST 304 Discharge Container with Screen, Pump
and Pipe Installation 68,000.00 15.00 4,533.33 2,040.00
Filter Compressor 25,000.00 15.00 1,666.67 750.00

SST 304 Holding Tank (Elevated) 38,000.00 15.00 2,533.33 1,140.00
Centrifuge 4,830,000.00 15.00 322,000.00 144,900.00
SSt 304 Holding Tank for Skimmed Milk 75,000.00 15.00 5,000.00 2,250.00
Holding Tank for Cream or oil 85,000.00 15.00 5,666.67 2,550.00
Vacuum Dryer 50,000.00 15.00 3,333.33 1,500.00
Storage for VCNO 339,999.00 15.00 22,666.60 10,199.97
Stainless Steel Semi-Automatic Rotary Rinser complete with
stainless steel tank, stainless steel pump and cartridge filter.
251,125.00 15.00 16,741.67 7,533.75

complete with 3¼" x 10 feet long TTC conveyor. 399,167.00 15.00 26,611.13 11,975.01
Stainless Steel Semi-Automatic Single Head Screw Capper.

345,000.00 15.00 23,000.00 10,350.00
Stainless Steel Working/Packing Table Conveyor with Shrink

Tunnel for body label and cap seal. 141,667.00 15.00 9,444.47 4,250.01
Stainless Steel Roller Conveyor 12" x 8 feet long. 22,083.00 15.00 1,472.20 662.49
Double Jacketed Kettle 425,300.00 20.00 21,265.00 8,506.00
TOTAL 488,601.07 218,807.23
COCO VINEGAR
Fermenter 4,800,000.00 15.00 320,000.00 144,000.00
Acetator 100,000.00 15.00 6,666.67 3,000.00
Coconut Water Storage Tank 850.00 15.00 56.67 25.50
Brown Sugar Storage Bin 15,000.00 15.00 1,000.00 450.00
Nutrients (NH4)2SO4 Bin 3,000.00 15.00 200.00 90.00
Pasteurized Sugar Mash Storage Tank 800.00 15.00 53.33 24.00
NH4OH Storage Bin 1,200.00 15.00 80.00 36.00
Stainless Steel Semi-Automatic Rotary Rinser complete with

251,125.00 15.00 16,741.67 7,533.75
stainless steel tank, stainless steel pump and cartridge filter

399,167.00 15.00 26,611.13 11,975.01
complete with 3¼" x 10 feet long TTC conveyor
Stainless Steel Semi-Automatic Single Head Screw Capper 345,000.00 15.00 23,000.00 10,350.00
Stainless Steel Working/Packing Table Conveyor with Shrink

141,667.00 15.00 9,444.47 4,250.01
Tunnel for body label and cap seal
Stainless Steel Roller Conveyor 12" x 8 feet long 22,083.00 15.00 1,472.20 662.49
Filter Press*** 45,000.00 20.00 2,250.00 900.00
Mixing Tank with Agitator*** 225,000.00 20.00 11,250.00 4,500.00
Pasteurizer*** 850,600.00 20.00 42,530.00 17,012.00
TOTAL 461,356.13 204,808.76
COCO BURGER
Boiling Tank 85,000.00 15.00 5,666.67 2,550.00
Mixer 360,000.00 15.00 24,000.00 10,800.00
Patty Machine 74,000.00 15.00 4,933.33 2,220.00
TOTAL 34,600.00 15,570.00
183
Equipment Unit Price per unit in Php Total Price in Php Life Depreciation Repair and Maintenance
Delivery Truck 4 300,000.00 1,200,000.00 5.00 240,000.00 36,000.00

Service Bus 2 1,000,000.00 2,000,000.00 6.00 333,333.33 60,000.00
Forklift 1 250,000.00 250,000.00 5.00 50,000.00 7,500.00
Loader 3 200,000.00 600,000.00 5.00 120,000.00 18,000.00
Company Car 4 450,000.00 1,800,000.00 5.00 360,000.00 54,000.00
Total 14 5,850,000.00 1,103,333.33 175,500.00
TOTAL 7,128,833.33
BUILDINGS & GROUNDS
Buildings and Grounds

Section Area (m^2) Cost (Php)/ m^2 Cost (Php) Life (yrs) Depreciation Repair and Maintenance
Office Area
Administration Building 300 15,000 4,500,000 40 112,500 45,000
Administration Building 300 5,000 1,500,000 40 37,500 15,000
total 150,000 60,000
Production Area
Primary Processing 375 10,000 3,750,000 40 93,750 37,500
Activated Carbon 423 10,000 4,225,000 40 105,625 42,250
Virgin Coconut Oil 340 10,000 3,400,000 40 85,000 34,000
Coco Vinegar 554 10,000 5,535,000 40 138,375 55,350
Coco Burger 354 10,000 3,538,300 40 88,458 35,383
total 511,208 204,483
Other Departments
Quality Control 100 10,000 1,000,000 40 25,000 10,000
Process Control 100 10,000 1,000,000 40 25,000 10,000
Water Treat6ment Plant 100 10,000 1,000,000 15 66,667 10,000
Wastewater Treatment Plant 50 10,000 500,000 15 33,333 5,000
Solid Waste Collection Facility 70 8,000 560,000 15 37,333 5,600
total 187,333 40,600
Warehouse
Finished Goods Warehouse 375 9,000 3,375,000 40 84,375 33,750
Raw Materials Warehouse 375 9,000 3,375,000 40 84,375 33,750
Finished Goods Warehouse (AC) 164 9,000 1,474,380 40 36,860 14,744
RM Loading Area 150 9,000 1,350,000 40 33,750 13,500
Loading (AC) 100 9,000 900,000 40 22,500 9,000
total 261,860 104,744
Others
Canteen 100 9,000 900,000 25 36,000 9,000
Clinic 56 9,000 504,000 25 20,160 5,040
Security Office 25 9,000 225,000 35 6,429 2,250
total 62,589 16,290
Land Improvement
Fence 420 2,500 1,050,000 35 30,000 10,500
Gate 500,000 35 14,286 5,000
Roads and Drainage 622 1,000 622,000 25 24,880 6,220
total 69,166 21,720
Total 44,783,680 1,242,155 447,837
184
Projected Depreciation and Repair & Maintenance Cost
Depreciation
Year PP Added AC Added VCNO Added CV Added CB Added Transport Building Total
1 138,400.00 2,438,044.00 488,601.07 461,356.13 34,600.00 1,103,333.33 1,242,154.62 5,906,489.15
2 138,400.00 23,800.00 2,438,044.00 183,750.00 488,601.07 25,550.00 461,356.13 34,600.00 1,103,333.33 1,242,154.62 6,139,589.15
3 138,400.00 26,041.75 2,438,044.00 296,756.25 488,601.07 25,550.00 461,356.13 65,448.08 34,600.00 1,103,333.33 1,242,154.62 6,320,285.23
4 138,400.00 28,009.71 2,438,044.00 716,395.31 488,601.07 153,660.50 461,356.13 127,188.08 34,600.00 13,891.50 1,103,333.33 1,242,154.62 6,945,634.25
5 138,400.00 28,009.71 2,438,044.00 716,395.31 488,601.07 179,508.24 461,356.13 127,188.08 34,600.00 15,613.47 1,103,333.33 1,242,154.62 6,973,203.96
6 138,400.00 28,009.71 2,438,044.00 716,395.31 488,601.07 179,508.24 461,356.13 127,188.08 34,600.00 15,613.47 1,103,333.33 1,242,154.62 6,973,203.96
7 138,400.00 40,115.24 2,438,044.00 870,506.31 488,601.07 179,508.24 461,356.13 127,188.08 34,600.00 15,613.47 1,103,333.33 1,242,154.62 7,139,420.49
8 138,400.00 42,507.31 2,438,044.00 870,506.31 488,601.07 179,508.24 461,356.13 183,472.09 34,600.00 15,613.47 1,103,333.33 1,242,154.62 7,198,096.58
9 138,400.00 42,507.31 2,438,044.00 870,506.31 488,601.07 338,088.46 461,356.13 183,472.09 34,600.00 40,631.71 1,103,333.33 1,242,154.62 7,381,695.04
10 138,400.00 42,507.31 2,438,044.00 1,002,369.21 488,601.07 338,088.46 461,356.13 183,472.09 34,600.00 42,829.43 1,103,333.33 1,242,154.62 7,515,755.65
11 138,400.00 42,507.31 2,438,044.00 1,002,369.21 488,601.07 338,088.46 461,356.13 188,901.74 34,600.00 42,829.43 1,103,333.33 1,242,154.62 7,521,185.30
12 138,400.00 48,139.75 2,438,044.00 1,002,369.21 488,601.07 338,088.46 461,356.13 257,315.31 34,600.00 42,829.43 1,103,333.33 1,242,154.62 7,595,231.31
Repair and Maintenance

Year PP Added AC Added VCNO Added CV Added CB Added Transpo Building Total
1 72,360.00 975,217.60 218,807.23 204,808.76 15,570.00 175,500.00 447,836.80 2,110,100.39
2 94,068.00 10,710.00 1,267,782.88 73,500.00 284,449.40 11,497.50 266,251.39 20,241.00 228,150.00 582,187.84 2,838,838.01
3 122,288.40 14,931.79 1,648,117.74 140,752.50 303,422.17 14,946.75 284,010.36 38,717.60 21,591.07 296,595.00 756,844.19 3,642,217.57
4 158,974.92 20,296.91 2,142,553.07 350,833.88 394,448.83 77,080.50 369,213.46 78,115.87 28,068.40 6,251.18 385,573.50 983,897.45 4,995,307.95
5 206,667.40 26,385.98 2,785,318.99 456,084.04 420,758.56 115,713.29 393,840.00 101,550.64 29,940.56 8,901.41 501,245.55 1,279,066.68 6,325,473.10
6 268,667.61 34,301.77 3,620,914.68 592,909.25 546,986.13 150,427.28 511,992.00 132,015.83 38,922.73 11,571.84 651,619.22 1,662,786.69 8,223,115.03
7 349,267.90 50,039.79 4,707,189.09 832,426.42 583,470.11 195,555.47 546,141.87 171,620.57 41,518.87 15,043.39 847,104.98 2,161,622.70 10,501,001.16
8 454,048.27 66,128.16 6,119,345.82 1,082,154.35 758,511.14 254,222.11 709,984.43 256,877.16 53,974.53 19,556.40 1,101,236.47 2,810,109.51 13,686,148.34
9 590,262.75 85,966.61 7,955,149.56 1,406,800.65 809,103.83 401,849.84 757,340.39 333,940.30 57,574.64 36,681.54 1,431,607.42 3,653,142.36 17,519,419.88
10 767,341.57 111,756.60 10,341,694.43 1,881,586.01 1,051,834.98 522,404.79 984,542.50 434,122.39 74,847.03 48,674.97 1,861,089.64 4,749,085.06 22,828,979.98
11 997,544.05 145,283.57 13,444,202.76 2,446,061.81 1,121,992.37 679,126.23 1,050,211.49 566,802.45 79,839.32 63,277.46 2,419,416.53 6,173,810.58 29,187,568.63
12 1,296,807.26 191,403.24 17,477,463.58 3,179,880.36 1,458,590.09 882,864.09 1,365,274.94 777,891.34 103,791.12 82,260.70 3,145,241.49 8,025,953.76 37,987,421.96
* Depreciation is constant every year

* Repair and maintenance is increasing by a constant percentage of 30% per year
185
Office & Laboratory Equipment and Supplies
Table 7-46: Office & Laboratory Equipment & Supplies
OFFICE, ADMINISTRATIVE & LABORATORY EQUIPMENT& SUPPLIES
OFFICE SUPPLIES
Unit Price in
Item ( 1 year supply) Unit Quantity Total Cost
Php
Bond paper, short ream 120.00 40 4,800.00
Carbon Paper carton 75.00 10 750.00
Columnar pad pad 15.00 20 300.00
Correction Fluid pc 23.00 30 690.00
Diskette box 118.00 40 4,720.00
Envelope, ordinary carton 55.00 10 550.00
Fastener carton 19.00 30 570.00
Folder, long pc 4.00 60 240.00
Folder, short pc 3.00 60 180.00
Highlighter box 40.00 20 800.00
Index card, 5"x8" pack 35.00 10 350.00
Marking Pen box 180.00 20 3,600.00
Paper clips box 7.00 20 140.00
Pencil box 45.00 20 900.00
Printer Ink/Toner pc 950.00 12 11,400.00
Record Book pc 42.00 60 2,520.00
Rubber bands box 6.00 20 120.00
Stamp pad ink pc 23.00 15 345.00
Staplewires box 5.50 30 165.00
Tape, masking pc 17.00 40 680.00
Tape, transparent pc 8.00 40 320.00
Whiteboard marker box 28.00 20 560.00
TOTAL Php 34,700.00
OFFICE EQUIPMENT & FURNITURE

Cost per unit in
Item Quantity Total cost Life Years Depreciation
Php
Air Conditioning Unit 20 18,000.00 360,000.00 5 72,000.00
Audio Visual System 1 25,000.00 25,000.00 10 2,500.00
Bundy Clock 1 2,000.00 2,000.00 5 400.00
Clerical Chair 20 1,000.00 20,000.00 5 4,000.00
Clerical Desk 20 3,000.00 60,000.00 5 12,000.00
Computer with Printer 20 45,000.00 900,000.00 5 180,000.00
Conference Chair 10 400.00 4,000.00 5 800.00
Conference Table 1 5,000.00 5,000.00 5 1,000.00
Desktop Calculator 10 500.00 5,000.00 8 625.00
Executive Chair 4 2,500.00 10,000.00 10 1,000.00
Executive Desk 4 6,000.00 24,000.00 10 2,400.00
Fire Extinguisher 20 7,500.00 150,000.00 2 75,000.00
Intercom 10 1,500.00 15,000.00 5 3,000.00
Multimedia Projector 2 15,000.00 30,000.00 3 10,000.00
Overhead Projector 2 35,000.00 70,000.00 4 17,500.00
Pencil sharpener 15 5.00 75.00 5 15.00
Photocopier 3 8,000.00 24,000.00 4 6,000.00
Puncher, two-hole 10 3,000.00 30,000.00 5 6,000.00
Ruler 10 20,000.00 200,000.00 5 40,000.00
Scissors 10 3,500.00 35,000.00 5 7,000.00
Sofa 5 40,000.00 200,000.00 5 40,000.00
Stamp pad 15 1,000.00 15,000.00 5 3,000.00
Staple remover 10 150.00 1,500.00 5 300.00
Stapler 5 1,500.00 7,500.00 5 1,500.00
Steel File Cabinet 1 135,000.00 135,000.00 8 16,875.00
Tape dispenser 25 35.00 875.00 5 175.00
Telefax Machine 15 45.00 675.00 7 96.43
Telephone 20 25.00 500.00 8 62.50
Television 10 49.00 490.00 10 49.00
Visitor's Chair 20 6.50 130.00 6 21.67
Wall Clock 20 13.00 260.00 5 52.00
White Board 10 40.00 400.00 7 57.14
TOTAL 2,330,125.00 503,428.74
186
LABORATORY
Glasswares Quantity Unit Cost Total Cost Life Years Depreciation
Beakers (100mL) 5 73.00 365.00 1 365.00
Burette ( Acid/Base) 2 540.00 1,080.00 1 1,080.00
Burette Clamp 2 420.00 840.00 1 840.00
Hot Plate 2 750.00 1,500.00 3 500.00
Iron Stand 2 90.00 180.00 5 36.00
Erlenmeyer Flasks (300mL) 2 120.00 240.00 1 240.00
Funnel 4 280.00 1,120.00 1 1,120.00
Graduated Cylinder (10mL) 10 154.00 1,540.00 1 1,540.00
Graduated Cylinder (50mL) 10 180.00 1,800.00 1 1,800.00
Test tubes 50 11.00 550.00 1 550.00
Test tube holder 3 8.00 24.00 1 24.00
Test tube rack 4 65.00 260.00 1 260.00
Thermometer 5 120.00 600.00 5 120.00
Safety Equipments Quantity Unit Cost Total Cost Life Years Depreciation
Safety Showers 1 1,100.00 1,100.00 10 110.00
Lab Equipments Quantity Unit Cost Total Cost Life Years Depreciation
Airconditioner 1 10,000.00 10,000.00 10 1,000.00
Computer w/ table 1 45,000.00 45,000.00 5 9,000.00
Printer 1 3,000.00 3,000.00 5 600.00
Wall Fan 2 500.00 1,000.00 5 200.00
Refrigerator 1 20,000.00 20,000.00 10 2,000.00
Fire Extinguisher 1 300.00 300.00 2 150.00
First Aid Kit 2 150.00 300.00 1 300.00
Analytical Balance 2 30,000.00 60,000.00 3 20,000.00
Stools 3 400.00 1,200.00 10 120.00
pH meter 1 10,000.00 10,000.00 3 3,333.33
Lovibond meter 1 150,000.00 150,000.00 5 30,000.00
Moisture Analyzer 1 5,700.00 5,700.00 5 1,140.00
Hardness Tester 1 68,000.00 68,000.00 10 6,800.00
Total Lab Supplies Expenses Php385,699.00 83,228.33
187
Pre-Operating Salaries & Wages
Pre Operating Salaries & Fringe Benefits

Basic Pay/ Total Fringe
No. Months Total Salary Total Compensation
Employee Month Benefits
Stage 1 - Start
President 1 20 65,000.00 1,300,000.00 17,550.00 1,317,550.00
VP for Finance/Administration 1 20 55,000.00 1,100,000.00 14,850.00 1,114,850.00
VP for Operations 1 20 58,000.00 1,160,000.00 15,660.00 1,175,660.00
VP for Marketing 1 20 55,000.00 1,100,000.00 14,850.00 1,114,850.00
Project Accountant 1 20 45,000.00 900,000.00 12,150.00 912,150.00
Technical Service Engineer 1 20 50,000.00 1,000,000.00 13,500.00 1,013,500.00
Safety Health & Environment Engineer 1 20 48,000.00 960,000.00 12,960.00 972,960.00
Maintenance & Safety Engineer 1 20 40,000.00 800,000.00 10,800.00 810,800.00
HR Director 1 20 30,000.00 600,000.00 8,100.00 608,100.00
Finance Officer 1 20 45,000.00 900,000.00 12,150.00 912,150.00
Document Controller 1 20 7,000.00 140,000.00 1,890.00 141,890.00
Documentation Clerk 2 20 6,000.00 240,000.00 1,620.00 241,620.00
Security Personnel 2 20 5,700.00 228,000.00 1,539.00 229,539.00
Janitor 1 20 5,700.00 114,000.00 1,539.00 115,539.00
1st Stage Total 16 10,681,158.00
Stage 2 - Construction
Materials Controller 1 12 13,500.00 162,000.00 3,645.00 165,645.00
Ware house Manager 1 12 13,500.00 162,000.00 3,645.00 165,645.00
Production Manager 1 12 45,000.00 540,000.00 12,150.00 552,150.00
Cashier 1 12 15,000.00 180,000.00 4,050.00 184,050.00
Nurse 1 12 10,000.00 120,000.00 2,700.00 122,700.00
Janitor 3 12 5,700.00 205,200.00 1,539.00 206,739.00
2nd Stage Total 12 1,672,068.00
Stage 3 -Commissioning
Promotions Manager 1 3 30,000.00 90,000.00 8,100.00 98,100.00
Sales Manager 1 3 30,000.00 90,000.00 8,100.00 98,100.00
Quality Assurance Head 1 3 25,000.00 75,000.00 6,750.00 81,750.00
Waste Management Engineer 1 3 45,000.00 135,000.00 12,150.00 147,150.00
Primary Processing Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00
Activated Carbon Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00
Virgin Coconut Oil Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00
Coco Vinegar Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00
Coco Burger Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00
Water Treatment Plant Operator 3 3 5,700.00 51,300.00 1,539.00 52,839.00
Solid Waste Tender 3 3 5,700.00 51,300.00 1,539.00 52,839.00
Waste Water Treatment Plant Operator 3 3 5,700.00 51,300.00 1,539.00 52,839.00
Nurse 2 3 10,000.00 60,000.00 2,700.00 62,700.00
Primary Processing Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00
Activated Carbon Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00
Virgin Coconut Oil Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00
Ccoco Vinegar Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00
Coco Burger Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00
Primary Processing Operators 54 3 5,700.00 923,400.00 1,539.00 924,939.00
Activated Carbon Operators 27 3 5,700.00 461,700.00 1,539.00 463,239.00
Virgin Coconut Oil Operators 21 3 5,700.00 359,100.00 1,539.00 360,639.00
Coco Vinegar Operators 12 3 5,700.00 205,200.00 1,539.00 206,739.00
Coco Burger Operators 12 3 5,700.00 205,200.00 1,539.00 206,739.00
Ware house Clerk 9 3 5,700.00 153,900.00 1,539.00 155,439.00
Materials Checker 9 3 5,700.00 153,900.00 1,539.00 155,439.00
Loader 6 3 5,700.00 102,600.00 1,539.00 104,139.00
Mechanic 6 3 5,700.00 102,600.00 1,539.00 104,139.00
Electrician 6 3 5,700.00 102,600.00 1,539.00 104,139.00
Janitor 8 3 5,700.00 136,800.00 1,539.00 138,339.00
Forklift & Truck Driver 4 3 5,700.00 68,400.00 1,539.00 69,939.00
Accounting Clerk 2 1 6,000.00 12,000.00 1,620.00 13,620.00
Research & Development Head 1 1 30,000.00 30,000.00 8,100.00 38,100.00
Treasury Clerk 2 1 6,000.00 12,000.00 1,620.00 13,620.00
Personnel Clerk 2 1 6,000.00 12,000.00 1,620.00 13,620.00
Researchers 2 1 10,000.00 20,000.00 2,700.00 22,700.00
Doctor 1 3 10,000.00 30,000.00 2,700.00 32,700.00
Chemist 4 3 9,000.00 108,000.00 2,430.00 110,430.00
3rd Stage Total 237 4,516,964.00
4th Stage - Product Launching & Finishing
Sales Representative 4 1 11,000.00 44,000.00 2,970.00 46,970.00
Customer Care Representative 1 1 12,000.00 12,000.00 3,240.00 15,240.00
3rd Stage Total 5 62,210.00
Total No. of Employees 270.00

Notes: Total Cost 16,932,400.00
1. Fringe Rate, 27% of monthly income
2. Minimum Wage for Region IV, 237 Php/day
Table 6-47: Pre-operating Salaries & Wages
188
Operating Salaries & Wages
Table 6-48: Operating Salaries & Wages
SALARIES & WAGES
Total Total Salary/

Basic Pay Total Salary/
No. Fringe Year (1st 2 3 4 5 6 7 8 9 10 11 12
/ Month Person/Month
Employee Benefits Year)
General & Administrative Functions
President 1 65,000 17,550 82,550 990,600 1,041,300 1,093,365 1,148,033 1,205,435 1,265,707 1,328,992 1,395,442 1,465,214 1,538,474 1,615,398 1,696,168
VP for Finance/Administration 1 55,000 14,850 69,850 838,200 881,100 925,155 971,413 1,019,983 1,070,983 1,124,532 1,180,758 1,239,796 1,301,786 1,366,875 1,435,219
VP for Operations 1 58,000 15,660 73,660 883,920 929,160 975,618 1,024,399 1,075,619 1,129,400 1,185,870 1,245,163 1,307,421 1,372,793 1,441,432 1,513,504
VP for Marketing 1 55,000 14,850 69,850 838,200 881,100 925,155 971,413 1,019,983 1,070,983 1,124,532 1,180,758 1,239,796 1,301,786 1,366,875 1,435,219
Project Accountant 1 45,000 12,150 57,150 685,800 720,900 756,945 794,792 834,532 876,258 920,071 966,075 1,014,379 1,065,098 1,118,353 1,174,270
Technical Service Engineer 1 50,000 13,500 63,500 762,000 801,000 841,050 883,103 927,258 973,621 1,022,302 1,073,417 1,127,087 1,183,442 1,242,614 1,304,745
Safety Health & Environment Engineer 1 48,000 12,960 60,960 731,520 768,960 807,408 847,778 890,167 934,676 981,409 1,030,480 1,082,004 1,136,104 1,192,909 1,252,555
Maintenance & Safety Engineer 1 40,000 10,800 50,800 609,600 640,800 672,840 706,482 741,806 778,896 817,841 858,733 901,670 946,753 994,091 1,043,796
HR Director 1 30,000 8,100 38,100 457,200 480,600 504,630 529,862 556,355 584,172 613,381 644,050 676,252 710,065 745,568 782,847
Finance Officer 1 45,000 12,150 57,150 685,800 720,900 756,945 794,792 834,532 876,258 920,071 966,075 1,014,379 1,065,098 1,118,353 1,174,270
Document Controller 1 7,000 1,890 8,890 106,680 112,140 117,747 123,634 129,816 136,307 143,122 150,278 157,792 165,682 173,966 182,664
Documentation Clerk 2 6,000 1,620 7,620 182,880 192,240 201,852 211,945 222,542 233,669 245,352 257,620 270,501 284,026 298,227 313,139
Cashier 1 15,000 4,050 19,050 228,600 240,300 252,315 264,931 278,177 292,086 306,690 322,025 338,126 355,033 372,784 391,423
Materials Controller 1 13,500 3,645 17,145 205,740 216,270 227,084 238,438 250,360 262,878 276,021 289,822 304,314 319,529 335,506 352,281
Ware house Manager 1 13,500 3,645 17,145 205,740 216,270 227,084 238,438 250,360 262,878 276,021 289,822 304,314 319,529 335,506 352,281
Production Manager 1 45,000 12,150 57,150 685,800 720,900 756,945 794,792 834,532 876,258 920,071 966,075 1,014,379 1,065,098 1,118,353 1,174,270
Quality Assurance Head 1 25,000 6,750 31,750 381,000 400,500 420,525 441,551 463,629 486,810 511,151 536,708 563,544 591,721 621,307 652,372
Waste Management Engineer 1 35,000 9,450 44,450 533,400 560,700 588,735 618,172 649,080 681,534 715,611 751,392 788,961 828,409 869,830 913,321
Accounting Clerk 2 6,000 1,620 7,620 182,880 192,240 201,852 211,945 222,542 233,669 245,352 257,620 270,501 284,026 298,227 313,139
Research & Development Head 1 30,000 8,100 38,100 457,200 480,600 504,630 529,862 556,355 584,172 613,381 644,050 676,252 710,065 745,568 782,847
Treasury Clerk 2 6,000 1,620 7,620 182,880 192,240 201,852 211,945 222,542 233,669 245,352 257,620 270,501 284,026 298,227 313,139
Personnel Clerk 2 6,000 1,620 7,620 182,880 192,240 201,852 211,945 222,542 233,669 245,352 257,620 270,501 284,026 298,227 313,139
Total Gen. & Admn. Employees 26Total General & Administrative Salaries 11,018,520 11,582,460 12,161,583 12,769,662 13,408,145 14,078,553 14,782,480 15,521,604 16,297,684 17,112,569 17,968,197 18,866,607
Sales & Marketing
Promotions Manager 1 30,000 8,100 38,100 457,200 480,600 504,630 529,862 556,355 584,172 613,381 644,050 676,252 710,065 745,568 782,847
Sales Manager 1 30,000 8,100 38,100 457,200 480,600 504,630 529,862 556,355 584,172 613,381 644,050 676,252 710,065 745,568 782,847
Sales Representative 4 11,000 2,970 13,970 670,560 704,880 740,124 777,130 815,987 856,786 899,625 944,607 991,837 1,041,429 1,093,500 1,148,175
Customer Care Representative 1 12,000 3,240 15,240 182,880 192,240 201,852 211,945 222,542 233,669 245,352 257,620 270,501 284,026 298,227 313,139
Researchers 2 10,000 2,700 12,700 304,800 320,400 336,420 353,241 370,903 389,448 408,921 429,367 450,835 473,377 497,046 521,898
Total Sales & Marketing Employees 9 Total Sales & Marketing Salaries 2,072,640 2,178,720 2,287,656 2,402,039 2,522,141 2,648,248 2,780,660 2,919,693 3,065,678 3,218,962 3,379,910 3,548,905
189
Direct Labor
Non Equipment Based Employees
Primary Processing Head 1 11,000 2,970 13,970 167,640 176,220 185,031 194,283 203,997 214,197 224,906 236,152 247,959 260,357 273,375 287,044
Activated Carbon Head 1 11,000 2,970 13,970 167,640 176,220 185,031 194,283 203,997 214,197 224,906 236,152 247,959 260,357 273,375 287,044
Virgin Coconut Oil Head 1 11,000 2,970 13,970 167,640 176,220 185,031 194,283 203,997 214,197 224,906 236,152 247,959 260,357 273,375 287,044
Coco Vinegar Head 1 11,000 2,970 13,970 167,640 176,220 185,031 194,283 203,997 214,197 224,906 236,152 247,959 260,357 273,375 287,044
Coco Burger Head 1 11,000 2,970 13,970 167,640 176,220 185,031 194,283 203,997 214,197 224,906 236,152 247,959 260,357 273,375 287,044
Primary Processing Shift Supervisor 3 8,000 2,160 10,160 365,760 384,480 403,704 423,889 445,084 467,338 490,705 515,240 541,002 568,052 596,455 626,277
Activated Carbon Shift Supervisor 3 8,000 2,160 10,160 365,760 384,480 403,704 423,889 445,084 467,338 490,705 515,240 541,002 568,052 596,455 626,277
Virgin Coconut Oil Shift Supervisor 3 8,000 2,160 10,160 365,760 384,480 403,704 423,889 445,084 467,338 490,705 515,240 541,002 568,052 596,455 626,277
Ccoco Vinegar Shift Supervisor 3 8,000 2,160 10,160 365,760 384,480 403,704 423,889 445,084 467,338 490,705 515,240 541,002 568,052 596,455 626,277
Coco Burger Shift Supervisor 3 8,000 2,160 10,160 365,760 384,480 403,704 423,889 445,084 467,338 490,705 515,240 541,002 568,052 596,455 626,277
Ware house Clerk 9 5,700 1,539 7,239 781,812 821,826 862,917 906,063 951,366 998,935 1,048,881 1,101,325 1,156,392 1,214,211 1,274,922 1,338,668
Materials Checker 9 5,700 1,539 7,239 781,812 821,826 862,917 906,063 951,366 998,935 1,048,881 1,101,325 1,156,392 1,214,211 1,274,922 1,338,668
Loader 6 5,700 1,539 7,239 521,208 547,884 575,278 604,042 634,244 665,956 699,254 734,217 770,928 809,474 849,948 892,445
Mechanic 6 5,700 1,539 7,239 521,208 547,884 575,278 604,042 634,244 665,956 699,254 734,217 770,928 809,474 849,948 892,445
Electrician 6 5,700 1,539 7,239 521,208 547,884 575,278 604,042 634,244 665,956 699,254 734,217 770,928 809,474 849,948 892,445
Waste Water Treatment Plant Operator 3 5,700 1,539 7,239 260,604 273,942 287,639 302,021 317,122 332,978 349,627 367,108 385,464 404,737 424,974 446,223
Water Treatment Plant Operator 3 5,700 1,539 7,239 260,604 273,942 287,639 302,021 317,122 332,978 349,627 367,108 385,464 404,737 424,974 446,223
Solid Waste Tender 3 5,700 1,539 7,239 260,604 273,942 287,639 302,021 317,122 332,978 349,627 367,108 385,464 404,737 424,974 446,223
Total 65 6,576,060 6,912,630 7,258,262 7,621,175 8,002,233 8,402,345 8,822,462 9,263,585 9,726,765 10,213,103 10,723,758 11,259,946
Equipment Based Employees
Primary Processing Operators 54 5,700 1,539 7,239 4,690,872 4,930,956 5,177,504 6,342,442 6,659,564 6,992,542 7,691,797 9,544,820 10,022,062 10,523,165 11,049,323 13,386,680
Activated Carbon Operators 27 5,700 1,539 7,239 2,345,436 2,465,478 3,451,669 3,926,274 4,122,587 4,328,717 4,545,153 4,772,410 5,011,031 5,261,582 5,524,661 5,800,894
Virgin Coconut Oil Operators 21 5,700 1,539 7,239 1,824,228 2,465,478 2,588,752 3,322,232 3,488,343 3,662,760 3,845,898 4,038,193 4,625,567 4,856,845 5,099,687 5,354,672
Coco Vinegar Operators 12 5,700 1,539 7,239 1,042,416 1,095,768 1,725,835 1,812,126 1,902,733 1,997,869 2,447,390 2,569,759 2,698,247 2,833,160 2,974,818 3,123,559
Coco Burger Operators 12 5,700 1,539 7,239 1,042,416 1,095,768 1,150,556 1,510,105 1,585,611 1,664,891 1,748,136 1,835,542 1,927,320 2,023,685 2,124,870 2,231,113
Total 126 10,945,368 12,053,448 14,094,316 16,913,179 17,758,838 18,646,780 20,278,373 22,760,726 24,284,226 25,498,437 26,773,359 29,896,918
Total Direct Labor 191 Total Direct Labor Salaries 17,521,428 18,966,078 21,352,577 24,534,354 25,761,071 27,049,125 29,100,835 32,024,311 34,010,991 35,711,540 37,497,117 41,156,864
Indirect Labor
Security Personnel 20 5,700 1,539 7,239 1,737,360 1,826,280 1,917,594 2,013,474 2,114,147 2,219,855 2,330,847 2,447,390 2,569,759 2,698,247 2,833,160 2,974,818
Janitor 12 5,700 1,539 7,239 1,042,416 1,095,768 1,150,556 1,208,084 1,268,488 1,331,913 1,398,508 1,468,434 1,541,856 1,618,948 1,699,896 1,784,891
Nurse 3 10,000 2,700 12,700 457,200 480,600 504,630 529,862 556,355 584,172 613,381 644,050 676,252 710,065 745,568 782,847
Doctor 1 10,000 2,700 12,700 152,400 160,200 168,210 176,621 185,452 194,724 204,460 214,683 225,417 236,688 248,523 260,949
Forklift & Truck Driver 4 5,700 1,539 7,239 347,472 365,256 383,519 402,695 422,829 443,971 466,169 489,478 513,952 539,649 566,632 594,964
Chemist 4 9,000 2,430 11,430 548,640 576,720 605,556 635,834 667,625 701,007 736,057 772,860 811,503 852,078 894,682 939,416
Total Indirect Labor Employees 44 Total Indirect Labor Salaries 4,285,488 4,504,824 4,730,065 4,966,568 5,214,897 5,475,642 5,749,424 6,036,895 6,338,740 6,655,677 6,988,461 7,337,884
Notes: Total Salary Per Month 2,908,173 3,102,674 3,377,657 3,722,719 3,908,855 4,104,297 4,367,783 4,708,542 4,976,091 5,224,896 5,486,140 5,909,188
1. Fringe Rate, 27% of monthly income Total Salary Per Year 34,898,076 37,232,082 40,531,882 44,672,623 46,906,254 49,251,567 52,413,400 56,502,503 59,713,092 62,698,747 65,833,684 70,910,259
2. Minimum Wage for Region IV, 237 Php/day Total No. of Employees 270 276 291 312 312 312 318 330 333 333 333 345
4. Yearly Basic Salary Increase 5%
190
Operators
Year PP AC VCNO CV CB Total
1 54 27 21 12 12 126
2 54 27 27 12 12 132
3 54 36 27 18 12 147
4 63 39 33 18 15 168
5 63 39 33 18 15 168
6 63 39 33 18 15 168
7 66 39 33 21 15 174
8 78 39 33 21 15 186
9 78 39 36 21 15 189
10 78 39 36 21 15 189
11 78 39 36 21 15 189
12 90 39 36 21 15 201
191
COST OF SALES
Table 7-49: Cost of Sales for Activated Carbon
192
Table 7-50: Cost of Sales for Virgin Coconut Oil
193
Table 7-51: Cost of Sales for Coco Vinegar
194
Table 7-52: Cost of Sales for Coco Burger
195
Utility Costs
Table 7-53: Utilities Cost
UTILITIES COSTS
ELECTRICITY CONSUMPTION (KWH/Yr)

Year Fixed PP Section AC Section VCNO Section CV Section CB Section Total
1 1,025,444.39 116,985.60 1,668,795.21 124,895.80 378,380.31 71,919.60 3,386,420.90
2 1,025,444.39 123,426.00 1,697,248.28 107,646.54 321,195.61 75,515.58 3,350,476.40
3 1,025,444.39 129,700.80 1,875,531.96 112,291.23 324,044.40 79,291.35 3,546,304.14
4 1,025,444.39 136,180.80 2,028,028.85 114,588.69 337,539.54 90,373.76 3,732,156.03
5 1,025,444.39 142,988.40 2,129,430.29 120,318.12 354,416.52 94,056.28 3,866,653.99
6 1,025,444.39 150,138.00 2,235,901.80 126,334.03 372,137.34 98,759.09 4,008,714.65
7 1,025,444.39 157,305.60 2,830,928.21 132,650.73 392,454.78 103,697.04 4,642,480.75
8 1,025,444.39 165,168.00 2,972,474.62 139,283.26 412,077.52 108,881.90 4,823,329.69
9 1,025,444.39 173,430.00 3,121,098.36 146,366.68 432,681.40 123,506.28 5,022,527.10
10 1,025,444.39 182,098.80 3,523,388.08 153,685.01 452,526.53 131,539.59 5,468,682.40
11 1,025,444.39 191,278.80 3,699,557.49 161,369.26 475,385.62 138,116.57 5,691,152.13
12 1,025,444.39 200,840.40 3,884,535.36 169,437.73 498,886.70 145,022.40 5,924,166.97
ELECTRICITY COST (PhP)

Year Cost per KWH Fixed* PP Section AC Section VCNO Section CV Section CB Section Total
1 6.30 6,460,299.64 737,009.28 10,513,409.83 786,843.53 2,383,795.94 453,093.45 21,334,451.68
2 6.43 6,589,505.64 793,135.48 10,906,517.47 691,736.68 2,064,003.00 485,263.09 21,530,161.35
3 6.55 6,721,295.75 850,126.49 12,293,211.74 736,015.14 2,123,955.53 519,716.76 23,244,321.41
4 6.69 6,855,721.67 910,451.77 13,558,610.75 766,095.31 2,256,657.85 604,203.78 24,951,741.14
5 6.82 6,992,836.10 975,084.03 14,521,272.12 820,488.08 2,416,880.56 641,400.09 26,367,960.98
6 6.96 7,132,692.82 1,044,316.25 15,552,282.44 878,742.73 2,588,479.08 686,939.50 27,883,452.82
7 7.09 7,275,346.68 1,116,055.43 20,084,935.29 941,133.47 2,784,397.30 735,712.20 32,937,580.36
8 7.24 7,420,853.61 1,195,274.52 21,510,965.69 1,007,953.94 2,982,089.50 787,947.77 34,905,085.04
9 7.38 7,569,270.68 1,280,165.58 23,038,244.26 1,080,398.92 3,193,817.86 911,655.94 37,073,553.25
10 7.53 7,720,656.10 1,371,037.01 26,527,881.95 1,157,107.25 3,407,109.86 990,372.53 41,174,164.69
11 7.68 7,875,069.22 1,468,957.08 28,411,361.57 1,239,261.86 3,650,802.27 1,060,688.98 43,706,140.97
12 7.83 8,032,570.60 1,573,234.70 30,428,568.24 1,327,249.45 3,907,908.30 1,135,997.90 46,405,529.19
Assumption
1. Assume increase in electricity cost of 2% annually
2. Current electricity rate is 6.30 PhP per KWH
Notes
* Fixed electricity consumptions includes: lighting, plant, office & other electricity usages.
WATER CONSUMPTION (cu. M/Yr)

Year Fixed* PP Section** AC Section** VCNO Section** CV Section** CB Section** Total
1 12,512.50 6,885.00 7,575.00 2,782.08 17,921.93 5,590.08 53,266.59
2 12,512.50 6,986.25 7,575.00 3,303.30 17,966.19 5,590.08 53,933.32
3 12,512.50 7,092.56 8,385.00 3,303.30 19,348.25 5,590.08 56,231.69
4 12,512.50 8,014.19 8,655.00 3,843.30 22,096.28 5,860.08 60,981.35
5 12,512.50 8,131.40 8,655.00 3,843.30 22,008.06 6,987.60 62,137.86
6 12,512.50 8,254.47 8,655.00 3,843.30 22,096.65 6,987.60 62,349.52
7 12,512.50 8,653.69 11,673.75 3,843.30 24,937.87 6,987.60 68,608.71
8 12,512.50 9,869.38 11,673.75 3,843.30 25,026.48 6,987.60 69,913.01
9 12,512.50 10,011.85 11,673.75 4,113.30 24,938.23 6,987.60 70,237.22
10 12,512.50 10,161.44 11,673.75 4,113.30 27,686.31 8,115.12 74,262.42
11 12,512.50 10,318.51 11,673.75 4,113.30 27,779.37 8,115.12 74,512.55
196
12 12,512.50 11,563.44 11,673.75 4,113.30 30,536.53 8,115.12 78,514.64
WATER COST (PhP)

Year Cost per KWH Fixed* PP Section** AC Section** VCNO Section** CV Section** CB Section** Total
1 12.00 150,150.00 82,620.00 90,900.00 33,384.96 215,063.15 67,080.96 639,199.07
2 12.24 153,153.00 85,511.70 92,718.00 40,432.39 219,906.18 68,422.58 660,143.85
3 12.48 156,216.06 88,549.22 104,685.05 41,241.04 241,559.02 69,791.03 702,041.42
4 12.73 159,340.38 102,056.68 110,217.06 48,942.49 281,384.93 74,625.17 776,566.70
5 12.99 162,527.19 105,620.27 112,421.40 49,921.34 285,866.75 90,763.24 807,120.18
6 13.25 165,777.73 109,363.22 114,669.83 50,919.77 292,757.89 92,578.50 826,066.94
7 13.51 169,093.29 116,945.58 157,758.46 51,938.16 337,009.04 94,430.07 927,174.60
8 13.78 172,475.15 136,041.76 160,913.63 52,976.92 344,970.70 96,318.67 963,696.84
9 14.06 175,924.66 140,765.70 164,131.90 57,832.64 350,629.27 98,245.05 987,529.21
10 14.34 179,443.15 145,726.33 167,414.54 58,989.29 397,052.37 116,379.84 1,065,005.52
11 14.63 183,032.01 150,938.50 170,762.83 60,169.08 406,354.75 118,707.43 1,089,964.60
12 14.92 186,692.65 172,532.17 174,178.09 61,372.46 455,620.10 121,081.58 1,171,477.05
Assumption
1. Assume increase in water cost of 2% annually
2. Current electricity water rate in Region IV is 12 PhP per cu. M.
Notes
* Fixed water consumptions includes: general & administrative personnel, indirect labor & non equipment based direct labor.
**Includes Equipment based direct labor personnel water consumption & Process based water consumption.
TELECOMMUNICATIONS FUEL CONSUMPTION
Year Annual Cost (PhP) Year Annual Cost (PhP)
1 248,400.00 1 1,560,960.00
2 248,400.00 2 1,693,641.60
3 248,400.00 3 1,837,601.14
4 248,400.00 4 1,993,797.23
5 248,400.00 5 2,163,270.00
6 248,400.00 6 2,347,147.95
7 248,400.00 7 2,546,655.52
8 248,400.00 8 2,763,121.24
9 248,400.00 9 2,997,986.55
10 248,400.00 10 3,252,815.40
11 248,400.00 11 3,529,304.71
12 248,400.00 12 3,829,295.61
Assumption Assumption
1. Telecommunications Rates are constant for 12 years 1. Fuel Costs increases 8.5% annually
Basis for increase is headline inflation rate
197
ADMINISTRATIVE AND MARKETING EXPENSES
ADMINISTRATIVE & MARKETING EXPENSES
EXPENSES Cost (1) 2 3 4 5 6 7 8 9 10 11 12

SALARIES & WAGES ( Including Fringe Benefits)
General & Administrative Functions 11,018,520 11,582,460 12,161,583 12,769,662 13,408,145 14,078,553 14,782,480 15,521,604 16,297,684 17,112,569 17,968,197 18,866,607
Sales & Marketing 2,072,640 2,178,720 2,287,656 2,402,039 2,522,141 2,648,248 2,780,660 2,919,693 3,065,678 3,218,962 3,379,910 3,548,905
Total 13,091,160 13,761,180 14,449,239 15,171,701 15,930,286 16,726,800 17,563,140 18,441,297 19,363,362 20,331,530 21,348,107 22,415,512
UTILIIES
Electricity 6,460,300 6,589,506 6,721,296 6,855,722 6,992,836 7,132,693 7,275,347 7,420,854 7,569,271 7,720,656 7,875,069 8,032,571
Water 150,150 153,153 156,216 159,340 162,527 165,778 169,093 172,475 175,925 179,443 183,032 186,693
Telecommunications 248,400 248,400 248,400 248,400 248,400 248,400 248,400 248,400 248,400 248,400 248,400 248,400
Fuel 1,560,960 1,693,642 1,837,601 1,993,797 2,163,270 2,347,148 2,546,656 2,763,121 2,997,987 3,252,815 3,529,305 3,829,296
Total 8,419,810 8,684,700 8,963,513 9,257,259 9,567,033 9,894,019 10,239,495 10,604,850 10,991,582 11,401,315 11,835,806 12,296,959
DEPRECIATION
Office Building & Others 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667 66,667
Office & Laboratory Equipment 586,657 586,657 586,657 586,657 586,657 586,657 586,657 586,657 586,657 586,657 586,657 586,657
Total 653,324 653,324 653,324 653,324 653,324 653,324 653,324 653,324 653,324 653,324 653,324 653,324
REPAIR & MAINTENANCE
Office Building & Others 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
MARKETING EXPENSES*
Print Media - - - - - - - - - - - -
Television Advertisements - - - - - - - - - - - -
Radio Advertisements - - - - - - - - - - - -
Total 4,909,414 5,815,004 6,466,698 7,195,439 8,052,532 9,001,850 9,968,493 11,088,763 12,357,171 13,697,016 15,221,882 16,849,671
SUPPLIES
Office Supplies 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700
Total 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700 34,700
TAXES & LICENSES*
Sales tax (12%) 54,866,880 65,626,092 72,352,766 79,768,925 87,945,240 96,959,627 106,897,989 117,855,032 129,935,173 143,253,529 157,937,015 174,125,559
Total 54,866,880 65,626,092 72,352,766 79,768,925 87,945,240 96,959,627 106,897,989 117,855,032 129,935,173 143,253,529 157,937,015 174,125,559
TOTAL ADMINISTRATIVE & MARKETING EXPENSES 81,985,287 94,585,000 102,930,240 112,091,348 122,193,115 133,280,319 145,367,141 158,687,966 173,345,312 189,381,413 207,040,834 226,385,725
Note
* Marketing Expenses are 2% of Total Gross Profit from sales
Table 7-54: Administrative & Marketing Expenses
198
INCOME STATEMENT
Table 7-55: Income Statement

INCOME STATEMENT
1 2 3 4 5 6 7 8 9 10 11 12
Sales
Activated Carbon 282,240,000 317,217,600 349,732,404 385,579,975 425,101,923 468,674,870 516,714,044 569,677,234 628,069,150 692,446,238 763,421,977 841,672,730
Cost of Sales (AC) 77,860,289 85,353,033 94,039,714 103,341,195 112,153,060 121,867,751 136,309,247 148,845,629 162,906,957 179,976,843 197,541,066 217,692,255
Virgin Coconut Oil 78,876,000 103,524,750 114,136,037 125,834,981 138,733,066 152,953,205 168,630,909 185,915,577 204,971,924 225,981,546 249,144,655 274,681,982
Cost of Sales (VCNO) 43,281,144 55,372,716 59,352,028 64,628,933 69,510,619 74,717,628 80,521,986 87,553,483 94,960,282 102,807,169 111,308,692 121,834,283
Coco Vinegar 14,757,000 19,368,563 21,353,840 23,542,609 25,955,726 28,616,188 31,549,347 34,783,155 38,348,429 42,279,143 46,612,755 51,390,562
Cost of Sales (CV) 12,088,216 14,931,395 16,324,131 17,624,917 18,796,912 20,107,398 21,794,942 23,516,733 25,153,148 27,058,776 29,000,101 31,761,371
Coco Burger 81,351,000 106,773,188 117,717,439 129,783,477 143,086,283 157,752,627 173,922,271 191,749,304 211,403,608 233,072,478 256,962,407 283,301,053
Cost of Sales (CB) 77,261,146 99,052,677 108,393,682 117,804,025 128,141,288 139,480,688 151,948,239 165,862,923 179,910,380 196,981,830 214,988,654 234,955,224
Total (AC, VCNO,CV & CB) Sales 457,224,000 546,884,100 602,939,720 664,741,042 732,876,998 807,996,891 890,816,572 982,125,271 1,082,793,111 1,193,779,405 1,316,141,794 1,451,046,328
Total Cost of Sales (AC, VCNO,CV & CB) 210,490,795 254,709,821 278,109,556 303,399,070 328,601,878 356,173,465 390,574,415 425,778,768 462,930,768 506,824,618 552,838,513 606,243,133
Gross Profit on Sales 246,733,205 292,174,279 324,830,165 361,341,971 404,275,120 451,823,426 500,242,157 556,346,503 619,862,343 686,954,787 763,303,280 844,803,195
Administrative & Marketing Expenses 82,010,537 94,613,482 102,960,145 112,122,748 122,226,085 133,314,938 145,403,491 158,726,134 173,385,388 189,423,493 207,085,017 226,432,118
Net profit (loss) on operations 164,722,668 197,560,797 221,870,019 249,219,223 282,049,035 318,508,488 354,838,666 397,620,369 446,476,955 497,531,294 556,218,263 618,371,077
Less: Financial Charges 15,745,877 14,970,360 14,078,516 13,052,895 11,873,430 10,517,046 8,957,205 7,163,387 5,100,497 2,728,173 0 0
Total Financial Charges 15,745,877 14,970,360 14,078,516 13,052,895 11,873,430 10,517,046 8,957,205 7,163,387 5,100,497 2,728,173 0 0
Net profit before income tax 148,976,790 182,590,437 207,791,503 236,166,328 270,175,605 307,991,441 345,881,461 390,456,982 441,376,458 494,803,121 556,218,263 618,371,077
Provision for income tax (35 %) 52,141,877 63,906,653 72,727,026 82,658,215 94,561,462 107,797,004 121,058,511 136,659,944 154,481,760 173,181,092 194,676,392 216,429,877
Net profit after income tax 96,834,914 118,683,784 135,064,477 153,508,113 175,614,143 200,194,437 224,822,950 253,797,039 286,894,698 321,622,029 361,541,871 401,941,200
199
CASH FLOW
Table 7-56: Cash Flow
CASH FLOW
0 1 2 3 4 5 6 7 8 9 10 11 12
CASH IN FLOW
From Operations
Net profit after interest and tax 0 96,834,914 118,683,784 135,064,477 153,508,113 175,614,143 200,194,437 224,822,950 253,797,039 286,894,698 321,622,029 361,541,871 401,941,200
Add back:
Depreciation 0 5,906,489 6,139,589 6,320,285 6,945,634 6,973,204 6,973,204 7,139,420 7,198,097 7,381,695 7,515,756 7,521,185 7,595,231
Amortization of pre operating expenses 0 5,256,749 5,256,749 5,256,749 5,256,749 5,256,749 5,256,749 5,256,749 5,256,749 5,256,749 5,256,749 0 0
Increase (decrease) in current liabilities 0 58,211,108 12,325,700 9,501,449 10,526,179 12,630,619 14,029,833 14,128,872 16,548,595 18,856,119 19,828,790 22,728,668 20,325,827
Decrease (increase) in non-cash current assets 21,089,861 65,685,187 13,190,053 9,598,649 10,449,267 11,240,205 9,674,155 13,455,760 14,855,690 15,943,658 17,923,086 19,396,145 -36,516,250
TOTAL -21,089,861 100,524,074 129,215,769 146,544,312 165,787,409 189,234,510 216,780,069 237,892,231 267,944,790 302,445,602 336,300,237 372,395,579 466,378,508
From Other Sources
Increase in capital stock 189,951,245 0 0 0 0 0 0 0 0 0 0 0 0
Increase (decrease) in long-term loans 104,972,515 0 0 0 0 0 0 0 0 0 0 0
TOTAL 294,923,760 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH RECEIPTS 294,923,760 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL ESTIMATED CASH RECEIPTS 273,833,900 100,524,074 129,215,769 146,544,312 165,787,409 189,234,510 216,780,069 237,892,231 267,944,790 302,445,602 336,300,237 372,395,579 466,378,508
CASH OUTFLOW
Capital expedintures
Land 27,000,000 0 0 0 0 0 0 0 0 0 0 0 0
Land Improvement 2,172,000 0 0 0 0 0 0 0 0 0 0 0 0
Buildings 0 0
Plant 34,982,635 0 0 0 0 0 0 0 0 0 0 0 0
Office 7,800,000 0 0 0 0 0 0 0 0 0 0 0 0
Others 2,115,000 0 0 0 0 0 0 0 0 0 0 0 0
Equipment
Office & Laboratory 2,715,824 0 0 0 0 0 0 0 0 0 0 0 0
Plant 98,168,733 4,415,250 3,584,338 11,478,431 542,784 0 3,263,803 1,161,561 2,753,977 0 81,445 1,452,758 0
Organizational & Pre Operating Expenses 52,567,491 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL 227,521,683 4,415,250 3,584,338 11,478,431 542,784 0 3,263,803 1,161,561 2,753,977 0 81,445 1,452,758 0
Other Cash Disbursements
Loans 0 5,170,113 5,945,630 6,837,474 7,863,095 9,042,560 10,398,944 11,958,785 13,752,603 15,815,493 18,187,818 0 0
TOTAL 0 5,170,113 5,945,630 6,837,474 7,863,095 9,042,560 10,398,944 11,958,785 13,752,603 15,815,493 18,187,818 0 0
TOTAL ESTIMATED CASH DISBURSEMENTS 227,521,683 9,585,363 9,529,968 18,315,905 8,405,880 9,042,560 13,662,747 13,120,347 16,506,580 15,815,493 18,269,262 1,452,758 0
NET CASH INFLOW (OUTFLOW) 46,312,216 90,938,711 119,685,801 128,228,407 157,381,529 180,191,951 203,117,322 224,771,885 251,438,210 286,630,109 318,030,975 370,942,821 466,378,508
CASH BALANCE, BEGINNING 0 46,312,216 137,250,927 256,936,729 385,165,136 542,546,665 722,738,615 925,855,937 1,150,627,822 1,402,066,032 1,688,696,141 2,006,727,116 2,377,669,937
CASH BALANCE, END 46,312,216 137,250,927 256,936,729 385,165,136 542,546,665 722,738,615 925,855,937 1,150,627,822 1,402,066,032 1,688,696,141 2,006,727,116 2,377,669,937 2,844,048,445
200
BALANCE SHEET
Table 7-57: Balance Sheet
BALANCE SHEETS
0 1 2 3 4 5 6 7 8 9 10 11 12
ASSETS
Current Assets:
Cash 46,312,216 137,250,927 256,936,729 385,165,136 542,546,665 722,738,615 925,855,937 1,150,627,822 1,402,066,032 1,688,696,141 2,006,727,116 2,377,669,937 2,844,048,445
Accounts recievable 0 36,577,920 45,573,675 50,244,977 55,395,087 61,073,083 64,639,751 71,265,326 78,570,022 86,623,449 95,502,352 105,291,343 116,083,706
Inventories:
Raw materials
Whole Coconuts 747,692 785,077 857,304 936,176 1,022,304 1,116,356 1,219,061 1,331,215 1,453,686 1,587,425 1,733,469 1,892,948 0
Cocoshell 7,797,600 8,187,480 8,940,728 9,763,275 10,661,496 11,642,354 12,713,451 13,883,088 15,160,332 16,555,083 18,078,150 19,741,340 0
Brown Sugar 250,641 263,173 287,385 313,824 342,696 374,224 408,653 446,249 487,304 532,136 581,092 634,553 0
(NH4)2SO4 1,602 1,682 1,837 2,006 2,190 2,392 2,612 2,852 3,115 3,401 3,714 4,056 0
NH4OH 117,049 122,902 134,209 146,556 160,039 174,763 190,841 208,398 227,571 248,507 271,370 296,336 0
Mother Vinegar 109,312 114,778 125,337 136,868 149,460 163,210 178,226 194,622 212,528 232,080 253,432 276,747 0
Onion 2,463,877 2,587,071 2,825,082 3,084,989 3,368,808 3,678,739 4,017,183 4,386,764 4,790,346 5,231,058 5,712,315 6,237,848 0
Flour 962,417 1,010,537 1,103,507 1,205,030 1,315,892 1,436,954 1,569,154 1,713,516 1,871,160 2,043,307 2,231,291 2,436,569 0
Soy Sauce 777,705 816,591 891,717 973,755 1,063,341 1,161,168 1,267,995 1,384,651 1,512,039 1,651,146 1,803,052 1,968,933 0
Baking Powder 2,193,654 2,303,337 2,515,244 2,746,646 2,999,338 3,275,277 3,576,602 3,905,650 4,264,970 4,657,347 5,085,823 5,553,718 0
Flavored Pork 583,200 612,360 668,697 730,217 797,397 870,758 950,868 1,038,347 1,133,875 1,238,192 1,352,105 1,476,499 0
Eggs 3,835,080 4,026,834 4,397,303 4,801,855 5,243,625 5,726,039 6,252,834 6,828,095 7,456,280 8,142,258 8,891,345 9,709,349 0
Tomato Sauce 746,791 784,130 856,270 935,047 1,021,072 1,115,010 1,217,591 1,329,610 1,451,934 1,585,512 1,731,379 1,890,665 0
Ground Pepper 145,172 152,431 166,454 181,768 198,491 216,752 236,693 258,469 282,248 308,215 336,571 367,535 0
Granulated Garlic 358,067 375,971 410,560 448,332 489,578 534,619 583,804 637,514 696,166 760,213 830,152 906,526 0
Finished goods
Activated carbon 0 1,526,672 1,643,654 1,811,687 1,990,775 2,160,045 2,347,210 2,626,707 2,867,038 3,138,038 3,467,428 3,805,365 4,193,861
Virgin Coconut Oil 0 8,656,229 9,343,297 10,001,746 10,925,437 11,717,036 12,600,118 13,584,374 14,793,822 16,033,292 17,354,775 18,790,783 20,608,700
Coco Vinegar 0 2,417,643 2,502,750 2,764,276 2,972,128 3,164,957 3,388,488 3,681,291 3,967,088 4,237,212 4,564,313 4,887,158 5,374,843
Coco Burger 0 15,452,229 16,720,090 18,334,718 19,893,861 21,649,485 23,566,241 25,676,400 28,037,305 30,374,615 33,321,443 36,333,442 39,724,356
Total non-cash current assets 21,089,861 86,775,047 99,965,101 109,563,750 120,013,017 131,253,222 140,927,376 154,383,137 169,238,826 185,182,484 203,105,571 222,501,716 185,985,466
Total Current assets 67,402,077 224,025,975 356,901,830 494,728,885 662,559,681 853,991,837 1,066,783,314 1,305,010,959 1,571,304,858 1,873,878,625 2,209,832,687 2,600,171,652 3,030,033,911
Fixed Assets:
Land 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000
Land Improvement 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000 2,172,000
Buildings
Plant 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635 34,982,635
Office 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000
Others 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000 2,115,000
Equipment
Office & Laboratory 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824 2,715,824
Plant 98,168,733 102,583,983 106,168,320 117,646,751 118,189,535 118,189,535 121,453,338 122,614,900 125,368,877 125,368,877 125,450,321 126,903,080 126,903,080
Total cost of Fixed Assets 174,954,192 179,369,442 182,953,779 194,432,210 194,974,994 194,974,994 198,238,797 199,400,359 202,154,336 202,154,336 202,235,780 203,688,539 203,688,539
Accumulated Depreciation 0 5,906,489 12,046,078 18,366,364 25,311,998 32,285,202 39,258,406 46,397,826 53,595,923 60,977,618 68,493,373 76,014,559 83,609,790
Total Net Fixed Assets 174,954,192 173,462,953 170,907,701 176,065,847 169,662,997 162,689,793 158,980,392 153,002,533 148,558,413 141,176,718 133,742,407 127,673,980 120,078,748
Other Assets
Pre-Operating Expenses 47,907,979 43,117,181 38,326,383 33,535,585 28,744,787 23,953,989 19,163,192 14,372,394 9,581,596 4,790,798 0 0 0
Organizational Expenses 4,659,512 4,193,561 3,727,610 3,261,659 2,795,707 2,329,756 1,863,805 1,397,854 931,902 465,951 0 0 0
Total cost of Other Assets 52,567,491 47,310,742 42,053,993 36,797,244 31,540,495 26,283,746 21,026,997 15,770,247 10,513,498 5,256,749 0 0 0
TOTAL ASSETS 294,923,760 444,799,670 569,863,524 707,591,976 863,763,173 1,042,965,375 1,246,790,702 1,473,783,739 1,730,376,770 2,020,312,093 2,343,575,094 2,727,845,632 3,150,112,659
LIABILITIES
Current Liabilities
Accounts Payable 0 6,069,232 6,630,156 7,311,232 7,906,222 8,633,594 9,427,885 10,295,250 11,242,413 12,276,716 13,406,173 14,639,541 13,211,884
Estimated tax liability 0 52,141,877 63,906,653 72,727,026 82,658,215 94,561,462 107,797,004 121,058,511 136,659,944 154,481,760 173,181,092 194,676,392 216,429,877
Total Current Liabilities 0 58,211,108 70,536,809 80,038,258 90,564,437 103,195,056 117,224,889 131,353,762 147,902,357 166,758,476 186,587,266 209,315,933 229,641,761
Long term Liabilities
Bank Loans 104,972,515 99,802,402 93,856,772 87,019,298 79,156,203 70,113,643 59,714,699 47,755,914 34,003,311 18,187,818 0 0 0
Total Other liabilities 104,972,515 99,802,402 93,856,772 87,019,298 79,156,203 70,113,643 59,714,699 47,755,914 34,003,311 18,187,818 0 0 0
TOTAL LIABILITIES 104,972,515 158,013,511 164,393,581 167,057,556 169,720,639 173,308,699 176,939,589 179,109,676 181,905,668 184,946,293 186,587,266 209,315,933 229,641,761
OWNER'S EQUITY
Capital Stock 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245 189,951,245
Retained Earnings
Balance, Beginning 0 0 96,834,914 215,518,698 350,583,175 504,091,288 679,705,431 879,899,868 1,104,722,818 1,358,519,857 1,645,414,554 1,967,036,583 2,328,578,454
Net Profit/Loss 0 96,834,914 118,683,784 135,064,477 153,508,113 175,614,143 200,194,437 224,822,950 253,797,039 286,894,698 321,622,029 361,541,871 401,941,200
Balance, End 0 96,834,914 215,518,698 350,583,175 504,091,288 679,705,431 879,899,868 1,104,722,818 1,358,519,857 1,645,414,554 1,967,036,583 2,328,578,454 2,730,519,654
TOTAL EQUITY 189,951,245 286,786,159 405,469,943 540,534,420 694,042,534 869,656,677 1,069,851,114 1,294,674,063 1,548,471,102 1,835,365,800 2,156,987,828 2,518,529,699 2,920,470,899
TOTAL LIABILITES & EQUITY 294,923,760 444,799,670 569,863,524 707,591,976 863,763,173 1,042,965,376 1,246,790,702 1,473,783,739 1,730,376,770 2,020,312,093 2,343,575,094 2,727,845,633 3,150,112,660
DIFFERENCE (ASSETS = LIABILITIES + EQUITY) 0 0 0 0 0 0 0 0 0 0 0 0 0
201
Breakeven Selling Prices
Table 7-58: Breakeven Selling Prices
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
Breakeven Sales Volume

Table 7-59: Breakeven Sales Volume
217
218
219
PAYBACK PERIOD
PAYBACK PERIOD
EQUITY 189,951,245.23
Year Net Profit
1 96,834,913.76
2 118,683,784.00
3 135,064,477.19
4 153,508,113.38
5 175,614,143.09
6 200,194,436.88
7 224,822,949.76
8 253,797,038.50
9 286,894,697.77
10 321,622,028.76
1.784575014 years
Table 7-60: Payback Period
RETURN ON INVESTMENT
RETURN ON OWNERS EQUITY
EQUITY 189,951,245.23
YEAR NET PROFIT
1 96,030,685
2 117,776,660
3 134,111,997
4 152,508,009
5 174,564,033
6 199,091,822
7 223,665,204
8 252,581,405
9 285,618,283
10 320,281,793
11 360,134,624
12 400,463,590
AVE. NET PROFIT 195,622,989
ROI 1.029858945
I 0.657735322
Table 7-61: Return on Investment
220
AMMORTIZATION
SCHEDULE OF AMORTIZATION
Bank Interest 15.00%

(P/A,10%,10) 5.018768626
periods to pay 10
Interest due at the end
Period Outstanding Payment Principal Balance
of period
1 104,972,515.03 15,745,877.25 20,915,990.13 5,170,112.87 99,802,402.16
2 99,802,402.16 14,970,360.32 20,915,990.13 5,945,629.80 93,856,772.35
3 93,856,772.35 14,078,515.85 20,915,990.13 6,837,474.27 87,019,298.08
4 87,019,298.08 13,052,894.71 20,915,990.13 7,863,095.42 79,156,202.66
5 79,156,202.66 11,873,430.40 20,915,990.13 9,042,559.73 70,113,642.93
6 70,113,642.93 10,517,046.44 20,915,990.13 10,398,943.69 59,714,699.25
7 59,714,699.25 8,957,204.89 20,915,990.13 11,958,785.24 47,755,914.01
8 47,755,914.01 7,163,387.10 20,915,990.13 13,752,603.03 34,003,310.98
9 34,003,310.98 5,100,496.65 20,915,990.13 15,815,493.48 18,187,817.50
10 18,187,817.50 2,728,172.63 20,915,990.13 18,187,817.50 0.00
Table 7-62: Amortization
221
Chapter VIII
Socio Economic Environmental Impact
This project will generate profit not only for itself but also for the government in terms of
revenues, which will be realized through the taxes the corporation will pay. The taxes include the
reality tax, sales tax and income tax, which will, in turn, be used for community development.
Aside from this benefits, the project is also geared to socio-economic contribution. To the
residents of Pagbilao, Quezon Province, especially to the unemployed, a number of jobs are
readily available as soon as the company starts its operation which will not only provide them a
better income-earning opportunity but also gives sustenance to a greater number of dependents.
The government would also benefit this project in terms of taxes that will be generated
from the company’s revenue, which include tax, sales tax, and other taxes. The taxes would be
useful in the development and modernization of the community, and in the expansion of
government projects and activities.
The project will increase the utilization of Activated Carbon, Coco Vinegar and Coco
Burger in our country that will lessen the importation of oil which in turn will improve the economy
of our country.
Consumer Benefits
Our product has a higher oil value compared to the coconut oil that may contain added
chemicals for its refining.
Our product ensures high quality standard and expensive. It sells for less compared for
the competitors.
Our product especially the coco burger is new relative to the burger patties present in the
market today. Coco burger is a natural product with special benefits to health.
222
Economic Benefits
There will be substantial decrease of importation of food supplement from other

countries. Thus, saving thousands of dollars due to importation.
It creates new jobs opportunities for possible expansion of our company.
There is an expected increase in the Gross National Product (GNP) for future plans of
exportation since the product gains popularity in the Asian country.
It also helps promote growth on the coconut industry.
223
Chapter IX
Conclusion & Recommendation
Integrated coconut processing producing virgin coconut oil, coco vinegar, coco burger
and activated carbon as its frontrunner proves to be a very attractive investment. Considering
breakeven selling price and breakeven sales volume analysis, activated carbon shows that it can
solely shoulder all operating expenses of the corporation. Meaning to say that even without
selling other products and solely depending on activated carbon sales, the company will still
profit, thus setting up an activated carbon processing plant would be less complicated than an
integrated processing plant.
Testa, skimmed milk and the filter cake from the VCNO process are all treated as waste
in the study, though these parts of the nut are all of high value when processed. The testa
contains high percentage of paring oil which can be used in various processes. Skimmed milk
which is also produced from the VCNO process contains high amounts of proteins which can be
very beneficial for human health. Further processing of skimmed milk into beverages would be
highly recommended. And the filter cake again from the VCNO process is “Latik”, a condiment
for native delicacies well known in the southern tagalong region of the Philippines. Studying the
marketability and developing a process for commercialization of these products would further
decrease waste production of the integrated coconut process, and as well create a more
attractive investment.
In the primary process where the coco water is collected from the nut, only 12% of the
coconut water is recovered suitable for the processing of coco vinegar. Ideally all coco water
should be collected and converted into coco vinegar, but due to the equipment only a meager
12% is recovered. An increase in production and income would be possible if a better method of
coco water recovery was done. Additional equipment such as filters, screens and cocowater
collection vessels can be installed in the deshelling section of the primary process to further
increase cocowater collection and thus cocovinegar production. Another disadvantage of coco
vinegar production is the complexity of the run and process. Further research and simplification
of the fermentation process would greatly decrease cost and thus increase revenue for the
product. Primarily the small recovery witch results to small production is a reason why the
study’s cocovinegar is sold at a slightly high price. Increase in production will definitely decrease
cocovinegar's selling price.
Though the study proves to be feasible and financially attractive, still there are rooms for
improvement.
224
APPENDIX I
MATERIAL SAFETY DATA SHEET : ACTIVATED CARBON
PRODUCT INFORMATION
Synonyms: Charcoal, Activated

Molecular Weight: 12.01
Chemical Formula: C
HAZARDS IDENTIFICATION
Emergency Overview
--------------------------
WARNING! FLAMMABLE SOLID. ACTIVATED CARBON AFFECTS THE RESPIRATORY AND
CARDIOVASCULAR SYSTEMS.
CAUTION!!! Wet activated carbon removes oxygen from air causing a severe hazard to workers inside
carbon vessels and enclosed or confined spaces. Before entering such an area, sampling and work
procedures for low oxygen levels should be taken to ensure ample oxygen availability, observing all local,
state, and federal regulations.
-----------------------------------------------------------------------------------------------------------
Health Rating: 1 - Slight
Flammability Rating: 3 - Severe (Flammable)
Reactivity Rating: 1 - Slight
Contact Rating: 1 - Slight
Lab Protective Equip: GOGGLES; LAB COAT; CLASS B EXTINGUISHER
Storage Color Code: Orange (General Storage)
-----------------------------------------------------------------------------------------------------------
Potential Health Effects

----------------------------------
Inhalation:
May cause mild irritation to the respiratory tract. The acute inhalation LC50 (Rat) is >64.4 mg/l (nominal
concentration) for activated carbon.
Ingestion:
No adverse effects expected. May cause mild irritation to the gastrointestinal tract. The acute oral LD50
(Rat) is >10g/kg.
Skin Contact:
Not expected to be a health hazard from skin exposure. May cause mild irritation and redness. The
primary skin irritation index (Rabbit) is 0.
225
Eye Contact:
No adverse effects expected. May cause mild irritation, possible reddening.
Chronic Exposure:
Prolonged inhalation of excessive dust may produce pulmonary disorders. The effects of long-term, low-
level exposures to this product have not been determined. Safe handling of this material on a long-term
basis should emphasize the avoidance of all effects from repetitive acute exposures.
Aggravation of Pre-existing Conditions:

No information found.
FIRST AID MEASURES
Inhalation:
Remove to fresh air. Get medical attention for any breathing difficulty.
Ingestion:
Give several glasses of water to drink to dilute. If large amounts were swallowed, seek medical attention.
Skin Contact:
Not expected to require first aid measures. Wash exposed area with soap and water. Seek medical
attention if irritation develops.
Eye Contact:
Wash thoroughly with running water for at least 15 minutes. Seek medical attention if irritation develops.
FIRE FIGHTING MEASURES

Fire:
As with most organic solids, fire is possible at elevated temperatures or by contact with an ignition source.
Explosion:
Fine dust dispersed in air in sufficient concentrations, and in the presence of an ignition source is a
potential dust explosion hazard. Minimum exposable concentration 0.140 g/l.
Fire Extinguishing Media:

Water or water spray.
Unusual Fire and Explosion Hazards:

Contact with strong oxidize such as ozone, liquid oxygen, chlorine, permanganate, etc., may result in fire.
Special Information:
In the event of a fire, wear full protective clothing and NIOSH-approved self-contained breathing apparatus
with full-face piece operated in the pressure demand or other positive pressure mode.
ACCIDENTAL MEASURES
226
Remove all sources of ignition. Ventilate area of leak or spill. Wear appropriate personal protective
equipment as specified in Section 8. Spills: Clean up spills in a manner that does not disperse dust into the
air. Use non-sparking tools and equipment. Reduce airborne dust and prevent scattering by moistening
with water. Pick up spill for recovery or disposal and place in a closed container. Warning! Spent product
may have absorbed hazardous materials.
HANDLING AND STORAGE
Protect against physical damage. Store in a cool, dry well-ventilated location, away from any area
where the fire hazard may be acute. Outside or detached storage is preferred. Separate from
incompatibles. Containers should be bonded and grounded for transfers to avoid static sparks. Storage
and use areas should be No Smoking areas. Use non-sparking type tools and equipment, including
explosion proof ventilation. Containers of this material may be hazardous when empty since they retain
product residues (dust, solids); observe all warnings and precautions listed for the product.
CAUTION!! Wet activated carbon removes oxygen from air causing a severe hazard to workers inside
carbon vessels and enclosed or confined spaces. Before entering such an area, sampling and work
procedures for low oxygen levels should be taken to ensure ample oxygen availability, observing all local,
state, and federal or national regulations.
EXPOSURE CONTROLS/PERSONNAL PROTECTION
Exposure Guidelines:
OSHA PEL*:
5mg/M3 (Respirable)
ACGIH TLV*:
10 mg/M3 (Total)
*PELs and TLVs are 8-hour TWAs unless otherwise noted.
Ventilation System:
A system of local and/or general exhaust is recommended to keep employee exposures below the
Airborne Exposure Limits. Local exhaust ventilation is generally preferred because it can control the
emissions of the contaminant at its source, preventing dispersion of it into the general work area. Please
refer to the ACGIH document, Industrial Ventilation, A Manual of Recommended Practices, most recent
edition, for details.
Personal Respirators:
For conditions of use where exposure to the dust or mist is apparent, a half-face dust/mist respirator may
be worn. For emergencies or instances where the exposure levels are not known, use a full-face positive-
pressure, air-supplied respirator. WARNING: Air-purifying respirators do not protect workers in oxygen-
deficient atmospheres.
Skin Protection:
Wear protective gloves and clean body-covering clothing.
Eye Protection:
Use chemical safety goggles. Maintain eye wash fountain and quick-drench facilities in work area.
227
PHYSICAL AND CHEMICAL PROPERTIES

Appearance:
Black particulate solid, pellet, or powder.
Odor:
Odorless.
Solubility:
Insoluble in water.
Specific Gravity:
1.5-1.8
pH:
% Volatiles by volume @ 21C (70F):

0
Boiling Point:
Sublimes.
Melting Point:
3550C (6422F)
Vapor Density (Air=1):

0.59
Vapor Pressure (mm Hg):

1 @ 3586C (6487F)
Evaporation Rate (BuAc=1):

STABILITY AND REACTIVITY
Stability:
Stable under ordinary conditions of use and storage.
Hazardous Decomposition Products:

Involvement in a fire causes formation of carbon dioxide and carbon monoxide.
Hazardous Polymerization:
Will not occur.
Incompatibilities:
Liquid air and oxidizing materials. Strong oxidizers such as ozone, liquid oxygen, chlorine, permanganate,
etc.
228
Conditions to Avoid:
Incompatibles.
TOXICOLOGICAL INFORMATION
Investigated as a reproductive effector.
--------\Cancer Lists\------------------------------------------------------
---NTP Carcinogen---
Ingredient Known Anticipated IARC Category
------------------------------------ ----- ----------- -------------
Activated Carbon No No None
ECOLOGICAL INFORMATION
Environmental Fate:
Environmental Toxicity:
DISPOSAL CONSIDERATIONS
Whatever cannot be saved for recovery or recycling should be managed in an appropriate and
approved waste disposal facility. Processing, use or contamination of this product may change the waste
management options. State and local disposal regulations may differ from federal disposal regulations.
Dispose of container and unused contents in accordance with federal, state and local requirements.
OTHER INFORMATION
NFPA Ratings: Health: 0 Flammability: 1 Reactivity: 0
Label Hazard Warning:

WARNING! FLAMMABLE SOLID. ACTIVATED CARBON AFFECTS THE RESPIRATORY AND
CARDIOVASCULAR SYSTEMS.
Label Precautions:
Keep away from heat, sparks and flame. Avoid contact with eyes, skin and clothing. Avoid breathing dust.
Keep container closed. Use with adequate ventilation. Wash thoroughly after handling.
229
Label First Aid:

If inhaled, remove to fresh air. Get medical attention for any breathing difficulty.
Product Use:
Laboratory Reagent.
230
MATERIAL SAFETY AND DATA SHEET: VIRGIN COCONUT OIL
PRODUCT INFORMATION
Product Name: VIRGIN COCONUT OIL

Description:
This product does not contain toxic chemicals. It can be used as food supplement. High Lauric
content of coconut oil is very beneficial it attacking viruses, bacteria, and other pathogens and it builds the
bodies’ immune system.
Virgin coconut oil is the least susceptible to oxidation of any plant oil. Its natural anti oxidants give
it the longest shelf life of any plant oil. It is recommended that the oil be stored out of direct sunlight.
SECTION 1- PHYSICAL DATA
Color & Odor PALE YELLOW. OILY LIQUID CHARACTERISTIC ODOR

Boiling Point WILL NOT BOIL
Melting Point SEMI-LIQUID AT ROOM TEMP
Vapor Pressure NA
Vapor Density EXCEEDS 1.0
Water Solubility INSOLUBLE
pH 7-8
Freezing point 10ºC
SECTION 2- CHEMICAL PROPERTIES
Moisture 0.3%-0.4%
Free Fatty Acid 0.39%-0.58%
Peroxide Value 0.19%
Iodine Value 5.42%-6.02%
Vitamin E 39.34 µg/mL ( alpha tocopherol)
Lauric Acid Content 45% minimum
SECTION 3- FIRE, EXPLOSION AND REACTIVITY
Flash Point 550 F

Extinguishing Media FOG-Yes | CO2-Yes | FOAM-Yes |
Dot Classification NON-HAZARDOUS
Stability STABLE
NFPA Classification
Fire Fighting COOL CONTAINERS EXPOSED TO HEAT WITH WATER.
Unusual Fire Hazard NONE
Hazardous Combustible
NONE
Decomposition Products
231
SECTION 4 – HEALTH HAZARDS DATA
Material
VEGETABLE OIL
Type
OIL MIST MAY AFFECT THE RESPIRATORY SYSTEM. OIL MIST IS CLASSIFIED AS A
Health
NUISANCE PARTICULATE BY ACGIH. SENSITIVE INDIVIDUALS MAY EXPERIENCE
Hazard
DERMATITIS AFTER LONG EXPOSURE OF OIL ON SKIN.
Primary
Entry INHALATION, SKIN CONTACT AND EYE CONTACT
Routes
SECTION 5 – EMERGENCY FIRST AID
Inhalation REMOVE TO FRESH AIR IMMEDIATELY.

Eye Contact WASH USING FIRST AID METHODS
Skin Contact WASH WITH SOAP & WATER.
Ingestion FOOD PRODUCT-VEGETABLE OIL. NOT HAZARDOUS
SECTION 6 – SPILL, LEAKAGE AND

DISPOSAL PROCEDURE
SMALL SPILLS: WIPE UP WITH PAPER RAGS & PLACE CONTAMINATED ITEMS IN-
Spill
CLOSED METAL WASTE CONTAINER. FOR LARGE SPILLS, USE NON-FLAMMABLE-
Procedures
ABSORBANT.
Waste
FOLLOW LOCAL, STATE & FEDERAL LAWS.
Disposal
SECTION 7 – HANDLING AND SHIPPING

PROCEDURES
Handling &
STORE IN TIGHTLY SEALED CONTAINERS IN COOL DRY AREA. DO NOT
Shipping
EXPOSE TO-TEMPS ABOVE 35C.
Procedures
232
MATERIAL SAFETY AND DATA SHEET: COCO VINEGAR
SECTION 1: Chemical Product and Identification
Product Name: Coco Vinegar or Acetic Acid

Synonyms:
Ethanoic acid; Ethylic acid; Glacial acetic acid; Methanecarboxylic acid; Vinegar acid
Formula: CH3COOH
SECTION 2: Composition, Information on Ingredients
Chemical Name: Acetic Acid

Hazard Class: Corrosive and Flammable Liquid
Concentration (W/W): 5%
Toxicity: LD50 oral (rat) 3310 mg / kg; LD50 dermal (rabbit) 1060 mg / kg; LC50 (mouse) 5620 ppm
per 1 hour
SECTION 3: Physical and Chemical Properties
Physical State: Liquid

Appearance: Colorless liquid
Odor: Pungent (vinegar) odor
Molecular Formula: CH3COOH
pH: 2.4 (1M), 2.9 (0.1M)
Vapor Pressure: 11.4 mm Hg
Melting Point/Range: 62°F
Boiling Point/Range: 244°F; 118°C
Specific Gravity/Density: 1.05 (Water=1)
Viscosity: 1.22 cP
Solubility: Soluble in water; releases heat/vapor
Odor Threshold: 0.48 ppm
Vapor Density: 2.10 (Air=1)
Evaporation Rate: 0.97 (n-Butyl acetate=1)
SECTION 4: Hazard Identification
Routes of Exposure: Acetic acid can affect the body if it is inhaled, ingested, or comes in contact with the
eyes and skin.
Summary of Acute Health Hazards
Ingestion: Swallowing acetic acid may cause severe injury or death. May result in penetration of the
esophagus, bloody vomiting, diarrhea, shock, hemolysis, and hemoglobinuria, which is followed by anuria.
Causes respiratory tract irritation.
233
Inhalation: May cause serious damage to the lining of the nose, throat, and lungs. Delayed breathing
difficulties may occur.
Skin: Contact with concentrated solution may cause serious damage to the skin. Effects may include
redness, pain, skin burns. High vapor concentrations may cause skin sensitizations, an allergic reaction
that becomes
evident upon re-exposure to this material.
Eyes: May very rapidly cause severe eye damage, which may be followed by loss of sight. Causes severe
eye irritation. Contact with liquid or vapor causes severe burns and possible irreversible eye damage.
Effects of Overexposure: Repeated or prolonged exposure to Acetic Acid may cause darkening or
irritation of the skin, erosion of the exposed front teeth, and chronic inflammation of the nose, throat, and
bronchial tubes. Bronchopneumonia and pulmonary edema may develop following acute exposure.
Chronic exposure may result in pharyngitis and catarrhal bronchitis. Prolonged or repeated skin contact
may cause dermatitis. Repeated inhalation may cause chronic bronchitis.
SECTION 5: First Aid Measures
Eyes:
Flush eyes with plenty of water for at least 15 minutes, occasionally lifting the upper and lower
lids. Get medical aid immediately.
Skin:
Get medical aid immediately. Immediately flush skin with plenty of soap and water for at least 15
minutes while removing contaminated clothing and shoes.
Ingestion:
Do NOT induce vomiting. If victim is conscious and alert, give 2-4 cupfuls of milk or water. Never
give anything by mouth to an unconscious person.
Get medical aid immediately.
Inhalation:
Get medical aid immediately. Remove from exposure to fresh air immediately. If not breathing, give
artificial respiration. If breathing is difficult, give oxygen.
SECTION 6: Fire Fighting Measures
Flash Point: 103°F (40°C)

Autoignition Temperature: 801°F (427°C)
Lower Explosive Limit: 6.6 volume % @ 139°F
Upper Explosive Limit: 19.3 volume % @ 199°F
Unusual Fire and Explosion Hazards: Combustible
Extinguishing Media: Water, alcohol foam, dry chemical, or carbon dioxide.
Special Firefighting Procedures:
Use water spray to keep fire-exposed containers cool. In the event of a fire, wear full protective clothing
and NIOSH-approved self-contained breathing apparatus with full face piece operated in the pressure
demand or other positive pressure mode. Water may be used to flush spills away from exposures and to
dilute spills to non-flammable mixtures. Water diluted acid can react with metals to form hydrogen gas.
General Information:
234
Wear appropriate protective clothing to prevent contact with skin and eyes. Wear a self-contained
breathing apparatus (SCBA) to prevent contact with thermal decomposition products. Reacts with most
metals to form highly flammable hydrogen gas that can form explosive mixtures with air.
SECTION 7: Accidental Release Measures
Eliminate all ignition sources. No flares, smoking, or flames in area. Use non-parking tools and
equipment. Keep material out of water sources and sewers. Build dikes to contain flow as necessary. Use
water spray to knockdown vapors and to dilute spill to a nonflammable mixture. Neutralize spilled material
with crushed limestone, soda ash, or lime. With clean shovel, carefully place material into clean, dry
container and cover. Remove from spill area. Flush area with water. Take measures to protect runoff from
entering storm drains, sewers and/or streams.
SECTION 8: Handling and Storage
Handling:
Wash thoroughly after handling. Remove contaminated clothing and wash before reuse. Use with
adequate ventilation. Empty containers retain product residue, (liquid and/or vapor), and can be
dangerous. Do not pressurize, cut, weld, braze, solder, drill, grind, or expose such containers to
heat, sparks or open
flames. Avoid contact with heat, sparks and flame. Do not get on skin or in eyes.
Avoid ingestion and inhalation.
Storage:
Keep away from heat, sparks, and flame. Store in a cool, dry, well-ventilated area away from
incompatible substances. Store in a suitable container in a dry area above the substance's freezing
point. Protect against physical damage. Store in a cool, dry well-ventilated location, away from any
area where the fire hazard may be acute. Outside or detached storage is preferred. Separate from
incompatibles. Containers should be bonded and grounded for transfers to avoid static sparks.
Storage and use areas should be No Smoking areas. Use non-sparking type tools and equipment,
including explosion proof ventilation. Protect from freezing. Store above 62°F (17°C). Containers of
this material may be hazardous when empty since they retain product residues (vapors, liquid).
SECTION 9: Exposure Controls/Personal Protection
Engineering Controls:
Use adequate general or local exhaust ventilation to keep airborne concentrations below the
permissible exposure limits.
Respirator Selection:
Respiratory protection required if airborne concentration exceeds the required. 500 ppm or less
(1250 mg/m³ or less): Chemical cartridge respirator with acid/organic cartridge. 500 ppm or greater
(1250 mg/m³ or greater): A self-contained breathing apparatus. Air purifying respirators do not
protect workers in oxygen-deficient atmospheres.
Ventilation:
An at least 10 air change per hour is recommended to control mist and vapor.
Protective Clothing:
235
Employees should be provided with and required to use impervious clothing, neoprene gloves,
and other appropriate protective clothing necessary to prevent
any possibility of skin contact with solid or liquid acetic acid.
Eye Protection:
Employees should be provided with and required to use face shields (eight-inch minimum) and
dust- and splash-proof safety goggles where there is any possibility of solid or liquid acetic acid
contacting the eyes. Maintain eye wash fountain and quick-drench facilities in work area.
Work/Hygienic Practices:
Employees who handle solid or liquid acetic acid should wash their hands thoroughly before eating,
smoking, or using toilet facilities. A safety shower, an eye bath, and washing facilities should be available.
SECTION 10: Stability and Reactivity
Stability: Stable under ordinary conditions of use and storage. Heat and sunlight can contribute to
instability. Releases heat and toxic, irritating vapors when mixed with water. Acetic acid contracts slightly
upon freezing which may cause the container to burst.
Hazardous Polymerization: Will not occur
Conditions to Avoid: Heat, flame, ignition sources, freezing, incompatibles.
Materials to Avoid: Strong oxidizing agents, most common metals (except aluminum), chromic acid, nitric
acid, sulfuric acid, ethylene glycol, perchloric acid, sodium peroxide, strong caustics, hydroxides, oxides,
phosphates, hydrogen peroxide, alkalies, carbonates, strong bases, amines, phosphorous trichloride,
phosphorous pentachloride.
Hazardous Decomposition Products: Thermal decomposition or combustion may produce carbon
monoxide and/or carbon dioxide. May also release toxic and irritating vapors.
SECTION 11: Disposal Considerations
Acetic Acid may be disposed of by atomizing in a suitable combustion chamber, or diluted and
then neutralized with caustic solution. Whatever cannot be saved for recovery or recycling should
be handled as hazardous waste and sent to an approved waste facility. Processing, use or
contamination of this product may change the waste management options. State and local
disposal regulations may differ from federal disposal regulations
IMPORTANT! Read the MSDS before use or disposal of this product. Pass along the information to
employees and any other persons who could be exposed to the product to be sure that they are aware of
the information before use or other exposure.
236
APPENDIX II
Environmental Assessment Impact
I. Project Description
Title: Integrated Coconut Processing
Rational/Importance:
Rational Importance
Air and noise Pollution Job opportunities
Loss of farmland
Resistance of relocation General progress for the barangay
Harmful effect to human health
Destruction of vegetation Production semiconductors
Increase in seawater temperature
Sitting : The Integrated Coconut Processing Plant will be situated in Silangan Malikboy, Pagbilao Quezon
Province. The major factors for the selection of the location are (1) raw material availability in the area, (2)
markets, (3) power and fuel, (4) climate, (5) transportation facilities.
237
Process Evaluation and Economics

Over All Material Balance
Whole Coconuts = 7,250 kg Husked Nuts = 6,000 kg

Dehusking
FI (Manual) P1
• Husk = 33.33 % of Whole Nut
• Average Weight of • Coir
Coconut = 1.2 kg • Fiber
• 6,250 pcs of Coconuts • Geotextiles
OMB : • Coco peat
F1 = P1
Husk Balance :
P1 = 7,250 kg x 0.3333 = 6,000 kg
Husked Nuts = 6,000 kg

F2
Coco Water = 1,230 kg Coco Shell = 1,560 kg

Shelling
P3 Machine P2
• Shell = 26% of husked nut
• Charcoal
• Activated Carbon
• Wasted Coco water = 20.5%
Shelled Whole Nuts = 3,210
• Shelled Nut w/ testa = 53.5%
P4
OMB :
F2 = P2 + P3 + P4
Shell Balance :
P2 = 6,000 kg x 0.26 = 1,560 kg
Waste Coco Water Balance:
P3 = 6,000 kg x 0.205 = 1,230 kg
Shelled Whole Nut Balance:
P4 = 6,000 kg x 0.535 = 3,210 kg
238
Shelled Whole Nuts = 3,210 kg
F3
Coco Water = 720 kg
P6 Splitter P5
• Recovered Coco water = 12% ave
• Vinegar • Halves Coco meat with
Testa Paring
OMB :
F3 = P5 + P6
Coco Water (recovered) Balance :
P6 = 6,000 kg x 0.12 = 720 kg
Halves Coco Meat Balance :
P5 = 3,210 kg – 720 kg = 2490 kg

Paring = 4.2 kg
F4 Paring P7
(Manual) • Testa Paring = 0.07%
White Meat = 2,485.8 kg

P8
OMB :
F4 = P7 + P8
Testa Paring Balance :
P5 = 6,000 kg x 0.0007 = 4.2 kg
White Meat Balnce :
P8 = 2,490 kg – 2.4 kg = 2,485.8 kg
239
White Meat = 2,485.8 kg Ground Coco Meat = 2,485.8 kg
F5 Grinder P9
• Virgin Coconut Oil
• Coco Mill
• Coco Burger
OMB :
F5 = P9
P5 = 2,485.8 kg
Key Actors
PROPONENTS
Plant Owners: Djhoanna Bautista
Lorie Jane Dadural
Mary Anne Demition
Mary Arriane De Dios
Mhe-anne Ferrer
Maria Rica Fiesta
Rodel Marcelo
Superficial EIA Preparers: Mila Binosa

Anne Marjorie N. Chan
Marc Ivan Anthonesco S. Fidel
STAKEHOLDERS
Pagbilao Community
Kapatirang Alay sa Kaunlaran ng Bayan or Kaakbay-Quezon
Kabataan para sa Kalikasan
GOVERNMENT
DENR Region IV
Quezon province government
240
II. Baseline Information
THE EXISTING ENVIRONMENT
AIR QUALITY AND METEOROLOGY
METHODOLOGY
The Air Quality and Meteorology study made use of both secondary and primary data to characterize the
existing environment. For parameters which cannot be observed, the values were estimated using various
methods such as thermodynamic diagrams. Further, mathematical models were used to augment the
above sources of information, e.g. Surface Wind Model.
In the prediction and quantification of impacts on TSP, SO2 and NOX the Australian EPA Gaussian
Diffusing Model was used. Various permutations for both plant and meteorological parameters were used.
In both cases, the worst case scenarios were considered.
In the prediction of fugitive dust from coal stockpile, an area source model patterned after Hanna, Briggs
and Husker (1982) was used. Calculations were based on wind speed and source strength. The
descriptive method was likewise utilized for the prediction of noise and dust generated during construction.
METEOROLOGICAL SETTING
Regional Climatology
The major climatic controls that forge the climate of the project area are the prevailing winds and
topography. The project site being located at the western side of Luzon, is subject to the influence of the
southwest monsoon which prevails over the country from June to October. From late October to March, on
the other hand, the northeast monsoon prevails over the area exerting maximum influence during the
month of January.
The climate of the project area falls under Type III of the modified Corona’s classification of the Philippine
climate. It is characterized by the absence of a pronounced maximum rain period and a short dry season
lasting only from one to three months. This type closely resembles the climate descriptive of the western
section of Luzon from Batangas to Ilocos Norte because of the short duration of the dry season which
occurs during the winter or spring of the northern hemisphere. Other places having this same type of
climate include the northeastern part of Ilocos Norte, Kalinga Apayao Cagayan, the Mountain Province,
the western part of Isabela. The eastern part of Nueva Vizcaya, Bulacan, the eastern parts of Laguna and
Batangas, Oriental Mindoro, Romblon, Marinduque, Aklan Capiz, the northern parts of Antique and Iloilo,
Negros Occidental, the eastern part of Negros Oriental, Siquijor, Zamboanga del Norte, and western part
of Zamboanga del Sur,Basilan, Lanao del Sur,Bukidnon, Misamis Oriental and Western part of Agusan del
Sur,North Cotabato and Eastern Maguindanao. The climate map of the Philippines is shown in Fig III-A-
1.
The relevant climatological data for the project site are shown in Tables III-A-1 and III-A-2.
Rainfall
Different rain causing weather patterns such as the air streams, tropical cyclones and intertropical
convergence zone and local convective activities such as thunderstorms bring about rainfall over the area.
Intensities and amounts of rainfall are influenced by the general geographic setting, topography and
exposure to the prevailing wind streams. Based on the 17 years of records of the PAGASA station at
Tayabas, Quezon (Table III-A-1), the average annual rainfall over the project site is 3083.9 mm. The
wettest period occurs during the months of May to January when the mean monthly rainfall values exceed
150 mm. October and November are the rainiest months with average monthly values of 512.7 mm and
519.9 mm, respectively. The highest rainfall for a 24 hour period of 557.7 mm was recorded on May 21,
241
1976 (Table III-A-2.) The dry period extends from February to April with mean monthly rainfall values less
than 105 mm.
AMBIENT AIR QUALITY
Survey of Existing Air Pollution Sources
A survey of existing probable air pollution sources within 50 km of the proposed site was conducted
through the assistance of the Environmental Management Bureau, the DENR Region IV office and the
Department of Trade and Industry. A list of registered industries which may be probable air pollutions
sources within 50 km of the site is shown in Table III-A-4.
These are few probable significant sources of air pollution within 50 km of the site. Most of the industrial
firms in the area deal with small-scale processing of coconut oil. The only significant sources are the Mar
copper Mining Corporation located 50 km southeast of the project site and the Fortune Cement
Corporation which is located 55 km west of the Pagbilao Grande Island.
Name of Firm Location Possible Emissions
AR Coco Mill, Inc Tayabas, Quezon CO2, NOX, TSP, Trace of

SO2
Blue Bar Coconut Mill Tiaong, Quezon CO2, NOX, TSP
Colgate Palmolive Inc. Lucena City NOX
Delfin Licup Mini Oil Candelabra, Quezon SOX, NO2
Refinery
Fortune Cement Corp. Taysan, Batangas TSP, NOX, SO2
Guanzon Lime Dev. Corp. Tayabas, Quezon TSP
ANJ Oil Industries Inc. Lucena City SO2, NOX, TSP
La Suerte Oil Mill and Lucena City SO2, NOX
Refinery
Lucena Dessicated Coconut Lucena City CO2, NOX, TSP, trace of
SO2
Mini Oil Refinery Lucena City CO2, NOX, TSP
New Lucena Oil Products Lucena City CO2, NOX, TSP
Inc.
Phil Plywood Corp. Tagkawayan, Quezon TSP
Mar copper Mining Corp. Sta. Cruz, Marinduque TSP, NOX, SO2
Table III-A-4
Air Quality Monitoring
The air quality in and around the project site was characterized by taking air samples for concentrations of
total suspended particles(TSP), sulfur dioxide (SO2), oxides of nitrogen (NOX) and sound levels. Since a
large portion of the site was perceived to be almost homogenous, these samples were taken in a total of
five stations only. The air quality sampling stations are shown in Fig. III-A-10.
Total Suspended Particulates
The results of TSP air samplings which were performed on January 18 1992 in 5 stations are shown in
Table III-A-5. A high volume sampler powered by a 1.5 KVA portable generator was used in the
samplings.
The data indicated low values of TSP concentrations near the plant site. At Sitio Aplaya, Brgy.
Pinagbayanan, Pagbilao, which is located along the coastline of the mainland northwest of the plant site,
the TSP concentration was 24.3 ug/scm while at the plant site itself, the concentration was 20.7 ug/scm.
242
The TSP concentrations in Lucena City and Tayabas town are higher than those nearer the site. This may
be due to more vehicular traffic and more human activities.
The measured TSP concentrations in all stations are well within the national ambient standard for TSP
which is 250 ug/scm for one hour samples.
Sulfur Dioxide
The results of sulfur dioxide and nitrogen dioxide samplings are shown in Table III-A-6. The values in the
table are the equivalents for one hour sampling. Among the stations sampled, Lucena City proper
registered the highest sulfur dioxide concentrations at 305 ug/scm followed by Pagbilao Public Market at
209 ug/scm. At the project site, sulfur dioxide was noe detectable and so at Capas-Capas. At the Pagbilao
Pier, reading of So2 was 30.4 ug/scm At Palsabangon Bridge along Pagbilao-Atimonan highway the
reading was 152 ug/scm. These values however, are still within the ambient air quality standard for sulfur
dioxide of 850 ug/scm for one hour sampling.
Nitrogen Dioxide
Considering the ambient standard for nitrogen dioxide of 190 ug/scm, the values observed in all stations
(Table III-A-6) were well within the standards. Slightly elevated reading was obtained in Lucena City where
there are large numbers of diesel powered vehicles. At the proposed site, levels were not detectable.
Noise Level Monitoring
Noise level monitoring was conducted in the same air sampling stations as well as at the various points at
the project site. Noise levels at the project site ranged from 42 dB(A) to 45 dB(A) which are representative
of rural undeveloped environment. The typical noise levels in Lucena City, Pagbilao town proper and along
Pagbilao, Atimonan highway ranged from 70 dB (A) to 73 dB (A) along the roadways. Noise levels
occasionally rise to 75 dB (A) during passage of tricycles and passenger jeepneys.
LOCAL AND REGIONAL HYDROLOGIC SETTING
Pagbilao Grande Island
The Pagbilao, Grande Island has an area of about 72 square kilometers. It is generally hilly with few
flat lands near the coastline. Northeast of the island is Mount Mitra with peak elevations of 70
meters while the Balilisan Mountain Range is found at the southernmost tip. The forest cover of
the island is almost nil except some patches of coconut plantations. Grasslands and some
cornfields are found in the central and southern part of the island.
The drainage system of the island (Fig. III-C-4) is mainly through swift surface runoff along natural
drainage ways towards the sea. The absence of trees natural depressions in the island are the main
reasons for the minimal ground infiltration of rainfall. The only indication of the presence of groundwater
storage is the presence off the intermittent Balilisan Creek in the swampy area in the south which is the
only surface water source in the island. There are no data on groundwater resources in the island.
Regional geology, however, shows some possibility of groundwater storage in cracks of the coralline
limestone formations in the island. The prospective sites for groundwater aquifers are areas in the
northeast and south close to base of Mount Mitra and Mount Balilisan.
Groundwater Resources
The groundwater amp for the region (Fig III-B-2) shows that the Pagbilao area belongs to the
shallow well category which is suitable for construction of wells with depths of not more than 20
meters below ground surface (mbgs). Domestic well data (Table III-B-1 and III-B-2) for Pagbilao and
Padre Burgos show that the average groundwater table depth in Pagbilao is 4.5 mbgs while that of
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Padre burgos is 3.45 mbgs. The average actual well capacity in Pagbilao is 0.0033 cu.m./s with an
average depth of 12 meters. In Padre Burgos, the average depth of wells is 15 mbgs with an
average actual well capacity of 0.0047 cu.m./s.
The Palsabangon River System
The Palsabangon water shed, having an area of about 50 square kilometers, is located about 40 km east-
southeast of Mount Banahaw. It is bounded by mountainous areas in the north and south which are
extensions of the Sierra Madre Mountain Range. The general topography of the basin is hilly to
moderately hilly with some flat areas close to rivers. Coconut plantations cover most parts of the
watershed specially in the central, western and southern part. Rice fields are found in flat areas in the
central and southern parts of the basin. At present, the coconut plantations are slowly disappearing due to
cutting down of coconut trees for coco lumber.
The basin rainfall (mm) and the watershed runoff (mn) are shown in Figs. III-B-3 and III-B-4, respectively.
The Palsabangon River is about 20 km long with six tributary creeks. There are no long-term
discharge records for this river. However, short-term records of the National Irrigation
Administration (NIA) show that the discharge has a maximum value of about 0.516 cu.m./s and a
minimum of about 0.192 cu.m./s at a location just upstream of the NIA dam.
Water Uses
The major water uses in the area consists of irrigation and domestic consumption. Commercial and
industrial uses are minimal since no big industries are located in the area. The water irrigation withdrawal
from the Palsabangon as reported by NIA is about 13,220 cu.m./day. The irrigation requirement, however
is perceived to be larger than the present withdrawal rate since during dry season, the operation of the
irrigation system is on a rotation basis. The local irrigator’s association is planning to construct another
irrigation system which may necessitate the construction of another dam. For domestic uses, the
estimated consumption of Pagbilao at present is 3,793 cu.m./day based on an estimated population of
32,983 with 0.115 cu.m/ per capita per day consumption. In the year 2000, with an estimated population of
57,585, the projected domestic needs is 6,654 cu.m./day
EXISTING OCEANOGRAPHIC SETTING
Tidal Characteristics
The tide at the project site is the mixed type which becomes diurnal around the times of the
moon’s maximum declination. There is no primary tide station in Pagbilao Bay or even in Tayabas
Bay. However, tidal predictions for the mouth of Tayabas River directly south of Lucena City and
about 15 km to the west of the project site are available from NAMRIA with Cebu Harbor as the
reference station. The average difference between the mean high water and the mean low water at
the site is 0.91 m while the average diurnal range which is the difference between the tide
elevations at the mean higher high water and mean lower low water is 1.46 m. The mean tide level
at the site is estimated at 0.70 m. above the mean lower water elevation.
Tidally Induced Current
During flood tide the flow in the vicinity of the project site is towards the northwest or towards the Pagbilao
Bay. This current component is about 8 cm/s on the average. The flow reverses during ebb tide or outward
to Tayabas Bay with an average speed of about 10 to 12 cm/s.
Wind Driven Current System
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Due to the absence of long term current observations near the project site, a mathematical model based
on the vertically integrated primitive equations of motion was used to determine the physical response of
the waters surrounding the project site to the forcing imposed by the prevailing wind. The wind driven
circulation of Pagbilao Bay and the northern portion of the Tayabas Bay was simulated in the
mathematical model using the southwesterly (SW), the northeasterly (NE), and the southeasterly (SE)
wind flows. The resulting wind driven current patterns are shown in Figs. III-B-21 to III-V-23.
The simulation results show similar current patterns for the northeasterly and southeasterly cases. The
patterns reverse when the prevailing wind flow becomes southwesterly. The current speeds inside
Pagbilao Bay are very small, with magnitudes generally less than 5 cm/s in all cases. This is probably due
to the shielding effects of Pagbilao Grande Island and the coral reef at the mouth of Pagbilao Bay.
Wind Waves
Significant waves generated by wind will only occur at the project site during the southwest monsoon
season during the passage of tropical cyclones. For most part of the year, when the winds blow from
north, northeast, east or from the southeast, the significant wave heights at the project site would be less
than 0.30 m. (The significant wave height is the average height of the highest 1/3 waves.) These waves
will have a significant period of about 1.5 seconds. During the southwest monsoon and the absence of a
nearby tropical cyclone, the significant wave height that may be expected in the area is about 1.0 m with a
significant period of 2.4 seconds. Significant waves can go as high as 4.0 m during passage of tropical
cyclones.
Temperature and Salinity Profiles
Temperature and salinity measurements were made at the site and are contained in the section on water
quality. Some historical data on measurements made along the coast of San Juan Batangas some 50 km
southwest of the project site, were also measured for another project and no significant temperature and
salinity differences can be detected up to a depth of 20 m. This condition is typical of tropical island seas
wherein the coastal waters are considered well mixed, i.e., homogenous in temperature and salinity. The
0 0
mean sea surface temperature at the project site is 27 C varying from 26 C during January to 290 C in
July. Surface salinity is around 33.5 ppt.
EXISTING WATER QUALITY
Fresh Water Resources Palsabangon River
Palsabangon River which is planned as a source of make up water for the power plant is currently being
used as a source of irrigation water. As such, the river can be classified as class D due to it’s present used
based on the water quality sampling undertaken in January and February the quality of water conforms to
the limits set by DENR’s Administrative Order number 34, march 20,1990 i.e, Class D industrial water
supply Class II.( Refer to the Table III-B-3 and 4 for results. )
Marine/ Coastal Water Tayabas Bay
Tayabas Bay is currently being used as a fishing ground thus it’s classification based on usage Class SC
i.e., for the propagation and growth of fish and other aquatic resources. Results of the laboratory analysis
for marine samples taken in the study are shown in Table III-B-5 and 6 of the parameters included under
Class SC, values for Cu have slightly exceeded the maximum limit. Oil and grease exceeded the allowable
limit at sampling stations M4 and M5. Deleterious substances such Pb and Cd are detected at all sampling
stations and have exceeded the permissible limits Hg was detected at sampling station M1 and though the
concentration was inconsistent from exceedingly high to within the limit it’s presence is undeniable.
It is believed that the detected levels of oil and grease may be attributed to the numerous motorized fishing
boats in the area. Diesel and gasoline are commonly brought to the island in jerry cans. Spillage during
filling and transport is very likely.
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The levels of Hg and Cu cannot be easily explained however it should be noted that trace metal test
conducted on the rocks in the island show the presence of Hg. It is not conclusive, however, that the sum
is responsible for the Hg levels measured.
Groundwater In Pagbilao Grande Island
The three (3) chosen existing wells as sampling stations are at the present source of drinking water supply
for the local residence in the island. Sampling was carried out in January and February. Results are shown
in Table III-B-7 to 8.
Based on the current use of these groundwater resources, the results should be comparable to Class GA
standard. However, the results revealed the presence of PO4 and Phenol. Further, presence of Hg was
confirmed for stations G2 and G3. Values had exceeded the maximum permissible levels particularly
those obtained during the first sampling. Station G1 also showed a low DO level and Cl content close to
the maximum allowable of 250 mg/L.
REGIONAL GEOLOGY
From a regional perspective, the project site consists of two components, viz.:
The isthmus of Quezon

And the Pagbilao Grande Island
The southern coastline of the isthmus is the venue for the access of roads, power lines and water lines of
the project. The power plant itself is to be situated on Pagbilao Grande Island.
These two geographic components are geologically distinct from each other. Pagbilao Grande Island lies
off the south coast of Quezon Province isthmus. However, both can be considered part of the Pagbilao-
Tagkawayan geological regime. Figure III-C-3 shows the geology of the regional area based on the
mapping of the Bureau of Soils in 1984.
The most prominent features dominating this region are the piedmont plain of Mt. Banahaw in the
northwest and the very active Philippine Fault zone in the north. The flattish but gradually rising volcanic
plain reflects the morphology resulting from the volcanoes volcanic eruption and affecting areas as far
away as Pagbilao. The town of Pagbilao is located at the very extreme southeastern edge of this piedmont
plain.
To the north of Pagbilao Grande Island and close to the Philippine Fault Zone, on the other hand the
Quezon isthmus is made up of a more complex geology and mountainous terrain with elevations up to 400
m. This youthful topography is characterized by steep and rugged slopes indicating the intense diastrophic
crystal movement along this area of the Philippine Fault Zone. (See figure III-C-4 Contour and Drainage
Map). The southward from this mountainous country, the topography abruptly flattens along the Pagbilao
town- Malikboy area south of the national highway and is characterized by extensive tidal flats and
swamps along the coastline.
Pagbilao Grande Island itself is outside these volcanic and mountainous terrains as it is separated from
the island by a narrow strait and appears to represent a localized reef formation.
In the mainland, The Quezon isthmus and the Pagbilao area are dominantly underlain by the Quaternary
and Neogene Volcanics mainly from the eruptions of Mt. Banahaw. None of these volcanic rocks were
mapped on Pagbilao Grande Island nor around the area along the proposed access route off the national
highway at the mainland, where patches of reefal limestone occur along the coastal areas.
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On the island, the dominant rock type outcropping near the shoreline is limestone. There are two types of
this rock present. A reefal, shallow marine limestone forms the backbone of the hillest hills. e.g., Mt. Mitra
in the northeast and Balilisan Mountain Range in the south. A second type is the deep-marine basal
limestone that is characteriscally bedded. This forms the cliffs on the coastal areas around the island.
The mid-portion of the island shows no limestone outcrops, with a topography that is distinctly subdued or
rolling, suggesting a different rock type and structure altogether. Two of the foundation drill holes (BH-1
and BH-2) in a recent drilling investigation at the plant site area showed the existence of a 1.5m to 2.0m-
thin layer of shale covering the main limestone bedrock. (See Figure III-C-5). Field mapping also
encountered shale and sandstone “floats” mixed with the thin soil cover in the central portions of the
island. Along the coast, the bedded limestone outcrops as bluffs devoid of the shale cover, which appear
to have been mostly eroded. This was confirmed by drill holes BH-3 and BH-4.
The stratigraphic column of the island would thus appear to consist of a basal limestone as the bulk of the
bedrock and overlain by a thin veneer of shale and sandstone at the central area. The high relief areas
comprised of Mt. Mitra in the northeast and Mt. Balilisan in the south are essentially reef limestones
perched on the shale covered, bedded, basal limestone.
Structures
The most prominent geologic structure in the region is the active Philippine Fualt that cuts across the
northern coast of the Quezon isthmus, in the vicinity of Lopez town and Hondagua Bay. This segment of
the fault has moved intermittently in recent times. The latest of these was in 1973 when the shoreline at
Lopez, Quezon was displaced horizontally by approximately 3,0 meters due to lateral movement along the
fault plane and which generated an earthquake of intensity V in the Rossi-Forel scale.
The Philippine Fault System is also believed to be actively coupled with the subduction taking place in the
vicinity of the Philippine Trench. The northwest trending ridge from Mauban to Atimonan is postulated as a
thrust fault area where this type of subduction is taking place, and which was likely responsible for the
considerably elevated topographies.
SITE GEOLOGY
Lithology
The plant site selected on the island is on predominantly limestone rock with the presence of a very thin
top shale layer in areas far from active wave action.
Field tests show the top layer of shale is roughly 2 m thick and well-indurated. The limestone under the
shale is indicated to be non-massive and friable due to the low drilling recoveries obtained. In borehole
BH-1, the limestone lying beneath the shale is the basal type as evidenced by the deep marine type of
limestone material encountered.
Pedology
Except for the coastal areas where the dominant soil is sand derived from the physical weathering by
wave action of the limestone, the rest of the island particularly those areas underlain by the flat, low relief
hills, is covered by a thin, black, organically rich clay of plasticity. Recent soil investigations around the
island and proposed project development sites indicate that this organic clay soil is quite pervasive in the
low to moderate relief areas and reaches a thickness of 2 m in the central parts of the islands. On the
steep slopes of the reef limestones forming the mountain ranges, the soil cover is negligible.
In the swampy embayments, however, the clay is very thick as exhibited in borehole BH-2, where a black,
humic soft soil was drilled from 0.0 to 9.0 m but becoming very stiff to hard clay in the 10.0 to 15.0 m
depth-interval.
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On the mainland, along the proposed access route to Pagbilao Grande Island, the soil is typical of mud
flats due to the deposition of clay eroded from the volcanic upland of the Mt. Banahaw slopes. Table III-C-
1 is a summary of soil descriptions at the project site.
Baseline data on the chemical elements present in the soils and rock are also in Table III-C-2. The results
indicate that solids and rocks at the project site consist of the normal levels of limestone based
constituents. An analysis of the common trace metal elements usually associated with coal-fired power
plant operations are included.
Drainage
There is no integrated drainage system on the island. Surface runoff is drained primarily by short,
intermittent, series of disparate rivulents and streams flowing in the general directions of the west and east
coastal areas (Fig. III-C-6). However, these drainage venues cause very little erosion because of their
small size and low profile gradient. Despite their small size, these streams maintain a relatively high water
table that serves as a perennial source of water for the inhabitants.
TERRAIN
The central and northern areas of Pagbilao island is composed of rolling low relief hills. These are
interrupted by abruptly rising mountains at the north (Mt. Mitra) and to the south (Mt. Balilisan). Along the
southern coast of the Quezon isthmus, the terrain is generally made up of mud flats. These variations in
landforms are attributable to the differences in the underlying rock types possessing distinct geologic
structures.
Low relief, rolling hills forming the major part of the island have developed as a result of the slightly
dipping, gently folded shale, sandstones and limestones.
A terrain evaluation map of the island was developed which subdivides the area into distinct landscapes of
a essentially homogenous characteristics (Fig III-C-7). Twelve physiological landscape patterns have been
identified within the immediate area based on the underlying geology, drainage, topography and soils.
These are
The Philippine fault system, and active part of which passes thru Lopez/Hondagua Bay, merely 40 kms
east of Pagbilao Grande Island;
The newly discovered offshore Mompog Pass Fault about 20 kms south of the project site;
The seismically active Lubang Island – Mindoro area about 50 kms to the west; and
Mount Banahaw Volcano, 25 kms northwest of the Island
These tectonic elements are probable earthquake generators that would trigger ground shaking and
ground displacement. Historical record of epicenters of shallow earthquakes with body magnitude of
greater than or equal to 4 are plotted in figure III –C-9. This is presented here to show that adjacent areas
to the project site have in fact been the epicenter of potentially destructive earthquakes.
TERRESTRIAL ECOLOGY
1. METHODLOGY
1.1 Vegetation
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Vegetation types were sampled along each transect line with the establishment of 100 square
meter plots ( 10 X 10 m ) at intervals of 500 meters or more. In situ- identification of most plant taxa was
done for each plot and also those plants encountered along the transect lines. Voucher ( herbarium )
materials for selected plant taxa were collected and now deposited at the Botanical Herbarium, Museum of
Natural History, University of the Philippines Los Baños.
All plant taxa observed and established transect lines were categorized as herbs / grass, shrub,
fern, vine / climber or tree and their potential economic uses ecological roles have been determined.
Absolute frequency of each plant taxon was determined from each sample plot while percent vegetation
cover was ocularly estimated and cross checked with recent satellite photographs.
Biodiversity and terrestrial ecosystem surveys at the proposed QCFTPP project site at Sitio
Capas-capas, Polo Ibaba, Pagbilao Grande Island were conducted on 21-23 December 1991, 26-31
December 1991 and 24-27 January 1992. The first two fieldworks fall in the wet season for the general
area while the latter is relatively within the dry season.
With the aid of the contour map showing the proposed location of facilities the actual sites in the
thermal power plant and the proposed 230 KV transmission line route were located on the ground. The
nearest tying point seen was that of T3-H ( red paint marked on the coconut trunk ) at km 15+240 station.
From this benchmark the transmission survey route which served also as the terrestrial ecology Transect
Line ( TL ) number 1 was retraced up to the Little Batangas area of Sitio Capalos, Polo Ibaba. Ten sample
plots ( 10 X 10 m ) were established at various intervals along the intersect lines. The other half of transect
line number 1 was retraced starting from the opposite direction, that is, from Kanlurang Malicboy to Kipot,
then to Sitio Culasi, Sitio Lagyu – all of Polo Ilaya and then terminating at the same site in Little Batangas,
Sitio Capalos, Polo Ibaba.
The next major activity was to locate the proposed access road and the route of the water pipeline
originating from Palsabangon River. This was done starting with the Little Batangas area then going to the
water tank / reservoir site and finally to the thermal power plant site. A thorough inspection of this area
revealed that no survey line had been set up yet even along the ready obscure gravel road. Nonetheless,
primary vegetation data were also obtained from this site. This rough access road which is about 0.5 to 1.0
km away from the previously located transmission survey line (= Transect Line number 1 ) and less than
0.5 km away from the proposed waterline route, was designated as Transect Line number 2; Because of
proximity of this transect line to the proposed water line route, the information of vegetation profile and
plant species diversity obtain from this transect line are considered to be representative of the general
area. A total of 4 sample plots were established along Transect Line 2. Figure III-D-1 shows the
approximate location of the transect lines.
From the number of plants observed in the different transect lines, the following ecological parameters of
vegetation have been calculated:
1. Species Diversity Index ( Shannon Water Formula )

H = - E (ni/N)
Where ni = total number of individuals per species

N = total number of individuals
2. Evenness Index (e):
E = H/log s
Where s = number of species
3. Dominance Index ( C )
C = E (ni/N)2
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Absolute frequency was measured by taking the number of individuals per species present in each sample
slot.
1.2 Wildlife
Seven 2-km long transect lines were established along directly affected areas in Pagbilao Grande
Island and on Pagbilao mainland. These primary influence areas those that will be affected by the site
construction, road building, transmission lines, and the water pipeline from Palsabangon river. Three
transect lines were located in the island, three in Pagbilao mainland, and one of the nearby Quezon
National Park.
Transect one follows the proposed road extension from the school house of East Malibu to the
nearest point of Pagbilao mainland to the island at Sitio Kemp. Transect I traverses mostly agricultural
areas of coconuts, and rice lands. Transect II traverses the mangrove-fishpond area along the coastline of
Pagbilao from Sitio Kemp to Banana-an river. Transect III was located along the proposed water pipe line
from Palsabangon River to Kanluran Macliboy.
Transect IV, V and VII were located in Pagbilao Grande Island, Transect VI runs parallel of Mt.
Mitra range from Sitio Maulawin to Sitio Lagyu. It traversed mainly agricultural areas of coconuts and rice
lands with a vary tall under story of second growth. Some coconuts were cut for coco lumber, while the
under story shrubs were cut as source of charcoal. Transect V runs along the proposed transmission line
and road in the middle of the island. It traversed a rolling grassland vegetation of “talahib” ( Saccharum
spontaneum ) and “cogon” ( Imperata cylindrical ) with few coconut trees, ricefields, corn and mongo field.
Transect VII was located nearest the power plant at Sito Capas – capas to Capalos. It traversed a small
mangrove enclave towards agricultural lands planted to corn , cassava rice and coconut.
Transect VI was located in Quezon National Park along the highway from the Old parks and wild
life station to the zigzag road. It traversed a remnant Dipterocarp Forest at Pinagbanderahan to a second
growth area near the old waiting shed at the boundary of Pagbilao and Atimonan towns. It is along this
strip that a transmission survey lines bisects the Quezon National Park from Padre Burgos side.
Observations of diurnally active wildlife species (mostly birds) were conducted along the said
transect lines. Observed species of wildlife and their numbers were recorded to derive quantitative data.
Reptiles, amphibians, and mammals which were mostly nocturnally active were recorded in terms of the
calls, the roosting places, faecel droppings and other activity signs. Some snakes and lizards were
recorded through observation when they were disturbed along the transect line. Bats were netted using
mist nets and rats were caught using snap traps, except for one common shrew ( Sancus murinus ) all
small mammals were caught in the snap traps were rodents and are known to be pest to the agricultural
crops such as coconut, corn, rice and cassava.
From the number of birds observed in the transect line, a species diversity index using the
Shannon diversity index (H), dominance index ( C ), and the evenness index ( e ) for birds was derived
using the following formula:
Shannon Species Diversity Index (H) = - E (in/N) log (in/N)
Index of Dominance ( C ) = E (in/N)2
Evenness Index ( e ) = H / log s ( no. of species )
Listing of wildlife species for birds, mammals reptiles and amphibians were separated for each transect
line. The list area in alphabetical order of the species scientific names. Status and English Common
Names of various wildlife species are included in the combined species are included in the combined
species recorded according to taxonomic order. Amphibians, reptiles, birds and mammals recorded for all
the transect lines were combined but are presented in separate tables per major wildlife group.
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Anthopods
A standard insect net was used in collecting insects in both open and vegetated areas along the
established transect lines for vegetation. About 10 to 25 sweeps were made per run depending on
topography and type of vegetation along each transect line. The samples were not meant to determine an
absolute estimate of insect densities but rather to gain an insight to anthropod species present, species
dominance at a given time and place, and more importantly and relative abundance of each species.
H = ( - E log epl )
Where:
Pi = N1/N
N1 = total number of individuals / species
N = total number of individuals
The insects collected were killed in a cyanide bottle and preserved in 70% ethyl alcohol for laboratory
examination. Some insects (e.g. butterflies and moths ) were placed in paper triangles.
Specific habitats and inaccessible areas were sampled for anthropods of medical importance. Spiders
were also collected by a net, a stick (in the case of orb spinners) or hand picked and preserved in 70%
alcohol. Observations on relative abundance and distribution of terrestrial and aquatic anthropods were
noted in relation to time of day, weather condition and type of habitat.
Complimentary studies on species composition of nocturnal insects were undertaken. A probable battery-
operated fluorescent lamp ( combination of ultraviolet and ordinary fluorescent lamp ) was used for this
purpose. Samples of insects attracted to the light were collected, preserved and catalogued for
identification. Air temperature, relative humidity and wind velocity were also recorded.
Top soil and forest leaf litter samples were collected within the projected impact area including selected
sites in Pagbilao Grande. The procedure involved collection of loose top soil ( 10 cm deep ) and
decomposing leaf litter at approximately 30 sq cm. of the soil surface. Samples collected were placed in
plastic bags secured with rubber bands. The samples were brought to the laboratory and placed on a wire
platform inside breeze funnels ( with 25 watt bulb above the screen ) for a period of 24 hrs, retrieved and
preserved in 8 ounce juice jars containing 95% ethyl alcohol.
Regional Ecology and Sitting Ecology
Introduction
Pagbilao Grande Island which is the site of the Quezon Coal – Fired Thermal Power Plant (QCFTPP) is
situated about 17 aerial km SE of Pagbilao Town Proper. It is the largest island within the Pagbilao Bay.
On its SE flank is the Dampalitan Island while to its immediate eastern side is the town of Padre Burgos.
About 20 km NE of Pagbilao Grande is the Quezon National Park, one the country’s foremost protected
areas and this is stradding between the towns og Pagbilao. Atimonan and Padre Burgos. This particular
national park is the only protected area in the port of Quezon Province representing a combination of
limestone or karst vegetation, logged over areas swidden fields and small tract of lowland rice varieties,
and various cash crops.
Along the coastal areas, are commercial fish ponds and fish pens that replaced formally luxuriant stands of
mangrove forests are still present in certain portions of the coastal area of Pagbilao Bay such as along
Delta of Pagbilao River, in Baranggay Malicboy, Pagbilao and in the vicinity of Padre Burgos town proper.
Inland are hilly to mountainous areas where several stages of secondary succession are present.
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In general, overall regional ecology of this sector of Quezon Province is that of predominantly logged-over
hilly to mountainous areas with mosaic of swidden fields, fallow fields, grasslands, brush lands, secondary
forests, coconut plantation, rice paddies, and cash crop farms. The coastal zones are occupied by
remnants of mangrove swamps intercalated between commercial fishponds and fish pens.
The various plant communities still present in the province of quezon are in immenent danger of
widespread destruction. With the increasing population pressure, these remaining plant communities
regardless of whatever these maybe mangrove swamps, beach forests, secondary forests, brushlands or
protected forests such as the ones inside the Quezon National Park, are bound to be destroyed by one or
more combination of the following: a. illegal charcoal making b. illegal logging c. illegal / over collection of
minor forest products e.g. rattan bamboo, vines, orchids, firewood etc. d. kaingin / shifting cultivation of
swidden agriculture, e. conversion into commercial fishponds of mangrove areas and f. wanton forest fires.
Depending on the nature and extent of damage or disturbance, these still existing plant communities in
Quezon Province may be able to recuperate given sufficient time and enough protection proper
government agencies.
Sitting Ecology
Vegetation
Vegetation at the proposed QCFTPP in Sitio Capas – capas, Polo Ibaba, Pagbilao Grande is
predominantly a mixture of limestone forest and mangrove- beach forests, with small patches of swidden
fields, coconut plantations, and firewood lots. In the latter agriculturally-used areas, lowland and upland
rice (Oryzasativa) varieties, banana (Musa spp.), cassava (Manihot esculenta), sweet potato (Ipomoeae
batatas), corn (Zea mays), papaya (Carica papaya), squash (Cucurbita maxima), various vegetables crops
and fruit trees [e.q. jackfruit (Artocarpus heteropylla), caimito (Chrysophyllum cainito), duhat (Syzygium
cuminii) guava (Psidium guajava), mango (Mangifera indica), tamarind/sampalok (Tamarindus indica),
etc.] are grown and maintained by the local inhabitants.
For the entire Pagbilao Grande Island, the types of vegetation present are 1) remnants of limestone or
karst forests on steep hilly terrain such as the exact site of the thermal power plant, and on Mount Mitra, 2)
grassland/parang vegetation in the central portion of the island from thermal power plant site to Polo Ilaya,
3) coconut plantations which are flanking the grassland/paramg are reaching up to the coastal zones, 4)
patches of mangrove swamp forests near the thermal power plant site, in the eastern part of Sitio Capas-
capas, Polo Ibaba and in Kipot, Polo Ilaya and 5) small strips of beach forests along Sitio Capas-capas
and Capalos as well as in Tulay-buhangin, the sandbar between Pagbilao Grande Island and Dampalitan
Island. The approximate land areas (in percent) occupied by each of these vegetation types in Pagbilao
Grande Island are as follows:
1) limestone/karst forest – c. %, 2) grassland/parang vegetation – 25%,
3) coconut plantations – 45%, 4) mangrove swamp forests – 10% , and 5) beach forests – 5%.
A total of 303 species belonging to 123 genera and 78 families were identified for the entire survey area
(Tables D-1,2 & 3). No rare or endangered plant species were noted along the transect lines during the
surveys. However, it was very extraordinary to see in Sitio Maulawin, Polo Ilaya a female plant of Sago
palm tree or Olivia (Cycas revolute) bearing cones. This kind of occurrence has never been documented
in the Philippines. This particular ornamental/landscape plant is known to be clonally propagated by
means of plantlets growing from the base of its trunk. Tables d-1, 2 and 3 sow the species and their
absolute frequency for each sample plot. Only a few endemic species were found on the island, namely
alingaro (Elaeagnus philippineensis), pakit (Dioscoea luzonensis) piling-liitan (Canarium luzonicum),
katmon (Dilenia Philipppinensis) and tagbak (Kolowratia elegans), among others.
These endemic plant species are all economically important as wild food plants (e.q. alingaro, takbak,
katmon and patik), source of timber , resin, and edible fruit (e.q. piling-liitan), and as landscape/ornamental
plant (e.q. katmon). As valuable source of genetic variation for breeding purposes these economically
important endemic plant species should be given first priority in biodiversity conservation in this area.
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In such as large portion of the island is cultivated in various ways, abandoned fields are dominantly
occupied for sometime by herbaceous weed species such as Ageratum conzoides, Leucas lavandulifolia,
then later on succeeded by amorseco (Chrysopogon aciculatus), cogon (Imperata cylindrica) and to some
extent, talahib (Saccharum spontaneum), the latter grassland formation becoming dominant for a long
time. On hilly slopes, there are remnant trees of molave (Vitex parviflora) which is the typical climax
species in limestone/karst forests.
Transect line number 1 (TL1) which nearly bisects and runs northeast up to Kipot, Sitio Mulawin, Polo
Ilaya and then north to Malicboy, Pagbilao is mainly composed of grassland/parang vegetation intercalated
with young stands of coconut, upland rice fields, swidden fields, and paddy fields in low-lying-areas. The
predominant plan species in this grassland/parang vegetation are cogon (Imperata cylindrical), talahib
(Saccharum spontaneum), and other grass species, with sporadically distributed clumps of binayuyu
(Antidesma ghesembilla), guava (Psidium guava), duhat (Syzygium cuminii), bangkal (Nauclea orientalis)
kapok (Ceiba pentanddra), etc.
In certain plots along TL1 falling on swidden fallow fields, common weed secies were found to be
dominant. These weed species include Agerarum conyzoides, maahiya (Mimosa pudica), suob-kabayo
(Hyptis suaveolens), Leucas lavandulifolia, Cholris barbata, Synedrella nodiflora, Stachytarpheta
jamaicensis, S. indica, hagonoi (Chromolaena odorata), Mikania cordaa, Tridax procumbens, Crotolaria
linifolia, Vermonia patula, Hyptis specigera, Cyperus iria, Calopogonium muconoides, and Paspalum
scrobiculatum, among others.
Table III-D-4. Indeces of Ecological Parameters of Vegetation in different

transects established in Pagbilao Grande Island, Kanlurang Malicboy, Pagbilao
and in Quezon National Park,
Transect No. of species Diversity Evenness Dominance

Line Number observed (s) Index (H) Index © Index (C)
1 162 3.3926 0.6668 0.0508

2 79 3.0013 0.6869 0.1710
3 77 2.6846 0.6180 0.1700
4 36 2.5830 0.7208 0.1341
5 31 3.0507 0.8884 0.0625
Average= 77 2.9424 0.7162 0.1177
Bases\d on the limited number of interviews with farmers in Pagbilao Grande Island, there were relatively
low crop yields for most of the cultivated crops in the island (see crop list above). More often, the harvest
for each crop per season is simply enough for the farmer’s household with only a small fraction being sold
in the town market in Pagbilao. For example, paddy rice production in the island is low (40-50
cavans/hectare) because of limited amount of rainfall and soil conditions in the island. Other cash crops
being planted in the island depend heavily on the available rainfall, hence the cropping patterns are quite
limited.
The seasonal pattern in the area is not very pronounced hence there is no significant difference observed
on the floral composition that may be attributed to occurrence of dry and wet seasons. The difference in
the floral composition may be more attributable to the intensity of disturbance of certain landscape forms,
such as during kaingin practice of when certain areas are used intensively as pastures.
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Pagbilao Grande Island being largely a parang/grassland ecosystem is dominated by a number of grass
species classified under Raunkier’s life form concept as herbaceous perennials. To this life form
classifications belongs the talahib
(Saccharum spontaneum), cogon (Imperata cylidrica), amorseco (Chrysopogon aciculatus), Paspalum
scrobiculatum, among others. As shown in Table III-D-4, the grassand/parang vegetation of Pagbilao
Grande has a very high species diversity. This was due to the presence of herbs, shrubs as well as
small/large trees thickets that bound along-low lying areas where there is sufficient supply of water
throughout the year. Examples of species under the herb life-form category are: Leucas lavandulifolia,
Veronia cinerea, Syndrella nodiflora, Tridax procumbens, Desmodium velotinum, Cyrtococcum patens,
Argeratum conyzoides, Physalis angulata, Veronia patula, Elephantopus scraber, Fimbristylis dichotoma,
Cyanotis axillaries, Elephantopus tomentosus, among others. On the otherhand, the following are
classified under the shrub life-form category: Hyptis suaveolens (suob-abayo), Hyptis specigera, Sida
acuta, S. rhombifolia, Blumea balsamifera, Indigofera glandulifera, Lantana camara, Ixora philippinensis,
urena lobata, Blumea laciniata, Phyllantus urinaria, P. amarus, Breynia cernua, Psychotria luconiensis,
Glochidon rubrum, Stachyarpeta indica, S. jamaicensis, among others. Small to large trees that are
present in the grassland/parang vegetation mostly belong to the following species: binayuyu (Antidesma
ghaesembilla), bayabas/guava (Psidium guajava ), duhat (Syzygium cumini), santol (Sandoricum kotjape),
cotton tree (Ceiba pentandra), katmon (Dillenia philippinensis), manalu (Semecarpus gigantifolius), tibig
(Ficus noa), Hauilili (Ficus septica), niyog/coconut ( Cocos nucifera cv. “Green Tall”), banato (Mallotus
philippinensis), among others. These trees normally sporadically distributed throughout the grassland
area of sometimes in patchy clumps for those inhabiting depressions or headwaters of intermittent creeks.
From the point of view of intact ecologically sound environment, Pagbilao Grande Island is not to be
considered as such. There were lots of destruction that occurred on the island that practically, most of the
plants present there are biological indicators of disturbed areas, e.q. the numerous herbaceous annual
weeds, and perennial weedy shrubs. The presence of regenerated tree tumos of molave or maulawin
Vitex parviflora) is a living proof of the irreparable destruction of the original limestone/karst forests of the
island. The continuous depletion of the few mangrove forest stands in another biological indicator of
anthropogenic disturbance of the island ecosystem. It can be safely stated that the remaining few young
trees of molave in Pagbilao Grande Island are not sufficient for the karst/limestone forest to be able to
recover. The island does not have a commercial stand of secondary forest trees, hence logging activity in
the island could not be possible within the foresseable future.
A small tract of secondary forest merging with coconut plantation was found around the headwaters of the
proposed water reservoir which is the endpoint of the water pipeline survey transect. The plant species
present in this secondary forest included Canarium luzonicum, Terminalia nitens, Artocarpus sericicarpus,
Ficus benjamina, Averrhoa bilimbi, Chrysphyllum cainito, Arenga tremula, Leea manillensis, Desmodium
capitatum, Kolowratia elegans, Sida rhombifolia, Vitex parvifolia, Scleria scrobiculata, Nephrolepis
biserrata, Ardisia pyramidalis, Polyscias nodosa, Mangifera indica, Mikania cordata, Corypha utan, Fucus
pseudopalama, Buchanania arborescens, Ficus septica, Ixora philippinensis, Pteris vittata,
Sphaerostephanos productos, Lygodium circinnatum, Flagellaria indica, Psychotria luconiensis,
Elephantopus tomentosus, Axonopus compressus, Micromelum minutum, Guioa koelreuteria, Morinda
citrinifolia, Semecarpus gigantifolius, Urena lobata, Lanatana camara, Zizyphus talanai, Glochidion
rubrum, Terminalia catappa, Allophyllus sp., Caryota cumigii, Syxygium cumini, Scolopia philippinensis,
Ficus nota, Bambusa blumeana, Acrostichum aureum, and Alstonia macrophylla.
A more or less similar vegetation cover and comparatively similar plant taxa were noted along the water
pipeline route in Palsabangon River area.
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Photodocumentation of selected plant species and existing vegetation types was done for all transect lines
including those along the Palsabangon river, and along the road traversing the midsection of the Quezon
National Park.
Transects Amphibians Reptiles Birds Mammals Total

Transect I 4 10 21 7 42
Transect II 2 7 23 3 3
Transect III 2 4 26 5 37
Transect IV 3 12 24 9 48
Transect V 1 2 19 2 24
Transect VI 8 18 45 15 86
Transect VII 1 6 21 3 31
Table III-D-5. Summary of the Number of Wildlife
The lowest number of wildlife species were observed in Transects V and VII. These were the transect lines
nearest the construction site. Transect V was located in the middle of the island where the vegetation was
mostly grassland with some agricultural areas. It is the least diverse when it comes to plant covers.
Transect VII which was located near the construction site and had more variety in terms of plant cover
since it included the mangrove area. The mangrove area is a very important roosting area of some herons
considered threatened in most areas of the Philippines.
Transect VI had the most number of wildlife observed. This transect line was located in Quezon National
Park, about 25 kilometers away from the proposed power plant site. It will be affected not by the possible
emissions and pollutants by the plant but by the construction of additional transmission line cutting across
it to connect with the Atimonan power grid.
Transect IV had a relatively higher number of observed wildlife species compared with the remaining
transects. This was located near Mt. Mitra where remnant of the original vegetation were present specially
in the cliff side and where agricultural cultivation was not possible. Further, it run through an overgrown
undershrub of an old coconut plantation. This area offered relatively most diverse vegetation cover for the
whole of the island.
Transect I offered similar conditions to Transect IV in terms of vegetation and wildlife species.
Transects II and III, both situated in mangroves along the mainland coastline, exhibit low numbers of
wildlife species. These areas serve as feeding grounds of both resident and migratory species of
shorebirds.
The various ecological parameters such as species diversity index (H), dominance index (C) and
evenness index are summarized in Table III-D-6.
Of the seven transect lines, the least diverse id transect III, although it is not the lowest in terms of the
number of species observed. Transect III exhibited the lowest diversity and evenness indices but had the
highest dominance index. This is because one species, Engretta alba (Great White Heron) comprised 38%
if the total number of birds observed. A flock of 150 individuals were observed thereby dominating the
other species of birds.
As expected, Transect VI, located in Quezon National Park had the highest diversity index, and the lowest
dominance index. With 45 species observed, no species showed a clear dominance over the other
species. The species that showed the greatest number of individuals observed was the White-Rumped
Swift (Apus pacificus) with 20 individuals. But two other species had 15 individuals observed, the Glossy
Swiftlet (Collocalia esculenta) and the Philippine Bulbul (Hypsipetes philippinus). The presence of a more
diverse vegetation cover in Quezon National Park provided a greater number of ecological niches for
various bird species to occupy, resulting in a relatively even distribution of species. Appendix D-1 provides
a complete list of the wildlife species concentrated in the transects as well as their scientific and English
common names and their status.
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Transect Lines No. of Species Diversity Index Evenness Index Dominance

observed (s) (H) (e) Index (C)
Transect I 21 1.17526 0.88885 0.087777
Transect II 23 1.15817 0.85051 0.08809
Transect III 26 0.99706 0.70465 0.18347
Transect IV 24 1.21172 0.87792 0.08762
Transect V 19 1.18237 0.92463 0.08114
Transect VI 45 1.49382 0.90359 0.04255
Transect VII 21 1.20059 0.90801 0.07595
Average 25.7 1.20271 0.86545 0.09240

Table III-D-6. Indeces of Ecological parameters of Birds in Various Transects in Pagbilao Grande Island
and Vicinity
Arthropods
Arthropod communities are made up of populations of individuals species whose numbers depend on their
responses to various environmental factors. The dominance of one species reflects its success in adapting
to new situations in the environment. For example, it is known that oribatid mites inhabit a wide range of
habitats but prefer secondary growth forest over a young regrowth forest. A greater variety of preferred
food, moisture and substantial shade would probably explain differences in the number of individuals and
species. As expected, decomposing leaf litter may have more oribatid mites than the topsoil which
contains less food.
The kind of physical habitat is influential in supporting the needs of individual species of animals. Thus,
the size of the habitat and its quality will determine the number and kinds of species that can settle there. It
is therefore expected that a physically diverse habitat will have more diverse producer and consumer
components and a highly disturbed fluctuating environment will reduce arthropod populations with narrow
range of tolerances.
The arthropod survey conducted in the vicinity of the project site as described earlier in the methodology
yielded the presence of arthropod communities belonging to the 13 groups/orders.
Mites
The order Acarina is made up of a large group of mites found on vegetation, on animals, on soil and in
water. There are many species that can dominate the soil and leaf litter in the forests and in open
grasslands. In this study, mites were the dominant group of arthropods inhibiting the forest leaf litter and
soil in terms of number and diversity.
Based on the soil and leaf litter samples collected, the Acari comprised 67.1% of all arthropods, the
isopods 1.4% and the insects only 30.9%. of the total detritivorous Acari, the Sarcoptiformes comprised
67.1% of a little over twice the number of Mesostigma and Trombidiformes. The high percentage of Acari
is quite significant because of their role in the rapid return of the leaf litter into the soil.
Spiders
The order Araneida or spiders are a special group of obligate carnivores and considered to be one of the
most interesting of all the Arachnida that have attracted man’s attention. They are readily notided because
of their large size but more so for the variety of webs constructed particularly by the orb spinners.
In this limited survey a total of 4 taxa and 21 genera have been identified. (Appendix D-2, Tables
2,4,6,9,10 and 11) as present in the vicinity of the proposed site. The collection which involve net
sweeping and hand picking were quite biased and admittedly have overlooked other soil inhabitants, and
also for species inhabiting high tree branches which could easily escape one’s attention. A large suction
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machine was used by researchers at the International Rice Research Institute and which was also
employed in this survey was very ideal in sampling spiders. The salticids or spiders in spite of their mobility
was easily collected by the suction machine.
Springtails
The collembolns or springtails are minute insects capable of jumping short distances. They measure from
a half millimeter to six millimeter long. Most specimens that were collected were gray or black and a few
were mottled. They occur in damped soil and in decaying leaf litter. Appendix D-2 tables 3 and 7 show that
springtails occurred in all soil and leaf litter samples. While spring tails assist in the return of the decaying
plant material to the soil in spite of their small size, they serve as a food of their soil inhabiting arthropods
in the food chain web system. There are many species of collembolans or springtails which occur in damp
soil and in decaying leaves. The springtails which were collected at the Quezon National Park were
comparatively less than those at Little Batangas Pagbilao Grande, Quezon. Surprisingly, the undisturbed
leaf litter at Little Batangas, roughly a square foot contained 140 springtails.
Dragonflies
The Odonata are relatively large insects commonly called dragonflies and damselflies preying on other
insects. The immature stages which are aquatic are also predaceous on various insects and other
organisms. The presence of adults is a good indicator of the presence of the body of water such as a
stream, a pond or even a small pool. In this survey, the Green Dragonflies outnumbered the damsel flies 5
to 1. Their presence along the transect is indicative of a creek, a stream or pond nearby because the
naiads develop only in water. These insects serve as efficient biological control agents feeding on many
rice pets in the field.
Lice
Barklice or Booklice are poorly represented in the collection. It takes special effort to collect this group in
specific and well defined habitat.
External Parasites
Anoplurans and mallophagans are represented by the obligate external parasites collected from the
transects. Representatives of the former were generally found on mammals while the later on birds. An
attempt to examine poultry animals that were sampled for ectoparasites showed three species of chewing
lice. These poultry animals heavily infested with lice may appear run-down, emaciated and unthrifty. The
incessant irritation they cause could drain the energy and interfere with feeding of poultry animals which
otherwise could be spent for other productive activities. Carabaos, cows and poultry animals are not
spared by blood-sucking lice. Samples of lice collected from carabaos belong to the species
Haematopinus euryternus. The carabao louse when in large number can cause intense irritation and as
blood suckers could be detrimental to the animals health.
Thysanoptera
These are many known species under this group which are pests of agricultural crops. However, only one
species was collected in a leaf litter sample.
Bugs
The order hemiptera or true bugs are represented by many species having the front wings whose basal
portion is thickened and leathery while the apical portion is membranous. Their piercing sucking
mouthparts are effective tools in taking plant sap while others are predaceous on other insects.
Insect collections from small ponds measuring about one square meter reveal the more conspicuous water
striders skating on the water surface. The hydrometrids or marsh treaders were quite rare compared to the
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predaceous diving beetles. These aquatic insects like mosquitos and dragonflies where part of their life
cycle is spent in water, will vanish as soon as pools and ponds dry up during dry months.
The leafhoppers or cicadellids constitute a very large group of hoppers but their number seems to be
insignificant in all the transects sampled in both open grasslands and in thich forested areas. As expected
however, they occur in great numbers in irrigated rice fields. The order Homoptera is treated here as
separate and distinct order because of the uniform texture of the wings and in the location of the beak.
There are species of hemipterans and homopterans which are serious pests of agricultural crops. Some
species of hemipterans are beneficial to man because they feed on many destructive insects.
Nerve-winged insects
The neuropterans or nerve-winged insects are poorly represented in all transects at the project site
including the influenced areas extending beyond the 25 kilometer radius. The little known neuropterans
are predaceous both larvae and adults by sucking the body fluids of other insects.
Beetles
The order Coleoptera contains the largest number of beetles in the insect kingdom where over a quarter of
a million species have been described. The thick and hard front wings serve as protective sheaths of the
hind wings which is more distinctive featured of beetles. Beetles usually are found in many kinds of
habitats where they fed on all sorts of plant and animal materials. However, in spite of the numerous
coconut palms in the area, there were very few leaf chafer species and one species of leaf miner found.
Bamboo slats at the project site were observed with numerous pin holes, a characteristics damage done
by small beetles, Dinoderus minutus. However, this species of wood borer was not found in the project
site. Coconut palms with a characteristic damage done by the rhinoceros beetle (Oryctes rhinocerus) was
also observed but beetle was not found at the time of the survey.
Corn plants in several sitios were observed to have numerous six spotted lady beetles (Chilomenes
sexmaculata). These friendly beetles are voracious feeders of aphids infesting on corn plants. In pest
management many species of insects are utilized as biological control agenta to neutralize the damage
caused by insect pests.
In some small ponds predaceous diving beetles were observed. These small, oval, black beetles are often
gregarious. Although the beetles are the most numerous on the earth’s surface where they constitute
about 40% of the known members of the class insects, here at Pagbilao Grande very few species were
collected in the field.
Lepidopterans
The butterflies, moths and skippers are common insects in the Order Lepidoptera. The adults of many
species are beautifully colored and are much sought after by naturalists and collectors. The insect order is
of considerable economic importance because the larvae of many species are phytophagous. They could
cause considerable damage to agricultural crops. On the contrary, cornfields at Pagbilao Grande were
observed to have negligible damage due corn borers. The corn plants were probably protected by
appropriate pesticides or have been checked by biological control agents. The lepidopterans observed at
Pagbilao Grande are the lycaenids and the yellow pierids. The lycaenids or hair-streaks are small and
often brightly colored while the pierids are medium sized, usually white or yellowish in color with black
marginal wing markings. Occasional papilionids and danaids were seen but these elusive insects were
never collected. Thses less common danaids or milkweed butterflies are brightly colored, usually brownish
with black and white markings while the papilionids or swallowtails seen only at the water tank site at Sitio
capalos, Ibabang Pulo are brightly colored with black and white stripes.
Flies
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The order Diptera contains filth-loving flies associated with fecal droppings. Many species are medically
important because they are not only pestiferous but are dreadful blood suckers as well. In the process of
sucking blood they transmit disease causing organisms to man and animals. A few species are also
intermediate host of disease causing protozoans such as malaria parasites which send part of their life in
some Anopheles mosquitos. In a marshy area at kanluran malicboy there were larvae of Anopheles sp.
Along the shoreline. The common house mosquitos were fairly present but dominated by the tiger
mosquito. As one follows the transect passing through coconut groves including the forested areas,
hordes of tiger mosquitoes were encountered. Spent coconut husks with water contained as many as 150
mosquito larvae. This species of tiger mosquito is not only a nuisance but is an efficient transmitter of a
virus causing dengue hemorrhagic fever encephalitis and other viral diseases. The mosquito is also a
vector of deadly viruses in birds and other mammals.
Only a couple of horseflies were observed in spite of the more than 40 carabaos and cows seen in the
study area. Horseflies are fierce blood suckers and are known principal vectors of a protozoan blood
flagellate causing surra in carabaos, cows, horse and even in dogs. Since the larvae and pupae of horse
flies are spent in water pools which is non-existent during dry months, their population could never prosper
in the area.
The pomace flies of Drosophilids are as a group, associated with decaying vegetation particularly fruits.
These flies along with shore flies and fungus flies dominated all other insects in most transects whenever
decomposing wastes wer present.
The musciod flies such as house flies, blow flies and flesh flies are sometimes called synanthropic flies
because thay are usually associated with human settlements. Heavier populations of these muscoid flies
favor other domestic animals like carabaos, cow, dogs and poultry.
Hymenopterans
Bees, wasps and ants are regarded as the most beneficial groups of insects. Honey bees do not only
pollinate flowers but can also provide honey and beeswax. There are parasitic and predatory wax which
are used in controlling some insect pests.
Among the wild honeybees collected in the study sites are the giant honeybee of pukyutan, or laiuan and
the dwarf honey bee. The pukyutan and the laiuan are both common in cocnut groves and in forested
areas.
The ponerine ants represented by the genus Diacamma and Odontomachus were quite common in damp,
particularly shaded, forested areas. They are both carnivorous and may rely on their life support system by
feeding on insects. These groups were comparatively less in number than the fire ant, Solenopsis
geminata. Transects passing through open grasslands have been found to contain more fire ant colonies
than other ant species. Quite interestingly, nests of the weaver ant, Oecophylla Smaragdina have been
observed in some sections of the transects. These species are known to be symbiotically associated with
aphids and scale insects. As expected, the photosynthetic activity of trees heavily loaded with the nests of
weaver ants may seriously be affected. Equally interesting are Braconids and chalcid wasps because they
contain species that are parasitic on members of Lepidoptera, Coleoptera, Diptera and Homoptera.
AQUATIC ECOLOGY
Methodology
Plankton
Freshwater Plankton
Plankton samples were collected in five stations along Palsabangon River by passing about 50 liters of
water through a plankton net with 80 um mesh size. In ares where the current was fast, about 100 liters of
water was filtered. The plankton samples were transferred to 250 ml sampling bottles and preserved in
10% buffeed formalin. Backwashing was done three times to ensure the collection of plankton that were
entangled/ adhered to the plankton net. Subsamples (1ml aliquot) for both phytoplankton and zooplankton
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analyses were only drawn from the sampling bottles after proper mixing of the contents. Appropriate
taxonomic keys were used. (Yamajo, 1972).
Marine Plankton
Seven stations for plankton collections were identified in the vicinity of the proposed plant site. These
atations were established to cover the areas that will probably be affected during the operation of the
plant.
Plankton samples were collected by towing a plankton net (80um mesh size) vertically and horizontally at
seven stations. The plankton net was towed horizontally for about 2 minutes, covering about distance of
180 m. all tows were perpendicular to the shoreline. Vertical towing was conducted after the horinzontal
tow. The plankton net was lowered to about 7 m(corrected for drift) before it was slowly hauled. In both
cases, the samples were emptied into a 250 ml saqmpling bottle and preserved in 5% buffered formalin.
Backwashing was done four times.
Macrophytes
River plants
River plants were collected with the use of grappling devices along the river edge of the established
stations. Collected samples were identified and counted. Since only one species was obtained no further
analysis was conducted.
Mangroves
Selection of sampling sites for the survey of the mangrove communities in Grande Island was done based
on proximity and accessibility to the proposed plant site, and current status of forest cover. These sites are
o o o o
located in Talisay (13 54’ N 121 44’42”E), Tubahan (13 54’40” N 121 44’42”E), Anday (13o55’20” N
o o o
121 44’50” E) and palsabangon (13 57’ N 121 45’45” E). The last sampling site was deleted after
preliminary investigation revealed massive area of mangrove forest already converted for
aquaculturepurposes.
The structure of the mangrove communities in the island was described by noting the species found in the
sampling sites and recording the frequency of occurrence of trees, sapling and seedling.
Transect lines were laid at right angles to the edge of the mangrove forest. Trees found within 10 x 10 m
quad rat set at 10 m intervals and laid at right angles to the transect line were identified and counted; and
their breast height diameter recorded. Trees are plant forms with diameter exceeding 4 cm.
Measurement of diameter of mangrove trees with irregular growth forms was done using the following
procedure:
When the stem forked below breast height or sprouted from a single base close to the ground or above it,
each branch was measures as a separate stem.
When the stem forked at breast height or slightly above, the diameter at breast height or just below
swelling caused by the fork was measured.
When the stem had prop roots or a fluted lower trunk, the diameter above them was measured.
When the stem had swelling branches or abnormalities at the point of measurement, the diameter slightly
above or below the irregularity at the point of measurement, the diameter slightly above or below the
irregularity where it stopped affecting normal form was measured.
Counts of mangrove sapling were made in 5 x 5 m plot laid out at the corner of the 10 x 10 m plots set
along the transect line. Sapling are planted forms with diameter smaller than 4 cm and a height of more
than 1 m.
Counts of mangrove seedling were made 1 x 1 m plots laid out the same corner of the sapling plot.
Seedlings grow to heights of not more than 1 m.
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Temporary mounts of mangrove plants were made and were subsequently submitted for identification at
the DENR/ERDB office.
Faunal group associated with mangrove vegetation were also noted and recorded.
Sea grasses
Six sampling stations were established to describe the species composition, density and biomass of sea
grasses found within the study area. Field collections were done on 27-31 December 1991, 9-13 January
1992 and 27-28 January 1992.
Using compass bearings, against transect lines were laid perpendicular to the shorelines. All transect
reached the outer most edge of the grass flats. Transect 1 extended seaward to 300 m, transect 6 to 360
m.
Sampling of sea grasses was done with a 0.25 m2 quad rat at 10 m intervals along the transect line.
Counts of individuals were made and identification of species, when possible, was done n the field.
Samples were collected in plastic bags, treated with 5% formalin, sealed and labeled. In the laboratory, all
samples were rinsed, cleaned of debris,and sorted for species identification or verification.
For biomass determination, random samples of sea grasses taken from two quadrants in every transect
were collected and prepared for drying. The wet and air-dry weights were recorded. The air-dried samples
were oven-dried to constant weight at 40 to 50oC. The oven dry weights were recorded and expressed in
gram per sq. m. due to difficulty in obtaing the roots and rhizomes intact, the biomass content of sea
grasses was estimated by treationg the above-ground and below-ground plant parts as one.
Associated macro faunal groups when present within the quadrants were noted and recorded.
Seaweeds
The preliminary survey of the algal component of the reefs was made during the manta board
reconnaissance conducted on 22 December 1991. site selection and sampling was commenced on 30
December 1991and continued from 19 to 21 January 1992.
Samples were collected from Capalos (Station1), Ash Pond area (Atation 2), Quidding (Station3), Capas-
caps (Station 4), Banlisan (Station 5) and Mag-asawang Bato (station 6). Seaweed samples were
randomly collected from the shallow sandy bay areas at the western and northern portion of the island
(Station 7A and 7B) in conjunction with the groundtruthing survey of the remote sensing team.
Sampling was conducted during low tide to facilitate observation and collection. Transect line was laid
perpendicular to shore with the landward endpoint situated 1 to 2 m above the low tide mark. Transect line
extended to 100 m seaward for station 1,2 and 6; 130m for station 4 and 150 m for station 5. Due to the
relatively deep area in station 3 snorkeling parallel to shore was done instead.
Seaweeds within the 0.25 m2 quadrant lait to 10 m intervals along the transect line were collected, fixed in
10% seawater-formalin solution, and sorted in labeld plastic bags. Snorkeling was done in the vicinity of
the transect to note the presence of species outside the quadrants. Samples were also collected and
handled similarly as above. In laboratory, all specimens collected were processed for identification may be
verified by anatomical studies using microscope.
Benthos
Freshwater Benthos
Benthic fauna of Palsabangon River was assessed using stratified random sampling design where the
choice of sampling stations within the designated area was based on the current velocity and nature of
substratum. In this way, it was ensured that the major microhabitats of a river such as pools, riffles, and
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intermediate zones were sampled. By taking composite sediment samples in these areas, the chances of
missing any of the general biotic associations were extremely small (Cummins, 19977).
A total of seven stations were established at Palsabangon River, three stations near the NIA irrigation dam
and four stations in the vicinity of the proposed Hopewell dam. A total of about 1.5 liters of sediment
samples (upper 10cm) from each are was collected, sieved and preserved in 10% formalin. In the
laboratory, the sediment samples were again sieved; the benthic fauna picked and preserved in 70%
ethanol until identification using appropriate taxonomic keys were done.
Marine Benthos
Soft Bottom
Soft bottom samples were collected from the established stations. The use of a grab sampler at these
3
sites was deemed impratical. Instead the sediments were collected an estimated volume of 1500 cm of
divers descended using 1 m radius from the anchor. Only the top 10 cm of the substrate was dug using
garden trowel and a wide mouth plastic container with cap. Sediment samples of each types of substrate
(i.e. sandy-silt and silt-mud) if present were collected on each site. Two composite samples were collected
and were fixed in 10% formalin. Laboratory processing of the samples were conducted in Los Banos
where the organism were identified to the family level.
Coral Reefs
Manta Board Reconnaissance Technique
An initial rapid assessment of the reef benthic cover and fish abundance was made using the manta board
reconnaissance technique (Dartnall and Jones 1986). This is a semi-quantitative method of conducting
rapid broad surveys of vast reef areas. Briefly, an observer is towed behind a motorized banca moving at
an estimated speed of about 1-2 m/s, over the reef flat and crest. The observer assess the imaginary belt
transect he has he has traveled over the reef area and ranks it in terms of hard, soft and dead coral cover
using the following scores: 1 = 1-10%; 2 = 11-30%; 3 = 31-50%; 4 = 51-75%; and 5 = 76-100%. Remarks
about the dominant lifeforms, reef fishes and other associated organism ar made for each tow.
The rank scores of the tows can be converted into useful qualitative criteria of percentage living coral
cover following those of Gomez et al.(1981). These are: poor cover = 1-24.9%; fair cover = 25-49.9%;
good cover = 50-74.9%; and excellent = 75-100%.
Line-Intercept Method
A total of seven transect-sites were chosen to validate the initial semi-quantitative results from the manta
board surveys. The locations of the transect-sites were based (a) the design and location of the power
plant, (b) the abundance and diversity of the coral forms, and (c) diversity and abundance of reef fishes in
the area.
At each of these transect-sites, the line-intercept method was used to determine percentage cover of
several benthic reef attributes such as different growth forms of corals, algae, other benthic fauna, and
several abiotic components. These reef attributes fall under 27 categories (Dartnall and Jones 1986).
At each transect-site, a graduated fiberglass tape was laid parallel to the shore following a pre-arranged
depth and the reef contour. For transect-sites B,E and F, two depths (3- and 10m from the reef crest or if
the crest was absent from the mean sea level) were surveyed because the geomorphology and the
physical conditions of the reef area at these sites allowed coral growth beyond the 10m depth from crest.
The shallow depth is hereon labeled as 1 and the deeper depth as 2. for the four other transect-sites, only
the mid-depth (6-8 m from the crest or mean sea level) was surveyed because no more corals thrived
beyond the 10 m depth from the crest. Consequently, the lengths of the lines laid varied. For areas where
two depth were surveyed, a total of 50 m were laid at each depth while those which had only one depth,
50-100 m lines were used depending on the length of the coral communities.
Fishes
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Freshwater Fish
Information concerning the kind of fish occurring in the river and the volume of catch were gathered on-site
interviews of residents in the vicinity of Palsabangon River.
Marine fish
Reef Fish
The rapid fish visual census technique was used to assess the associated reef fishes in the area. This
technique was conducted in conjunction with the line-intercept method. The actual census started 20
minutes after the lines were laid down to allow fishes to resume normal activity. All reef fishes observed
within an estimated 5 m on either side and above the line were recorded to species level whenever
possible. This method works reasonably well only for fish, which are diurnal, visually and numerically
dominant, easily identifiable, non-cryptic and characteristically reef associated fish (Brock,1982). The fish
were counted underwater their cumulative counts were recorded for each transect.
Pelagic Fish
Data from the visual census was supplemented by the fish catch data gathered from fishermen in the area
(Sitio Capas-capas) from actual sampling during fish landing at Dalahican Port, from existing information
from BFAR reports and those compiled by the Office of the Provincial Planning and Development
Coordinator in Lucena, Quezon.
Interviews at Dalahican were conducted to determine the points of origin of the various fishes landed at
this port. The species were listed to the lowest possible taxa and their weight estimated by the “banyera or
Styrofoam”.
Description of the Environment

Regional Ecology
The proposed integrated coconut processing will be situated in the province of Quezon located in the
Southern Tagalog Region (Region IV). The province is the longest in the country with a total land area of
approximately 60000 sq. km. And lying along the eastern coast of Luzaon facing the Pacific Ocean. Its
marine resources include coral reefs, sea grass bed, mangrove forest, seaweeds, plankton and fishing
grounds.
In the study of the status of coral reefs in the Philippines, Gomez et al (1981) and Alcala et al. (1987)
reported fair to good cover in four coral reefs sited in the province of Quezon. Estimated of coral cover
ranged from 20-29.9% in one, 30-39.9% in another, and 50-59.9% in the other two sites.
In an early survey of mangrove vegetation in Pagbilao Bay, Saloza (1936) noted 22 plant species
belonging to 15 genera nad 13 families one which is fern and another a palm. The rest were either trees or
shrubs belonging to 11 families dicotyledons.
Recently, Cariaso (1978) collected and identified six major groups of aquatic and terrestrial species from
pagbilao Bay composed of pelecypods (9), gastropods (20), crustaceans (22), insects (47), fishes (46) and
birds (25).
The lush mangrove forests of Pagbilao noted in the 1930’s have been subjected to ecological stress.
Lands at finding in July 1978 indicated the fast rate of denudation leaving a thin strip of approximately 2-3
meters of mangrove trees facing pagbilao Bay. The conversion of mangrove swamps to ponds for the
culture of bangus and prawns has contributed to this destruction (environmental Center of the Philippines
1982). Poor compliance with PD 705 and 953 (requiring 20-40 ha of mangrove stands in areas facing the
border of water) exacerbated the deteriorating state of Pagbilao mangrove forest).
Literature search conducted primarily at the Seaweed Information Center at the U.P. Marine Science
Institute revealed no actual seaweed studies conducted in Pagbilao, Quezon or in the province itself. The
earliest samples date back 1908 and were collected from Tayabas, Quezon and the latest was from
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Gumaca, Quezon in 1987. Majority of the algae were red with only 2 green species documented.
Collection sites included: Dikasalarin, Digisit, Malaking Gasang and Dimadimalangat in Baler; Cabalete
Island and Mayog in Mauban; Baisad in Tayabas; Hagakhakin Point in Gumaca; and Palasan, Burderos in
Polillo.
To date, no available literature exist for the reef fishes in the general area of Pagbilao, Quezon. What is
available are literature on euryhaline marine fishes occurring in Philippines rivers and lakes (Herre 1958)
and the study of Ronquillo and Llana (1979) about the fishery resources of the mangrove swamp.
The latest work on marine fishes in the vivinity of Pagbilao, Quezon is that of de la Paz and Aragones
(1985) where they conducted studies on the mangrove fishes in Nahalinan River, north of Pagbilao
Grande Island. The results of the study over a 12-month period showed a total of 110 species representing
73 genera distributed to 47 families. Sixty-four percent of these were commercially important species.
Major fishing grounds in the region include Aurora, Atimonan, Tayabas, Mauban, and Unisan. Fish
catches are landed in Dalahican, Lucena City. Commercial fish catches far-flung areas including
Marinduque, Romblon, Bicol, Masbate, Samar and Bohol are also landed in Dalahican.
Site Ecology
Coral reef flats lie along the northwestern and southwestern border. Sustenance fishing and aquarium fish
gathering are the more common means of livelihood in these areas. Cyanide poisoning and blast fishing
are employed in aquarium fish gathering. These activities have been implicated in the destruction of coral
reefs in the island.
There are no flowing streams in the island but strong wells occur in several locations. On the other hand,
Pasabangon River drains the mainland and discharges into the northern border contributing its sediment
into Pagbilao Bay.
Freshwater Ecology
Phytoplankton
A total 18 genera belonging to 15 families of phytoplanktons were observed in water samples collected
from 5 stations in Pagsabangon River. The highest density (846 cells/I) was observed in station 1,
whereas the lowest density (18 cells/I) was observed in station 5. Similarly, species richness was highest
station 1 and the lowest in Station 4.
Zooplankton
Analysis of zooplankton samples collected from six stations revealed that the zooplankton community in
Palsabangon River is a minor component of the riverine ecosystem. Only one species of rotifer, Keratella
sp (3 cells/I), was observed in the sample obtained from station1. No zooplanktons were observed in other
stations. This is not surprising because it is well known that zooplankton development is pronounced in
pool zones of rivers (winner,1977) where the current velocity is greatly reduced.
Aquatic Macrophytes
Dense patches of Cyperus deformis, locally called as Dao, abound along the banks and islands in
Palsabangon River. This is the only aquatic macrophyte sighted along a stretch of about 2.5 kms from
Palsabangon Bridged up to the proposed dam site and further upstream towards of NIA dam.
Fishes
Interview with local folks revealed that freshwater fishes belonging to five genera are caught in the area.
These are Clarias sp (hito), Opiephalus sp (dalag), Glossogobius sp (biya), Oreochromis sp (tilapia) and
Cypinus sp (carp). Fishes caught are for self-consumption only rather for commercial pruposes. Although
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the water impounded by the NIA dam seems suitable for fish cage culture, no such activities are being
conducted.
Marine Ecology
Phytoplankton
At least 21 genera belonging to a total of 20 phytoplankton families were observed in samples collected by
horizontal (table II-E-3) and vertical (Table II-E-4) tows in seven stations sited in the southern border of
Pagbilao Grande Island. No significant difference was noted in the species present in vertical and
horizontal tows. Based on the species composition however, it is evident that a depth preference exists
among the phytoplankton groups. Blue-green algae were generally found in the upper 1 m of the water
column, whereas diatoms were dominant forms in deeper layers.
For horizontal distribution, diatoms are dominant algal forms in all stations. Dinoflagellates and blue-green
algae were observed in five and six stations, respectively, whereas, green algae were observed only three
stations.
For vertical distribution, diatoms and blue-green algae were observed in all stations. On the other hand,
dinoflagellates were only observed in three stations, station 3,4 and 5, whereas green algae were only
observed in two stations, station 5 and 7.
Zooplanktons
Zooplanktons species belonging to at least 40 species were observed (table II-E-5) in water samples
collected by horizontal tow in seven stations near Pagbilao Grande Island. Highest total density (3839
3 3
organisms/m ) was observed in station 6 while the lowest total density (1201 organism/m ) was observed
in station 2. In terms of species richness, the highest index was observed in station 2 and the lowest index
was observed in station 7.
The horizontal zooplankton species belonging to at least 20 species were observed in water samples
collected by vertical tow in seven stations near Pgbilao Grande Island. Zooplankters were most abundant
in Station 1 (17475 organisms/m3) while the lowest total density (255 organisms/m3) was observed in
Station 7. In terms of species richness, the highest index was observed in Station 6 and the lowest index
was observed in Station 7.
The vertical zooplankton composition based on the water samples collected from the seven stations near
Pagbilao, Grande Island. In terms of zooplankton abundance in Station 1,2,3,5 and 6, arthropods (39-
68%) were the most dominant animal group followed by protozoans and molluses (8-50%). In staion 4,
protozoans were not collected and in station 7, only protozoans and molluses were collected in small
numbers. Other animal goups were found to occur such as chaetognath, echinoderms, larval chordates,
hemichordates, annelids and enidarians, in decreasing order of abundance.
Mangrove
The species composition and relative abundance of mangroves are describe in Tables III-E-9. only six
species were found in the three sampling stations: Avicennia officinalis, Rhizophora apiculata, R.
mucronata, Ceriops decandra, Sonneratia alba and Xylocarpus moluccensis, representing four families.
Five other species of mangroves are found in the study sites but were located outside the sampling plots
surveyed. These include Osbornia octodonta, Scyphyphora hydrophyllaceae, Bruguiere gymnorrhiza,
Avicennia marina and Excoecaria agallveha.
In Talisay (transect 1), the 50 m transect line included four species of mangrove trees. Young growths and
seedlings were numerous and were fairly established but were located outside the sampling pots
surveyed. Regrowth of mangrove in the abandoned fishponds in Talisay indicate signs of recovery from
human intervention.
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In Tubahin (transect 2), the 150 m transect lined sample two tree species A. officinalis and R. apiculata
and one species of sapling and seedlings (C. decandra). Dense growth of young mangroves rendered the
whole area practically impassable.
In Anday (transect 3) R. apiculata dominated the mangrovetrees and seedlings. Sapling of A. officinallis
and S. alba were also found. Charcoal making resulted to clearing of some mangrove ares.
In Palsabangon (transect 4), vast tracks of mangrove have been converted to aquaculture farmlands. No
further samplings were conducted in the area.
Analysis of remotely sensed mangrove inventory data sourced from NAMRIA revealed that of the 20720
hectares of mangroves in Quezon in 1956, approximately 73.3% (15,187 ha) had been converted by 1987.
of this total, about one third or 5387 ha were interpreted as fishpond conversion. Based on these data, the
average rate of conversion is approximately 175 hectares per year.
Associated faunal species in the mangrove forest include fish, gastropods, barnacles and arthropods.
Seagrasses
Five species of seagrasses belonging to five genera and two families were identified from specimens
obtained in six stations. These included Enhalus acoroides, Halophilia ovalis and Thalassia hemprichii
belonging to Family Hydrocharitacene and Cymodocea serrulata and Habodule uninervis (wide-leaf forms)
both belonging to Family Potamogetomaceae.
E. acoroides occurred as the lone species in Capalos (T1 and T2) and Tubahin (T3) and appeared in
Talisay (T4) with T. hemprichii and H. ovalis and with C. serrulata and H. univervis in Balisan (T6). In those
sites where E. acoroides appeared , its relative frequency ranged 0.35 (Tubahin) to 0.86 (Capalos). The
presence of other species in the same site did not seem to influence the frequency of occurrence of E.
acoroides in the study area. However, no pronounced zonation of seagrass species was observed.
The relatively small number of seagrass species and their low frequencies in the area rendered the
computation of diversity indices impractical.
Although all study sites were replete with seagrasses, their extent of distribution does not approximate
those observed in Bolinao, Pangasinan.
Fauna associated with seagrass found at six study sites include sponges, hard corals, arthropods,
echinoderms, bivalves and fishes.
Seagrass communities have economic and ecologic importance in the area. Seagrass beds provide
shelter and protection to some forms marine life and promote productivity due to natural enrichment
process inherent in the system. This increased level production sustains the fisheriy resources and provide
supplementary food source to the people in the area.
Seaweeds
A total of 32 species classified into 23 genera comprising the three divisions were identified from the six
sampling stations. The occurrence of the seawedd species in the samling stations is summarized in table
III-E-12.
The ash pond area (station 2) gave the most number of species (16) exceeding those recorded in the
other stations surveyed : Mag-asawang Bata (11), Banlisan (9), Capas-caps (6), Quidding and Capalos
(5each). In addition, the three deivisions were more or less evenly represented by seaweed species found
in ash pond area.
It has been observed that while the species variety in Mag-asawang Bato (station 6) and Banlisan (Station
5) were relatively lower than the ash pond are (station 2) it exceeded that of Capas-capas (station4) and
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Capalos (station 1). There were four species in Station 5 and one species in Station 6, which were not
present in all other sampling station.
Soft Bottom
A total of 342 individuals from the soft bottom communities were collected from 12 different samples (table
III-E-13). These organisms belong to 40 families distributed over six phyla. The majority of these families
(about 75%) belong to Phylum Annelida (segmented worms). This phylum alone accounted for more than
80% of the total individual collected.
Members of Spionidae (P. Annelida) and Amphipoda (P. Arthropoda) were the most common and widely
distributed (found in almost all sites and substrate type).
The sites with relatively high number of these organisms are those located far from the proposed plant
site. The rest have very few organisms present.
Corals
Manta Board Reconnaissance Technique
The manta board surveys coupled with the transect-site studies provided a comprehensive assessment of
the reef benthic cover and fish abundance within the primary impact area of the proposed Coconut
Processing plant in Pagbilao Grande Island.
The northward section encompassing a 4-km stretch from Capalos to Capas-capas had poor to good
cover of live hard coral. However, the areas in the vicinity of Caps-caps had relatively better coral cover
than the areas around Capalos where most reef scores ranged from 1-2. Corals in Capas-capas were
dominated mostly by the massive, tabulate and branching growth forms. Soft corals, though low in reef
score were found only in the Capas-capas area. Dead corals were found with increasing frequency
practically in the entire Capalos- Caps-caps reef area.
The southward border covered a 6-km stretch extending from Caps-caps to Mag-aswang Bato. Coverage
of hard coral in this part of the island varied widely but reef bed on the southeastern border, flanking
Capas-capas had good to excellent coral cover (> 50%) compared to other areas except in the area near
Mag-asawang Bato where the reef had fair amount of coral cover (25-49%). In these areas where coral
cover was low, small patches of under grown coral colonies were sparsely distributed over sandy
substrate interspersed by coral rubble. Water was silt in this area. It was also noted that small patches of
soft corals occurred in many areas. Although found in fairly low cover, the increase in dead coral cover
was assumed to be either due to predation or siltation.
Reef Fishes
A total of 70 unique species belonging to 20 families were observed for all transect-sites (table-III-E-14).
Of these species, more than one-half belonged to two families alone. Members of Larbridae (wrasses)
comprised nearly 36% while the damselfishes (Pomancentridae) accounted for 20%. Commercially
important species (members of Serrandidae, i.e. groupers; Lutjanidae, I.e. snappers; and Caesionidae, i.e.
fusiliers) comprised only about about 7%. The butterfly fishes (Chaetodontidae) were surprisingly very low
comprising only 4.2%. the surgeonfishes (Acanthuridae) were also very few with species less than 3% of
the total fishe species composition. The rest comprised of species belonging to 23 families.
The general picture of the reef fish communities in the area is depauperate both in terms of species
richness (number of species) and individual abundance. This condition is alarming because the above reef
fish parameters are low even in areas where live hard coral cover considered as very good (60%).
The poor condition of the reef fish communities in the area may be largely attributed to the illegal fishing
practices in the area. In Barangay Capalos alone almost everyone is engaged in cyanide fishing. Exotic
tropical fishes and their associated habitats such as sea anemones, and other invertebrates are caught
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alive using the poison sodium cyanide. Increasing evidences has shown that cyanide remains potent even
at very small concentrations particularly for corals and other invertebrates (Montegomry 1987). This might
possibly explain the high dead coral cover in transient –site B. it is most accessible reef area with high live
coral cover the residents of Barangay Capalos.
Another illegal fishing method being practiced in the general vicinity is blast fishing. During underwater fish
censuses, an average of about 8 blasts per dive were observed. Sources say that these blast fishermen
are not local folks but are from another areas in the region.
Palagic Fish – Landed Fish Catch Componet
Major commercial fish catches in the region and other areas are landed in Dalahican, Lucena City. Major
fishing grounds in the region include Aurora, Atimonan, Tayabas, Mauban and Unisan. Commercial fish
catches from far-flung arteas include Marinduque, Romblon, Bicol, Masbate, Samar and Bohol. Fishes
from these areas are brought to Dalihican apparently because of better prices.
Quezon province alone contributes nearly 37% of the regions total fishery production from commercial
vessels and close to 23% of the regions total municipal fishery production (BFAR 1987). The top species
of both commercial and municipal fishery are listed in Table-II-E-15.
The 3-day survey of the Dalahican Fish Port yielded a total of 84 species belonging to 25 families. These
species are landed from 10 different areas (Table II-E-16).
The area with the highest fish catches were from offcoast of Lucena City, Abuyon in Bicol, Atimonan and
Mauban both in Quezon. Note that no fish from Pagbilao Grande Island landed during the time of the
survey. Interviews conducted at the island showed that a large number of people particularly at Barangay
Capalos are engaged in aquarium fishing and most are sustenance fishermen. These sustenance
fishermen use fish corals, which capture species highly associated with seagrass beds such as sigands. In
1987, the sigands constituted a measly 1.8% of the total municipal fishery production (BFAR 1987).
The provincial Planning nad Development Office of Quezon (1990) has ranked Pagbilao as sixth in the
yearly volume of fish unloaded at Dalahican Fish Port (table III-E-17). The bulk of these fishes come from
aquaculture, which is relatively extensive in the municipality (tables III-E-18 and 19).
SOCIO- ECONOMICS AND PUBLIC HEALTH
SOCIO-ECONOMIC CHARACTERISTICS OF THE ZONE OF INFLUENCE

Demography
The province of Quezon has a population of 1129000 persons in 1980 and 1373000 persons in 1990
(table III-F-1). Within the ten-year period, the province sustained a simple annual growth rate of 2.2% per
year. This growth rate is lower than the average for the region (region 4), which is 3.5% within the same
period, and the average for the contrary which is 2.6%. increase in population is attributable to two factors;
namely, result of natural increase (number of birth minus number of death) and net migration (number of
in-migrants minus number of out-migrants). The population consists mainly of ethnic Tagalogs. Quezon is
within the southern Tagalog region where the predominant ethnic grouping is Tagalogs.
In 1990, crude birth rate was 29 persons per 100 population in the province (versus 26 for the country) and
crude death rate was six persons per 1000 population (versus 20 for the country). Because the province
has a higher natural increase than the country, its lower growth rate can be only explained in terms of net
migration patterns. This means that the province has a higher out migration than inmigration rate.
The trend in population patterns is reverse, however, in the case of Pagbilao (table III-F-2). While its
natural increase in population is lower than that of the province at 19.6 (compared to 23 for the province),
the over-all annual growth rate in population is higher at 3.1% than the provincial growth rate of 2.2%.
therefore, more people are migrating into the municipality rather than out migrating.
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In Barangay Ibangbang Polo, where the coconut processing plant will be constructed, the high population
growth of 38% (table II-F-2) for the past decade is largely attributable to high migration rates. This is
supported by data from the perception survey, which show that two-third or 63% of the respondent are not
born in the area.
With a total land area of 1309 sq. km., the province has an average population density of 115 persons per
sq. km. Thus, the province is sparser compared to the region where the population density is 176 persons
per sq. km. And the country, at 202 persons per sq. km. The population of this province is distributed
among 265743 households resulting in an average of 5.2 members per household. This average is slightly
smaller than that in the region where an average household has 5.4 members and in the country where
there are 5.6 members per household.
Pagbilao, on the other hand, has a higher population density of 246 persons per sq. km. With a population
of 41638 in 1990 distributed among 8611 households, the average household size is 4.8 members per
household.
The population of the province is relativrly young with a median of age 17 years. The sex ratio is close to
1:1. close to 41% of the population are below 15years of age while 3% are over 64 years. Both age groups
considered dependents of the economically active population whose ages range from 15-64 years. The
economically active population of the province constitutes 56% of the total. This means that the
dependency ration is four dependents for every six economically active persons. Thus, nearly every
economically active person in the province has one dependent.
Labor Force and Employment
The total number of persons in the working age population was 814000 in 1988. the labor force
participation is 62% compared with 65.4% for the country and 64.5% for region 4. Unemployment rate is
5.5% compared with 8.3% and 8.4% for the country and region 4, respectively. Unemployment rate is very
high, however, for the province especially in the coconut sector. This sector registered an unemployment
rate of 40-50%.
Of those employed, half were in the agricultural sector. Employment was higher for men at 68% than for
women 32% compared to the national figures of 64-36%. In terms of absolute numbers, there were 28000
unemployed in Quezon compared to 28000 in the region.
Income Level and Poverty Incidence
With an average annual family income of P27991 in 1988, Quezon was below average for the Philippines
(P35531) and region 4 (P33136). No data available for Pagbilao. For the project site, based on the socio-
economic survey, average annual family income is well below the national average at approximately
P24000.
Poverty incidence in the country and region 4 are comparable at 49.5% and 49.3%, respectivel. At the
provincial level, 64.5% of the total number f families lived below the poverty threshold. This almost
equivalent to the incidence of poverty in Bicol region (65.3%), which is considered the most depressed
area in the country.
Economic Sector
Major Sectors: Agriculture and Fishery
Quezon is predominantly agricultural with about 51% devoted to various food and grain crops, fruit trees
and oil crops. Coconut is the most dominant vegetative cover at 45% or 387785 hectares. There are
144781 farmers dependent on the coconut sector. In 1990 total coconut production of Quezon was
216285 metric tons, representing 2% of the total coconut production in the country. Among the
municipalities within the 25 km radius zone of influence, Sariaya is a major procedure considering that
269
76% of its land area is planted to coconut. Pagbilao, on the other hand, has 43% of its land area devoted
to coconut.
The other major source of livelihood in Quezon is fishing grounds among its bays, major rivers, and
navigable streams. Thirty-four of its forty municipalities are along the coastal area.
The municipality of Pagbilao reflects the economy of the province, whereby farming and fishing are the
basic sources of livelihood. Majority of the households in Pagbilao are engaged in farming. Other farmers
also work as fisherman at night and a small percentage are found to be dependent on private and public
employment. The principal crops grown are coconut and grains with few permanent and seasonal crops.
Livestock are produced manily for domestic consumption and the rest are sent to markets in Lucena and
Manila.
Fishing activities in Pagbilao may be classified into municipal and inland fishing. Municipal fishing is
undertaken within the 3 mile territorial waters in the Pagbilao and Tayabas Bays. Municipal records show a
total of 2048 fishermen with 247 motorized bancas and 282 non-motorized ones. Average fish catch per
banca ranges from 1-3 kgs of fish per day. This means that most of the fishing is done on a subsistence
level rather than on a commercial scale.
Inland fishing is also being conducted in the municipality by fishpond operators totaling to 56 proprietors.
Inland fishing covers a total of about 670.56 hectares with an average production of 700 kilos per
hectares. In terms of market potential, the municipality has permanent markets in the cities of Lucena and
Manila.
Commerce and Industry
As of 1988, there were 404 commercial establishments and transport facilities. Retail merchandising is
mainly conducted by sari-sari stores. Other establishments engaged in retail business include drug stores,
gasoline station, groceries, beverages and liquor store, rice, fish, meat, vegetable, and fruit stalls. Small
service firms such as restaurants, beauty shop, vulcanizing and auto repair shops are usually found along
National Highway and in the poblacion.
Education
The province has 770 elementary schools (757 public and 13 private) and 121 high schools (70 public and
51 private). The elemtary schools have a total enrollment of 209938 pupils in 1990. The public elementary
schools have an average of 273 enrollees each while the private elementary schools have an average of
246 enrollees. The high schools have a total of 46570 in 1990. An average public high school has 699
students while an average private high school has an average of 471 students.
Literacy rate for quezon is 86%, which is at par with the rest of the country. The attainment level is low,
however, wherein only 20% attended high school, compared with 34% at the national level. Based on the
survey conducted at the project site in barangay Ibabang Polo, attainment level is very much lower at only
11% of the residents having reached high school.
Health Profile
Health Facilities and Manpower
There are 35 hospitals in the province with a total bed capacity of 1628. the hospital bed population ratio is
1:842 which is better than the national standard of 1:1000. The ratio of public hospital-based health
personnel to population is as follows: (1) one physician per 9647 population; (2) one nurse per 6631
populations; (3) one midwife per 6047 populations.
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Pagbilao, in comparison, has the following health personnel based in the sole rural health unit servicing 27
barangays: one physician, one public health nurse, and seven rural health midwives. The ratio of rural
health midwives to population is 1: 7048, which is highly inadequate.
Other health facilities located in Pagbilao, in addition to the rural health unit situated in the poblacion, are
six barangay health stations, one family planning clinic, one private hospital, six medical clinics, and three
dental clinics. There are only seven private physicians in the munipality.
Vital Health Statistics
Birth rates and morality rates are compared between the country and Quezon in Table III-F-3. Crude birth
rates are comparable between national and provicial levels. However, the curde death rate and infant
mortality rates of the province are still quite high compared to the national rates.
The crude birth rate in Pagbilao in 1990 was 26.9 births per 1000 population which was at par with the
provinciaql and national figures. On the other hand, the crude death rate 7.32 and infant mortaloty rate of
40.18 werew substantially higher than the privincial and national levels.
TABLE III-F-3. COMPARATVE HEALTH STATISTICS 1986-1990

PROVINCE OF QUEZON AND NATIONAL AVERAGE
. NAT’L AVE
1986 1990 TREND (1988)
Crude Birth Rate 26.40 26.30 0.38% 26.7

dec.
Crude Death Rate 5.75 6.40 11.3% 5.5
inc.
Infant Mortality Rate 44.30 36.30 18.1% 30.1
dec.
Maternal Mortality Rate 0.79 1.12 0.41% 1.1
inc.
Source: Department of Health, Health Interlligce Service, Philippine Heath Statistic, 1998.
Nutritional Status
The results of the province-wide Operation Timbang (OPT) conducted rom January to December 1990
showed that 62.12% of the 138,615 children in the privince who were weighed suffered from variuos
degrees of malnutrition; 32.49% had normal weights; and 5.38% were overweigh. Of those who were
st nd
malnourished, 39.58% were mildly underweight (1 degfree); 18.94% were moderately underweight (2
rd
degree); and 3.6% were severly underweight (3 degree).
Data from Pagbilao’s Operation Timbang show that half (49.89%) of the 5,616 childred in the municipality
who weighed were underweight; 44.98% had normal weights; and 5.13% were overweight. Of those
chidren who were underweight, 31.15% were mildly underweight; 13.8 were moderately underweight; and
3.97% were severely underwieght.
As compared to seven other municipalities (Table III-F-4), Pagbilao ranked sixth in terms of the
percentage of children under 7 years of age who were underweight. The municipality of Unisan had
highest percentage of underweight children while the municipaliyt of Tayabas had the lowest prevalence of
malnutrition among the seven municipalities. Table III-F-5 shows the nutrition status of children under 6
years 1984 to 1991.
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TABLE III-F-4. OPERATION TIMBANG RESULTS FOR SELECTED

MUNICIPALITIES PROVINCE OF QUEZON (Jan-Dec 1990)
Municipality % Underweight %Normal Weight %Overweight

Lucban 70.60 26.4 3.36
Padre Burgos 63.86 28.91 7.22
Pagbilao 49.89 44.98 5.13
Sariaya 65.34 27.27 7.39
Tayabas 45.57 49.50 4.93
Unisan 72.88 19.37 7.75
Atimonan 62.94 32.91 4.15
Source: Dept. of Health. Provincial Heath Office Statistics on Health Facilities and Manpower, 1991.
Patterns of Morbidity and Morality
Table III-F-6 and Table III-F-7 list the leading causes of morbidity and morality in the province of Quezon.
Of the ten leading causes of morbidity in the province of Quezon, three are respiratory diseases (i.e.,
bronchitis, URI, pulmonary tuberculosis); two are parasitis diseases (i.e., diarrhea); and the rest are non-
communicable causes of morbidity (i.e., hypertension, anemia, wounds). Only two of the leading causes of
mortability in the province (i.e., pnemonia and pulmonary tuberculosis)
Table III-F-8 and III-F-9 present the leading causes of morbidity and mortality in the municpality Pagbiglao.
Among the causes of morbidity in Pagbilao, five are respiratiry diseases (i.e., coryza, URL, PTB, broncho
pnemonia, bronchitis) while the rest are all non- communicable in nature. Most of the causes of mortality in
Pagbilao are non-communicable while three of the causes of mortality (i.e., broncho pneumonia,
pulmonary tuberculosis, bronchitis) are communicable in nature. Table III-F-10 and III-F-11 show the
historical trend of morbidity an mortality in Pagbilao for the years 1984 to 1991.
Based on the historical data provided in Table III-F-10 and 11, respiratory infections (i.e., URI and coryza)
were the 2 major causes of morbidity in the municipality of Pagbilao from 1984-1991. Diarrhea and
parasitism were the second leading causes of morbidity. All of the aforementioned diseases are infections
or communicable in nature.
On the other hadn, cardio-circulatory diseases, consistently ranked first among the major causes of
mortality in the municipality of Pagbilao from 1984-1991. The reason for the prevalence of non-
communicable disorders, such as cardio-circulatory diseases, needs to be further investigated. A study on
the lifestyle (i.e., diet,smoking,drinking habits, etc.) of residents of Pagbilao could probably shed some light
on this matter.
Bronchopneumonia abd pulmonary tubeculosis ranked second and third, respectivly, over an 8 year periol.
These causes of mortability are communicable in nature. As with the leading causes of morbidity,
improvements in the living conditions (i.e., health, nutrition,environmental sanitation,etc.) can be expected
to contribute to a decrease in the prevalence of infections diseases.
Waste Disposal
Only 30% of total hoseholds in the province have toilet facilities is more prevalent in rural households
(35.8%) than in urvan households (16.3%). In Pagbilao Grande, 92% of survey respondents do not have
toilets in their dwellings.
Housing
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The predominant housinf units in Quezon are single dwelling units made of light materials such as wood,
nipa, and cogon. Only a few houses are made of concrete materials. Tahe province has the least housing
density in the region, at 445 houses per square kilometer, compared with the regional density of 856
houses per square kilometer.
Approximately 83.5 percent of households own their dwelling units. Hosuse ownership is significantly
higher in the rural areas (87.6%) than in the urban areas (73.8%). Based on 1980 NCSO housing datsa
94% of the householkds in the province were occupying single hosues.
Water, Power and Fuel Sources
The main source of potable water is the Lucena-Pagbilao-Tayabas Water District. However, data show
that only about one third of the population get drinking water from this source. Other sources are rain
water, open wells, natural springs, and piped deep wells.
Electricity is available in amost all municipalities. Areas with electricity are services by MERALCO, Quezon
Electric Cooperative I and Quezon Electric Cooperative II. The municipaity of Pagbilao is serviced bt
MERALCO . Pagbilao Grande, the island where the project is to be located does not have electricity.
Only 26.11% of households in the province use electricity for lighting. Kerosene is the dominant source
with 70% of households using it. 3.4% use LPG as light source.
Fuelwood and charcoal is the main source of energy for cooking with 83% of households using these.
Nine percent of households use kerosene for cooking, while 5% and 2% use LPG and electricity,
respectively.
Transportation and Communication
Pagbilao is accessible be means of both land an water transportation. Land transportation is the principal
mode of transportinggoods and services between Pagbilao and the neighboring towns and municipalities.
The municipal wharf serves as the point from which fish and agricultural products are transported to the
poblaacion from the island and barangays and vice versa.
On the aggregate, the provice has 6,783.23 kilometers of roads. Of these roads, the national government
constructed ad maintained 579.16 kilometes while the provicial government did the same for 5,243.54
kilometers. The remaining 960.54 kilometers are barangay roads. The type of pavement of these roads
varies; 85% have gravel pavement, 9% earth, 3% asphalts and 3% concrete.
Existing communication facilities in the province include postalservices,

privatetelegraphstations,telephones, single-hand radio transceivers , radios, and print media.
Each municipality has its own postla station located at he poblacion. Seven municipalities are servive are
serviced by privately owned telephone companies, including PLDT and Lucban Telephone System, Inc.
(LUCTEL). Only the latter two companies have long distance services forboth overseas and domestic
communications.
This is discussed in more detail in Section III-G.
Municipal and Provincial Govermenent Revenues
The municipalities of Quezon earned a total income of P87,465,406 in 1989. Thus, the average income of
each municipality is P2,186,635. Of the total income, 82% belong to the general fund, 13% belong to thre
infrastructure fund and 4% belong to the special education fund. On the part of the province, its income
amounted to P39,099,243 in 1989. The greater part of this income is earned from internal revenue
allotment which contributes 78% of the total. The rest are earned through various forms of taxation (such
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as real property, business and residence taxes), an assortment of government services (such as
certification fee, court fee and rentals), investment returns, and miscellaneoous income sources.
SOCIO-ECONOMIC OF THE IMPACT AREA
Background Information
2.1.1 History of Pagbilao

th
In the early part of the 17 century, a couple be the name pf Pablot and Rita made lonf journey across the
wilderness bringing with them a handful of rice seedlings and some other useful provisions. Fortune seeed
to be with them, they reached the place of the presen tsite of the poblacion of Pagbilao. After a brief stay
and learning that hteplace was a very promising region in the future, they fetched their married children for
their place of origin and lived together making the placed thei permanent settlement. A few years later,
inhabitants from tribes in other places also setted in the area.
In the year 1765, a prominent man of the place in the name of Don Luis Felipe ruled the tiny poblacion. His
advices were considered be the inhabitants as laws. The people lived simple and peaceful lives. They
lived in huts furnished with the necessary provisions. Native products such as bamboo beds (papag) and
winnow-wind baskets (bilao) were common in the place as their major products. Tagalog was spoken by
the residents of the poblacion.
One bright day in the early part of 1765, while the natives were busy with their usual trade of making
papag and Bilao, a group of Spanish missionaries, mostly Catholic priest, arrived in the village. It was a
traditional belief of the natives that more often than not, the foreigners maltered the natives. The natives
eluded the strangers in fear of harm being done to them. Realizing that the natives were in panic and were
afraid, the Spaniard raised their right hands wide open symbolizing that they had come to make friends
with the Filipinos. The natives them became calm and settled in their places in a friendly manner.
The primatry sources of livelihoods in Ibabang Polo are: (1) fishing for tropicla aquarium fishes; (2)
sustenace fishing; (3) farming; and (4) engaging in small businesses such as fish trading/dealing. The
tropical fishes are sold in Manila where they are often exported to different countries.
The Socio-Economic Study
2.2.1 Methodologies
Four complementary mehtod and techniques were used in the conduct of the study. These cmethods
were: (a) reconnaissance of the project area; (b) use of sencondary data contained in reports and statictics
of local government offices and other government agencies; (c) key informant interviews; and (d) of a
social survey.
Reconnaissance of the Project Area
Reconnaissance of Pagbilao Grande Island was done in mid January, 1992 to determine the location of
settlement clusters, and observe road conditions, farm areas, and physical conditions in the villages.
Particular attention was given to barangay Ibavang Polo within which the power plant is proposed to be
constructed. Mobility within the island was through land and water. Access to diffecrent villages and
sitions in the interior of the island was by foor whilw access to coastal communiuties was by motorized
boat.
Use of Secondary Data
Secondary data were used in this reportto provide a description (i.e., historical, socio-economic,
demographic, health) of the project site/. Datafrom the provicial government of Quezon and the municipal
government of Pagbilao as contained in reports prepared by different agencies such s the Deparment of
274
Helath and the National Statistic Office were reviewed and analyzed. There was difficulty obtaining
recent,comprehenseve data as most of the reports were several years old already.
Key Informant Interviews
The informant interviewed were the vice-mayor of Pagbiloa, barangay captain and some councilmen of
Ibabang Polo, barangay captain of Ilayang Polo, public health nurse, two midwives, a baranga health
worker of the Pagbilao Rural Health Unit, pioneer settlers of sition Capas-Capas, a migrant resident, and
the village secretay of Capas-Capas. The unstructured interviews convered varied topics such as general
social and economic conditions, health conditions and problems, land ownership and land use
arrangements, migration history, and general attitude toward the propesed project.
Social Survey
A survey of he residents of Pagbilao Grande Island was conducted in late January. For this purpose, and
interview schedule (questionnaire) was designed of question blocks on socio-economic and demographic
information, quality of life in community, health status and conditions, perceived environmental changes,
and perceptions about the proposed project.
Twenty-eight interviewers were trained on the use of the interview schedule, how to lcoate and contact
respondents, and guide to interviewing. The interview schedule was pretested on 22 respondents in sitio
Capalos with the assistance of 4 trained interviewers. Pretestubg providedthe opportunity to refine the
data collection instrument and measure the average time it took to complete an interview.
Consequenty, some items in the interview schedule were deleted, other items wre reworded, and still other
items were presented in a different format.
Interview of eligible respondents was conducted on January 24 to 27,1992. Complete enumeratio was
undertaken for the residents of the different sitios of barangay Ibabang Polo. The barangay residents who
for some reason werer unavailable during the data collection periood did not become part of the
respondents pool. A non-probability sample was drawn from 4 of the 6 sitios of barangay Ilayang Polo.
A totalof 611 respondents were interviewed; 580 of these were original respondents and 22 were call back
interviews on pretest respondents. Fifty-eight percent of the respondents were household heads and the
remainder were spouses of household heads. The interview was conducted in Tagalog. Some of the
Visayan Speaking respondendts had a little difficulty understanding some questions such that these had to
be explained to them Iin more detail. Sisty-six percent of the respondents were interviewed in their
respective residences. For 53 percent of the respondents, the interview was conducted in the presence of
other people who were either household members or neighbors. Editing of accomplished interview
schedule. Table III-F-12 shows the number of respondents form the different sitios and barangays.
2.2.2 Results of Study
The results of the study are presentd in 5 parts;social and economic characteristics of respondents, quality
of life in the community, health status and condtions, percieved environmentall changes, and preception
about the project. These results were generated mainly by the social survey and complemented by key
informant intervieeew and direct observation. Unless otherwise indicated, result presented can be
assumed to be derived from the social survey conducted on this island.
Social and Economic Characteristics if Respondents
Household Composition and Attributes
Selected social and demographic characteristics of respondents are presented in Table III-F-13. Almost
half (48%) of the survey household have four or less members, 31 percent have 5 to 6 members, and the
275
remaining 21 percent have househols members. The average househod size is 4.8. Aggregate data show
that household members are evenly split between males and females. Fifty-seven percent of the
household members are single, 41 percent are married and a negligible 2 percent comprise the categories
of sepated and widowed. Almost all of the single household members are dependent childrem. The ages
of household members range from newborn to 78 years. Forty-four percnet are within the 21 ro 40 age
group and 30 percent arebetween 41 and 60 years. It is evident that three-fourth of the household
members are well within the economically productive age range. The age-sex distribution of household
members shows that while there is an even split between males and females on the aggregate, there are
slightly more females among the 40 years and youger household members and slightly more males
among the 41 years and older households members.
Almost all households in Pagbilao Grande Island are nuclear consisting of household head,spouse, and
children. Less than one percent have other relatives or nor-related household members. Aggreagate data
show that household have almost equal proportions of sons (29%) and daughters 928.5%).
Most (73%) households members attained elementary level education; only 11 percent have secondary
level education; and noteworthy is the 13 percent with no formal schooling. This condition can be
attributed mainly to limited number of schools and the large distance of most houses to the schools. Tahe
two barangays in Pagbilao Grande Island each has a school that offers primary grades. Because of the
large distance between sitios of any one berangay, even a centrally located school would still be quite a
distance from the other sitios. Parent in Capas-capas, for example, said that their school children walk 2 to
3 km. along rugged trails to get to school. On days of heavy rain. The childred often absent themselves
from school.
Land and House Ownership
Land in Agbilao Grande Islanfd belongs tpo a few owners. Most (83%) pof the residents in the different
sitios occupy the lot on which theiru respective houses are builts either for a nominal rent or for free. Some
residents in Capalos, for example, said that there was a pland ti subdivide the residential land in the sitio
with the aim to sell this for the occupants but no agreement has been reached as to lot sizes and cost.
Only eight percent (8%) claimed they own their home lots. Futher research revealed that there are only 3
absentee land owners on the island.
Almost all (91%) resindent own their respective houses. This condition is due to the fact that 65 percent of
houses are made of light materials such as cogon and bamboo. Because of the relatively low cost of these
housing material and the availability of labor in the sitio, it is the practice to have a house constructed for
every newly married couple. Very distinctive, however, are the few big houses made of a combination of
concrete, wood, and galvanized iron roofs especially in sitio Capalos. These stain in stark contrast to the
cogon and bamboo structures densely situated along the coastline. Since 99 percent of the households
are nuclear, the number of repondents in the survey can stand ad an accurate indicator of number of
dwelling units.
Migration and Organizational Membership
About two-thirds (63%) of the survey respondent were not born in the barangay where they currently
reside. Of these migrants, 39 percent have over 10 years of residence in the barangay . One quarter of the
migrant name Masbate as their place of origin. A few came from Leyte, Samar or other towns of Quezon
province. The primary reason given for migration to Pagbilao Grande Island is livelihood; a few transferred
residence because of merriage or to join relatuves. Some of the migrant from Masbate, for example, sai
that their transfer was gradual. One adults family member returned with the boat crew that regularly goes
to Masbate for deep sea fishing. In subsequent trips the reaminder of the family members followed. The
informants point out that the prices of fishes in Masbate are low compared to those in Pagbilao so their
transfer results in relativley hiugher income for their families.
Only 36 percent of the respondents are members of organizations or associations in their communities.
These organizatiob aree often social or religious in character. Only 5 oercent are work related. Informants
276
with no organizatiobal membership claim that there is no need for them to join any organization because
most of these do not benefit their members.
Source, Magnitude, and Changes in Income
Table III-F-14 shows that fishing is the mainsource of income of 68 percent of survey households. Only 12
percent of the respondentrs indicated farming as their main souyrce of income.other (4.4%) respondents
derive income frim business such as owning and operating a sari-sari store or being a fish dealer. The
distance of the island from the town of Pagbilao and the limited number of trips of commuter boats make
the sari-sari store business responsive to community needs for grocery and other household items.
Noteworthy in Capalosids the business pof selling potable water. It is usually the boat owners and
operatoprs who are into this business because te souce of water is Pagbilao town. A 5-gallon plastic
container full of water costs P3.50.
The respondents indicated that their annual income dercied from hteir main occupation ranges from less
tha P6000 to over P24000; 34 percent earn between P6000 and P12000 a year from their main
occupation. About 21 percnet of the respondents have additional sources of income. These sources
include farming,fishing,business,laundry, and charcoal making.
In additoin to the main breadwinner, 21 percent of households have earning members. Sixty-nine percent
of these household have one additional earning member and 21 percent have towo additional earners.
The income contributed by these additional earning members also ranges from less than P6000 to over
P24000. Thirty percent of them add between P6000 and P12000 annually to the household income.
Assuning a poverty threshold lever off P3,500 per month for a household consisting of 6 members,the
data would indicate that about 71 percent of surveyed households consisting 6 members, the data would
indicate that about 71 percent of surveyed households are well within the defined proverty condition. A
caveat should however accompany thios conclusion because householdc income as measured in thestudy
is based only on cash earning of the household members. It should be noted that most households
consume a substantial proportion of the goods they produce, e.g. agricultural crops,fishes; these are not
reflected in their stated income. In other words, the measured household income is not an accurate basis
for determining proverty incidnece because it does not include goods produces by the household that are
not converted to cash.
When asked if their current total income has changed compared to that of 5 years ago, over a third (37%)
of the respondednts gave a positive answer. Those who percieved a decreaded in income attributed the
change to a reduction in number of earning member, decrease in volume of fish catch, volatile fish prices,
amd bad weather conditions. On the other hand, the percieved increase in income of some respondents is
similarly attributed to the same factors, namely, increase in volume of fish catch, increase in number of
earning members of family,higher fish prices, and god weather. They also added the use of new fishing
techniques and increase in crop production. Those engaged in crop production maitain that the perennial
crop they planted 5 years ago are now bearing fruits the sale of which augments the family income. It
should be noted that the differential outcome for respondents of the same causal factors to income change
can be explaind by the different reference point or conditoions of these people 5 years ago.
Farming and Farm Characteristics
Farming is the main occupation for 12 percent of the respondents. In addition, 14 percent indicate
farmingas their secondaru sourcee of income. At the household level, only 4 percent of household
members are engaged in farming.
As is evident in Table III-F-15, most farmers cultivate small farms.Fifty nine percent of farmers have farm
sizes of one hectare or less. Only 29 percent own their respective farmland, 48 percent are tenants, and 5
percent use the land for free, Seventy-two respondents do not have irrigation for their crops. Their rainfed
farm are located on hills and mountain slopes in which they raise annula and perennial crops.
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The major crops raised are rice, coconut, cassave, corn, and banana. Thirty-one percent of farmers
cultivate their famrs to rice. Tabe lII-F-16 show 68 percetn of rice farmers harverst less than 50 cavans
per years from their farms. Only 11 percent harvest more than 100 cavans per year. Eighty-nine percent of
farmers have coconut planted on their farms. More than half (56%) harvest 500 or less nuts annually; 48
percent sell all of their coconut produce while 24 percent utilize their yield exclusive for their home needs.
Cassava is the third major crop raised in Pagbilao Grande Island by 21 percent of farmers. Sixty-one
percent of these farmers harvest less than 100kg, annually and 55 percent consume their cassava harvest
in the home.
Fishing and Related Characteristics
Sixty-eight percent of household in Pagbilao Grande Island derice their main source of income from
fishing. There are three typoes of fisherment (Table III-F-17). The first type are the self employed
fishermen representing 59 percent of all fishermen. They are of two kinds: the first are those who do
fishing on their own and either sell their catch in the local market or consume it in the home; the second
are those engaged in relatively large scale fishing. These are fishermen who have their own boats and
employ laborers for deep sea fishing in areas of considerable distance from the Island. Most of these
large scale fishermen catch exotic aquarium fish species and sell these to ready buyers who take these to
Manila or even export them. While the length of fishing trips for this purpose varies depending on weather
and other factors, their trips usually last about a week.
The second type of fishermen are those who serve as laborers of large scale fishermen. They comprise
35 percent of all fishermen. They do not have their own boats for long distance deep sea fishing. The
third type of fishermen are the laborers who also fish in the vicinity of the Island between long distance
fishing trips. Only 6 percent of fishermen belong to this category.
Not all fishermen have their own fishing boats. Only 52 percent ownb at least a boat and of these only 37
percent have motorized boats. The non- motorized boats are owned by the small scale self employed
fishermen. The fishing areas spread far and wide. Fifty-one percent of fishermen catch fish in th area
surrounding the Island. The remainder indicated such fishing places as Masbate (11%), Palawan (12%),
Mindoro (5%). A few (3%) catch fish in multiple places.
The fishermen vary vary in their frequency of fishing. Twenty-eight percent fish everyday, 13 percent fish
every other day, 15 percent do so twicke a week , and 10 percent once a month. The fish catch is
disposed of by selling, for home consumption, and a combination of selling and home consumption. Fifty
four percent sell their catch. Those who fish for the exotic fish species dispose their entire catch by
selling. Buyers with trucks pick up the fishes in oxygenated plastic bag containers form Pagbilao tobesold
in Manila. Forty-two percent of fishermen ise both selling and home consumption as manners of disposal.
Almost two-thirds (63%) of fishermen have their own fishing tools and gears. Those who do noit are thre
laborers; it is their employers who provides the needed toold and gears. Twenty-nine percent of fisherment
own fishnets, 16 percent havce fish corrals,it goes without saying that the fishemren engaged in large
scale fishinh edeavors own the most numer nda the more sophisticated tyes of ols and gears. Some
respondents revealed that fishing using cyanide and dynamite ws not uncommon in Pagbilao Grnde
Island.
Quality of life in the Community
Several indicators of quality of life in the community are presented in this section as shown in Table III-F-
18. The respondents cited several, different problems in their respective communities. An observed
problem is the lack of potable water. While this condition is true for all communities in the entire Island,
only 38 percent of the respondents expressed it as a problem.Twenty-six percent of respondents cited
multiple problems such as no electricity, bad condition of roads, and livelihood related problems.
Noteworthy is that 21 percent of the respondents did not perceive any problem in their respective
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communities. For those who expressed one or more problems, 67 percent indicated the existence of the
problem in both their own sitio and the entire barangay in which their sitio is located..
In addition to community problems, the amenities available to the residents of the Island also indicate
quality of life. The materials used for cooking by most (83%)
of the Island residents are wood, charcoal, or both wood and charcoal. As earlier noted, charcoal making
is the main source of income of 2 percent of the respondents.
The entire Island has no power utility. For lighting, most (85%) respondents use kerosene lamps. Ten
percent use liquefied petroleum gas. Two percent have their own electricity generators. For these few, 76
percent spend P50 to P100 a month for their generators. Some respondents also use batteries for lighting
and for their television sets and raadios. Forty-seven percent of battery users spend P20 to P40 a month
for battery recharging; 19 percent spend more than P90 monthly for the purpose.
In addition to the absence of a power utility, water utility is also absent.Forty-four percent of respondents
buy their water fromm Pagbilao town or from those in the village engaged in the business of selling water.
A quarter of the respondents get their drinking water from wells and 26 percent get it from springs.
Almost all (92%) of Isalnd residents do not have toilets. The sea is a favorite receptacle of human waste.
The few who have toilets are mostly residents of Capalos. Household garbage is burried in the ground by
59 percent of respondents or thrown into the sea by 19 percent of respondents. Farms residues of
farmers are either buried (65%) or left to decay of the soil (16%).
Health Status and Conditions
Forty-five percent of the respondents had household members who had gotten sick over the past 12
months (Table III-F-19). Less than one-third (27%) of these household had at least one member who was
taken ill. Three of the most common treatment patterns resorted to in case of sickness were: (1) consulting
a private physicians (34%); (2) self-medication (27%) ; and (3) consulting in the health center (19%).
The diseases/signs and symtoms (i.e., measles, influenza, malaria, diarrhea, scabies, etc.) experienced by
household members and those considered to the most common diseases in the community are generally
communicable in nature. The common disease in the community such as diarhea, influenza, measles,
feve and cough were attributed by the respondents to : (1) unsafe drinking water; (2) contaminated food;
and (3) changes in temperature and climate.
Measures of association between whether or not household members got sick in the past year and
selected independents variables were computed. The independent variables tested were householdd
size, age of respondent, born in barangay, main source of income, annual income from main occupation,
and source of drinking water. Not one of these independent variables was found to bee associated with
having a sick household member in the past year.
Sixteen percent of the respondents said that there were no health problems in the community. Lack of safe
drinking water, dirty surroundings, absence of toilets, and lack of fresh vegetables were cited by 12
percent of the respondents who said that there were community health problems. Improper garbage
disposal and uncontrolled use of water were believed to be the causes of the aforementioned health
problems in the community.
The lack of adequate water and poor sanitation in the barangay increase the likelihood of transmission of
infections among the residents in the barangay. Unless water and sanitation conditions are improved, the
prevalence of commicable disease can be expected to increase with the continuing influx of migrants and
the growing congestion in some sitios of the barangay. There is also need to establish a barangay health
station and provide health services on a regular basis.
Observed Changes in environment
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The general and specific changes observe be respondents in their immediate environment are shown in
table III-F-20. Only 27 percent responded positively to the general question on whether or not they noticed
any significant changes in their environment. The changes they observed include increase in number of
village settlers, changes in state of cleanliness of surroundings and the cutting of more trees for charcoal
making.
Respondents were also asked whether or not they observed any changes. Twenty-one percent observed
changes in crop yield; one half noted a decrese in yield and other half noted an increase in yield. Twenty
percent observed changes in fishing conditions; 82 percent said fish catch decreased. Twenty-nine
percent indicated some change in local water sources; 79 percent said the volume of water from these
sources has decreased; few sources have dried up.
Measures of association were computed between observed changes in environment and selected
independent variables. The independent cariables tested were household size, age of respondent, born in
barangay, main source of income and annual income derived from main occupation. Not one of these
independent observed in the environment.
Project Awareness, Opinion, Perceived Effects

Projects in Community and Awareness of Proposed Project
Respondents asked if there were any projects in their respective communities in the past 5 years. Fifty-
eight percent responded positively as shown in table II-F-21. The types of projects that they cited include
the construction of a school, basketball court, waiting shed, chapel and the construction of trails. Almost
half of the respondents (47%) cited multiple projects in their communities.
A large proportion of the respondents (83%) expressed awareness of the proposal to construct in
integrated coconut processing plant in Pagbilao Grande Island. The main sources of information on the
project that they identified are public for a/discussions (52%) and local government officials at barangay
and municipal levels (32%). A few named government agencies (7%), family members (3%), and the radio
(1%) as their sources.
General Attitude Toward the Proposed Project
When asked if generally they are in favor of the construction and operation of the plant, 46 percent favored
it as against 23 percent who do not favor of it (table II-F-22).
Measures of association were computed between general attitude toward the proposed plant and settled
independent variables. The independent variables tested were household size, age of respondents, born
in barangay, main source income, annual income from main occupation. Not one of these independent
variables was found to be associated with the general attitude toward the proposed plant.
In addition to the respondents, the general attitude of barangay and municipal officials were determined
through key informant interviews. The barangay captain and councilmen of Ibabang Polo favor the project.
So do the vice-mayor and perhaps the other town officials of Pagbilao. The barangay captain of Ilayang
Polo, However, is not favor of the project because of its harmful consequences. He also remarked that the
project is being undertaken without proper consultation with the people to directly affect by the project.
Options Regarding Relocation
Respondents were told that projects like the proposed plant often require the relocation of some dwelling
units or the replacement of farm lots. In event that the proposed project would need the land on which their
houses are built or where they have their farms, respondents expressed unwillingness to relocate Among
the reasons cited (table II-F-23): loss of source of livelihood (21%), no place to transfer to (42%) and
anxiety over having to adapt to the new place of residence (21%).
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When asked if they have a place to transfer to only 25 percent of the respondents gave a positive answer.
Their location site include Cebu (36%) and Palawan (15%). Almost half (19) of the respondents said they
willing to relocate if the amount of compensation is adequate. Three-fourths of the respondents would
accept government assistance in their relocation. The types of assistance they desire from the government
are: provision of house and lot (34%), adequate compensation (24%), provision of employment (13%), and
provision of sources of livelihood (10). Five percent of the respondents did not indicate any specific type of
assistance.
Table III-F-24 shows that opinion regarding relocation is highly correlated with their general attitude toward
the proposed plant (L.R. Chi-square = 134.117). Those who are favor of the proposed plant are willing to
relocate; a corollary is that those who are not in favor of the project are not willing to relocate. Similarly,
those who are uncertain in their attitude about the project are also about their opinion on relocation
The independent variables tested were household size, age of respondents, born in barangay, main
source income, annual income from main occupation. Not one of these independent variables was found
to be associated with the opinion regarding the relocation.
Perceived effect of the project
The respondents perceived specific beneficial, harmful, and mixed multiple effects of the proposed project
(table III-F-25). The perceived beneficial effects are provision of electricity (43%), creation of jobs (36%),
and general progress for the industry (21%). A substantial proportion of respondents (65%) indicated that
they or other members of their household would be interested in being employed in the proposed project.
The perceived harmful effects are: decrease in fishes in are (36%), air and noise pollution (28%), harmful
to human health (19%), destruction of vegetation (7%), loss of farm land (5%) and increase in sea water
temperature (5%). Over half of the respondents (54%) indicated that the proposed project would both
beneficial and haemful effects. Many (46%) perceived multiple specific consequences that could be
brought about by the project.
Table III- F-26 shows that perceived overall effect of the project is highly correlated with attitude toward the
project. Expectedly, those who are in favor of the perceived projecting that would help the community and
residents more that those who are in favor of the project. Noteworthy, is that among who percieve that
project would both beneficial and harmful effects there are almost equal proportions for those have
favorable attitude and those with unfavorable attitude.
The independent variables tested were household size, age of respondents, born in barangay, main
source income, annual income from main occupation. No significant correlation was obtains between any
of these variables and perceived overall effect of the project.
Social and Economic Characteristics of Respondents in Diorect Impact Area
This provides a description of the socio-economic characteristicsof the ares directly affected by the project
facilities within the island of Pagbilao Grande particularly covering the sitios of Caps-capas, Ranchohan
and Quidding.
Household Composition and Attributes
Selected social and demographic characteristics of the 100 respondents in the direct impact area
are presented in Table III-F-27. Thirty percent of the households have four or less members/
Aggregate data show that household members are almost evenly split between males and females/
the age –sex distribution shows that there are slightly more females in the 40 and younger age
group and slightly more males in the 41 and older age group. Fifty-three percent of household
members are single. Forty-seven percent of household members belong to the 21 to 40 age
bracket. The nuclear households have a slight excess of daughters over sons.
Seventy percent of household members attained elementary level education and 19 percent have no
formal schooling. Fishing is the primary occupation of household members. Those without occupation are
either dependent or studying.
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Land and House Ownership
Eighty-two percent of the respondents own the houses they reside in and occupy the lot free of charge.
Only 5 percent claim they own their respective houses and lots. Most houses (79%) are made of light
material such as cogon, nipa, or bamboo. The number of dwelling units in the direct impact area can be
indicated by the number of respondents in the said as all households are nuclear in structure.
Migration and Organizational Membership
Eighty percent of respondents area migrants, 26 percent or whom have resided in their respective
barangays for more than 10 years. The main reason give n for transfer of residence is search for a better
means of livelihood. Only 26 percent of respondents re members of community organization.
Sources, Magnitude and changes in Income
Table III- F-28 shows the fishing is the main source of income of 71 percent of households. Thirty percent
said their annual income derived from main occupation is within the P12,001 to P 24,000 range. The
poverty incidence of the subsample is not significantly different from that of the entire sample of
respondents from farming, business, among others. Three fourths of the households have one additional
earning member. Less than half of the respondents said their income has changed over the years and of
these 64 percent said it was for the better.
Farming and Fishing Characteristics
Farming is the main occupation of only 13 percent of the respondents. Fifty-nine percent of these cultivate
farms with sizes of one hectare or less. Fifty-two percent of farmers are tenants. Cassava, rice and
coconut are the major crops raised. (Table III-F-29)
Seventy-one percent of the households have fishing as the main source of livelihood, 81 percent of whom
are self-employed. Seventy-one percent own fishing boats, 56 percent of which are not motorized.
Seventy percent of fishermen fish every day and 68 percent both sell and directly consume their produce.
Seventy-three percent have their own fishing gears or tools (Table III-f-30
Quality of life in Community
Several community problems were identified by the respondents

(Table III-F-31). Foremost among these is the lack of drinking water. A substantial 32 percent did not
perceive any problem I their respective communities. Almost all (92%) household in the direct impact area
use wood or charcoal for cooking their meals. Eighty-five percent use kerosene for lighting. Wells and
spring are the major sources of drinking water. Compared to other Barangays, those in the direct impact
are do not buy drinking water. Compared to other barangays, those in the direct impact are doing not but
their drinking water from the town of Pagbilao. The reason for this may be the longer distance of the
villages concerned from the town. Only one among the 100 has a toilet dwelling unit, and this is because
Hopewell Power used this house as their staff house and initiated the construction of the same. Garbage
is disposed by burning and throwing into the sea.
Health Status and Conditions
Fifty-four percent of the 100 respondents had at least a household member who got sick in the past 12
months. Sixty-four percent had only one sick household member. Seventy-eight percent of households
either resort to self-medication or consult a private physician in treating illness of household members.
Fever and cough are most common diseases in the community (table III-F-32).
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Project Awareness, Opinion and Perceived Effects
Ninety-two percent of the respondents in the direct impact are aware of the proposed construct a
integrated coconut processing plant in Pagbilao (Table-III-F-33). Public discussion was the source of
information identified by 42% of the respondent. Other information sources are local officials and
government agencies.
Table III-F-34 shows that 24 percent of the respondents are in favor of the proposed plant, 34 percent are
not in favor, and 42 percent are uncertain or made their attitude contingent on access to more information
bout the project.
The opinions of the respondents in the direct impact are regarding relocation were also determine twenty-
six percent were willing to relocate, 31 percent were not willing and 43 percent were uncertain. The
reasons they cited for their opinions are shown in table II-F-35.
Expectedly, those with favorable attitudes toward the project are more willing to relocate than those with
unfavorable attitude. Similarly, those who are not sure in their attitude are also the ones who uncertain
about relocation (table III-F-36).
Respondents in the direct impact area perceive both beneficial and harmful effects of proposed project
table III-F-37. Among the beneficial effects are provision of electricity, progress for barangay, creation of
jobs. The perceived harmful effects include decrease in number of fishes, pollution, harmful to health and
destruction of plants and farmland.
Sixty percent of the respondents indicated interest in being employed in the project. When their opinion on
the general effect of the project was assessed, 22.5 percent thought the project would help the community
and residents, 36 percent thought the project would not be any of help or would cause harm; obtained
between attitude and perceived overall harmful effect and those who are uncertain in their attitude
perceive both beneficial and harmful project effects (table III-F-38).
Summary of Survey Results
Level of Living
In general, the level of living of the households is low. This condition can be inferred from several
indicators. One is the kind of house they live and the materials these are made of. Most houses are small,
with bamboo or soil flooring; they are made of cogon and bamboo. Second is the kind of furniture and
appliances owned. Most households have bamboo or wooded benches, wooden tables, clothes cabinet
and radios. Third are the kinds of amnesties available. There is no electricity or piped water in the entire
Pagbilao Grande Island. Fourth is the non-ownership of the land on which their houses are built.
Basic Services
Basic services in the community are either inadequate or inaccessible. There is no health center in the
entire island although the staff of the Rural Health Unit in Pagbilao visit the island occasionally. There is a
school in each barangay, which is considerable distance from some of sitios each is supposed to service.
Paved roads are non-existent. Inter-sitio land mobility is through rugged trails. Water transportation is by
boat to and from the town proper. The number of trips is low with non-regular schedule as the time of boat
arrival and departure is dependent on tide levels. Some sitios have a chapel for religious worship but there
is no resident priest or minister.
Health, Nutrition and Sanitation
The health condition and sanitation in the communities is moderately low. Communicable diseases
prevalent. Almost all houses have no toilets nor garbage disposal or wastewater drainage systems. Many
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children roaming and playing outdoors appear to be healthy. This may be due in part to their protein rich
diet because of availability of fish. Fresh vegetable, however, are not easily available in the village.
Sources of livelihood
Fishing is the main source of income of most households. The fishermen are three types: self-employed,
laborer and combination of self-employed and laborer. Among fisherman, a stratification system can be
discerned. The large-scale fishermen use large capital and employ laborers. They are much more
prosperous than the laborers or small-scale fishermen as inferred from the size and number of boats
owned, the size and the type of houses they live in, and generally more comfortable lifestyle.
Some households derive their livelihood from farming. Most of them cultivate small farms; the land that
they till does not belong to them. A substantial proportion is share tenants or enters. The rice, coconut,
corn, cassava and banana that are raised yield small quantity harvest and consequently small income. A
third popular source of income is business such as operation of sari-sari store, fish dealing, trading.
Majority of residents have multiple sources of income.
Awareness of and General Attitude Toward Project
While almost all respondents are aware of the proposal to contruct and operate a plant in Pagbilao Grande
Island, a substantial majority feel they need more information on many aspects of projects.
The general attitude toward the project as indicated by responses to whether nor they are in favor of the
project are vaied. Almost half (46%) of respondents favor cite its harmful consequences specifically those
bearing on health, environment, and relocation concerns. A substantial 31 percent who are uncertain or
whether or not favor the project cite the lack of information or details on the project for them to have a
definite position on the site.
Options Regarding Relocation
There are almost equal proportions of respondents who are willing to relocate, or uncertain about their
opinion regarding relocation. It seems that willingness or unwillingness to relocate is determine by the
perceived positive or negative consequences of the project. This is reinforced by find that there is direct
relation between attitudes toward the project.
Uncertainty regarding relocation is also related to uncertainty in attitude toward the project. To the
uncertainty respondents, formation of opinion or relocation is dependent on access to more information
regarding relocation site, just compensation, and/ or form of assistance to be given. These, together with
the fact that 75 percent of them would accept government assistance in the transfer process, are indicative
of positive attitude toward relocation as long as the terms and conditions are mutually. Acceptable to
parties concerned.
Perceived Effect of Project
The fact that relatively more respondents cited harmful effects of proposed project compared to number of
those citing beneficial effects may be reflective dominant concerns of the community members.
Understandably, people tend to resist any change that perceived to upset the daily routine that they have
been familiar and comfortable with. Under conditions where information about the project and its
consequences is inadequate, the respondents concerns regarding probable threat to their welfare remain
unaddressed.
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LAND AND RESOURCE USE
METHODOLOGY
The study initially delineated the probable influence/impact area of the proposed project which was
determined to be approximately twenty five (25) kilometer radius from the project site. Thus, the study
area wholly covered the City of Lucena and the municipalities of Agdangan, Atimonan, Padre Burgos and
Pagbilao and partly the municipalities of Sariaya, Tayabas, Lucban and Unisan. The immediate impact
area was identified as the Pagbilao Grande Island, which is the site of the proposed power plant, while the
direct impact area was determined to be the site of the project facilities.
Slope and Soil Physiography Maps with scale of 1:200,000 meters from the Land Resources Evaluation
Project (LREP) of the Bureau of Soils and Water Management (BSWM) were utilized in the discussion of
the physical characteristics of the study area while the Socio-Institutional Support Services Map also from
BSWM was used in the analysis of the existing land use.
A Satellite imagery was used to produce a Land Resources Map showing an inventory of land uses in the
study area. This map was utilized for purposes of analyzing land use and physical characteristics data.
To produce this map, the following data and procedures were considered/followed:
SPOT XS data, scene 305-322 dated July 6, 1987 and April 20, 1978 respectively; topographic maps of
Lucena, Atimonan, Unisan and Lucban on a scale of 1:50,000 plotted from aerial photographs acquired in
1953 and 1959; land use maps of Lucena, Atimonan, Unisan and Lucban published by the Agricultural
Land Management and Evaluation Division (ALMED), Bureau of Soils and Water Management in 1984 at
a scale of 1:50,000 and aerial photographs and video VHS images taken on January 10,1992 by NAMRIA
Remote Sensing Project Staff.
b. A preliminary land resources classification was performed using the minimum distance classifier on
each scene of the SPOT imagery.The classified scenes were then increased to produce the 25 km radius
coverage.
c. The output was then verified through; field investigation with the aid of a global positioning system
(GPS) receiver, overlay of digital land use data on the SPOT satellite imagery and visual interpretation of
aerial photographs and video VHS images.
d. Digitized land use vegetation map of the Bureau of Soils was images for areas obscured by clouds.
A preliminary land resources classification was performed using the minimum distance classified scenes
were then increased to produce the 25 km. radius coverage.
In addition, windshield survey was conducted to have a first hand knowledge of the study area.
Actual land uses, urbanization patterns and hierarchy of settlements of the study area were evaluated and
analyzed within the context of the CALABARZON Master Plan and the Regional Physical Framework Plan
for Region IV. Further, the Comprehensive Development Plans (also known as Town Plans) of Lucena
City and the municipalities of Pagbilao, Atimonan, Lucban, Unisan and Sariaya were considered.
Guidelines and policy issuances set forth in the abovementioned documents served as terms of reference
in the preparation of recommendations in this EIA module.
Other secondary data were gathered from line agencies. These data were available/presented at the
municipal/ city level.
DESCRIPTION OF THE ENVIRONMENT
Physical Characteristics
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2.1.1 Land Area
Localities which are completely within the 25 km. radius influence zone are Lucena City, Pagbilao,
Atimonan, Padre Burgos and Agdangan while those which are partly covered are the municipalities of
Sariaya, Tayabas, Lucban and Unisan.
For ease in presentation however, the total area of the city/muniucipalities was used, as shown in Table
III-G-1.
2.1.2 Slope
Slope ranges from level to gently to mountainous within the study area. Refer to Figure III-G-1.
Areas with relatively flat to gently rolling terrain are located generally along the coasts of Sariaya,
Pagbilao, Padre Burgos, Agdangan and Unisan (NOTE: Lucena city is not included in the study of the
Bureau of soils and water Management) while the mountainous areas are situated mostly in Pagbilao and
Atimonan.
Pagbilao Grande Island predominantly falls within the slope class 8-18% describes as having
undulating to rolling terrain. Mount Mitra which is located at the northeast section of the island has steep
to mountainous slopes while the Balilisan Mountain Range which is found at the southern tip of the island
has hilly to steeply hilly slopes.
Different slope classes and their corresponding description are presented below:
Slope Class Slope Range Description

A 0-3 level to gently sloping
B 3-8 gently sloping to
Undulating
C 8-18 undulating to rolling
D 18-30 rolling to hilly
E 30-50 hilly to steepy hilly
F 50 above steeply hilly to mountainoues
Soil Physiography
Different types of soils are characterized and classified according to landforms and landscapes delineated
in the maps prepared by the Bureau of Soils and Water Management (BSWM) under the Land Resources
Evaluation Project (LREP). These are further subdivided into Land Management Units (LMUs) which are
then used as the basis unit for integration.
Major landforms in the study area are as follows:
Lowland – Wetland
The soils are recent alluvium, moderately deep to very deep, medium to heavy textured fluvio-alluvium
and with alluvial deposits. These areas are most of the time submerged and in undated by brackish water
in case of mangroves and/or permanently flooded in case of inland marshes. This soil type is partly found
along the coasts of Unisan, Agdanganan, Padre Burgos, Pagbilao and Sariaya.
Lowland – Alluvial
The slope of this landform is level to very gently sloping ( 0-3%) and dominantly cultivated to lowland rice
and coconut. Soils are alluvium, fine loamy to clayey, developed from the deposition of sediments from
river overflows and sediments from adjacent upland areas.
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This landscape covers large portions of Sariaya, Tayabas and portions of Lucban and Padre Burgos. The
area along the boundary between Agdangan and Unisan is characteristic of this landform.
Lowland Residual
This landform has a slope range of 3-8% occupying areas with elevation of not more than 100 meters
above sea level. Soils are moderately deep, moderately well-drained, very fine loamy to clayey, residual,
developed from the weathering of volcanic rocks.
It covers the inland portion of Sariaya, coast of Lucena City and parts of Pagbilao, Lucban and Tayabas.
Upland
Soils of these areas are moderately deep and well-drained, very fine loamy, residually developed from the
weathering of tuff.
This landscape is identified in the minicipalities of Tayabas, Sariaya, Lucban and Pagbilao.
Module on Geology Soils/Terrain describes in detail terrain characteristics and soil physiography of the
study area.
Land Classification
Lands are classified into: a.) alienable and disposable lands (A&D) and b.) forest lands. Alienable and
disposable lands are those lands of the public domain which have been the subject of the present system
of classification and declared as not needed for forest purposes. Forest lands include the following: a.)
public forest is the mass of lands of the public domain which have not been the subject of the present
system of classification for the determination of which lands are needed for forest purposes and which are
not; b.) permanent forest or forest reserves are those lands of the public domain which have been the
subject of the present system of classification and determined to be needed for forest purposes; and c.)
forest reservations are those forest lands which have been reserved by the President of the Philippines for
any specific purpose. Forest lands have a slope of 18% and above.
As per Provincial Environmental and Natural Resources Office (PENRO) 1990 Year End Annual Report,
Quezon Province has a total area of 506,869.05 hectares of alienable and disposable lands wherein
105,076 hectares are located in the nine (9) municipalities covered by the study area. Sariaya has the
largest A & D lands of 20,794.94 hectares while Agdangan has the smallest A & D of 3,052 hectares.
Quezon Provice has total forest land of 354,561.89 hectares with 304,865.89 hectares a classified public
forest or approximately 86% of the forest lands and the remaining 49,696 hectares as unclasified public
forest.
Table III-G-2 presents the status of land classification as of 1990. (NOTE: Data on Forest Lands available
at the PENRO are at the provincial level. Further, updated maps indicating land classification in the
province were not available at the time of the study).
Natural Resources
Forest Resources
There are three (3) forest reserves which are located which is situated in
Tayabas and Laguna, Batabgas, Laguna and Tayabas, and the Famy-Infanta Forest Reserve which is
located Siniloan in Laguna and Infanta and Tayabas in Quezon, as presented in Table III-G-3.
There are also two (2) national parks as presented in Table III-G-4 which are within the 25 km. radius.
These are the Quezon National Park which is located in Atimonan, Padre Burgos and Pagbilao with an
area of 983.0765 hectares ND THE Mt. Banahaw-San Cristobal National Park which covers portions of
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five (5) municipalities of Laguna and Kucena City, Lucban, Sariaya, Dolores and Candelaria in Quezon
with an area of 11,133.3015 hectares.
Timberland occupies the largest area of the forest lands with 293,068.89 hectares. These lands are purely
devoted for timber production.
Three (3) watershed areas are located within the study area: these are the Binahaan Watershed Forest
Reserve which is located in Pagbilao and Mauban, the Atimonan Watershed Forest Reserves in Atimonan
and the Padre Burgos Watershed Forest Reserve in Padre Burgos. These watershed areas cover 465
hectares, 368 hectares and 150 hectares, respectively.
Mineral Resources
Ore reserves are categorized into marble ore, limestone ore reserves for industrial lime, construction
materials ore reserves and cement raw materials. The mines are located in the municipalities of
Atimonan, Sariaya, Pagbilao and Padre Burgos. There are six (6) reistered operators/companies of ore
reserves in the study area , however only the Fuji Mining Corporation which has an ore reserve of
1,244,203 MT is operational. Table III-G-5 shows the 1989 ore reserves within the study area.
In addition, there are non-metallic mines and quarries covered by mining rights such as commercial,
foreshore, industrial, small scale and quarry permits/licenses and lode lease, mining lease and placer
lease contracts. The non-metallic mines and quarries in the study area are stones, cobbles , boulders,
sand, gravel, guano, silica, bullquartz, limestone, phosphate rocks, quicklime and marble, as presented in
Table III-G-6.
There are 34 registered non-metallic mining companies granted permits in the study area. Commercial,
foreshore and industrial permittees have the most number having a total of 16. Most of these permittees
are located in Sariaya and Lucena City with stones, cobbles, boulders, sand and gravel as the major
commodity produced. Small scale permittees are found in Atimonan, Pagbilao, Unisan, Tayabas and
Agdangan. Only three (3) quarry permittees are registered producing quicklime, limestone and marble
while the placer lease contract holders produce only sand and gravel.
Fishery Resources
Fishponds are either located in areas with brackiskwater or freshwater refer to table III-G-7. brackishwater
fishponds occupy 1741.58 hectares with 91 operators representing an average of 19 hectares of fishpond
to an operator. These are located in the municipalities of Pagbilao, Agdangan, Padre Burgos, and Unisan.
Pagbilao has the biggest fishpond area with 841.41 hectares. The species raised are bangus and sugpo.
Produced by either monoculture or polyculture method with an annual production of 947694 Metric
Tons(MT).
Freshwater fishponds located in five (5) municipalities of study area. Lucban has the biggest freshwater
fishpond area with a total of 337.05 hectares producing tilapia and carp and an annual production of 7.49
MT, while Lucena City has the second biggest frishpond area of 60.60 hectares also producing tilapia with
an annual production of 1.87 MT. The total annual production using the monoculture method in all
freshwater fishponds is 11.10 MT. Average fishpond area per operator is four (4) hectares, which is
considerably smaller compared to the brackishwater fishpond.
Fishing grounds in the study area are Pagbilao Bay and Tayabas Bay which are adjacent to the project
site while the eastern section of the study area are Lamon and Lopez Bays.
Municipals fishing in Pagbilao and Tayabas bay by subsistence fishermen yields an average fish catch per
banca of 1-3 kg per day.
Water resources
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Surface water in contributed by the presence of six (6) main rivers in the province having a total catchment
area of 166 square kilometersand an annual discharge of 19.67 cu.m/sec, as presented in table III-G-8.
Within the study area, a number of rivers drain into different bays as follows: Tayabas River in Lucena
City, Pagbilao, Binahaan and Palsabangan Rivers in the municipality of Pagbilao, Kinaguran River in
Agdangan and Kalayan River in Unisan.
The existing communial irrigation system has a total area of 3556 hectares where 3271 hectares are
irrigated during the wet season and 3244 hectares are irrigated during the dry season. Agdangan and
Unisan have no irrigated areas.
Urbanization and settlement Pattern
Urbanization is a dynamic process characterized by rapid population growth and the predominance of
economic activities especially in the industry and services sectors.
Suburbanization
The Metro Manila Area has greatly influenced urbanization and the settlements pattern in Region IV. In
addition, the national government policy on theCALABARZON (Cavite, Laguna, Batangas, Rizal and
Quezon) has added impetus to the development in these specicic areas.
While Lucena City is not within the immediate influence are of Metro Manila, it is the most
urbanized/developed within the study area, since it performs administrative functions, i.e., it offers a varied
range of urban services/ facilities and it is the site of some regional offices of government agencies.
Urban Center
Urban centers within the study area are identified in the CALABARZON Master Plan using the following
parameters:
Urban population in city or municipality representing the extent of urban development and physical size of
centers.
Number of wholesale/retail establishments and employment representing the extent of economic activities
and relative amounts of urban job opportunities.
Number of manufacturing establishments representing the degree of concentration of small
manufacturers.
Number of banks, representing the extent of available higher urban services at the regional/ sub-regional
levels, and
Secondary school enrollment and number of hospital beds representing the extent of developemn of social
services.
Based on these parameters Lucena City and the municipalities of Saraya, Tayabas and Pagbilao are
identified as urban centers in the province of Quezon.
Spatial Pattern of Development
Linear pattern of development characterizes the study area wherein population growth follows the
circulation system. Within the city/municipalities, the grid pattern of development in the poblacions/ town
centers is observed. The usual town center layout include the following structures: the municipal hall,
church, town plaza, some establishments and in some instances the public market.
Existing Land Use

Existing Land Use within Pagbilao Grande Island
289
Existing dominant land uses are classified into: mixed built up, agriculture and forest area as shown in
table III-G-10. the agriculture land use comprises 77%, forest comprise 22% and built-up areas comprise a
mere 9%
Built-up Areas
Population in the two barangays as an indicator of the magnitude of the built-up areas in Pagbilao Grande
Island: 1265 in Ilayang Polo and 3605 in Ibabang Polo. Sitio Capalos in Ibabang Polo is heavily populated
as compared to the other four(4) sitios of barangay.
A number of scattered structures/dwelling units are situated in the proposed location of the power plant
complex itself. At the southern portion of the plant is Sitio Capas-capas which has an asslomeration
structure for 150.
Impact Identification Impact Assessment Impact Management
Air Emissions
COx Emission
Areas affected: 200 m radius from CO monoxide maybe formed from
the plant site incomplete combustion of fuels
Effects: Drastic Climate Change in used in processing raw material.
urban areas, Heat waves, Cardio The use of a chemical scrubber
Respiratory diseases, Infectious can be used to reduce carbon
diseases, gastro intestinal infections, monoxide emissions.
affected food quality, seabed rises,
storm surges.
SOx Emission Areas affected: 200 m radius from Minimization of the use of crude
the plant site oil and coal.
Effects: Long-exposure may cause, Creating a basic chemical
respiratory illnesses, visibility scrubber, Drierite column, to
impairment, Acid rain, plant and prevent COx emission.
water damage, Aesthetic damages.
Particulate Matter Areas affected: 200 m radius from Minimize also use of crude oil in
the plant site processing raw materials.
Effects: Decreased lung function, A Basic Cyclone device can be
premature death aggravated asthma, use to remove Particulate Matter
increases in respiratory symptoms from a gaseous stream through
like coughing and difficult or painful the use of centrifugal forces.
breathing chronic bronchitis, visibility
impairment, making lakes and
streams acidic, changing the nutrient
balance in coastal waters and large
river basins, depleting the nutrients
in soil, damaging sensitive forests
and farm crops, affecting the
diversity of ecosystems, Aesthetic
damages
290
NOx Emission Areas affected: 200 m radius from Nitrogen oxides can be formed
the plant site by combusting raw materials.
Effects: Stratospheric ozone Minimize using crude oil as a
depletion, asthma, heart diseases, primary combusting raw
pulmonary diseases, water quality material.
deterioration, global warming, The use of compact membrane to
visibility impairment. have a NOx free air.
Wastewater
Water from the carbonization Area affected: Ground water of the Wastewater from the said
process and furnace urban areas around 250 m radius process can be purified and be
within the plant used for centrifugation or
Effects: Water quality deterioration, fermenting processes.
diarrhea, infectious diseases. (Recycle)
Creating a water purifier.
Having a wastewater treatment
plant to avoid the damages to
ground water. To avoid further
compensation from NGO’s and
the community within the area.
Electro coagulation can be
used to dissolve any harmful
chemical that are in the
wastewater.
Anaerobic granular bacterial
system via high rate biogas
digester technology can be use
to minimize BOD and COD
effluent from the wastewater.
Solid Waste
Coconut Pairing Area Affected: Plant sitting Coconut shells burning with high
Effects: Lessens the workplace, temperature on kilns to reduce the
hygienic purposes. coconut pairings in the workplace.
Coconut Husk Area affected: Workplace Apply cleaner production principle

Effects: hygienic purposes, less like sweeping the waste husk,
place to work, can cause accidents, proper segregation of bio and non-
infectious diseases. biodegradable materials.
Environmental Management Plan (EMP)

SOCIAL IMPROVEMENT PROGRAM
The employees of the plant would be given ample training and social services such as SSS and other
personnel benefits. The employees are required to wear Personal protective equipments (PPE) every
time in the vicinity.
291
EMERGENCY PLANS
Wastewater Treatment
The sewer lines were designed to accommodate the maximum flow when the pipe is flowing half-full. As
for the treatment, the company should build a wastewater treatment plant to ensure safety and quality of
water within the area.
Spillage of Raw Materials
Our raw material are basically coconuts from farm so there are no hazardous chemical. In case of accident
in transporting raw materials there will be a cleaning team to clean the area affected.
System or Power Failure
There will always be a generator that is fully operational in case of power failure and stand by systems
coordinator in case system breakdown.
Wastewater sampling
There will be a weekly wastewater sampling on the plant to ensure that the water effluent will pass
to the standards set by the DENR.
Noise impacts
Employees are required to wear ear muffed devices to prevent damage of hearing, they will be exposed
not more that 8 hrs if they are working with an equipment producing 90dBA. Our operation will be 8 hrs
maximum and will be shut down and will not operate at night.
Solid Waste
Good housekeeping rules and regulations will be implemented in the project site. The packaging material
of the raw materials should be segregated well.
Garbage bins should be strategically provided in the project site.

Fire
In case of fire there are fire extinguisher throughout the plant and in case of major fire there will be an
installed communication with the nearest fire station.
INSTITUTIONAL PLAN
A Cleaner production team shall be created to participate and promote the cleaner production to the
individual employees as well as its immediate vicinity. The committee will have their participation in
environmental protection and management of the area.
Environmental Monitoring Techniques (EMT)
There should be a compliance of the project owners in the proper and accurate implementation of the
EMP stated. Also, there will be a quarterly monitoring of the activities done by the plant (the air quality
monitoring, the wastewater treatment sampling should be quarterly also and if possible weekly, solid waste
management to reduce further compliances) to assure that the impact assessment is accurate and still
according to prediction. If not, there will be another impact assessment for the plant.
292
For the efficiency of the equipment there will be a maintenance department that are in charge in
maintaining the equipments to ensure product quality and this will be done monthly to avoid further
damage on the equipment.
The management will guarantee to the community of Pagbilao, Quezon that the plant will not
cause any harm on there vegetation, water quality and air quality by abiding the law and by doing the
mitigating measures that are stated above.
AIR
CO2 EMISSIONS
Creating a basic chemical scrubber to remove carbon dioxide from effluent, you will need the Drierite
column provided with TR-series respirometry system. You will also need a 500-gram bottle of a special
gas-scrubbing compound called Ascarite. A single Ascarite column will remove essentially all of the carbon
dioxide emissions.
Ascarite must never be exposed to moist air. If it is exposed to moist air it will turn into a mushy, corrosive
soup that will attack anything in its surroundings from which it can wrest free electrons. Therefore, always
dry any air that is passed through Ascarite. To dry the air, use Drierite.
Build a foolproof column; add a third layer of Drierite to the bottom of the column. This will prevent a
directionally challenged person from pushing moist air through the column from the bottom, thus producing
the aforementioned toxic soup.
Create a real scrubbing column.
NOX EMISSIONS
Compact Membrane solution
CMS’ process delivers nitrogen-enriched air (NEA) to the intake manifold by selectively permeating an
oxygen-enriched stream (OEA) across the membrane.
Supplying NEA containing 82% nitrogen instead of air with 78% nitrogen has been shown to reduce the
formation of NOx by 50%.
PARTICULATE MATTER
USE OF CYCLONES
Cyclones remove PM from a gaseous stream through the use of centrifugal forces. Dust laden gas enters
the cyclone tangentially and is turned in the inlet spiral towards the conical part of the cyclone, where it
moves in a circular motion in increasingly tighter circles. This type of flow provides the centrifugal force
necessary to separate the particles from the gas. The centrifugal force acts more strongly on the larger
and denser particles, and flings them preferentially toward the inside wall of the cyclone, where they
impact and fall to the bottom of the cyclone. The clean gas flows out through the top of the cyclone, while
the collected dust is removed from the bottom.
293
The advantages of using cyclones include:

Low capital cost
No moving parts, therefore, few maintenance requirements and low operating costs
Relatively low pressure drop in relation to the amount of PM removed
Temperature and pressure limitations are only dependent on materials of construction
Dry collection and disposal
Relatively small space requirements
WASTEWATER
USE OF ELECTROCOAGULATION
This is commonly achieved through chemical treatment or addition of chemicals such alum, lime or
polymers. Another means of achieving coagulation is through “electro coagulation”, where electric current
is introduced to remove suspended, emulsified or dissolved contaminants in the wastewater.
In electro coagulation, electric current is introduced into the water through electrodes. The most common
electrodes used are aluminum and iron metals for the anode, and an inert metal for the cathode. As the
current passes through the anode, positively charged ions (i.e. aluminum ions) are released into the
wastewater. These metal ions then react with the contaminants such as heavy metals, organic and
inorganic colloids, and precipitate dissolved solids and aggregate smaller particles into larger particles.
Simultaneously, hydrogen gases are formed through hydrolysis and these aid the particles to rise to the
surface. Throughout the process, the particles either settle at the bottom (as sludge) or float on the surface
(as flocs).
CLEANER PRODUCTION PRINCIPLE:
Recovery, reuse and recycle
1. Cleaner Production Application:
Collected coconut water is channeled to a for concentrating, freezing and final processing as a commercial
drink. Coconut processing into a commercial juice drink involves pasteurization and centrifugation to
produce a clear, non-oily solution for packing in sterile containers.
Environmental and Economic Benefits:
The estimated biochemical oxygen demand (BOD) level of will reduce by about 50 percent. The annual
avoided treatment cost is will be 10 % of the annual operating cost on wastewater treatment plant.
2. Cleaner Production Application
Waste Water: Coconut sap, wash water, cleaning water
Method : Anaerobic granular bacterial system via high rate biogas digester technology
Factories discharge a considerable amount of waste water which has very high biological oxygen demand
(BOD), and chemical oxygen demand (COD). If discharged untreated, this waste water pollutes the
environment with unpleasant odor and spoils soil and plants.
The method consists of three anaerobic sludge beds, a sedimentation tank and a biogas holder. All three
digesters contain bacteria growing media (coir fiber), which facilitate the granular bacteria formation and
are very effective for high rate digestion. Initially, the digesters are filled with cow dung and water to form a
bacteria culture. It takes one week for the growth of the anaerobic granular bacteria. Then coconut
wastewater can be added. This process will help bacteria to digest as the coconut water is acidic ( pH
value is between 4-5 ).By increasing the amount of waste water, the system ultimately operates as a
coconut waste water treatment plant. At the end of the digesting process, wastewater with acceptable
BOD and COD values can be discharged. Suspended solids are deposited in a sedimentation tank.
The advantages of this system are:
1. Comparatively low cost implementation

2. Operates under 90% anaerobic conditions, thus eliminating odor
3. Simple construction that does not require complex or imported items
4. The biogas is a valuable by-product. Two litters of coconut wastewater will yield one liter of biogas at
atmospheric pressure
294
5. No electrical power or pumps are required to operate the system except for de-aeration at the end. If
properly designed, gravity flow will be sufficient for cascading
SOLID WASTE
CLEANER PRODUCTION PRINCIPLE:
Cleaner Production Application
Method: Coconut shell burning with high temperature on kilns.

Consists of three stages: shell burning, waste heat recovery and
using recovered heat in dryers or boilers.
The main solid waste by-product of the coconut industry is coconut shell, which is the raw material for
various industries such as charcoal, activated carbon, mosquito coils etc.
When the shells are burnt in kilns, the volatile gasses are re-burnt to minimize the environmental hazard.
The process releases a high amount of heat energy, which is not recovered. Some trials have been done
to recover this heat energy and to use it in boilers and dryers. Trials have shown that it can reduce the fuel
used in boilers by 35%.
ABANDONMENT PLAN
Dispose all the chemicals that are used in the production. The wastewater should be treated prior to the
date of abandonment of the plant. The equipments that are used should be selling or dispose properly to
avoid any accident after the abandonment. Secure the area of the plant to avoid trespassers.
295

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Integrated Coconut Processing

A Feasibility Study Submitted to the School

B.S. Chemical Engineering

Mapúa Institute of Technology

To our beloved course adviser Engr. Winston B. Flora, who challenged us to

To our fellow groupmates:

Again Thank You…

Integrated Coconut Processing

COMPARATIVE ANALYSIS OF MARKET SHARE 50

Electricity Projections 131

RETURN ON INVESTMENT 220

FIGURE 1: ANNUAL BURGER CONSUMPTION 46

TABLE 2-1: PRODUCTS FROM THE WHOLE NUT (PCA) 13

TABLE 6-21: INVENTORY OF COCONUTS 155

The Coconut Industry

Statement of the Problem

As a result of industrialization and growing environmental awareness, the demand for

Objectives of the Study

Scientific Name : Cocos nucifera

Family : Arecaceae (or Palmaceae)

The pinnate leaves are feather-shaped, up to 18 feet long and 6

Roughly void, up to 15 inches long and 12 inches wide, composed

Products from the Whole Nut

Whole Nut 1200 100%

Philippine Coconut Harvest By Major Producing Region3

Uses, applications and market aspects of the coconut

Activated Carbon (AC)

The Beginnings of Activated Carbon and the Problems of Ecology

Historically speaking, the phenomenon of adsorption as it is understood today, was first

What is Activated Carbon?

Activated carbons are essentially porous materials prepared by carbonizing and

Coconut Shell Activated Carbon

The availability of an assured supply of feedstock in sufficient quantity and at an

Properties and Characteristics of Coconut Shell-based Activated Carbon

Virgin Coconut Oil (VCNO)

Difference of Virgin Coconut Oil from other Oils

purest form of coconut oil standard end product is

Table 2-3: Comparison Between VCNO & Refined Coconut Oil

"Coconut oil is the healthiest oil on earth”

Coco Vinegar (CV)

Vinegar is considered to be one of the oldest fermentation products known to mankind.

Definition of Coconut Vinegar

Standard quality of Coconut Vinegar

Mechanism of Acetic Acid Fermentation5

C2H12O6 + O2 2C2H5OH + 2CO2

(acetic acid bacteria)

Requirements in the Manufacture of Vinegar

2. Nature of the Raw Material

4. Amount of Oxygen Supplied

6. Aging and Storage

7. Bottling and Pasteurization

Coconut Water Vinegar Manufacture

Name of the Enterprise

Cocos Processing Co.

Name of the Products

Activated Carbon : Co-Carbon

Virgin Coconut Oil : Vircoil

Coco Vinegar : Cocos Vinaigre

Coco burger : Cocoyum

1. Establish a successful Integrated Coconut Processing Industry in the Country

Current Market Situation

Increasing demands of coconut products, mainly activated carbon, VCNO, geotextiles

Product Description, Uses and Applications