Pre-Feasibility Study – Coconut Processing Mill

The facility will use a Direct Micro Expelling (DME) press extract and develop value-added VCO which can then be packaged and shipped to secondary markets. The proposed model features two key components: Coconut Processing and By-Product Offloading. Coconut Processing involves farmers bringing raw, husked coconuts to the Coconut Processing Mill and paying a fee for use of the facility. Ownership of the coconuts and VCO will ultimately remain with the farmer, who will be responsible for on-selling VCO. The facility may also produce additional coconut products, such as coconut flour, coconut sugar, and syrup, coir fiber, coco-pear, and coconut shell powder. By-Product Offloading involves the facility offloading discarded coconut by-products to be used as inputs into the proposed Mini-Feed Mill and other interested businesses. This will create commercial linkages to supplement revenue from oil production while reducing waste. A graphical depiction of the proposed project conceptual architecture is presented in Figure 1. The facility is anticipated to be developed at Gwaigeo, located eight kilometers north of Auki on the coast of Malaita Province. The site has good connectivity with both the North and East roads, making it easily accessible from the anticipated site location. The total travel time from Gwaigeo to Auki is 20 minutes, which is the location of the largest port on Malaita Province, and only 10 minutes further to reach Gwaunaru'u Airport. Coconut production is largely focused in Southern Malaita, with some existing facilities currently developing VCO that is then sold in Honiara. However, there is currently limited cooperation between these farmers and current processes are very labor-intensive with humble facilities. Establishing a centralized facility with modern machinery and tools under community management through a cooperative/business association of participating farmers could increase the profitability, efficiency, and scale of this enterprise. The proposed project is intended to respond to identified causes and consequences of a market problem through strategic interventions. The facility will provide natural synergies between coconut farmers, producers, and traders, and will create commercial linkages to supplement revenue from oil production while reducing waste. The development of this facility would provide a significant opportunity for economic growth and development in Malaita Province. The facility will require a site layout plan that includes a detailed layout of the buildings, parking spaces, and other requisite features. A greenfield site, the area at Gwaigeo will require road accessibility upgrades and the development of all utilities. Due to the link between the Coconut Processing Mill and Mini-Feed Mill, it is suggested that the two facilities are located on adjacent plots within the Gwaigeo site. The proposed project will involve a number of stakeholders, including coconut farmers, producers, traders, and the private sector. The facility will be developed through a cooperative/business association of participating farmers, which will provide a framework for community management and decision-making. The project will also involve the development of a logistics terminal and commercial cluster for key supply chain actors, where value-added products are created, stored, and distributed to market. The proposed project has the potential to create significant economic benefits for Malaita Province, including increased revenue from oil production, job creation, and improved living standards for coconut farmers and their families. The facility will also provide a significant opportunity for private sector investment and development, and will contribute to the growth and diversification of the Solomon Islands' economy.