How to Start a Coconut Sugar Production Company

Coconut Sugar Power

Since it was discovered that the coconut sugar is much healthier than sugar gotten from sugarcane, the demand for coconut sugar has increased, making the coconut tree a gold mine for farmers. The coconut sugar is tapped and cooked until it turns to a paste or crystal form which is sold to buyers.

Why Is the Coconut Sugar High On Demand

The coconut sugar is high on demand because it contains the following nutrients; vitamins B and C, amino acids (also gotten from protein), minerals such as potassium, iron and zinc.
Starting a coconut sugar company is a very profitable business to start because a coconut tree is said to produce 60 kilos of coconut sugar which is equals to 480 litres in a year since a single coconut tree produces over eight nuts every month; and the selling price for each kilo is more than $15.

 Now imagine having a coconut plantation with over 100 coconut trees, and with the high demand of the product, that is big money for your company; and starting a coconut sugar company is very easy as long as you have the required capital, and knowledge of how to crystallise the sapped sugar. 

coconut sugar

You don’t even need any technical knowledge to start the business.
This article will focus on the intricacies of starting your own coconut farm business and growing it to a reputation company in your location.

Starting a Coconut Sugar Production Company – Sample Business Plan Template

Since it was discovered that the coconut sugar is much healthier than sugar gotten from sugarcane, the demand for coconut sugar has increased, making the coconut tree a gold mine for farmers. The coconut sugar is tapped and cooked until it turns to a paste or crystal form which is sold to buyers. Why Is the Coconut Sugar High On Demand  The coconut sugar is high on demand because it contains the following nutrients; vitamins B and C, amino acids (also gotten from protein), minerals such as potassium, iron and zinc.  Starting a coconut sugar company is a very profitable business to start because a coconut tree is said to produce 60 kilos of coconut sugar which is equals to 480 litres in a year since a single coconut tree produces over eight nuts every month; and the selling price for each kilo is more than $15. Now imagine having a coconut plantation with over 100 coconut trees, and with the high demand of the product, that is big money for your company; and starting a coconut sugar company is very easy as long as you have the required capital, and knowledge of how to crystallise the sapped sugar. You don’t even need any technical knowledge to start the business.  This article will focus on the intricacies of starting your own coconut farm business and growing it to a reputation company in your location. Starting a Coconut Sugar Production Company – Sample Business Plan Template  1. Learn the Process of Tapping and Crystallization-: This is the major information you need to successfully start a coconut sugar company. You need to learn the process of tapping and crystallization. In as much as you will not be the one to personally do the tapping and crystallization process, it is an added advantage to learn how the whole process works.  2. Register your Business Name as a Company-: Since you are planning to run this business as a long term enterprise, it is better to register it as a legal entity. A lawyer can help you with the company registration. Also, you may also need to get other licenses and registrations that will allow you run your coconut sugar production business in your location.  3. Write a Business Plan-: No business can succeed without a clearly written business plan. So you need to draw up a business plan of how you want your coconut company to be run and what the future of the company will look like in the next few years; and your plans for expansion.  4. Capital-: There is much profit to be made from running a coconut sugar production business, but before the profit starts coming, you need to invest much capital to get the business started. If you have the capital to run the business, much better. If you don’t, then you can get a business partner or an angel investor to come in to contribute financially toward the company start up. I don’t always recommend bank loans for new business start ups because of the high interest rates that come with the loan. A new company doesn’t need such extra cost at its early stage.  5. Get the Coconut Trees in place-: There are two ways to go about this; first you can buy a coconut farm from a farmer. It may be quite expensive but you will cover up the cost within two years as long as there is still a high demand for your product. The second option you have is to buy a piece of land and plant coconut trees on it; this process might be cheaper but it will take you time to start making money as it takes a coconut tree a minimum of seven years to get to maturity. I think the first option is better off, if you have the capital to buy off someone else’s coconut farm.  6. Tapping Process-: After the coconut gets to maturity, it is time to start the tapping process. This involves making an incision on the flower bud and placing a container where the sugar juice will be collected. You are to empty the container every 24 hours and replace to collect more sugar juice. The best way to go about this is to employ laborers and put them on a work as your earn wage plan. That is, you pay them according to the number of trees they tap per day.  7. Crystallization Process-: After the sap has been collected, you need to transform it into a crystallized form before it can be sold. The crystallization process simply means cooking the juice until it turns into a solidified form, after which the sugar will be ready to be sold to the end users.  8. Getting the Product to the Market-: At this stage, the coconut sugar should be in its crystallized form and ready for sale. It is time to source for buyers of the products. If there is a stiff competition of coconut sugar farmers in your location, you may find it difficult to get the right buyer who will buy at the right prize that will be profitable for you. Few Ways to Get Buyers for Your Product      Source for International Buyers-: You can search through the internet for companies that need coconut sugar as a raw material to manufacture their finished products. Even if the company is not in your country, you can ship the product to them once you have reached an agreement of sales.     Agricultural Expositions-: Another way to source for buyers is to attend agricultural expositions and take the opportunity to showcase your products; you may be lucky to get one or two buyers from there.  Finally, it’s good to mentioned that research has shown that once a coconut tree is tapped to get the sugar juice, the chances of the tree bearing coconut fruit is on the slim side. So you have to consider that once you start tapping the trees, you will be foregoing the coconut fruits.

 

1. Learn the Process of Tapping and Crystallization-: This is the major information you need to successfully start a coconut sugar company. You need to learn the process of tapping and crystallization. In as much as you will not be the one to personally do the tapping and crystallization process, it is an added advantage to learn how the whole process works.
2. Register your Business Name as a Company-: Since you are planning to run this business as a long term enterprise, it is better to register it as a legal entity. A lawyer can help you with the company registration. Also, you may also need to get other licenses and registrations that will allow you run your coconut sugar production business in your location.
3. Write a Business Plan-: No business can succeed without a clearly written business plan. So you need to draw up a business plan of how you want your coconut company to be run and what the future of the company will look like in the next few years; and your plans for expansion.
4. Capital-: There is much profit to be made from running a coconut sugar production business, but before the profit starts coming, you need to invest much capital to get the business started. If you have the capital to run the business, much better. If you don’t, then you can get a business partner or an angel investor to come in to contribute financially toward the company start up. I don’t always recommend bank loans for new business start ups because of the high interest rates that come with the loan. A new company doesn’t need such extra cost at its early stage.
5. Get the Coconut Trees in place-: There are two ways to go about this; first you can buy a coconut farm from a farmer. It may be quite expensive but you will cover up the cost within two years as long as there is still a high demand for your product. The second option you have is to buy a piece of land and plant coconut trees on it; this process might be cheaper but it will take you time to start making money as it takes a coconut tree a minimum of seven years to get to maturity. I think the first option is better off, if you have the capital to buy off someone else’s coconut farm.
6. Tapping Process-: After the coconut gets to maturity, it is time to start the tapping process. This involves making an incision on the flower bud and placing a container where the sugar juice will be collected. You are to empty the container every 24 hours and replace to collect more sugar juice. The best way to go about this is to employ laborers and put them on a work as your earn wage plan. That is, you pay them according to the number of trees they tap per day.
7. Crystallization Process-: After the sap has been collected, you need to transform it into a crystallized form before it can be sold. The crystallization process simply means cooking the juice until it turns into a solidified form, after which the sugar will be ready to be sold to the end users.
8. Getting the Product to the Market-: At this stage, the coconut sugar should be in its crystallized form and ready for sale. It is time to source for buyers of the products. If there is a stiff competition of coconut sugar farmers in your location, you may find it difficult to get the right buyer who will buy at the right prize that will be profitable for you.

Few Ways to Get Buyers for Your Product

  • Source for International Buyers-: You can search through the internet for companies that need coconut sugar as a raw material to manufacture their finished products. Even if the company is not in your country, you can ship the product to them once you have reached an agreement of sales.
  • Agricultural Expositions-: Another way to source for buyers is to attend agricultural expositions and take the opportunity to showcase your products; you may be lucky to get one or two buyers from there.
Finally, it’s good to mentioned that research has shown that once a coconut tree is tapped to get the sugar juice, the chances of the tree bearing coconut fruit is on the slim side. So you have to consider that once you start tapping the trees, you will be foregoing the coconut fruits.

No comments:

Post a Comment

We love your contributions to our articles, kindly drop your comment, make them clean, Thanks.

Green Healthy Farm

SUBSCRIBE

Enter your email address:

Delivered by FeedBurner