Company records $117k profit

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The CMFL had also planned an investment of $300,000 in edible coconut oil. Picture: SUPPLIED

WHILE there has been a decline in the world market price of coconut oil from $US1400 ($F2973) TO $US700 ($F1486) the Copra Millers of Fiji Ltd has noted an increase in demand for virgin coconut oil.

Company general manager John Deo said the virgin coconut oil demand had picked and they were selling all locally while searching for a market overseas.

Mr Deo said the CMFL had managed to record a profit of $117,000 in 2018 compared with operating loss of $162,000 in 2016.

“Our target is to maintain the consistent trading results 2019 onwards. “CMFL in partnership with Department of Energy is managing the four biofuel mills on the islands of Rabi, Lakeba, Cicia and Gau. We are buying the copra and processing into coconut oil on the island,” he said.

According to Mr Deo the key objective is to have a source of income for coconut farmers on the island, the money to circulate within the island and assist in further growth and development of livelihood of coconut farmers on the island.

He said they had made a key investment in coconut storage shed worth $160,000 with the construction work expected to be completed by March 31.

The CMFL had also planned an investment of $300,000 in edible coconut oil.

“In view of coconut oil’s health benefits we shall produce edible coconut oil and market locally as coconut oil as their first choice cooking oil.

“This will also assist in addressing the NCDs problem in Fiji.” Mr Deo said as part of rebranding the company, they would change the name of the company to re-position the company to multiple coconut products it was producing.

In terms of supply chain management Mr Deo said they had noted an improvement in the copra supply to the factory.

“We have seen that the trees have recovered and is fruiting since it got damaged during TC Winston.

“We are buying whole coconut, raw copra and dry copra thus farmers have an option to supply whichever to them.

“We are also servicing three routes using our own trucks – Savusavu to Napuka, Savusavu to Kubulau and Savusavu to Naduri.”

Mr Deo said coconut farmers were receiving $1000 per tonne.

Meanwhile Mr Deo said in order to secure future coconut supply to the factory, CMFL in conjunction with government had embarked on a five-year replanting program effective from August 2018.

He said they had set a yearly target to plant 30,000 seedlings and to pay the farmers $20/seedling over an internal of 6-12 months provided the seedling was growing.

The expected output is to increase coconut supply by 10 million nuts in five years with its fruiting flow on effects for the next 30 years.

“We have just completed the installation of new crude coconut oil expeller worth $200,000, and we thank the government for the capital funding.

“In order to improve the quality of copra and coconut oil we have bought de-husking, de-shelling and hot air copra dryer, worth more than $150,000.

“We have seen mill efficiency with two crude coconut oil expellers operating at the same time thus reduction in factory costs and copra crushing hours.”

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