Organic Virgin Coconut Oil (VCO) Production

Country Vietnam
Year 2017-2018
Keywords Bankable Business plan, Financing, Coconut, VCO, Organic
Assignment Spack BV and Bergwerff Beheer BV
Funding Privat Green Coconut Company (GCC)
Affiliation Sloot Ecobi-Systemen; Mr. Gerben Sloot

In 2010, Bergwerff Beheer BV, Fred Bergwerff established Green Coconut Company (GCC), active in the production of yarn made from the golden fibers of the green coconut. The factory is located in Vietnam, along the banks of the Mekong River in the Ben Tre Province, in the middle of the coconut growing areas. Currently, GCC is exporting the manufactured yarn to The Netherlands, where it is colored and is used as the basis for a top-quality floor mat product.

It has, from the start, been the intention of Fred Bergwerff to increase the added value, efficiency and profitability  in the coconut chain by a sustainable processing of more parts, preferable all parts, in derivates and final products (food and non-food). The strategy is to involve major international companies, with experience in and knowhow of the sector and access to international markets, as partners for further development of the activities.

In Spack BV (http://www.Spack.nl), Green Coconut company identified the ideal partner for developing the organic coconut processing for the food segment, starting with the production of Virgin Coconut Oil (VCO). The Spack group of companies  produces and supplies all kinds of organic oils of which the raw materials are sourced from all over the world. Both cold-pressed vegetable oils as well as refined vegetable oils are supplied in a variety of packaging. From their modern facility in Nieuwe Tonge, products are delivered to manufacturerswholesalers, foodservices and retailers. As a by-product, they also supply press cakes or expellers to animal feed producers.

 For Spack BV, backwards integration in the coconut chain, and by this having more influence and control on traceability, sustainability, quality and supply reliability, is of strategic importance to meet de increasing demand from the side of the organic costumers. VCO is one of the fastest growing edible oil markets in the world, and the organic segment is the premium part of that market. Besides this, there is a growing market for VCO because of the health benefits of the product and its flavor components as an ingredient in baked goods and cosmetics. Together with the by-products coconut water and coconut flour, the VCO forms a large opportunity for the partners.

Agriment was asked to support the development of a bankable business plan and in the acquisition of financing. In July 2018 the work was start up and the business plan was finalized in the end of November 2018. The acquisition of financing is in progress and is expected to be finalized in the end of February 2019.