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4. ECONOMICS OF COCONUT WOOD UTILIZATION


Coconut Lumber Production

Coconut wood has proven to be comparable to conventional wood in terms of durability, sturdiness, and versatility often at a considerably lower cost. The use of cocowood as a substitute material for building construction could bring down the cost of housing units. This is because its cost is half or a little more than half the price of conventional wood.

The key to profitability in the utilization of coconut wood, given availability of raw material supply and product demand, is the mechanical conversion of coconut logs into lumber. The mechanical methods of primary conversion of coconut logs into lumber are the chainsaw, the mounted portable and stationary sawmills. The preference of using chainsaw over mounted portable or stationary sawmills is its low investment cost and complete portability by a single operator. Mounted portable sawmills, although could be operated near the raw material source, require a number of personnel. The use of stationary sawmills or portable ones, although efficient in terms of lumber recovery, is as yet very limited because of prohibitive initial investment in putting them up coupled with the perceived irregularity of raw material supply availability which may delay the recovery of investment and the desired profit.

Coconut Lumber Production

It should be emphasized that an essential pre-requisite for the establishment of a coconut wood industry is an assurance of an adequate supply of over mature or otherwise disposable stems of known volume. A precise estimate of the availability of the raw material must be made if industrial investment is contemplated.

Coconut lumber production among smallholders' is usually done by chainsaw. In the Philippines where a significant number of cocowood lumber producers and sellers are operating on a small scale, coconut lumber is usually produced by a team who cut the coconut trees and saw the logs by the use of chainsaw. These operators either sell the lumber to a lumber yard owner or sell them directly to big buyers. The cost of coconut lumber manufacturing by chainsaw per crew per day at material source is broken down as follows (case study based in the Philippines):

Cost Components

Per Cent Distribution

1. Raw Material Cost of Coconut Trunk

54%

2. Hired Labour:



- One Chainsaw Operator

17%


- Two Helpers

9%

3. Full/Lubricant



a. 8 litres gasoline

4%


b. 3 litres oil

8%

4. Equipment Depreciation



-chainsaw

2%

5. Replacement/Maintenance of Chainsaw Parts

6 %

100%

Assumptions:

· No of trunks processed

= 5 logs per day

· Gross volume

= 4.5 cu.m

· Average Diameter

= 22 cm

· Lumber Recovery Per Log

=.30 cu.m

· Chainsaw Unit owned by chainsaw operator


· Excludes transportation cost as distance of plantation to lumber yard varies

A Chainsaw-Table Saw Coconut Lumber Manufacturing System and Preservative Treatment by Soaking Method exists for which the technology has been commercialized since 1988 (developed in the Philippines). It has been proven to be economically feasible with an ROI of 32%.

Experience shows that sawmilling is the most difficult aspect in the processing of coconut stems. Sawing of coconut trunks is more efficiently done by portable sawmills. As in the case of Tonga, the Philippines and other countries, where adequate supply of senile trees are available for cutting and where the market can absorb the lumber produced, portable sawmills with an output capacity of 1.6 cu.m per day (5 hours per day) are being deployed. These sawmills are specifically designed to coconut wood. Power unit can be either a stationary motor or a tractor. The latter is much preferred as it increases the portability of the sawmill. Tractor driven sawmill requires only 3 operators to do both harvesting and milling. The two operations can be programmed so that one activity can be done in a certain day(s) of the week. In this way all labour, harvesting and milling facilities are fully utilized throughout the year. The system requires only a standard tractor fitted with lifting forks; one chainsaw, and a one piece portable sawmill fitted with a single detachable axle.

In isolated districts where senile palms are abundant but the hauling distance is becoming too far to the stationary sawmill and or the market place, portable sawmills with an output capacity of 3-4 cu.m per day can be deployed to support the central stationary sawmill. Once again the choice of power unit is optional. The type that is used in Tonga comes in 3 pieces; the power unit is optional. The type that is used in Tonga comes in pieces; the power unit with its own set of wheels; the breakdown saw and a separate breast bench. Both saws are attached to the power unit with shafts. Only 5 labourers are required to operate the sawmill.

The total cost for producing one cubic metre of sawn timber would have the following approximate cost components: 50% is represented by the cost of buying and delivering logs to the mill, while the other 50% consists of the following cost items:

Labour

34.32%

Power

6.86%

Repairs & Maintenance

7.84%

Sawblade maintenance

8.82%

Loading/handling

5.88%

Depreciation

11.76%

Overhead

24.52%

Total

100.00%

The indicative cost of the different equipment and machinery being utilized commercially in the harvesting and sawmilling of coconut trunks as well as in the preservative treatment of coconut wood are as follows:

Equipment/Machinery

Indicative Cost*

Harvesting

1. Chainsaws (standard)

US$500/unit

2. 20 ton tip trucks (6×4) (flat-dock)

US$90,000-120,000/unit

3. Front-end loader (4×4) (2.5 tonne lift capacity)

US$70,000-90,000/unit

Sawmilling

1. 3 × Edwards Stationary Sawmills in Two Parts

US$170,000


(i) Headrig Saw (circular) with log carriage, by 75hp motor.



(ii) Breast bench (circular) manually operated by 35hp motor.


2. Tractor loader (standard)

US$ 20,000

3. 1 × Varteg portable sawmill Driven by tractor
P.T.O. Single circular saw output capacity: 1.6m3/day; operators: 3

US$ 25,000

4. 1 × Varteg portable sawmill driven by stationary 47hp engine break down saw

US$ 35,000


(i) Engine



(ii)Breakdown saw



(iii)Breast bench



Output Capacity: 3-4m3/day operators: 5


5. Breaking down resaw unit, suitable for Village use.



Production 1-3 cubic meters per day.

US$11,300

6. Breaking down and Breast bench, suitable for light contracting.



Production 4-5 cubic meter per day.

US$24,700

7. Contracting model Breaking down and Breast bench, and log loading forks fitted and driven by a 60-80Hp.



Diesel engine, fitted with all accessories, mounted on a trailer unit. Production, up to 10 cubic metres per day

US$30,500

Preservative Treatment

US$250,000

1. Pressure Treatment Plant



Charge capacity: 7m3



Cylinder lenght: 37 feet


* Based on data from Tonga and New Zealand Sawmill Manufacturers.


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