COPRA MEAL VERSUS COCONUT OIL VERSUS VCO: LET’S COMPARE THE ECONOMICS

COPRA MEAL VERSUS COCONUT OIL VERSUS VCO: LET’S COMPARE THE ECONOMICS

The Department of Agriculture (DA) recently promoted the use of copra meal in cattle feed, citing global soybean shortages. It’s a practical stopgap, sure. But as with many short-term fixes, we must ask: Is this the best use of our coconuts for the long term?

This brings us to an economic fork in the road. Should we keep processing copra into animal feeds, or should we pivot to producing cooking oil or even virgin coconut oil (VCO)? What path gives us more value, more jobs, and a stronger foothold in global markets?

Let’s break this down.

Copra for Animal Feeds: The Low-End Route

Copra meal is a byproduct—the residue left after oil has been squeezed out of dried coconut meat. It’s a staple in animal feed, especially when soybean prices go up. But the margins are thin, and the risks are high.

We lose precious oil during the drying process. The copra is also prone to insect damage, salmonella contamination, and spoilage during transport. That’s a lot of trouble for a product that sells cheaply in bulk.

Sure, it’s better than nothing. But is it the best we can do?

Cooking Oil: A Middle Ground

Coconut cooking oil, especially RBD (Refined, Bleached, and Deodorized) oil, is a stable product with a steady domestic and export market. It sells for far more than copra meal, but requires more investment—drying, expelling, refining, and packaging.

It also produces copra meal as a byproduct, so technically, we’re still getting animal feed out of the process. That’s one question answered: these two aren’t mutually exclusive. We can process for oil and still get feed ingredients as a bonus.

But should we even be drying the coconuts in the first place?

Wet Process vs. Dry Process: Skipping Copra Altogether

It might be better to extract oil directly from wet coconuts, skipping the drying step altogether. This method preserves more of the oil’s nutrients and avoids many of the contamination risks associated with copra. And yes, this wet process can still yield byproducts, such as coconut residue or flour, which can be used in feed.

So, if the idea is to support both the food sector and the feed sector, maybe this is the smarter route.

Virgin Coconut Oil: The Premium Path

Now here’s where things get interesting. Virgin Coconut Oil (VCO) is cold pressed from fresh coconut meat, not copra. It retains all the natural compounds, has a premium price tag, and is in high demand in the health, beauty, and wellness sectors—especially abroad.

Is it harder to make? Yes. Is it more expensive to produce? Definitely. But is it more profitable? Without a doubt.

Let’s look at the numbers:

• Copra meal: $150–$200 per ton
• Cooking oil: Around $1,000 per ton
• VCO: $2,000–$3,000 per ton

No contest.

So, What Should We Do?

If our goal is maximum value and export potential, we should pivot to VCO production. If we want to stay practical and serve both local and foreign markets with less risk, cooking oil is a good compromise. Copra meal? It’s fine, but only as a byproduct—not the end goal.

That leads me to several key questions I think our policymakers and industry stakeholders should answer:

1.   Why are we still investing heavily in copra processing instead of helping farmers and cooperatives shift to wet processing or VCO?

2.   Can we support this shift by offering small-scale cold press machines or shared processing hubs through DTI or DOST programs?

3.   Shouldn’t we establish clearer industry guidance on how to align coconut processing with high-value product outcomes—rather than bulk commodity dependence?

4.   Is there an inter-agency plan to transition from low-value copra meal to high-value VCO or at least dual-purpose oil/feed processing?

A Call for Coordination

This is a job for a Technical Working Group (TWG)—ideally composed of the Department of Agriculture (DA), the Department of rade and Industry (DTI), and the Department of Science and Technology (DOST). The TWG should study how to modernize our coconut processing value chain, prioritize VCO, and explore how animal feed can still be derived from the upgraded processes.

We’ve been talking about inclusive growth and Agri-industrialization for years. Well, here’s a concrete opportunity. Let’s move up the coconut value chain—and not stay stuck in the past, drying our profits away under the sun.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

07-30-2025