72. contribution of gnp of coconut industry in sri lanka
Introduction of coconut industry in sri lanka business essay
1. 1 introduction of coconut industry in Sri Lanka
1In Sri Lanka about 25% of the total land is use for the coconut farming. Sri Lanka is the second largest land user for coconut. As a major beneficial harvest in the country, the coconut industry delivers employment to certain 1, 35, 000 people involved in the manufacture, processing, and trading sectors of the coconut industry. The period from 1970 to 1995 saw a steady failure in area under coconut, from 466, 000 hectares in 1970 to 419, 000 hectares in 1995. This steady miscarriage in area under coconut which involved cutting of coconut palms was owing to the rising use of coconut land for industry, development and housing programmed. Coconut in Sri Lanka is mostly under private ownership with a huge majority classified as arable farm of less than 1. 2 hectares. The percentage of palms over 60 years of age was predictable at about 15% of the total plantings. Coconuts enjoy an extraordinary situation in the Sri Lankan society and it is linked with the culture and ethnicities of its people. Each part of the coconut palm is strongly related with the day to day life of the public. Therefore it has been inaugurated as ” Kapruka or Tree of Life” – a source of plenteous resources. It gives significantly towards not only sufficient local necessities, but also earning foreign exchange as well. The coconut farming covers 394, 836 hectares, accounting for 19. 26% of the total agricultural lands in Sri Lanka and 75 % of coconut farmers are small and medium measure farmers. The coconut farming is the direct and indirect livelihood of around 835, 000 of people. (Coconut Research Institute, 2011)The annual necessity of coconut for national consumption, local and export oriented industries is around 3, 650 million nuts. Yet, the current annual production is around 2, 400- 3, 000 million of nuts. Year 2010 saw an exceptional decline in coconut fabrication recording 2, 317 million nuts resulting a drop in per capital coconut consumption from 116 to 95 nuts. The judgment of the scientists/experts, there are several influential factors liable for the reduced production of coconut. One reason is the adversarial weather patterns which overcome in the preceding years and extra likely due to the effects of global climate change. Second is the sufficient fertilizer are got the smallholder farmers due to high cost. Pests and illnesses are also considered as an influential factor to the fading in production of coconut. Transforming coconut lands to other cash harvests due to the absenteeism of an attractive market for coconut has also contributed to this disaster. Further, the fragmentation of coconut lands for many developments programmed including housing schemes and industries also had an opposing effect on coconut production. In this background, special care of the Government towards coconut farming was most suitable. In this situation, the founding of a discrete Cabinet Ministry for the portfolio of Coconut Development and Jonathan Estate Development amply establishes the Government’s strong attention in the growth of the coconut industry. The new Ministry is tasked with the accountability of raising the coconut production satisfactorily to chance the local consumption; coconut based local industries and other industries aiming the foreign markets. Asia Pacific Forestry Sector Outlook: Focus on Coconut Wood
1. 2 Companies of coconut industry in sri lanka
2Adamjee Lukmanjee & Sons Ltd
Brief profile
” Adamjee” as are more popularly famous, has become popular in its core business as an innovator manufacturer and export the Coconut Oil, Copra & Desiccated Coconut. They are proud of their custom as a prominent Trading Company in Sri Lanka, and have steadily maintained them position as one of the largest exporters of combined Coconut Kernel products. Adamjee is also well-known in the export of Sri Lanka’s other product especially spices such as Black Pepper, Cloves, and Cinnamon etc. The Office, Processing Plant, Warehouse Complex are strategically located in the heart of sri lanka is Colombo – the commercial hub of Sri Lanka, and within a 2km range to the main port. Taking benefit of Colombo fast becoming a major hub Port of Asia, Adamjee has grown to become an Entrepot Trader of Coconut Products and Flavors from all regions, to its international buyers. Being in the business of food produces, they believe that the application of strict quality control processes is critical to any consumer. Adamjee has a unique reputation for being a trust worthy transporter with an importance on quality goods, and maintains a fully furnished, modern, in-house laboratory to guarantee 100% quality assurance. They are SLSI (Sri Lanka Standards Institute) and ISO 22000: 2005 certified. The company manufacturing and markets them brand of Coconut Oil under the brand – N-Joy which is the only Natural Coconut Oil brand presently under ISO, SLSI and Halal certification in Sri Lanka. N-joy has also extended to include Coconut Milk Powder and Coconut Cream under its brand safety. Additionally, Double Palm Brand, the company’s long-lasting trademark for ” Roasted” Coconut Oil enjoys a trustworthy niche market in South Asia. Besides exports the domestic partition mainly imports and markets Animal Feed Materials such as Soya Bean Meal and Maize as well as several foods produces. Adamjee also imports and nationally distributes Cement under the brand ” Saviya”. The company with its long-lasting status has built very strong relations with its suppliers and customers and this has been a key success factor in all its activities.
Vision
Mission
3Management body
Founder
4Naratha Agro Industries (Pvt.) Ltd.
Brief profile
Naratha Agro Industries (pvt.) Ltd., is a member of N M K Group of Companies under Naratha Ventures (Pvt.) Ltd. Naratha Agro Industries Private Limited was integrated in 2004. It is the only biggest edible oil manufacturer in Sri Lanka. As the innovator in innovative, health oriented edible oil manufacturing. They also have international standard process certifications such as ISO 22000, HACCP, GMP certifications to ensure that they deliver premium quality products to them consumers and industrial application sector. With the growing economy, the company moved forward and is the pioneers of Palm Oil imports to Sri Lanka and is the exclusive supplier to most of the Multinational companies and National Manufacturers in Sri Lanka. The group is also one of the leading suppliers of Palm Oil to Nepal, Bangladesh, India, Russia and Sri Lanka. The vast range of Imports cover Edible Oils including Palm Oil, Fats, Margarine, Sugar, Wheat Flour, Grains & Pulses. In order to give greater benefits to our customers, we entered into a Joint Venture with Felda Group of Companies – Malaysia, the single largest Palm oil producer and manufacturer in the world and the highest contributor to the Edible Oil Industry, which has a large plantation with upstream and downstream functions. Naratha Agro Industries is committed to serving customers around the world. We are dedicated to creating distinctive value for the customers we serve through our business units such as Edible Oils including Palm Oil, Oil Refining and Processing, Fats & Margarine.
Vision
We will be the #1 food business organization in the Sri Lankan market and a preferred supplier in international market. We will achieve this by being world class in everything we do. We will strive to continually add value – for our customers, employees, suppliers, shareholders and the community we serve. To be the preferred choice in our range of value-added products and services with innovation to create profitability enhancement for all stakeholders with a focus of healthy products.
Mission
5Management body
Founder
1. 3 History of coconut industry
1. 4 Role in the economy of selected country
1. Contribution of GDP and GNP of Apparel Industry in Sri-Lanka
In Sri Lanka the Coconut industry have great impact on the economic as well growth of the country as it contributes 2% to the Gross Domestic Product. Production and GDP values of coconut have fluctuated between US$ 115 million in 1950; US$ 177 million in 1986, and US$ 139 million in 2002.
72. Contribution of GNP of Coconut industry in Sri Lanka
Year
Contribution to GNP
2005
28000
2006
2007
2008
2009
2010
49000Source: Report of Central Bank of Sri Lanka ( 2010 )From the above table the contribution to GNP by coconut industry in 2005, 2006, 2007, 2008, 2009, and 2010 is 28000, 29000, 30000, 31000, 32000, and 49000 respectively.
83. Contribution in Budget Income of selected country:
In order to withstand the progress in the coconut sector which produce US$ 2, 500 million export income and involve 250, 000 families in a wide-ranging of employment. It is required to promote systematic improvements in the farming of all these harvests, each year. The Government has already fixed a target of 3, 650 million nuts to be produced by 2016. Kapruka invention has contributed to increase quality seeds to farms and to distribute 10 million plants between small holders to sponsor farming. The Government of sri lanka has now decided to distribute coconut plants free of charge to all farmers more than 5 acres of land. In order to make popular organic fertilizer in coconut farming, government proposes to assign Rs. 100 million from the Coconut Development Cess. As a relief portion to recover from the special effects of the current drought, they propose that the Government will exchange all such affected trees, free of charge. They also suggest maintaining high taxes on the import of vegetable oil to promote the coconut oil industry. Similar to coconut farming, Kitul cultivation will be particularly fortified in the Sabaragamuwa Province and Palmira cultivation will be fortified in the Northern Province, to protection greater up availability of organic raw material required for a wide range of industrial products and food processing.
CHAPTER 2: STRUCTURE, FUNCTIONS AND BUSINESS ACTIVITIES
2. 1 Organization structure or industry structure
1. Unorganized or organized
Organized Structure Type
Coconut Industry
Unorganized
Organized
2. Type of Organization Structure:
Type of Structure
Coconut Industry
Centralized
Decentralized
3. Hierarchy & Departments in selected company
ChairmanC. E. OManagerManagerManagerManagerFinance ManagerMarketing ManagerProduction ManagerHR ManagerEmployeeEmployeeEmployeeEmployeeHierarchy in coconut industry is chairman and C. E. O at top level, four managers, four department managers for production, marketing, finance and human resource and bottom level management having employees.
2. 2 Functions and business activities of selected industry
1. Forms of Business (Sole proprietorship, partnership Etc.):
Forms of Business
Sri Lakan Coconut Industry
Sole ProprietorshipPartner shipHUFCo-operativeThe forms of business for coconut industry there is Sole Proprietorship where business is run by single individual, partnership where there is more than two individuals running the firm.
92. Business Customs & Practices:
3. Transportation & Communication System needed for specific Industry:
Modes of Transportation
Sri Lanka Coconut Industry
Railway
Road
Sea
Modes of Communication
Srilanka Coconut Industry
Telephonic
Post
4. Labor Force (Size, Potential Etc.):
For Coconut Industry unskilled labors are required so the unemployment rate of Sri Lanka that is 3. 9%, from this rate labors can be employed to give them employment. Around 8, 35, 000 individuals are engaged in this industry.
105. Development in science & technology, Current technology Available:
The level of technology employed by the industry is not sophisticated through maintaining hygienic conditions are of supreme importance, as product is a food item. Dc factories could be divided into three categories, as traditional, modernized and ultra-modernizedThere are about 16 traditional mills employing desiccators the drying equipment that is considered the heart of the production process. They operate at around 42% efficiencies & are generally fuelled by fire wood through air heaters. Modernized mills employ a fluidized bed type of dryers & are fuelled by furnace oil through the generation of steam using boilers. Fluidized bed type modern dryers have high efficiencies ranging from 52% to 60, however there are variations of performance ever among fluidized bed dryers according to their capacities, design, & construction etc. Modernized mills are considered to be superior in terms of product, quality & hygienic conditions of the factory environment. The share of the annual DC production in traditional & modern mills is 30 % & 70 % respectively. There is one ultra-modern factory with the installed capacity of 2, 50, 000 per day. This has a much greater degree of mechanization and capacity. There are a series of operation in the DC manufacturing process,, wiz hatch ting, paring, pairing, sterilizing, cutting. Drying, grading and packing. The drying process which is the most cannery intensive reduces the moisture content from around 52 – 55 % to 3 %.
Efficient dryers
Waste heat recovery from flash steam
Coconut shells as a source of energy
Wastewater treatment
New applications for sap
No organized attempts have been made to identify new applications for coconut sap so that its value can be upgraded instead of trying to treat it as a waste product. Therefore, it is suggested to explore the possibility of converting the liquid effluent to ‘‘ consumable’’ products. The sap contains 1. 5% fat and very valuable minerals, such as iron, sodium, potassium, magnesium, calcium and small quantities of phosphorous. There is a considerable market for coconut water based products, for example, in Taiwan, and the technology is available in the Philippines, Thailand and China. Promotion of technology transfer through joint ventures and local research and development works could, thus, reduce waste and increase profits.
6. Value chain Model:
Support ActivityServicesSales andMarketingOutboundLogisticOperationInboundLogisticAdministration and InfrastructureHuman resource ManagementProduct/ Technology/ DevelopmentProcurementDistributionProductionResearch and developmentProcurementAdministrative and management functionsCustomer serviceSales and marketing
Research and development
Procurement
Production
Distribution
Sales and marketing
Gathering market intelligence will benefit many medium and small-scale producers who do not have access to real-time knowledge of the marketplace. Developing a long-term marketing plan will be an important step in allocating resources according to consumer need rather than production capabilities.
Customer service
The strategic initiatives will require closer interaction with and knowledge of the end user. The introduction of technical data sheets, material safety data sheets, and certification standards will provide the means necessary to understand customer needs more efficiently and to react more quickly to changes in the marketplace. Direct communication with consumers will promote long-term relationships that allow sharing of resources, knowledge, and benefits.
Administrative and management functions
11Primary Activity
COCONUT FARMERS
Homestead Garden
Coconut Garden
Harvesting Tender Coconuts from
Recycling Husk
Recycling Husk
Minimal Processing, Partial Dehiscing
Transportation of Minimally Processed Tender Coconuts
Chilling and Storage at the cold storage infrastructure created in the
Agricultural Wholesale market
Retail Outlets
Consumer
127. Major Business Functions
HR practices:
138. Mineral & Resources requirement for coconut industry
Coconut is commonly called as it is found in grocery stores is actually a single stone of a fruit of the coconut palm tree. Although coconut palms grow throughout the world’s humid sections, the huge majority of the commercially produced coir comes from India and Sri Lanka. Coconuts are primarily a food harvest. Sri Lanka produces 2, 808 nuts in million as per the data provided by the ministry of finance & planning as per 2011 report. The production of coconut in Sri Lanka is 1950000 metric tons. Palm trees belong to one of the world’s oldest plant families, and coconut palms have been cultivated for at least 4, 000 years. Coconut palms flower monthly, because it takes a year to develop, a tree constantly contains fruits at 12 stages of maturity. Harvesting takes place on a 45-60 day cycle, with each tree yielding 50-100 coconuts per year.
For growing coconut following things are required:
Soil: The coconut palm can adapt with good physical structure and chemical properties. They can grow on light, medium, and heavy soils, loams and clay which can tolerate saline and infertile soils. The ideal pH range is 5. 5-7. Climate: Warm and humid climate with mean temperature ranging from 70° – 80° with humidity above 60% and evenly distribution of rainfall of 60-100 inches (1, 500-2, 500 mm) per year. Coconut grows best at elevation from sea level to 490 ft. (below 1, 000ft.).
The capital inputs required for coconut is:
CHAPTER 3: COMPARATIVE POSITION
3. 1 Comparative position of apparel industry of Sri Lanka and India
Particulars
Sri Lanka Coconut Industry
Indian Coconut Industry
Technology
Pricing
Communication
Transportation
Roadways, Railways, SeaRoadways, Railways, Sea
Distribution
Manufacturer to userManufacturer to user
Usage
Purchase Pattern
Target Market
Raw Material Availability
Natural Resources
FavorableFavorable
Technology:
In Sri Lanka the level of technology employed by the industry is not sophisticated through maintaining hygienic conditions are of supreme importance, as product is a food item. No organized attempts have been made to identify new applications for coconut sap so that its value can be upgraded instead of trying to treat it as a waste product. Therefore, it is suggested to explore the possibility of converting the liquid effluent to ‘‘ consumable’’ products. Coconut Development Board is the innovator organization for coconut technology development in India. Mission project feasibility studies and preparation of comprehensive project feasibility reports. Providing technical know-how for coconut based products such asSpray dried coconut milk powderPacking and preservation of tender coconut waterCoconut water based vinegarAqueous processed coconut oilVirgin coconut oilTechnical direction to industrialists in setting up coconut based units.
Pricing:
Communication:
Transportation:
Distribution:
Usage:
For both Sri Lanka and India the usage is on festival as well as on regular basis as the coconut oil can be used for cooking, desiccated coconut is used mainly for offering Prasad to God or Goddess. Its other waste material can be used for making mattresses.
Purchase Pattern:
Purchase pattern is of 2 kinds: – Direct Purchase and Indirect Purchase. In India and in Sri Lanka, both, purchasing pattern is same. Both purchase using Direct as well as Indirect Purchasing Pattern. The person who wants Coconut, can either purchase himself (Direct Pattern) or anyone can purchase on his behalf (Indirect Purchase).
