Feasibility study on coco peat export

by Sapumali GALAGODA

The demand for coco peat in the Netherlands continues to increase by 20 percent on average year on year. Therefore, if the horticultural industry is the identity of the Netherlands, coco peat is its breath of life, states the Exporter Magazine.

Almost 100 percent of the horticultural materials planted in non-soil media in the Netherlands, is cultivated on coco peat.

Fibre mixed coco peat

There are many reasons for using coco peat. It is a renewable planting media as it is derived from coconut fibre. Coconut fibre is abundantly available in tropical countries where coconut is commonly cultivated. Coco peat can replace the original peat obtained by the decomposition of plant material such as the genus sphagnum, is becoming more difficult to obtain now.

Another important reason is that the use of coco peat provides many benefits during the process of cultivation.

This planting medium could store water well so that it can extend the duration between sprinkling. It could also at the same time reduce the frequency of fertilizing because the solution of fertilizer could be stored in this medium longer.

Due to its natural properties the water storage capacity of coco peat will not be lost even when the growing medium becomes dry. As such when watered the dry coco peat will be able to retain water again. Therefore, it is different from common peat which cannot retain water again once it gets dry. Coco peat is also more durable because it takes longer to decompose compared to peat moss, for example.

The demand for coco peat is supplied by coco peat producers based in the Netherlands. In the Netherlands every coco peat producing company must obtain recognition from the Accreditation Institution which controls the quality and effectiveness of the coco peat.

This recognition ensures that the quality of coco peat is accepted all over the world. It is important because the coco peat market for producers in the Netherlands is both in countries within Europe and outside Europe.

Coco peat produced by a company owned by Bas Van Bauren (BVB) as well as other companies is derived from coconut fibre (coco fibre) or half-finished coco peat.

Coco fibre from all types of coconut could be processed into coco peat. It is imported from coconut producers in tropical countries. Dry coco fibre is shipped in bales, loaded in 40 foot containers. Each year at least 1,500 containers of coconut fibre are imported by the Netherlands from India, Sri Lanka, Vietnam, Ghana, Ivory coast, Dominican Republic, Mexico and Brazil.

The import volume increases continuously from year to year. The requirement for coco fibre to enter the Netherlands is very strict. It must be free from weeds, pathogenic nematodes, stones and sand. Basically it must be sterile.

In the country of origin, coconut fibre undergoes both mechanical and chemical processes.

The fibre is cut into small pieces. Thereafter, the sodiumand Potassium complex contents in the fibre are chemically changed into Calcium and Magnesium.

Every year, representatives of coco peat producing companies inspect coconut plantations in the coconut producing countries, and local companies which process the coco fibre to be shipped to the Netherlands.

The treatment process prior to export must comply with procedure and standards issued by the European certification body for the Agriculture sector (ECAS). After arriving in the Netherlands the fibre is checked again to ensure that it is free from contaminants.

Sri Lanka as one of the coconut producing countries has an opportunity to export coconut fibre to the Netherlands.

However, the stringent requirements of the importing country and the tough competition from other producers need to be considered. Therefore, a study to determine the quality required by importers in the Netherlands should be undertaken.

Prospective investors should also assess the costs of production and transportation compared with that of producers in other coconut producing countries.

One of the largest coco peat producers is a company owned by Bas Van Bauren (BVB) in Massland, Rotterdam. BVB producers six major coco peat media based compositions that are suitable for various crops. For example, a growing medium consisting of 100 percent coco peat is used for gerberas, roses, carnations and various vegetable crops.

For lilies a medium composed of 50 percent coco peat and 50 percent soil is used. A composition of 50 percent coco peat and 50 percent peat moss is used for Begonias. Dendrobiums need a medium which consists of a mixture of 80 percent normal coco peat and 20 percent coarse and fibrous coco peat. Growers could order any composition that is suitable for their plants.

Various media compositions are developed to cater to the needs of different types of plants and is also related to cost savings for the growers.

A 100 percent coco peat medium is more expensive than that of a coco peat mix.

Some 50 percent of the total production volume per year of BVB is for exports to at least 50 countries within Europe and outside Europe.

In order to meet diverse consumer needs, BVB is fully equipped with a modern laboratory.

Every coco peat shipment is checked for compliance with buyer needs. Media composition errors could cause the failure of plant cultivations. As such the computerised system used by BVB manage the hundreds of media compositions that are suitable for the needs of various plants.