Coconut Sugar Production: How to Start a Coconut Sugar Production Company

Coconut sugar is regarded as a low glycemic indexed food. Its major component is sucrose and has very low essential nutrients.

 Other elements that constitute the subtly sweet substance are fructose and glucose. Manufacturers of the sweetener produce coconut sugar granulated, crystallized, block or liquid forms.

The traditional sweetener is the sap of the cut flower bud of coconut palm. The sweetness, flavor and nutritive value are derived from the coconut species, processing and harvesting method.

The method employed to produce coconut sugar is very straight forward and simple. To launch your enterprise you need to source the raw material, provide funding and market the product.

The size of investment depends on your level of involvement and finance. You can start the business small scale or large scale.

Simple Facts about Coconut Sugar

Coconut sugar is regarded by many as a healthy alternative to regular white sugar. However coconut sugar contains loads of sucrose 70 % worth. Sucrose is similar to fructose and we know too much of it is bad.

Added sugars are known to cause serious health issue if consumed in excess. Therefore coconut sugar despite its lower glycemic index, inulin fiber, zinc, iron, fatty acids and calcium is not a healthy sugar alternative.

How to make Coconut Sugar

If you want to go into coconut sugar production you need to understand the extraction technique. The major raw material is the natural sap obtained from the coconut plant.

The 2 step process involves a cut on the flower of coconut palm to extract the colorless sap. The sap consists of 80% water and is gathered into a bowl or containers.

Heat is then applied to the sap to evaporate the water.  What you get is a subtle sweet caramel tasting coconut sugar. The color of the final product depends on the period of harvest, and species of coconut.

Starting a Coconut Sugar Production Company

Before starting your coconut sugar Production Company you need to put a few things in place. First write a business plan and register your company.

You need to learn the production process, source funds, raw material and device a marketing strategy.

Write a Business Plan

The business plan would provide a framework for the enterprise. You need a coconut plantation to commercially produce coconut sugar.

The plan will provide a business structure, vision and mission statement including product, goals and objectives. Once you are through with your business plan carry out a feasibility study. The study would provide insight into challenges, location and competitors.

Learn the Basic

Understanding the production process of coconut sugar is important. You can learn from practical experience, books or journals.

Attend seminars, workshops and training programs to develop the skill. Learn how to tap the sap, crystallize the liquid or turn it into powder or blocks.

Register the Company.

A commercial production company needs a trade name. Register your company as a limited liability company and secure a trade license.

 Join coconut sugar manufacturing association in your country. Fill a tax identification number and insurance cover. You need land use permit to grow coconut trees on your farm.

Sourcing Raw Materials

Since the sap of the coconut tree is the main ingredient you need a plantation. You can purchase an existing plantation or start you own.

Both options require huge amount of capital investment. Engage a farmer who owns a plantation in a deal to collect the sap.

Funding the Enterprise

Owning a coconut plantation requires huge capital investment. The funds are needed to acquire farm land, grow crops and labor.

 Secure bank loans with fixed interest rates to accommodate a long tenor. Other funding sources are sales of startup equity or a core investor. Try target savings or borrow from associates and friends.

Selling the Product

Your product needs proper packaging and branding. Advertise your product using electronic or print media.

Use food magazines, newspapers and brochures. Employ sales representatives to sell your product and pay on commission per sale.

Sell your sugar through a dedicated website integrated with a shopping cart. Sell to neighbors, family and friends.

Other markets are supermarkets, grocery store owners, coffee shops and open market. Try agricultural expositions, commodity trade fairs and online companies.
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