Coconut derivatives factory in Manaung struggles with critical raw material shortage

By DMG 22 Dec 2022

DMG Newsroom
22 December 2022, Sittwe

A factory manufacturing coconut derivatives in Arakan State’s Manaung Township is suffering from a shortage of its most critical raw material: coconuts.

The Manaung Yadanar Co. factory has had difficulties acquiring coconuts because merchants are offering good prices for coconuts produced in Manaung, Ramree and Taungup townships for export to Bangladesh, said purchasing manager U Aung Than of Manaung Yadana Co.

“We can’t offer as high prices as merchants. So, we have difficulties obtaining raw materials. It takes around 10 days to get 1,000 coconuts. So, we are struggling to keep the factory operating,” he said.

Due to high demand, coconut prices have increased from previously around K150-K200 per coconut to more than K500.

“I get K550 to K600 for a coconut now. There are buyers in my town, but they don’t give good prices. So, I mainly sell to middlemen who give high prices. They buy at least 50,000 coconuts at one time. I have received an order for 80,000 coconuts,” said coconut plantation owner Daw Tin Tin Yu from Manaung.

The coconut products factory is currently only operating twice a month, using 1,500 coconuts per production run to make coconut cooking oil and coconut cream.

“We want to produce other varieties of products. But we don’t have raw materials. There will be job opportunities for local people if our factory is fully operational. For now, we can’t provide permanent jobs, and we can only hire daily wage earners twice a month,” said U Aung Than.

The factory was built in 2018, and had been scheduled to begin operations in 2020, but that start was delayed by the Covid-19 outbreak. The factory is the first of its kind in Arakan State, and was originally expected to employ a workforce of 250 when operating at full capacity.

Ko Zeyar, who works at the factory, said: “We will be able to make a living working at the factory if it can operate as expected. But we can only work twice a month. We local residents hope that this factory can operate commercially.”

The factory owners have ambitions to eventually produce six varieties of coconut derivative products including coconut juice, coconut vinegar and cold-pressed coconut oil.