Recently, nine coconut oil brands have been banned by the Food Safety Department in Kerala.
The department has banned oil brands Kera Plus, Green Kerala, Kerala A-one, Kera Super, Kera drops, Blaze, Pulari, Coco sudham and Kallada Priyam from the state on Wednesday, 8 April, reported Asianet News.
Having experienced 3.5 years in this coconut oil market, this is no news; it has been quite rampant. Here are a few relevant points –
- A famous entrenched brand of Coconut Oil, the market leader in Dakshina Kannada and Udupi is adulterated. It is a great case study of building market leadership by satisfying traders rather than consumers.
- If the brand from Dakshina Kannada has a name ending with the letter ‘A’ it is definitely adulterated. A market leader will create many followers, who unfortunately have picked up the same bad habit.
- Coconut Oil brands from re-packers are more likely to be adulterated than those from oil manufacturers.
- At the Indian level, a famous brand from the east, having a 5% national market share with the tagline “Mera Pyar …” is not pure coconut oil. Legally speaking, they have never claimed it is pure coconut oil, but they have not let the consumers know it is not pure either.
- KLF, a major coconut oil manufacturer, in a bid to take on adulterated coconut oil with price, is introducing blended coconut oil with sunflower oil
- Oil Millers from Kerala are best friends of coastal Karnataka traders, as they sell coconut oil at a lower price and buy Copra from them at a higher price. How is that possible?
- Consumers have lost faith in coconut oil. This is not because coconut oil is bad, but because the coconut oil that they get is so bad. An example of how an industry can devalue the product they sell
- In the midst of all this, genuine oil millers are getting badly affected, and traders measure brands only by price. So, a forum was started in Kerala to save coconut oil.
Palm Kernel Oil
Palm Kernel Oil, among oils, is the closest to coconut oil in terms of chemical characteristics, especially fatty acid saturation level. It blends easily with coconut oil, and the price is only about 60% of that of coconut oil. So, mixing makes perfect sense. As I observed in the North Karnataka market, especially Belagavi, 90% of the Oil that is traded as coconut oil is actually palm kernel oil. I met a witty trader who said, “Your coconut oil prices change with copra prices, but here it doesn’t; it only varies with palm oil prices”. I couldn’t control my laughter. At the time I visited Belagavi, the price of so-called coconut oil was lesser than that of its raw material, i.e. Copra. Their defence is people in villages like to purchase hair oil at a lower price; after all, it is still a vegetable product.
Chips/Paring Oil
While manufacturing Desiccated Coconut Powder, the black skin in the coconut is removed, and only the kernel is powdered and dried to make the final product. This skin is a byproduct. It is dried and sold at about 65% of the cost of Copra. Like Copra, it is also rich in oil content. However, the quality of Oil is inferior to that of Copra. Most manufacturers mix these chips with Copra for oil extraction. Sophisticated manufacturers extract Oil separately, refine, bleach and deodorize it to remove excess FFA, dark colour and bad odour. This is later mixed with pure coconut oil or packed as it is. There is a large unit in Tiptur that makes “Kasadinda Rasa,” as we say in Kannada, turn waste into a useful thing. A possible defence is that Oil is extracted out of coconut, hence coconut oil. That unit is not to be blamed (legally) as this Oil can be used to make soaps. However, the re-packers who buy this Oil for marketing as edible Oil are to be blamed.
The above two forms of adulteration can be detected easily by testing for Iodine Value. Iodine Value indicates the degree of saturation in Oil; in fact, Iodine Value is equal to the degree of unsaturation in Oil. Coconut Oil, being highly saturated (92%), has an IV of about 8. All other oils have an IV that is much higher. Due to variations in Copra, the allowed range for IV is 7.5 to 10. Paring Oil will have an IV of about 20, and Palm Kernel Oil about 25. So, coconut Oil tested to have an IV of above ten is definitely adulterated.
Second-grade Oil
Best Copra is white in colour and has a pleasant odour. Rotten Copra will be darker and have a pungent smell. Due to inferior quality, they are available at a lesser price compared to superior grade. This Copra can be mixed with good-quality Copra during oil extraction. The resulting Oil will appear good but will deteriorate quickly. Copra manufactured from CoconutCoconut comes in all grades. Edible grade sells at the highest rate, and it is separated. Of the remaining, ideally second, quality copra should be segregated, but many millers don’t.
This can be detected by just checking the FFA/Acid Value. Lower the acid value better the quality. Good quality oils have FFA of less than 0.7. Allowed is up to 2.0 for edible use.
Refined Coconut Oil
Excess of FFA (Free Fatty Acids) in Coconut Oil can be chemically removed by neutralizing with a base; this is called refining. Coconut Oil extracted from second-quality Copra or that solvent extracted from coconut oil cake is refined. This refined Oil passes all the chemical parameters of food safety, but the consumer is deprived of its taste, aroma and quality. We sell our coconut oil cake to a major solvent extractor in Kerala. I just asked him where he sells coconut oil, and he said it is in major demand among re-packers. Re-packers buy inferior quality coconut oil and mix it with refined coconut oil to balance FFA. Surprisingly, refined coconut oil is cheaper than filtered coconut oil.
Use of refined coconut oil can be detected by again checking for FFA. Even the best quality coconut oil will have FFA not less than 0.4. Refining brings FFA down to 0 also. So, if the FFA is abnormally low, it means it has refined coconut oil.
I have learned these things recently, as I was forced to think and find out how other brands are able to sell their coconut oil at a lower rate. Initially, I used to think.
- They are getting Copra at a lesser price
- Their manufacturing and overhead expenses are lesser
- Their oil yield might be better
- They know how to time the market and buy Copra when it is at a lower price
- They are satisfied with lower margins
- They are just doing it for the sake of brand-building
But now I understand the various malpractices that are in vogue. I will write a detailed post later about other malpractices.
“Choose a job you love, and you will never have to work a day in your life.” – Confucius
I have chosen a job that I love, that of building a business. I am marketing a product that I deeply love myself. I am living my own life and not someone else. Coconut oil manufacturing has been a family business that was started by my father. I didn’t get into it as part of his succession planning, I got into it out of my own interest. Rather, he didn’t want me to join it as he didn’t want me to face the hardships that he faced. But I forced myself in, and building Cocoguru has been my dream.
Here, I would like to discuss my personal preference for Coconut Oil and my experiences with it.
My father started a Coconut Oil mill in Puttur in 1988, and I was in 1st standard class then; it was right next to our home in the same compound. So, I have physically been very close to Coconut Oil Mill. But mentally, I wasn’t at all involved in it. Even my younger brother used to get involved in it, but I didn’t show any interest in it. My parents used to force me to go there. I used to take the tools to repair my cycle. As I was interested in Physics and Mechanics, I used to observe how motors rotate and how power is transmitted from the motor to the oil extraction machine. As I showed an inclination to studies and my brother towards business, it was planned in the family that my brother would continue the business, and I would have a white-collar job outside.
Hair Oil
Till I was 25, I never used to apply hair oil. Once, I felt that my hair was dry and needed hair oil. I bought a Parachute. It smelled so nice and different from coconut oil manufactured at our mill. I didn’t know why, even though it was Pure Coconut Oil, it smelled like that. Then, I assumed it must be perfumed. Also, the oil is used to retain the quality for a longer time. Then, I developed the habit of applying coconut oil to my scalp. One is to moisturise hair and scalp, and two is to experience the fragrance of coconut oil while applying it. I continue the habit today, but this is how my liking towards coconut oil started.
Cooling Effect
When I was in the hostel, I used to wash clothes on my own. I was famous for that as I used to wash clothes more frequently than others. I had to wash more frequently, probably because I used to wear one pair only for one day After washing, due to detergents, my hands used to feel hot and dry. To moisturise and cool, I applied coconut oil on my hands and the remaining oil on my hands and legs. Now, I see coconut oil being used for the same reason, even in commercial establishments like Cement plants. Today, I get bulk orders from cement plants just to cool and moisturise my hands after handling cement.
Oil Pulling
My mother is very health conscious, and she used to do oil pulling. She also advised me to do oil pulling to have good oral health. Since I love coconut oil and am looking for new ways to experience it. I started oil pulling, and my dental health surely improved. Tooth sensitivity and swollen gums were gone. It is a great way for me to test the quality of our product. While oil pulling is rinsing oil inside the mouth, I wouldn’t mind if I swallowed some bit.
Instant Energy
I am someone who likes to eat regularly; I like to have my breakfast, lunch and dinner early and at the same time every day. But when I travel, I cannot stick to these routines. I don’t like eating junk food outside. When I feel hungry, my energy levels come down. Then, I drink about 5 ml of coconut oil. Coconut oil is different from other edible oils in that it is easily digestible and hence provides instant energy. Also, it leaves a very good taste in the mouth.
Sales Pitch
I sometimes go with our sales van to develop new business or get feedback from customers. When I approach a new customer to develop a business, he is normally reluctant. Then I pour some drops of oil on his hand to smell it. Since ours is roasted coconut oil it smells more then conventional coconut oil. He now gets interested. He enquires about price and business terms and business starts.
Many times customers have raised doubts about the purity of our product and claim that it is perfumed and not natural. I pour a few drops of oil on my mouth in front of them and swallow it. It convinces them and I get satisfied too.
Oil Smell
A lot of smell comes out of our factory during oil extraction. It reaches the road that is a good 150 metres away all nearby residents. For me to sit in the factory and experience it the whole day is blissful. My clothes retain that smell, when I go out, people ask and I feel good about it. It happens only with Coconut Oil.
On the contrary, my experience with other oils, especially Sunflower Oil, is different. At my hostel at Mysore, the Kitchen was on the ground floor, and the Dining Hall was right above it on 1st floor. This meant that the kitchen smell, especially that of cooking oil (Sunflower Oil), would be felt in the dining hall. I was slow at eating, which meant I had to experience the smell for a longer time. If you don’t like the smell, the time spent feels that much longer. The clothes would retain the smell, so I had to feel it for a long time, even after I had left the hostel mess. So, I used to wear a different set of clothes to mess up, take it off and wear a different set once I came back. At a lodging in Erode, the restaurant was right below the room, and I had to endure the smell the whole night. There are a lot of restaurants with poor kitchen ventilation where Oil vapours circulate around our eating tables. I avoid such hotels.
Oily Food
I avoid eating all oily foods when I eat out. Because they mostly use cheaper oils like Sunflower Oil, Palmolein Oil or Vanaspati. A good oil can add a lot of taste and juiciness to food. I particularly like oily foods prepared by the Goud Saraswat Brahmin community. At our home, oil usage is very low, and food tastes bland. A close relative used Cocoguru coconut oil to prepare all the items for their function. I tasted all the items there, including Poori and Jilebi, that I hadn’t tasted in recent memory. At our factory canteen, we prepare one deep-fried dish a week to test the quality of our oil. For Diwali, we prepare Boondi Ladu using our coconut oil and distribute it to employees and customers. There are a few local foods like Charmuri, Omlet, Pathrode, Fish Fry and Banana Chips that must use Coconut Oil to taste good.
Overall, I use coconut oil to appeal to my 3 senses smell, taste and touch. Only a poet can explain well how good it feels rest of us have to experience it to understand it.
Our new factory at Kallarpe (Aryapu Village, Puttur) manufactures Roasted Coconut Oil. Our new customers have instantly liked it because of its enhanced aroma and taste. But our old customers who have used cold-pressed coconut oil manufactured at our old factory in Parladka (Puttur) have various doubts about it. I seek to clear those doubts here.
Cold Press Coconut Oil
Virgin Coconut Oil is many times referred to as Cold Press Coconut Oil. Virgin Coconut Oil is extracted from fresh Coconut. But, here we refer to oil extracted from Copra (dried Coconut).
Copra with about 8% moisture is crushed as it is on a Rotary Machine (Chuck/Ghana). Oil is filtered through sedimentation of solid particles for 7 days in settling tanks. The process is extremely simple and requires minimum capital investment.
The resulting oil has a crystal clear transparent colour and smells and tastes like Copra as it is. Many people like this as it is considered to be natural and local made product.
Roasted Coconut Oil
Copra is cut into small pieces and dried using hot air to about 5% moisture level. This Copra is heated for about one hour on a multi-stage steam-jacketed vessel for roasting. A bit of steam is also added to Copra for cooking. This opens up the fat cells and helps in easy oil extraction. Oil is then filtered using a Pressure Leaf Filter and Filter Press to remove sediments when oil is extracted. This process requires more capital investment for a Steam Boiler, Pipeline, and Cooker with an Agitator and Motor. It also has higher running costs in fuel for steam generation and power.
The resulting oil has a golden yellow color. It has a stronger smell and taste. It has just the same effect as what roasted Ground Nuts give.
During processing, the temperature of oil and oil cake rise up to 100 degrees, while in cold pressed it is only about 60 degrees. In the process the oil loses moisture and reduces the risk of going rancid. Copra gets sterilized as the bacteria and fungus die, which again prolongs shelf life.
At higher temperatures, triglycerides in other oils start breaking into free fatty acids causing rancidity. But Coconut Oil being mostly Saturated Fat and is quite stable. So, roasting does not deteriorate the quality of oil.
Hair Oil manufacturers prefer Roasted Oil for its stronger smell and longer shelf life. It has a 5% premium in the bulk oil market over Cold Pressed variety. But we are selling at the same price to consumers now. It is something new to them here in Dakshina Kannada market and not yet fully accepted. We have been working hard in educating them about this new variety.
Despite so much of difference they are still the same i.e. Coconut Oil. Both of them are made from the same quality of Copra; they have the same chemical composition, and both have the same miraculous health benefits as coconut oil.
Download Write up of Roasted Coconut Oil FAQ
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Coconut oil | Branding | Employees | Greenery | Management | Marketing | Packing | Pricing | Restaurant | Sales | Taxation
- Why should you trust Cocoguru?
- 5 Common Myths about Roasted Coconut Oil
- Narayana Bhat retires
- Restaurant location and start date
- Our view of Wood Pressed Oil – High price for an inferior product
- Announcing our intention to start a restaurant
- Salary payment to permanent employees on 1st of every month
- Why does Cocoguru coconut oil have a longer shelf life?
- Food expenses to be excluded from Employees CTC
- How employees of earlier generation worked
- Cocoguru is now available at Reliance SMART Stores
- How do we set MRP?
- Saurav Ganguly, heart attack, endorsement of a cooking oil product
- Why is Cocoguru coconut oil yellow in colour?
- Retailer Objection – No response
- Retailers objection to sales
- Water conservation measures taken at Cocoguru
- Yet another price increase
- Coconut oil helps you lose weight. But how?
- Another Price Increase
- Adulteration in Coconut Oil
- 80:20 Principle and its application
- Price Increase
- Trip to Mullaiyanagiri
- How much I love Coconut Oil
- Effects of Price Increase on Coconut Oil Trade
- A tribute to our best vendor
- New Website for Cocoguru
- What is the Salary?
- Difference between Roasted and Cold Pressed Coconut Oil
- Letter for Revision of VAT Rates
- Beware of Vanaspati, Margarine, Partially Hydrogenated Oils and Trans fats
- Dimensions of the most economical Carton Box
- Cocoguru Coconut Industries Private Limited – Incorporated
- Book Review – “The Coconut Oil Miracle” by Bruce Fife
- Unique challenge with marketing pure edible coconut oil in small packets
- How is Cocoguru Coconut Oil different from Parachute?
- Snapshots of Packing section