I.

TITLE: COMMERCIALIZATION OF COCONUT SHELL CHARCOAL BRIQUETTE FROM

AURORA PROVINCE AND ITS POTENTIAL TO WIDER MARKET
OPPORTUNITY

II. THE PROBLEM: RATIONALE AND BACKGROUND

Coconut shell charcoal is one of another valuable product from coconut tree (cocos
nucifera). It is used in a variety of application such as fuel for cooking food, as raw material in
obtaining activated carbon which is used in several medical applications and others. Activated
charcoal is a potent natural treatment used to trap toxins and chemicals in the body, allowing them
to be flushed out so the body doesn’t reabsorb them. It’s made from a variety of sources, but when
used for natural healing, it’s important to select activated charcoal made from coconut shells or
other natural sources.
Coconut shells are important raw materials widely used for obtaining charcoal in the world,
basically in the developing countries such as Indonesia, India, Malaysia. Coconut shell charcoal is
used in many areas because of its advantages and important characteristics. 

There are many methods of coconut charcoal making, but the most cost-effective method is
production by special charcoal kiln using process of pyrolysis  which involves burning coconut
shells in a limited supply of oxygen. It is important to know that oxygen could destroy shells if the
air will not be limited.  It should be used clean, fully dried and mature shells in order to get high
quality charcoal.
The processing of coconut shell charcoal briquettes includes the carbonization of the
coconut shells first and then crushing it to the powder, allowing to manufacture different shape and
size charcoal briquettes.For this purpose, the charcoal kiln and the charcoal powder-making
machine are used. The kiln should maintain the temperature of 200 - 500 °C.

There are some advantages of using coconut shell charcoal briquettes. First of all, it is
completely eco-friendly product, which is made from sustainable natural resources. The ash content
of the coconut shells is around 0.6% and the lignin is about 36.5%, what helps to turn the shell into
briquettes easily. As a result, less ash is produced to the environment during burning. In addition,
these briquettes are very safe to use and easy to inflame. The coconut charcoal briquettes do not
emit any toxic gases, so it is safe to use it for outdoor cooking as well. In general, because of its
high level of calorific value the briquettes can be used in food and metallurgy industries, as fuel etc.

The most common methods used in the Philippines was the drum method and pit method.
In general, shell charcoal is made by burning coconut shells in a limited supply of oxygen. It is
important to know that oxygen could destroy shells if the air will not be limited.  It should be used
clean, fully dried and mature shells in order to get high quality charcoal.

The drum kiln is one of the most widespread methods of coconut shell carbonization. It has
3 sets which consist of 6 holes, middle and upper layers and a lid. The drum also includes a
chimney which is placed on the lid of the drum. Optimum carbonization of shell in a limited supply
of oxygen provides good quality charcoal.

So, first of all, the raw shells must be put into the drum, leaving a 4 inch space in the center
of the drum, which plays an important role during carbonization allowing the flow of smoke. To
start carbonization, a fire should be started in the middle of the circle using a piece of a coconut
shell. Then, all the free space in the drum should be filled with raw materials. When the flames flare
up, the chimney and the lid should be attached. The middle and the upper sets must be closed.  
When some of shells shrink to the bottom, more coconut shells should be added up to the brim of
the drum. It is done, to fill thе vоlumе rеductіоn tо maxіmіzе cаpаcіtу fоr burnіng. The process of
carbonization begins at the bottom of the drum and goes up. When the carbonization is finished, it
can be seen a glow in the 6 holes of a set of the particular zone. When the holes of the bottom zone
indicate this glow it means that the bottom set is closed, while the middle set is opened. When the
carbonization in the middle zone is completed, its holes are closed and the bottom holes are opened.
Сlosing of the top set of the holes after the full carbonization in the top region stops the airflow into
the drum. The charcoal could be gotten and packed after about 8 hours when the drum is cooled. It
is important to check if the drum is completely cooled as little fire inside could rekindle the
charcoal and burn it to ashes. In general, using drum method 30 thousand of coconut shells are
needed to produce 1 ton of coconut shell charcoal.

In making charcoal on pit method, A stratum of deep soil is needed for this method. Suitable
deposits of soft soil will usually be found along the banks of a creek. Pits can be made very large
and a cycle may take up to three months to complete (13, 31, 32). Capital investment is minimal;
nothing more than a shovel, an axe and a box of matches is required. But the method is wasteful in
resource. It is very difficult to control the circulation of the gases in the pit. Much of the wood is
burned to ashes because it gets too much air. Another portion remains only partly carbonised,
because it was never properly heated and dried out during the burn. Apart from the gross variations
in quality, there is variation in volatile matter, i.e. degree of carbonization within the acceptable
charcoal. This is because in the pit carbonization is started at one end and progresses towards the
other. Hence, the charcoal at the start of the burn, being heated longer, is much lower in volatiles
than the charcoal at the end. For domestic purposes, this is not a serious problem, though it does
reduce the overall yield, since the "hard" or overburned charcoal at the firing end with its low
volatiles, high final carbon content, implies a low yield (theoretically about 30%30%). Overburning
at one end is unavoidable in order to burn the charge as a whole.

A further problem with pits is reabsorption of pyroligneous acid through rain falling on the
pit. The pyroligneous acids tend to condense in the foliage and earth used to cover the pit. When
heavy rain falls they are washed back down and are absorbed by the charcoal. They cause jute bags
to rot and, on burning, the charcoal produces unpleasant smoke. Nevertheless, skilled operators
using pits which are not too big can make excellent quality charcoal. (31). The low capital cost of
the system commends its use where wood is abundant and labor costs are low.

A 2013 survey made by the team of Dr. Emelyne C. Cortiguerra of the Department of
Science and Technology’s Forest Products Research and Development Institute (DOST-FPRDI)
showed that there is a high demand for charcoal briquettes abroad. According to the country’s top
charcoal briquette makers, foreign buyers often buy in large quantities which most of them cannot
meet.

Recently, the PCA (Philippine Coconut Authority) released the latest report in March 2018
wherein the coconut shell charcoal was one of the leading export commodity by coconut producers
in the country. In March 2018, the country has exported 6,726.93 MT(metric ton) amounting to
US$3,858,809. Most of the coconut shell charcoal came from Mindanao and which is according to
Bureau of Agricultural Statistic is covering 49.3 % of the total coconut plantation in the country.
Despite with the larger portion covered by Mindanao in coconut, still they cannot meet the high
demand of charcoal briquettes abroad.
 In Aurora Province, there is a potential of coconut products to participate in the wider
market. Knowing that the whole province is covering up of to 43% of the total agricultural land of
coconut. Most common known products are fresh and dried coconuts being distributed and sold on
nearby provinces as common product. Lot of coconut producers are diverting to copra meal and
converting the shell into charcoal and selling it as another income. Most of these coconut producers
are located in remote areas and far barangays in different municipalities in Aurora Province. There
is a notion that the price of coconut shell charcoal can be affected by such factor of these producers
considering that the location can be reached by vehicles to deliver or to move-out these products.
So far, the prices of coconut shell charcoal varies from 250 pesos to 400 pesos per 50 kilograms or
1 sack. Converting the coconut shell charcoal into a briquette can increase the value of coconut
shell charcoal as raw material. Hence, there is no active operation of activated carbon production in
Aurora Province which is a potential investment to other interested investors. Activated carbon is a
very high valued product that comes from coconut shell charcoal which can be imported to any
parts of the world and plays a good value in terms of its amount. Coconut shell charcoal is
commonly used in many country and the demand for this product was taking hard to meet due to
low production that comes from Philippines and it has the potential to enter a global market. This
study aims to signify the marketing impact of coconut shell charcoal and charcoal briquette by the
producers and consumers in domestic level and to signifies the potential of these products to wider
market opportunity.

2.1 STATEMENT OF THE PROBLEM:

 The title is “COMMERCIALIZATION OF COCONUT SHELL CHARCOAL AND CHARCOAL
BRIQUETTE FROM AURORA PROVINCE AND ITS POTENTIAL TO WIDER MARKET OPPORTUNITY “.
Based on the foregoing topic, the specific research problem are as follows:

1. What is the current profile of coconut producers who are also engage in producing
coconut shell charcoal?

2. What is the current situation in the market of coconut shell charcoal?

3. What are the challenges faced by coconut shell charcoal producers in production and
marketing in terms of :

A. Location

B. Technology

C. Profitability

D. Market Acceptance

4. What is the potential profitability of coconut shell charcoal and charcoal briquettes from
Aurora Province?

5. What are the factors need to address to improve commercialization of coconut shell
charcoal and charcoal briquette?
2.2 HYPOTHESES:

Based on the foregoing specific research problems, the following null hypotheses are
formulated:
 1. The current market situation of coconut shell charcoal and does not have enough
impact in the market. This is due to lack of interest of producers to search wider
market opportunity and their lack of interest to innovate to improve quality of their
product.

2. The location of producers doesn’t affect the price or value of the product. It is due to
some instances that dealers can go to their location and can negotiate to much more
cheaper and affordable price.

3. There is no improvement from traditional technology in producing coconut shell

charcoal. It is due to the situation of some producers having the lack of interest to
invest in much modernized technology as recommended in such notion that
equipment’s needed can’t be afford.

4. There is a very low market acceptance in the side of consumers due to such notion
that price of coconut shell charcoal are much more higher as compare to regular
charcoal.

2.3 THEORETICAL FRAMEWORK

 The Theoretical framework plays an important role in guiding the entire process of the
research study. Theories are constructed in order to explain, predict and master phenomena. In
many instances we are constructing models of reality. A theory makes generalization about
observations and consist of interrelated, coherent set of ideas and models.

COMMERCIALIZATION OF COCONUT SHELL CHARCOAL BRIQUETTE FROM

AURORA PROVINCE AND ITS POTENTIAL TO WIDER MARKET OPPORTUNITY

LEVEL INDEPENDENT INTERVENING DEPENDENT

VARIABLE VARIABLE VARIABLES
Theoretical Producers Raw Price of Raw
Material Materials Quality of Product
Technology used
Production Production Cost Average Daily Sales

Current Marketing
Strategy

Conceptual Producers Raw Price of Raw Quality of Product

Material Materials Average Sales
Technology used Production Costs Market Acceptance
Current Marketing Other Investment Return of Investment
Strategy

2.4 SIGNIFICANCE OF THE STUDY

This research aims to signify the following:

1. On Problem in Poverty Rural Areas of Aurora Province.
This research will help to identify individuals or group of individuals who belongs
below the prescribed poverty line who depends on coconut plantation. This research will
give them some idea to have some options to increase their profit that they can provide for
their families.
2. In Bridging Knowledge
This research will help them to provide alternative knowledge on improving the
profit of coconut producers so they can help in contributing to improve social economic
status in Aurora Province.
3. On Improving the Social Economic, and Health Conditions of the People.
This research will help to encourage consumer to appreciate the use of coconut
product such as coconut shell charcoal as alternative fuel to increase their savings and
helping to maintain good environmental and health condition and to contribute in mitigating
air pollution by altering into coconut shell charcoal product for their daily use.
4. In Supporting Government Thrust
This research will help provide the government some ideas in providing the people
in alternative ways in alleviating poverty in Aurora Province.

2.5 SCOPE AND LIMITATIONS OF THE STUDY

The study will be limited only to the commercialization of coconut shell charcoal
and charcoal briquette from Aurora Province. Charcoal from coconut shells are utilized to
make charcoal briquettes to be distributed on local and other market locations.
 The study will be conducted in central part of Aurora Province such as the
Municipality of Maria Aurora, Dipaculao, Baler and San Luis. The researcher will profile
the coconut shell charcoal producers within the said area. Hence, the researcher will also try
to produce charcoal briquette out of coconut shell charcoal as sample product to be used by
selected consumer for data gathering purposes.
The researcher will also travel and conduct studies on some different distributors
of charcoal briquette outside Aurora Province to gather more information that can be
compare with the local data gathered.
The evaluation of the product is employed through consumers with the use of 5-
point Hedonic Scale where 5, stands for extremely acceptable; 4, very much acceptable; 3,
moderately acceptable; 2, slightly acceptable; and 1, not acceptable to determine the
acceptability of the coconut shell charcoal and charcoal briquette as used by the consumer
with the sample products from different producers.
The results of the study is interpreted with the use of weighted mean to determine
the acceptability of coconut shell charcoal and charcoal briquette and t-Test : Paired Two
Sample for Means was used to determine if there is significant mean difference in
acceptability, gross sales and gross profit of the products.
The products shall be tested only on selected locals of Aurora Province. The results
and conclusions drawn are, therefore, true to these products and formulations. However, the
results will be used as basis for similar studies that may be conducted in the future using
different materials alike.

2.6 DEFINITION OF TERMS

For the purpose of clarification, the following key terms are hereby defined:

Acceptability. This term refers to the suitability or satisfactoriness. In this study this refers
to the likeness of the coconut shell charcoal and charcoal briquette.
 Gross sales. This is obtained by multiplying the selling price by the quantity. In this study
it refers to the total sales of coconut shell charcoal and charcoal briquette.
Briquette. A compacted often brick-shaped mass of usually fine material (Merriam-
Webster 2018). In this study, it refers to compacted tube shape mass made out of
powdered charcoal with pasty material as binding element.
Coconut. A drupaceous fruit of the coconut palm whose outer fibrous husk yields coir
and whose nut contains thick edible meat and, in, a clear liquid.
Charcoal. A dark or black porous carbon prepared from wood by charring in a kiln from
which air is excluded. In this study, charcoal is made out of coconut shell charring in by
kiln method or earth method.
Coconut Shell.  The strongest part covered in coconut fruit located in between the coconut
flesh and coconut husk.
Kiln. An oven, furnace, or heated enclosure used for processing a substance by burning,
firing, or drying. In this study, it refers to a drum made of metal or a pit intended for
burning materials.
Production Costs.  Refer to the costs incurred by a business when manufacturing a good
or providing a service. Production costs include a variety of expenses, such as labor, raw
materials, consumable manufacturing supplies, and general overhead
(https://www.investopedia.com/terms/p/production-cost.asp).
Average Daily Sales. Refers to the average number of products that are sold each day,
calculated by dividing, the total number that were sold in particular period by the number of
days (https://dictionary.cambridge.org/dictionary/english/average-daily-sales). 

III. RELATED LITERATUR REVIEW

Coconut shell is the strongest part covered in coconut fruit. Coconut shell is located
in between the coconut flesh and coconut husk. This shell is naturally created to protect
the inner part of coconut. The shell is used to produce various handicraft and other
applications. Most of handmade decorative are created by using coconut shell due to their
strength. Coconut shells are also used to made charcoal which is used as fuel and coconut
charcoals are far better than other charcoals. Coconut shell has high strength and modulus
properties. It has added advantage of high lignin content. High lignin content makes the
composites more weather resistant. It has low cellulose content due to which it absorb less
moisture as compared to other agriculture waste. Coconut, being naturally available in
nature and since its shells are non-biodegradable, they can be used readily in concrete
which may fulfil almost all the qualities of the original form of concrete. The coconut shell
is still underutilized in some places. The chemical composition of the coconut shell is
similar to wood. It contains 33.61% cellulose, 36.51% lignin, 29.27% and ash at 0.61%.
Lightweight concrete is typically made by incorporating natural or synthetic lightweight
aggregates or by entraining air into a concrete mixture. Coconut shell exhibitsmore
resistance against crushing, impact and abrasion, compared to crushed granite aggregate.
Coconut shell can be grouped under lightweight aggregate. There is no need to treat the
coconut shell before use as an aggregate except for water absorption. Coconut shell is
compatible with the cement.

III.1 RELATED LEGAL BASIS

The related legal basis of the foregoing study is the Coconut preservation. This is
the priority government’s thrust pursuant to Republic Act No. 8048 also known as the
“Coconut Preservation Act of 1995”, with some amendments made through Republic Act
NO. 10593 which amends certain section. To mitigate coconuts to be altered into lumber
as part of its preservation. According to the law, no coconut tree shall be cut except when
the tree is no longer economically productive. The Philippine Coconut Authority has
issued the revised Implementing Rules and Regulation know as the PCA Administrative
Order No.1, Series of 2013, stating that the new IRR increases the fines and lengthens
imprisonment for any person guilty of cutting coconut trees illegally because he or she
failed to secure a Permit to Cut from PCA. Offenders will now face heavier fines, between
P100,000 and P500,000, compared with the previous P50,000 to P500,00 range. From
the previous one to six years of imprisonment, convicted offenders will now be
incarcerated for three to seven years.
Another related legal basis is the Forest preservation. It is a government priority to
preserve our natural forest by implementing the Republic Act No. 7161, or the Revised
Forestry Code of the Philippines. This law concerns with firewood used in manufacturing
other material.
 According to Executive Order No. 23 Section 2 as signed by President Benigno C.
Aquino III in 2012 stating the “Moratorium on the Cutting and Harvesting of Timber in
the Natural Forest” saying that the Department of Environment and Natural Resources
(DENR) is henceforth hereby prohibited from issuing logging contract/ agreement in all
natural and residual forests, such as Integrated Forest Management Agreement (IFMA),
Socialized Integrated Forest Management Agreements (SIFMA), Community Based Forest
Management Agreement (CBFMA) and other Agreement/Contracts with logging
components in natural and residual forests.
The Republic Act 9003(RA 9003), also called the “Ecological Solid Waste
Management Act of 2000”. This law manifests the policy of the Philippine government to
“adopt a systematic, comprehensive, and ecological solid waste management (SWM)
program in the country” and is based on the hierarchy of waste management, which
promotes the source reduction, reuse, recycling and resource recovery (3Rs) of materials.
Under this Philippine law, an SWM Framework Plan is hoped to empower the informal
sector as a partner of public and private institutions, organizations and corporations in the
promotion and implementation of the 3Rs with the overall objective of alleviating poverty.
Being an agricultural country, the Philippines generates a substantial amount of bio-
residues (biomass) with promising potentials when properly utilized as renewable sources
for industrial, commercial and household purposes. Especially, its use as alternative fuel
for cooking is relevant for poorer households. This includes among others rice husk,
residues from coconut use, forestry residues and urban wastes
The foregoing study is significant to involved community to divert in some sources
of income aside from timber to have much more sustainable income through coconut
preservation. The study will also give them the idea to have a systematic solid waste
management with the coconut residues to be altered into renewable source of energy.
The related legal basis has a significant bearing on the proposed study because it
will provide interest to coconut producers and plantation owners to preserve their coconuts
as it will provide alternative ideas to create income from a raw material product such as
the coconut shell.
Also the foregoing study is significant to altered interest of other manufacturers
who are using firewood or timber woods as usable fuel as part of their manufacturing or
production process. Considering that coconut shell charcoal is more efficient to use as fuel
and the source is abundant in the province of Aurora.

3.2 RELATED LITERATURE

According to the article made by the Forest Products research and Development
Institute (FPDRI) in 2015 entitled as Charcoal Briquetting in the Philippines: Challenge
and Prospects” a 2013 survey made by the team of Dr. Emelyne C. Cortiguerra of the
Department of Science and Technology’s Forest Products Research and Development
Institute (DOST-FPRDI) showed that there is a high demand for charcoal briquettes
abroad. According to the country’s top charcoal briquette makers, foreign buyers
often buy in large quantities which most of them cannot meet. “This means the door is
wide open for anyone who wants to grab a piece of the action in the charcoal briquetting
industry,” says Dr. Cortiguerra, “but they have to be aware also of the problems currently
faced by briquette producers.”
FPRDI Director Dr. Romulo T. Aggangan explains, “A charcoal briquette is a
compacted mass of fuel material made from a mix of charcoal fines and binder, and
molded under pressure. Although charcoal briquettes are not very well known in the
Philippines, the product is already a household fuel in Europe and America. In some Asian
countries, hotels and big restaurants use it for roasting.
Charcoal briquettes are a mixture of charcoal powder recycled from charcoal
wastes and starch solded under pressure. “Briquettes are 50 percent cheaper than liquefied
petroleum gas (LPG). They are also more cost-effective than wood charcoal as they burn
longer and more steadily while emitting very little smoke,” pointed out Felix Tamolang,
officer-in-charge of the Los Baños-based Department of Science and Technology-Forest
Products Research and Development Institute (DOST-FPRDX).

Studies at the DOST-FPRDI show that charcoal fines for briquetting can come not only
from wood and coconut shell but also from coconut husk, coffee bean hull and other non-
wood biomass materials. In the Philippines, the first charcoal briquetting machines, studies
on the production process, as well as technology demonstrations were initiated by the
DOST-FPRDI,” adds Dr. Aggangan.
 According the article written in 2014 in www. vdeltafuel.com entitles as
“Market Analysis-Coconut Shell charcoal and Activated Carbon”, compared coconut shells
with other fuels such as coal, wood and coconut shells coco peat, it is a best raw material
for the production of activated carbon because coconut shell hardness and high carbon
storage. Hardness of coconut shell charcoal making production process activated carbon
from coconut shell charcoal is harder (resistant to abrasion higher) and contains less ash.
High carbon coconut shell create lots of foam for the activated carbon produced from
coconut shell; therefore absorption of carbon increases. Activated carbon made from
coconut shell charcoal iodine number is higher than other types of activated carbon and
activated carbon made from coal. Iodine number is a measure of the level of activity of
activated carbon; ie 01g activated charcoal can absorb many grams milliliter of iodine.

Activated carbon made from coconut shell charcoal from 1100-1200 of

iodine, more than the iodine number of activated carbon made from coal only from 900-
1000 of iodine. The world has a very high demand on the use of activated carbon produced
from coconut shell charcoal. According to Freedonia, a plant research in the international
coal market Cleveland Ohio said in the past 05 years, the demand for imports of activated
carbon from coconut shell charcoal increased by 7.73% / year and is estimated to increase
from 10 % - 25% per year from 2013 - 2018 Due to the growth and market opportunities
in the global charcoal, some charcoal producers have expanded production and sourcing
raw materials from other countries. For exports of activated carbon produced from coconut
shell charcoal, then in many other sources said coal exports in global activity in 2012
reached 1913.2 million and are expected to increase by 4,180 , $ 5 million in 2019;
increase of 14.8% per year. In the Philippines, exports of activated carbon produced from
coconut shell charcoal in 2009 was 22 985 tonnes to 47 150 tonnes and increased in 2013;
means charcoal exports from developing countries increased by 26.3% / year or even
higher than activated carbon exports of Sri Lanka. On the other hand, exports of activated
carbon produced from coconut shell charcoal in Indonesia in the last 05 years tend to
lower. In 2009, Indonesia exported 22 741 tons of activated carbon, but by 2013, the
country exported only 20 208 tonnes; decreased by 2.8% / year. In addition, the price of
charcoal exports from Indonesia also fell from $ 1,404 / ton in 2012 to $ 1,343 / tonne in
2013 Although demand for charcoal is increasing worldwide, but Indonesia (State largest
coconut producer) still can not exploit such an opportunity.

Notably, in 2013, of the three countries exporting coconut shell charcoal and
activated carbon is Sri Lanka's leading exporter and largest activated carbon coconut shell
charcoal at least. In contrast, Indonesia to export coconut shell charcoal activated carbon
and at least most. The rate of export charcoal made from coconut shell charcoal highest
belongs to Indonesia (1.89); followed by the Philippines (1.32) and Sri Lanka (0.23). This
shows the efficiency of the processing of raw materials to Sri Lanka as compared to other
countries. Instead of exporting the Sri Lankan coconut shell charcoal chose processed into
activated charcoal for export to obtain higher values. It is worth noting that in 2013,
Indonesia has imported more than 10 135 tons of activated carbon from other countries
such as Sri Lanka, the Philippines, Japan and India, increased by 52.4% compared with the
previous year's imports.From July 12/2012 - 11/2013, coconut shell charcoal prices in the
Philippines, Sri Lanka and Indonesia different frequencies. While the price of coconut
shell charcoal in the Philippines and Indonesia lowered the overall price coconut shell
charcoal in Sri Lanka has improved. In May 02/2014, coconut shell charcoal prices in Sri
Lanka 390 USD peaked / ton, an increase of 17.1% compared to the price of the month
01/2013 333 USD / ton. In Indonesia, coconut shell charcoal prices reached a peak of 382
USD / ton in June 6/2013 and have continued to trend lower to 337 USD / ton in May
3/2014. Similarly, the price of coconut shell charcoal in the Philippines had better start
improving in December 12/2012, reached 384 USD / ton and 315 USD dropped / ton in
May 3/2014; decreased about 1.12% / year.Notably, Sri Lanka and Indonesia have a small
correlation between the price of coal and coconut shell activated carbon export prices. In
both countries, the correlation is lower than 0.6; This means that the price of coal and
coconut shell activated carbon export prices hardly have any relationship with each other
because coconut shell charcoal in 2002 , some countries not only be used for the
production of activated carbon. For example, in Indonesia, a part of coconut shell charcoal
production on the market are used domestic as used in the restaurant for grilled food
(particularly in Java) and in industrial applications such as the use used in the factory bars
shaped coconut shell charcoal.
 According to Yvonne T.V. Agustin, Executive Director of United Coconut
Association of the Philippines Inc., some people may admonish others to leave coconut
farming for some reasons like the vagaries of the weather affecting output as well as low
prices at times. But one thing is certain, our people will always look up to coconut as a
source of livelihood because it is by far the only crop which has never run out of market.
The recent average of coconut shell charcoal from 2009 to 2013 implicates the countries
low improvement on sales of coconut shell products as presented below.

Table 3.1 EXPORT OF COCONUT SHELL PRODUCTS (Average 2009-2013)

PRODUCTS VOLUME VALUE UNIT PRICE

(In MT) (In USD Million (In USD/MT FOB)
FOB)
Coco shell powder 461 0.096 208.24

Coco shell charcoal 41,697 16.151 387.34

Activated carbon 32,984 49.852 1,511.40

TOTAL 75,142 66.099

Activity like coconut shell charcoal production in Indonesia shaped in got have
tended to increase with the number of manufacturing plants and coal are increasing due to
lower investment and less technical knowledge than the plant activated carbon.
Meanwhile, the price of coconut shell charcoal and activated carbon in the Philippines are
not statistics.

The forgoing articles has significant bearing on the present study because it will
help to understand the present situation of the market acceptability of coconut shell in
other countries.
IV. RESEARCH METHODOLOGY
This chapter contains the discussion of the research design used, the respondent of the
study, the research locale, instrumentation, the data gathering procedure, and the statistical
treatment of data.

IV.1 RESEARCH DESIGN

The researcher used the descriptive correlation method for the study. This
method includes giving surveys, questionnaires, and conducting interviews. This
was used to describe the status of coconut producers in terms of market share and
the consumers in terms of market acceptance to established the current marketing
impact on commercialization of coconut shell charcoal product of Aurora Province.
According to Siquijor- Enriquez (2000), descriptive method is
characterized as a survey or normative approach to the study of conditions,
essential guide to ones thinking. It is concerned with conditions of relationship that
 exists; practice that prevail; beliefs, process that are going on; effects that are being
felt, or trends that are developing.

IV.2 RESPONDENTS OF THE STUDY

The researcher used the purposive sampling method in choosing the respondents
from Central Aurora (Baler, Maria Aurora, San Luis, Dipaculao). Respondents are
considered producers of coconut charcoal. Other set of respondents are common
consumers and qualified to test the coconut shell charcoal briquette.