Coconut, regarded as tree with 101 uses does not fit the bill to be a lucrative industry as compared to other cash crops in Sabah like palm oil. Though blessed with coconut trees that fringe the beaches and in the backyard of the locals, the people of Kudat at the northernmost tip of Borneo is not maximizing the potential of this resource as there are alternative cash crops that generate better returns. Meanwhile, the need to improve living standard of the community there is necessary as the youths are leaving to cities for better job with better pay. Not surprisingly, neither the coconut nor the beautiful beach of Kudat is considered an asset to improving the livelihood of the Rungus community.

Looking on the bright side, traditional use of Virgin Coconut Oil (VCO) has been widespread. Studied had proven that VCO is an ideal remedy to many disease including diabetes and heart disease, as well as tonic to a healthier life. Seeing the potential benefits of VCO, the idea of producing VCO in Kudat is timely. This led to the adoption of Kimihang Virgin Coconut Oil project as a community project by Borneo Ecotourism Solutions and Technologies (BEST) in May 2010 under the Global Environment Facility Small Grant Program (GEF-SGP) funded project. The project was part of the greater Kimihang Environmental Conservation and Community Capacity Building Project that incorporates seven other integrated programs in a small village called Kimihang. A VCO lab was built and funded by the government here while Mr. Ronnie Onginjan, a local entrepreneur was appointed as the main coordinator.

During the span of two years, the VCO production in Kimihang showed tremendous growth with the technical support from BEST Society. In the beginning, ordinary plastic mineral water bottles with no proper label were used and the oil were only marketed to the locals. To enhance the packaging, new 400ml imported glass bottles was imported in 2011. Labels were designed and printed and bar coding and chemistry lab test obtained together with bilingual brochures on the uses of Virgin Coconut Oil. The name BONCO was chosen stands for Borneo Natural Coconut Oil.

BEST Society also stepped up efforts to promote VCO industry by conducting workshops in 2010 and 2011 to produce downstream products including soap making for 31 local village entrepreneurs. All in all, total of RM28,663.20 were spent on VCO projects.

No doubt the production of VCO by the Kimihang villagers is facing stiff competition from bigger and more experienced manufacturers throughout the state of Sabah and from Philippines. To support the small business of these entrepreneurs, BEST Society aims not only to develop the quality of VCO product but help the locals market it to the world. Hence, we are inviting potential strategic partners to promote BONCO both as a business and a means to give back to the local community in Kudat.