Monday, February 25, 2013

San Vicente IS Series: Integrated Production of Table Wine and Vinegar - - Basi and Sukang Iloko

Dr. Abe V Rotor

Living with Nature School on Blog []
Paaralang Bayan sa Himpapawid with Ms Mely C Tenorio, 738 DZRB AM, 8 to 9 Evening Class, Monday to Friday (Phase II 2006 to present)

     The idea of reviving this sunset industry holds potentials in creating livelihood opportunities, and in integrating agriculture and industry in the classical concept of agribusiness that is rural- and people-based. The industry offers natural products that protect people’s health, and are friendly to the environment.  Lastly it revives the spirit of nationalism, culture and tradition.

Historical Background

     The manufacture of Ilocos  wine (Basi) and vinegar (Sukang Iloko) predates Spanish colonization of the islands. Although the two products were already a part of vigorous trading among the islands and with neighboring countries, basi in particular reached prominence when it became one of the island’s exports for nearly two centuries via the Galleon Trade to Europe by way of Acapulco, Mexico.

     Because of the significance of the industry, the Spaniards declared government monopoly on the industry stirring an uprising by the brewers and natives known as the Basi Revolt of 1807.   

     The Commonwealth era further saw the decline in the production of  basi and sukang Iloko as imported products flooded the market, and suffered seriously during the second World War. The industry never recovered since then. Today’s generation has a vague idea of this fine, traditional industry, which was once the pride of our ancestors.

General Features of the Enterprise
1.      It revives a once flourishing industry, making use of indigenous tools and materials. Thus, it also relives a rich history of a people and culture.

2.      As a cottage- and rural-based family business, it is dependent on family and local manpower, but nonetheless requires innovations in both technology and management.

3.      Its products are made from natural materials and by a natural process, hence health-safe and environment-friendly. 

4.      It makes use of local researches and indigenous skills, but will benefit from institutional researches. It therefore, links the research system and enterprise system, and the field with the laboratory.

5.      It is viable as a short- or medium-scale enterprise, but it can be expanded on long term basis, thus it is compatible with different business organizations, most especially family enterprise and cooperative.

6.      It supports the philosophy on which NACIDA and KALAKALAN 20 were founded.  It is in line with the government’s program on small and medium enterprises, led by DTI, UP Institute of Small and Medium Enterprises, other governmental organizations and NGOs.

7.      As a dollar earner (and saver), it takes pride in a modest sense in this contribution, propagating a Filipino product that meets international standard for European table wines, in the likes of sherry and mass wine. 

Its universal formula lends to expansion of product lines within the same framework of technology and business organization.  Table wine can be produced from local fruits such as chico, pineapple, mango, guava, and the like, using the same formula of making basi.  This is true with vinegar made from these fruits particularly during their peak season.
The Products

     Basi is table wine (12 proof or 6 % alcohol), a product of  fermentation of sugarcane.  The chemical reaction is shown in this general formula.

C6 H 12 O6   à  Zymase à  2 C2H5OH  + 2CO2
                   Sugarcane juice         Yeast                Ethanol

      It contains local botanical ingredients, mainly
  • Glutinous rice – Oryza sativa 
  • Bubud or Yeast Complex - Saccharomyces spp.
  • Duhat –Syzygium cumini 
  • Kamachile – Pithecolobium dulce
  • Samat – Macaranga tenarius
Raw Materials

     The principal raw materials are as follows:
1. Upland Sugar - The main ingredient is cooked sugarcane juice, with no adulteration. Baume reading should not be lower that 15 degrees depending on sucrose content and variety of the cane.

2. Glutinous Rice - Glutinous rice increases concentration since starch is polysaccharide.  Through hydrolysis, it is broken into simple sugars.

3. Bubod or Yeast Complex -  This is prepared from pure culture in the laboratory consisting of several strains of yeast.

4. Distilled or Spring Water -  The jars are thoroughly cleaned and sterilized. Distilled or spring is used. For vinegar, tap water can be used.
Sukang Iloko
     Sukang Iloko, sour basi.  Vin egar means sour wine. This means that basi, like any wine, spontaneously turns into vinegar when oxidized with the aid of fermenting microorganism. Thus, the equation will lead to oxidation or acetification (vinegar formation).

C2H5OH  +  O2   Acetobacter ---> CH3COOH  +  2H2O                                                                Ethanol                                                Sukang Iloko

     As shown in the two equations above, the two products – wine and vinegar - are integrated. The dual process can be extended to the production of Nata de Coco as a third product.

      The formula is applicable in the production of other wine and vinegar products from fruits, grains and root crops. Thus wine and vinegar making has good potential as an enterprise.

 Manufacture of Basi

1.      Cleaning and Sterilization -   The jars are thoroughly cleaned.  This takes three weeks, with the water changed three times, once every week.  Sterilization is by the use of boiling water followed by direct sunlight exposure.

2.      Brewing - Cooked sugarcane juice is poured into the sterilized jars including the botanical ingredients, bubud (yeast complex) and glutinous rice. Fermentation takes place immediately and increases in rate until the eight day.  Thereafter brewing declines. The sediments are removed and the jars are closed, and are ready for ageing.

3.      Ageing - The jars are hermetically closed and sealed with termite earth, an innovation of the author.. They must be kept in a dark cool place away from insects and any kind of disturbance. Ageing mellows the wine giving it the desired aroma, bouquet or body, color, taste, and other qualities. The wine matures in 10 to 12 months.

4.      Bottling and Packaging - Long-necked glass bottles with 750 ml content are obtained from suppliers of recycled bottles.  The bottles are thoroughly cleaned and sterilized.  The bottles are directly filled up with the harvested wine after undergoing laboratory test (percent alcohol and acidity) and organoleptic test (taste, color, bouquet, etc.).They are capped, sealed, and labeled. They are covered with yellow to orange cellophane to reduce ultraviolet radiation, and placed in individual brown bags and in carton boxes of 12 bottles per box.

Manufacture of Sukang Iloko

1. Cleaning and Sterilization - The procedure is the same as that in the preparation of jars in basi making.
 2. Brewing- Oxidation - Cooked sugarcane juice together with the botanical ingredients, yeast complex and mother liquor (inoculant) are poured into the sterilized jars. Vinegar formation or acetification accompanies the formation of ethanol.  It means that the wine is oxidized to form acetic acid. This dual process takes place spontaneously and simultaneously in the presence of natural fermenters, such as the fruit fly, Drosophila, that carries a beneficial bacterium,  Acetobacter aceti.  The filtrate is then separated from the sediments, and place in another jar in which it then undergoes tempering and ageing.
3. Ageing  - Vinegar matures in 4 to 6 months, shorter than that in ageing  wine. During the process, residual sugar undergoes secondary fermentation and acetification.  This is why natural vinegar improves with time.  (Artificial vinegar, on the other hand, loses acidity after prolonged exposure.) Ageing makes the product mellow, improves color, taste and other qualities.
4. Bottling and Packaging - The same procedure in basi is followed, except that the label is simpler or as specified by the buyer. For both products, laboratory tests are conducted in order to maintain quality standard. For vinegar, microbial count, acetic acid, and residual sugar are measured.

Production-Marketing Setup

     San Vicente, Ilocos Sur, is three kilometers from Vigan, the provincial capital, 408 km from Manila.  This town is the center of the once flourishing basi and vinegar making industry before and during the Spanish times.  It is also the site of the Basi Revolt of 1807.  Revival of the industry carries the imprimatur of history and the original basi.  For the local needs of the area,  both products are packaged and retailed to meet the local demand in Vigan and Laoag, two tourist spots, while the bulk of the products is shipped to  Manila.  Among the principal buyers is the  Ilocano balikbayan.  

Facilities, Equipment and Materials

1. Cellar and Working Area - The ground floor of an old brick house in San Vicente, Ilocos Sur, serves as cellar, office and working area.   It houses a small office and laboratory.  It is readily accessible to the sources of raw materials, buyers and transport facilities.

2. Jars (Fifteen-liter capacity) -  Burnay or earthen jars are made in Vigan.  The net content of each jar can fill up 50 long necked bottles of 750 ml, the standard packaging of both products.  Old jars can be procured from former brewers in the locality.

3. Laboratory equipment - The principal tools are high resolution compound microscope, sugar meter, pH meter, and accessories such as weighing scale, beakers and test tubes. Analyses and experiments involving sophisticated equipment like chromatograph and distilling apparatus are conducted in cooperation with research institutions like the Food Development Center and DOST.  Similar linkages with local institutions in Manila  and Vigan can be arranged. 
Quality Control
     Quality control starts with the choice of variety of sugarcane, its cultivation, maturity and crop stand.  Too much nitrogen fertilizer is not advisable.  Upland sugarcane is desirable.  Thus, in cultivating the crop, recommended agronomic requirements must be followed. Only the best sugarcane should be used for basi while inferior canes, such as those affected by drought or typhoon are used for vinegar making.
     The key to product quality is in the three stages of manufacture: formulation, brewing and ageing.  The entrepreneur must have a good knowledge acquired through training to augment basic chemistry and microbiology. It is in this stage that laboratory analysis is regularly conducted to generate these data.

  • ·         Percent sugar (15 %)
  • ·         Acidity of must or fermenting material (6 to 6.5 pH).
  • ·         Activity and cell count of the yeast (fast acting and multi-strain/complex type)
  • ·         Fermentation time (8 to 12 days)       
Final Products
     The ultimate control is in this stage which is composed of bottling, capping and sealing, labeling and packing.  Consistency of product quality is of utmost consideration, not only for the whole shipment, but also in all sales in the future.  This is to establish patronage (suki). The entrepreneur must always have in mind to meet international standards.  Food Development Center, which is authorized by the USFDA, determines the quality of products exported to the US and its territories.  Basi was confirmed by FDC to have passed the standard for sherry and port. 
Business Viability
     The direct cost in making a jar of basi which is equivalent to 50 bottles (750 ml) is P2500. This means that the production cost per bottle is P50. Fifty bottles is the net yield per jar.  This volume allows margin for breakage, leaching, and spoilage, including taste test and samples. 

     Premium sugarcane juice makes up 26.3 percent of the direct cost. Packaging materials which include bottles, labels, caps, seals and boxes, comprise the biggest cost which is 40.4 percent. Depreciation cost of jars, infrastructure, facilities and equipment like  pH and Baume meters, and sealer, makes up 15.8 percent, while marketing and direct labor cost make up 20 percent.

     The gestation period of basi is from 10 to 12 months, which means that brewing and ageing time takes almost a year. It is in the second and third year that regular sale takes place, peaking in summer and Christmas season. Computed wholesale selling price is P150 per bottle, thus the net income is P100.  For an economic volume of 5000 bottles, the total net income is P500,000 per year.

     For vinegar, the direct cost is P1000 per jar or P20 per bottle of 750 ml.  The biggest cost is spent on packaging (glass bottles, caps and seals) which is 37.5 percent.  Cane sugar is 31.5 percent, while marketing and direct labor make up 25 percent. If the selling price is P30, the net income is P10 per bottle, or 50 % ROI. The economic volume is at least 5000 bottles a year. A successful entrepreneur supplied these figures. Like any business the prospect of improving profitability is based on carefully studied economics of scale.

     With the current business climate in the Philippines there are many risks entrepreneurs face - from the crunching effect of currency devaluation to open competition brought about by the world’s order on trade liberalization since the passage of WTO-GATT whose inequitable workings are a disadvantage to Third World countries.

     How a fledgling industry survives, more so as it rises from the ashes of a colonial past, which with it had virtually died, is beyond imagination of a businessman who is looking at any bright prospect. But business has many challenges, beyond time, money, and the many opportunities to get rich. Would not an enterprise consider values, beyond economic parameters, such as reviving a rich culture, reliving history, touching fervors of faith and pride in a people? ~
 Author’s Note: This project proposal won the Business Idea and Development Award (BIDA 2001), sponsored by the  Department of Science and Technology, Department of Trade and Industry, Republic Planters Bank, and the Small and Medium Industry Council. 

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