In little more than a year and a half of planning and negotiating, the East Timor Candlenut Oil Production Enterprise Project (COPE) has begun production. The Acelda Company of Baucau has produced more than 10 barrels (181 kg/barrel) of candlenut oil after its initial startup two weeks ago, and expects to produce more than a barrel of oil per day from now on.  

Candlenut trees grow in abundance in the Baucau District of Timor-Leste and appear to require minimal care and management. During a participatory rural appraisal conducted by the SM CRSP in 2003, it was learned that candlenuts were collected mostly by women and children and were considered a minor source of income to the household. During a land-use group study conducted later by the project, moreover, it was found that individuals from a number of villages considered candlenut primarily as a risk-averse measure. When sales of other products were good, they would hold onto the nuts until they could get a better price per kg. Thus candlenuts were viewed as a commodity that could be cashed in if or when villagers needed to do so.

Candlenut is called kukui nut in Hawaii and was valued by the early Hawaiians for its medicinal qualities. More recently, Oils of Aloha, a U.S. company based in Waialua, Hawaii, has established a market in the cosmetic industry for kukui nut oil and was interested in fostering a business relationship between Oils of Aloha and candlenut exports in Timor-Leste. The SM CRSP called on the Pacific Business Center Program (PBCP/UH) in the School of Business Administration at the University of Hawaii for advice and assistance in order to create a business link between interests in the U.S. and Timor-Leste. Through their efforts, a business relationship was fostered between Oils of Aloha and a private enterprise, Acelda, in Timor-Leste, which is owned by Mr. Higino de Costa Freitas, a candlenut exporter in Baucau.

Financing for the candlenut production in Timor-Leste was made possible by GTZ (Geselleschaft für Technische Zusammenarbeit) in Baucau, the agribusiness section of MAFF (GMAFF) and Caixa Geral de Depositos, both in Dili. With financing in place, Acelda was able to purchase the necessary oil-extracting and -processing equipment and construct a facility to house the candlenut oil production operation in Baucau. Mr. Matthew Papania, President of Oils of Aloha, helped Higino in sourcing and ordering the oil processing equipment from various vendors in Singapore. In mid-February 2006, Papania traveled to Baucau from Hawaii to assist Higino in setting up the oil-processing equipment and to train Acelda's employees to operate them.

To ensure a successful and sustainable operation at Acelda, the PBCP/UH applied for and received a grant in December 2005 from USAID/DAI (Development Associates Inc.) in Dili to train employees at Acelda in establishing the financial and managerial policies and procedures for the COPE.

Ida Bagus was hired as the project's on-site coordinator. Bagus was formerly employed by GTZ and is familiar with the candlenut trade in Timor-Leste and in Indonesia.

Several individuals played important roles in making this venture a reality. Ms. Brigitte Podborny, the Director of the GTZ office in Baucau; Minister Estanislau da Silva of MAFF; Nicholas Hobgood of DAI/Dili; Stephen Vance and Angela Rodrigues of USAID/Diil; and Michael Jones of UH/CTAHR were all instrumental at various stages of the effort to make candlenut production in Timor-Leste a viable operation.