UCAP estimates coconut production in 2007 at 2.215 million MT copra terms, 9.7% below 2006 level at 2.452 million MT. The figure is the lowest since 2002 which then recorded 2.308 million MT. The decline was tied to the lagged effect of the destructive typhoons in the last quarter of 2006.

       Coconut output for 2008 is projected at 2.484 million MT copra terms, exceeding the 2007 level by 12.1%. Production prospects for 2008 have improved based on favorable weather conditions in the prior year. Moreover, the 2007 export performance during the latter part of this year appears to show coconut production has started to recover from the lagged effect of the 2006 destructive typhoons that battered coconut areas in Bicol and parts of Southern Tagalog and the Visayas.

       Preliminary UCAP data show coconut products export in November reached 139,980 MT copra terms to record a deficit of 16.4% from 167,400 MT at the same time last year. This scaled back by 37.2% previous month figure and current year high at 223,071 MT.

       Copra meal was an only gainer enhancing load by 13.1% at 30,702 MT from 27,147 MT. Other products registered shortfall: coconut oil at 71,213 MT lagged by 13.8% from year-ago at 82,567 MT, desiccated coconut at 8,723 MT plunged 23.1% from 11,348 MT, oleochemicals at 13,457 MT as copra slumped 28.4% from 18,796 MT.

       The United States was major destination of coconut oil in November with delivery of 38,935 MT to account for 54.7% of total. Turnover to the European market was 23,500 MT which represented 33.0% of aggregate. Other outlets were Japan with purchases of 7,078 MT and Malaysia with 1,700 MT for respective market shares of 9.9% and 2.4%.

       The Coconut Industry Investment Fund (CIIF) Oil Mills Group represented by its President and CEO Danilo M. Coronacion and the Federation of Free Farmers (FFF) represented by its President Leonardo Q. Montemayor recently signed a Memorandum of Agreement (MOA) to operate the various components of the Coconut Farm Development Program (CFDP). CFDP is a comprehensive program that hopes to bring about countrywide development through the promotion of efficient, competitive and sustainable coconut farming systems. It has four main components: 1) establishment of nurseries, 2) intercropping in coconut farms, 3) coconut value-adding, and 4) operation of an agribusiness service kiosk.

       According to a Coconut Development Board official, the country?s coconut production is set for a quantum jump in 2007/08 to touch 16 billion nuts. The projection was based on a study by the Kasaragod-based Central Plantation Crops Research Institute (CPCRI) that forecasts nut production to increase by 31.4% over the base year 2003/04 with recorded output at 12.17 billion nuts. Production in 2005/06 increased 21.6% to 14.8 billion nuts over the base year level. Increase in production was credited to improved yields. Kerala leads with output of 6 billion nuts, trailed by Tamil Nadu with 4.8 billion nuts and Karnataka with 1.2 billion nuts.

       According to statistics from Oil World, China imported 36,000 MT of lauric oils in October this year. As against 37,200 MT uptake in a similar period last year, current level indicates a 3.5% shortfall. Palm kernel oil, which accounted for 92.2% of total lauric import, increased volume by 38.3% to 33,200 MT from 24,000 MT. Coconut oil, which shared 7.8%, dropped substantially by 78.9% to 2,800 MT from 13,300 MT.

       Malaysia was the leading source of lauric oil during the month delivering palm kernel oil only at 17,700 MT (2,900 MT year-ago) for a 49.2% market share. Indonesia supplied slightly lower volume representing 47.2% of total during the period or 17,000 MT (34,000 MT) of which 15,500 MT was palm kernel oil and 1,500 MT was coconut oil. The Philippines was responsible for merely 1,300 MT (300 MT) of coconut oil or 3.6% of total uptake.

       The Directorate General of Foreign Trade (DGFT) in India issued a notification dated December 24, 2007 banning the import of palm oil products through any port of Kerala. It may be recalled that on October 16, 2007, import through Kochi was banned. Thus the new notification effectively extends the ban through all ports (mainly Kochi and Calicut) in the state of Kerala. Accordingly, palm oil and its fractions, whether or not refined but not chemically modified, can be imported into the country subject to condition that entry will not be through any port in Kerala.

       Nikko Chemicals Co., a Japanese cosmetics producer is to build a US$27 million plant in Singapore to produce ?ethoxylated surfactants,? an ingredient used for cosmetics and toiletries. The plant is being built on 1.2 hectares of land in the Jurong Island petrochemical hub on western part of Singapore. The project is co-funded with Nihon Surfactant Kogyo which is, as well as Nikko, a member of the Nikko Group. The group of seven companies provides technical support and tailor-made solutions for the cosmetics and toiletry businesses.