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For week ending Jan. 17, 2008 |
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UCAP COCOHOUSE LUNCHEON
IN JANUARY SLATED
The UCAP Cocohouse monthly function for this year begins with a luncheon sponsored by the Philippine Coconut Authority (PCA). This happens on Tuesday, January 22 at the La Colina function room, Valle Verde Country Club, Capt. Henry Javier St., Bo. Ugong, Pasig City, Metro Manila. Guest Speaker will be Hon. Bernadette Romulo-Puyat, Undersecretary for Special Concerns, Department of Agriculture. UCAP is implementing the new Cocohouse format starting this month. Under the new format, each of the sector members in UCAP takes turn to sponsor the monthly event. The sponsoring sector, in coordination with the UCAP Secretariat, makes arrangements for the speaker and venue of the luncheon. For this month’s event, PCA’s Ms. Alice V. Fontecha, Manager, Market Development Department; and Ms. Lucy Falcatan, Chief, Market and Trade Information were responsible for inviting the speaker and venue arrangements, respectively. INDONESIA - PHILIPPINES’ TOP SUPPLIER OF VEGOIL IN SEPTEMBER 2007Indonesia figured as the leading origin of Philippine vegetable oil imports in September 2007 according to data from the National Statistics Office, dislodging consistent leader Malaysia. The country’s delivery of 1,062 MT of palm oil comprised 58.3% of total import of 1,823 MT during the month. Palm oil accounted for 60.1% of aggregate vegetable oils import. Far second was Singapore with sales of 262 MT which shared 8.1%. However, she shipped the most number of vegetable oils consisting of soybean oil at 110 MT, rapeseed oil at 90 MT, palm oil at 33 MT, sunflower oil at 27 MT and sesame oil at 2 MT. Denmark landed third with 140 MT representing 7.7% of total. This was made up of 84 MT of rapeseed oil and 56 MT of sunflower oil. Import from other countries was lower than 90 MT. COCONUT SAP SUGAR OUTPUT EXPANSION PUSHEDThe country’s breakthrough health sugar from coconut sap faces profitable expansion in South Cotabato and General Santos, but still lacks investors to sustain its take-off in the international market. Coconut sugar is now being exported to the United States as a niche food for diabetics and is breaking ground in the China market as well after a Filipino-Chinese has engaged in its production in General Santos. A 3.5 hectare-land planted with hybrid coconut in the province is producing as much as four to six metric tons (MT) of coconut sap sugar per month, helping improve livelihood source for farmers belonging to the Sinawal Small Coconut Farmers Cooperative. Erlene C. Manohar, Philippine Coconut Authority (PCA) project development officer said they are encouraging private investors to put in money and enter into a cooperative partnership with farmers. A PCA investment model shows that a P329,000 per hectare investment on coconut sap sugar gives an internal rate of return of 28 percent over 3.21-year payback period. A one-hectare land is assumed to have 100 coconut trees. This will have total toddy (coconut sap) yield per hectare per month of 7,500 liters and a total sugar production of 1,250 kilos for a sugar-toddy ratio of one kilo of sugar for every six liters of toddy. Coconut sap sugar is foreseen to create numerous livelihood opportunities in rural areas as the process involves a simple farm level technology, but it is labor intensive due to the coconut sap harvesting activity. The export market for the country’s coconut sugar has fast picked up since the completion early in 2007 of scientific studies showing that coconut sugar is a low glycemic index (GI) food. GI is a numerical system for measuring the effect of a carbohydrate on the circulating blood sugar. While Low GI is measured at 55, coconut sap sugar’s GI is far lower at just 35. This is based on clinical and scientific studies by the Food and Nutrition Research Institute (FNRI). HIGH PALM OIL PRICES DRIVE MALAYSIA TO DEVELOP OTHER BIOFUEL SOURCESMalaysia is working to develop new, cost-effective fuels from alternative sources, after prices of palm oil have lately risen to record high level. The sharp rise in prices has neutralized the commodity’s advantage as a cheap raw material for producing biofuels. Chow Mee Chin, head of the Malaysian Palm Oil Board’s (MPOB) Energy and Environment Unit, said under consideration are palm-based materials such as palm kernel cake, empty fruit bunches, palm fiber and palm shells. So far, palm-based fuels have mostly been made from methyl esters obtained from crude palm oil. Chow said MPOB has embarked on a research program to try to develop a second generation environment-friendly fuels. Other than crude palm oil and palm kernel oil, the raw materials from oil palm trees are in solid form, Chow said, adding that if these could be successfully processed into gaseous and liquid fuels, it would open up new alternatives to crude palm oil. On an annual basis, the energy potential per hectare of all oil palm based raw materials is equivalent to 45 barrels of petroleum-based crude oil. ORGANIC PALM OIL IN THAILANDThe Chumporn Palm Oil Industry Plc. (CPI), Thailand’s largest palm oil producer, is gearing up to develop production of organic palm oil and penetrate the niche organic market. Karoon Nuntileepong, managing director of CPI said taking control of the entire organic production process is the key to selling organic palm oil overseas. International demand for organic palm oil, which enjoys a 20% price premium over conventional palm oil, has been on the rise due to health concerns among high income consumers, particularly in European countries such as Italy, Netherlands and Germany. The company generates 30 million baht each year from sale of organic palm oil. Mr. Karoon said CPI has low investment costs in organic palm oil production as it has put money into knowledge-based technologies in existing plantations. Fertilizer for organic plantations costs 5-10% less than in conventional plantations because many chemical fertilizers have been replaced with natural residue. The company also uses natural predators such as owls to kill rodents. Yields, however, are about 5-10% lower than those of normal palm oil. The company’s organic palm oil yield currently is modest at 1,000 MT per year but could be increased to 2,000 MT if demand rises. VIRGIN ATLANTIC TO USE BIOFUEL FOR TEST FLIGHT NEXT MONTHVirgin Atlantic disclosed early this week it would fly one of its Boeing 747 planes on biofuels during a demonstration flight from London to Amsterdam, Netherlands next month. Richard Branson, chairman of Virgin Atlantic said the test flight, which he called the first of its kind, would yield crucial information on how to reduce aviation’s carbon footprint. Branson launched an alternative fuels division in 1986 at Virgin Atlantic pledging the profits from his airline and trains for 10 years. The following year, his trains began a six-month trial of a biofueled passenger train, an experiment the company said could lead it to switch its entire fleet over to a mix of diesel and biofuel. GIANT BIODIESEL PLANT TO RISE IN SINGAPOREFinnish oil refiner Neste Oil plans to invest S$1.2 billion (US$840 million) to build the world’s largest biodiesel plant in the city state. Singapore, which hopes to become Asia’s hub for biofuel production, has been wooing foreign companies to set up biodiesel plants on Jurong Island, a petrochemical hub in the western part of the country. The proposed plant, which begins construction in the first half of this year, will have a capacity of 800,000 tons per annum. It is expected to start operation in the middle of 2010. Neste Oil has selected Singapore as location of the plant to take advantage of the city-state’s position as the world’s third largest oil refining hub. More than half of the feedstock will be palm oil sourced mainly from oil palm plantations in neighboring countries such as Malaysia and Indonesia, the world’s top producers of palm oil. The company also plans to use animal fat as feedstock. ADM, BAYER CROPSCIENCE, AND DAIMLER TEAM UP IN JATHROPA BIODIESEL PROJECTArcher Daniels Midland Company (ADM), Bayer CropScience AG, and Daimler AG signed a Memorandum of Understanding to jointly explore the potential for a biodiesel industry based on Jatropha (Jatropha curcas L.). Jatropha, a tropical plant from the Euphorbia family, is seen by the three cooperating partners as a promising alternative feedstock for the production of biodiesel. Biodiesel derived from Jatropha nut kernels has properties similar to those of biofuels obtained from oilseed rapes. It is also characterized by a positive CO2 balance and can thus contribute to protecting the climate. The project aims to develop production and quality standards for Jatropha-based biofuel. The core competences of the cooperating companies are complementary in relation to the project. ADM, a world leader in BioEnergy and holds premier position in the agricultural processing value chain, is running several biodiesel refineries worldwide. Bayer CropScience AG (of the Bayer Group), one of the world’s leading innovative crop science companies in the areas of crop protection, non-agricultural pest control, seeds and plant biotechnology, plans to develop and register herbicide, soil insecticides, and fungicides for disease and pest control of Jatropha plants. Daimler AG, a leading supplier of premium passenger cars and world’s largest manufacturer of commercial vehicles, completed last year a wide-ranging five-year research project which showed that Jartopha can be used and cultivated to obtain high-quality biodiesel and studied the use of this fuel in test vehicles.
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