The first Cocohouse event for the year was well attended as UCAP members wanted to find out the impact on coconut production of the last three super typhoons that hit coconut areas in parts of Southern Tagalog, Bicol and the Visayas. Philippine Coconut Authority Deputy Administrator Carlos Carpio presented some figures on the damage on coconut trees as well as the rehabilitation plan.

       President Gloria M. Arroyo signed last week into law Republic Act 9367 mandating the use of alternative fuels for the transport sector in the country. Also known as the Philippine Biofuels Act, the law mandates the use of diesel with a blend of 1% biodiesel (coco methyl ester) within three months, to be subsequently increased to 2% within two years from effectivity of the Act with the approval of the National Biodiesel Board to be created under the law. For gasoline-powered vehicles, it will be a blend of gasoline with 5% bioethanol within two years, and to be increased to 10% within four years.

       Department of Energy Secretary Raphael Lotilla said the Philippines is in a position to export biofuels to neighboring countries, particularly in the Association of South East Asian Nations (ASEAN). The Philippines will be pushing for ASEAN standards for biofuels and vehicle specifications with respect to certain blends.

       Bioenergy8 Corp., a consortium of the country’s small oil players led by Flying V, will open a coco-biodiesel (coco methyl ester) plant in Coronon, Davao. The group’s investment in the plant is part of efforts to help the country reduce dependence on imported fossil fuel as mandated by the Biofuels Law and ensure competitive pricing, said Macky Lopez, Flying V spokesman. The multi-million peso coco methyl ester (CME) plant will initially produce 30 million liters per year when it becomes operational by March this year.

       Data from the National Statistics Office show the Philippines imported 19,053 MT of various vegetable oils in September 2006. The volume is slightly higher by 4.2% from import in September year-earlier at 18,284 MT. Palm oil continued to account for the bulk of imported oil with total in September at 16,994 MT exceeding by 6.0% year-ago figure at 16,036 MT. The volume comprised 89.2% of aggregate import.

       Soybean oil likewise remained in the second spot with volume at 1,012 MT declining appreciably by 19.8% from prior year at 1,262 MT and accounting for 5.3%. Other oils imported in quite significant quantities during the month were rapeseed oil at 340 MT, a sharp leap by 51.1% from 225 MT; corn oil at 299 MT, posting a 24.9% shortfall from 398 MT; and sunflower oil at 258 MT, against nil previously. Other imports were of limited quantities such as linseed oil, sesame oil, and olive oil.

       Malaysia was leading supplier of imported vegetable oils with shipment in September at 17,199 MT comprising 90.3% of all inbound oils. Of this total, palm oil accounted for 93.9% at 16,150 MT and soybean oil 5.5% at 951 MT; the remaining 0.6% consisted of linseed oil and corn oil. Malaysia was a major origin of palm oil and soybean oil import.

       Sri Lanka desiccated coconut exporters have adjusted their prices upward lately, narrowing the gap from Philippine and Indonesian prices. European traders quoted Sri Lankan fine and medium grades of fair, average quality (faq) at $1,220/MT c&f Europe on the first week of January, increasing from $1,175/MT in the prior week. Indonesian fine and medium grades were reported priced at $1,240/MT from $1,220/MT previously while equivalent products from the Philippines had levels at $1,280/MT. Additionally, Sri Lankan exporters had experienced good demand after the holidays particularly from Eastern Europe, Germany and Austria.

       Data from USDA show the U.S. imported 45,151 MT of lauric oils in November 2006. This is 15.1% lower than November year-earlier at 53,174 MT. Of the total, 63.6% was coconut oil and 36.4% was palm kernel oil. Import of both oils were down from year-ago although coconut oil contracted more sharply by 18.1% to 28,730 MT from 35,088 MT while palm kernel oil fell 9.2% to 16,421 MT from 18,086 MT.

       The Philippines supplied the bulk of lauric oil with 25,699 MT of coconut oil which accounted for 56.9% of total; volume leaped 53.3% from year-ago at 16,765 MT. Import from Malaysia stood at 12,423 MT and shared 27.5%. This consisted mainly of palm kernel oil at 12,421 MT (8,586 MT year-ago) and a small amount of coconut oil at 2 MT (1,182 MT). Lauric oil that originated from Indonesia totaled 7,029 MT and contributed 15.6%. Volumes reflected substantial shortfalls from last year with coconut oil at 3,029 MT (17,141 MT) and palm kernel oil at 4,000 MT (9,500 MT).