For week ending Feb. 19, 2009

Performance of RP's Top Not Traditional Coco Exports in November 2008
New Quality Standards Set for Biofuels
EU to Introduce Compulsory Origin Labeling for Olive Oil
Vanaspati Oil has High Levels of Trans Fats - Indian Study
Liberia to Revive Palm and Rubber Plantations
Canola-Based Biodiesel as Functional in Cold Weather - Study
China to Reinforce Regulation on Foreign Trade of Agricultural Products

PERFORMANCE OF RP?S TOP NON-TRADITIONAL COCO EXPORTS IN NOVEMBER 2008

       Data from the Philippine Coconut Authority show nine non-traditional coconut products generated revenue of more than USD100,000 during the month, qualifying for the top export list. Leading the pack was GLYCERIN which earned USD3.699 million from the export of 2,619 MT. Volume during the month rose 65.3% from 1,585 MT in the same period year-ago. Top destination was Japan with 2,110 MT (80.6% share); limited volume went to Korea with 123 MT (4.7%) and Myanmar at 100 MT (3.8%). Seven other countries shared the remaining load of 286 MT.

       Second biggest non-traditional export was COCONUT MILK POWDER with export receipts of USD725,191 from sale of 239 MT. Delivery during month shot up by 231.7% from merely 72 MT year-ago. There were 11 recipients of the product led by Malaysia, which took in 129 MT representing 54.1% of the total traded volume. The next three buyer countries were Netherlands with 30 MT, Sri Lanka with 24 MT and Singapore with 20 MT, while seven other countries shared the remaining volume of 35 MT.

       NATA DE COCO took the third spot with income of USD504,820. The month?s total volume at 474 MT increased by 1.0% from 469 MT year-ago. Virtually all shipments went to Japan at 393 MT or 83.0%. Limited volumes were channeled to United States at 31 MT, Canada at 12 MT, U.A.E at 7 MT and Saudi Arabia at 5 MT. Seventeen other countries shared the remaining volume of 25 MT.

       VIRGIN COCONUT OIL ranked number four with proceeds of USD496,548 from the sale of 152 MT. Tonnage during the month was 28.8% higher against the previous year at 118 MT. Top two destinations were Canada at 79 MT and United States at 61 MT with respective share of 51.6%, 40.0%. Germany led the group of 10 countries that imported no higher than 4 MT.

       TOILET/BATH SOAP landed fifth with turnover of USD405,317 from delivery of 121 MT. Total load during the month rose by 35.5% from similar month year-ago at 89 MT. United Arab Emirates was top buyer of the month responsible for 27 MT or 22.0% of total delivery, tracked by United States at 23 MT (19.2%), Taiwan at 21 MT (17.7%), Malaysia at 17 MT (14%) and Thailand at 11 MT (8.8%). Twenty other countries shared the remaining volume of 22 MT or 18.2%.

       ALKANOMIDE was the sixth top export and earned USD170,476 from the delivery of 74 MT. Shipment during the month increased by 24.5% from previous year at 60 MT. Thailand was leading buyer cornering 50 MT or 67.7% of total trade, followed by Mexico at 20 MT (26.9%) and Vietnam at 4 MT (5.4%).

       MAKAPUNO came in seventh place and generated income of USD143,593 from 76 MT export. This month?s volume reduced by 26.2% year-ago figure at 103 MT. The United States captured the biggest chunk with 27 MT (36.0%), followed by Canada at 17 MT (22.6%), UAE at 6 MT (7.8%), Qatar 5 MT (6.9%) and Australia 3 MT (4.3%). Eighteen other countries bought the remaining volume of 17 MT or 22.4%.

       Rounding up the top eight non-traditional exports was SHAMPOO with turnover of USD110,354 from 32 MT shipment. This month?s volume was 61.9% below year-ago at 84 MT. There were 20 country destinations topped by Singapore at 17 MT (53.5%), trailed by UAE and Bahrain at 3 MT apiece; 17 other countries jointly took in 9 MT.

NEW QUALITY STANDARDS SET FOR BIOFUELS

       The Department of Energy (DoE) has issued new quality standards for biofuels for compliance by suppliers of biodiesel and ethanol products, in line with the second phase mandate on higher blends. The standards set forth by the Technical Committee on Petroleum Products and Additives (TCPPA), co-chaired by DoE?s Oil Industry Management Bureau and the Department of Environment and Natural Resources (DENR), are as follows: PNS/QS DoE 004:2009 for diesel products with 2.0 percent biodiesel blend; and PNS/QS DoE 008:2009 for E-10 multigrade specifications or gasoline with 10 percent ethanol. According to DoE, the revised quality standards have been adopted and promulgated by the Bureau of Product Standards as Philippine National Standards (PNS) effective February 3, 2009. It added the PNS for B2 specification ?shall be the new quality standard for all diesel to be sold upon the implementation of the mandate to increase the biodiesel blend to two percent (2%) superseding the current PNS for B1 which has been in effect since 2007.?

       Meanwhile, the latest PNS for E10, ?shall allow the introduction and sale of 10% E-gasoline for both 93 RON and 95 RON gasoline grades.? E10 proffers a 10 percent blend of ethanol to gasoline products. The department added that the standards will help facilitate ?initiatives to increase the potential market pool for E-gasoline in the transport sector.? For 100 percent biofuels, the quality standards are based on: PNS/QS DoE 002: 2007 for 100 percent coco methyl ester (B100); and PNS/QS DoE 007:2005 for anhydrous bioethanol fuel specification (including denatured bioethanol). The B2 blend for diesel products kicked off at the pumps last February 6; simultaneous to the mandated sale of ethanol-blended gasoline.

EU TO INTRODUCE COMPULSORY ORIGIN LABELING FOR OLIVE OIL

       EU member states have agreed to a European Commission (EC) proposal for a compulsory origin labeling for virgin and extra virgin olive oil. EC explained that the rules introduced in 2002 that established optional labeling for these oils proved insufficient to avoid consumers being misled about the true characteristics and origin of certain products. Also as a result of agricultural traditions and local extraction and blending practices, such oils may be of quite different tastes and quality depending on their geographical origin. For this reason and in order to keep olive oil in line with new European law on traceability of food items, all olive oil in the trading bloc must now have compulsory origin labeling.

       Oils originating from just one country will carry the name of the member state or of the third country or the community. However, blended olive oil must be labeled either ?blend of Community olive oils?, blend of non-Community olive oil?, ?blend of Community and non-Community olive oils? or have equivalent information displayed. New terms recently defined by the International Olive Council, such as ?fruity?, ?green?, ?mature? and ?well-balanced?, may also be used on olive oil labels that comply with the definitions. The new rules apply from July 1, 2009 and complement the rules for specific oils which are protected as part of the EU?s system of ?Geographic Indications?. The EC added that the new labels and legislation is designed to offer guarantees to consumers that ?what they buy in a sealed container corresponds with their preferences and expectations.?

VANASPATI OIL HAS HIGH LEVELS OF TRANS FATS - INDIAN STUDY

       The Centre for Science and Environment (CSE) has found out that all brands of vanaspati or hydrogenated oil that is used in households contain a very high percentage of trans-fat that causes health problems like infertility, cancer, heart disease and Alzheimer?s disease. The trans-fat levels in Vanaspati were found to be five to 12 times higher than the world?s only standard for trans-fats in oil set in Denmark at two percent of the total oil. The level ranged from 23.7 percent in the case of ?Panghat? (a Mawana Sugar brand) and 23.31 percent in the case of ?Raag? (an Adani Wilmar Ltd brand).

       The lowest trans fat levels interestingly were found in the desi ghee of Milk Foods Ltd and in Amul butter at 3.73 percent. In terms of vegetable oils, the Center said that there was no oil that could be called best as different researches over the years have come up with varying views. The study finds that if all oils are compared against the WHO recommendation, then no single oil in the market could currently claim to be good for one?s health. The research was done on 30 samples of vanaspati, butter, ghee and vegetables oils. Sunita Narain, director of CSE, said that the study exposed the loopholes in Government that allow companies to make products without regulating the quality.

LIBERIA TO REVIVE PALM AND RUBBER PLANTATIONS

       After years of war, Liberia is now ready to revive key commodity sectors, including palm oil and rubber. President Ellen Johnson-Sirleaf said the government is negotiating with Kuala Lumpur based Sime Darby about reactivating and expanding Guthrie, the country?s third-largest rubber plantation, as well as with Salala Rubber and Societe International De Plantation D?Heveas for the Cavalla plantation in Maryland County. Similar discussions are also being held with Sithe Global Power to help expand rubber and palm oil output.

CANOLA-BASED BIODIESEL AS FUNCTIONAL IN COLD WEATHER - STUDY

       JoAnne Buth, president of the Canola Council of Canada said the latest research from the Alberta Renewable Diesel Demonstration (ARDD) affirms the functionality of canola as a feedstock for renewable diesel in cold weather conditions. The ARDD study, Canada?s largest cold-weather study of renewable diesel fuels, involved laboratory testing followed by actual on-road use of renewable diesel blends. The study used a 2% blend of canola-derived renewable diesel in winter months, and a 5% blend in the spring and summer comprised of 75% canola and 25% tallow. The blends performed without problems in cold temperatures.

       The study findings come on the heels of federal and provincial biodiesel standards initiatives. Bill C-33 passed by Canadian Parliament will require a 2% inclusion of biodiesel in heating oil and diesel fuel by 2012. The new Alberta Renewable Fuel Standards requires 2% biodiesel fuel blends in the province by 2010. The B.C. government earlier this year announced a 5% biodiesel standard by 2010. The Canola Council strongly supports a vibrant, canola-based biodiesel industry that involves ?made in Canada? solutions to benefit canola growers and all Canadians.

CHINA TO REINFORCE REGULATION ON FOREIGN TRADE OF AGRICULTURAL PRODUCTS

       China will fortify export of its competitive farm products and prevent excessive import of some products in a bid to stabilize the domestic market, according to the recent official document of the year to address rural problems. This aims to keep steady development of agriculture and improve farmers? income in the face of global economic slowdown and price downturn of main farm products.

       China issued a plan on layout of advantageous farm products last year to focus on cultivation of 16 varieties including rice, wheat, corn, soybean, cotton, rapeseed, sugarcane, apple and natural rubber in 58 producing areas from 2008-15. As prices of some farm products on domestic market are higher than those on international markets, China is expected to increase reserves of rice, soybean, and edible oil step by step and use these reserves to cushion heavy blow of excessive import, according to Nie Zhenbang, director of the State Administration of Grain.