For week ending Feb. 23, 2006

       Preliminary UCAP figures show Philippine coconut products export in January this year amounted to 178,961 MT copra terms. The volume dwarfed January last year total of 112,192 MT by a hefty 59.5%. All of major exports but desiccated coconut achieved rapid year-on-year growth. Coconut oil export leaped 69.3% from 57,749 MT to 97,751 MT; copra meal soared 96.0% from 19,516 MT to 38,249 MT; oleochemicals rocketed 125.1% from 6,212 MT as copra to 13,985 MT. On the other hand, export of desiccated coconut dived 31.4% from 9,259 MT to 6,349 MT.

       In the case of copra meal, Korea remained the top market. Shipment during the month to this outlet at 17,638 MT accounted for 46.1% of total lifting. Vietnam uptake of 12,911 MT comprised one-third (33.8%) of the market while New Zealand with 7,700 MT held one-fifth (20.1%) of total sales.

       Earlier, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said the use of alternative fuels is not compliant with the WWFC and asked that their use be made voluntary rather than mandatory. Secretary Lotilla said, “The mandatory blending of bio-fuels into diesel and gasoline is crucial to the government’s goal of achieving energy independence from imported petroleum products. It is vital in creating a sustained market for local manufacturers of bio-fuels, as well as local planters of the feedstock used for bio-fuels”.

       The company’s flexible fuel assembly plant in the Philippines, which will be the first in Asia, will be up within the year, Co said. Ford Motor Co. announced in December last year that it is investing P1.1 billion to put up the plant. It is expected to produce 100,000 engines over the next five years valued at around $100 million. About 80% of production in the next five years would be exported to service the Asian market and the balance would be sold to the domestic market.

       Germany is the largest producer of biodiesel in the EU with capacity at 2.3 million MT by end of the year, increasing from 1.95 million MT in 2005. Projected level for 2007 was placed at around 2.9-3.0 million MT. In a bid to eliminate overcompensation, the German Government is considering to implement a tax of 10 cents per liter on B100 (100% biodiesel) and 15 cents on biodiesel blends as well as on pure vegetable oils used as fuel, the report said adding that at current market prices, such taxation would not reduce biodiesel production in the country. This may come into effect in August this year.

       ANO and ANI produce palm- and lauric-based fatty acids, glycerine and specialty products for use by various industries such as food, pharmaceuticals, cosmetics, toiletries, metal, and automotive. Lam Soon started operation in 1958 milling copra and refining the oil for laundry soap and cooking oil and later diversified into toilet soap, margarine, shortening using palm oil as raw material. Recognizing the potential of palm oil, the company expanded upstream and set up plantations in Malaysia. By 1985, its oil and soap manufacturing businesses were restructured to the present Lam Soon Bhd.

       Polyester and vegetable oil normally do not mix well but when mixture is required the resultant product does not have the high heat resistance property. To solve the problem, polymerization needs to be carried out at high temperatures but this creates a film with a yellowish tint. Toray developed a catalyst that allows the process to run at low temperature producing clear and transparent films. The new film developed by the company is designed for use as a protective and decorative coating for auto dashboards and household appliances.

       “Demand in biofuel should become the most dynamic driver on the oilseed market and in particular on the rapeseed market in Europe”, said the report. Imports will rise despite efforts to expand oilseed output as domestic production will not meet demand. Oilseed production is projected at 21.7 million MT this year, increasing from 20.4 million MT year-ago, and to reach 26.8 million MT in 2012. Oilseed area is expected to grow to 7.3 million hectares in 2012 from the current 6.8 million hectares.

       Bas van Duinen, Cargill Refined Oils Europe said the only alternative at present to trans fats reduction in solid and stable fats was to replace them with oils that contain high levels of saturated fatty acids. Losatra ™ offers a healthy alternative as it limits the level of saturated fatty acids. A dedicated production unit to manufacture Losatra ™ is based in Hamburg, Germany. Cargill expects usage of the product to expand rapidly in European food industry.