For week ending Feb. 28, 2008

       Desiccated coconut export shrank markedly by 35.7% to 6,305 MT from 14,450 MT while oleochemicals suffered a minor shortfall of 2.6% at 14,072 MT as copra from 14,450 MT.

       Despite recording the biggest year-on-year deficit of 86.7% from among the 10 vegetable oils imported during the month, palm oil remained the top import with total at 2,466 MT (18,535 MT previously) accounting for 74.0% of aggregate. Rapeseed oil was far second with delivery of 430 MT, almost double the prior year volume at 217 MT, with market share of 12.9%. Linseed oil came in third at 116 MT, a huge jump by 114.8% from 54 MT year-ago, contributing 3.5%. The remaining seven vegetable oil imports with volume ranging 18-89 MT are as follows, in descending order: corn oil, sunflower oil, soybean oil, olive oil, sesame oil, coconut oil and castor oil.

       Significant volume likewise came from Denmark with 111 MT rapeseed oil, Belgium with 98 MT linseed oil, Canada with 97 MT rapeseed oil, and Malaysia with 74 MT palm oil. Other suppliers include US, Hongkong, Sweden, Spain, Germany, India, Italy, Thailand, Taiwan and Others.

       The company projects sales this year of around $25,000 MT of desiccated coconut to major markets such as the United States, Europe and the Middle East. Ninety-nine percent of its production is dedicated to export. Its products are used in American brands such as Hershey?s, Kellogg?s and Kraft. Franklin Baker is one of the companies set to participate in Food and Hotel Asia 2008 (FHA) international exhibition that will be held in Singapore this April.

       Two desiccated coconut firms joined seven other local food firms in the largest international convention in the Middle East in an attempt to get a piece of the $12 billion food market in the region. The companies, Primex Coco Products, Inc. and Superstar Coconut Products Co., Inc., were there at the Gulfood Hotel and Equipment Exhibition and Salon Culinaire, held last week in Dubai International Convention and Exhibition Center, considered the largest and most important food event in the Middle East. Last year?s event attracted 2,500 company participants from over 70 countries; more than 37,000 buyers from 140 countries visited the event. The Philippine participation in Gulfood was backed by the Department of Trade and Industry (DTI) through the Center for International Trade Expositions and Missions (CITEM).

       Diaz, however, recognized that the cost impact of B2 is not on the direct savings in cost as fuel substitute but mainly on mileage improvement for its additive qualities, which ?accelerates oxygenation, lubrication, cleansing and declogging of the fuel system to restore atomization and combustion efficiency.? He calculated that a conservative 10% improvement in mileage, if it were the national average, translates to a 9.1% reduction in diesel fuel consumption representing an annual savings of P21.28 billion.

       January-December lauric oil import accumulated to 726,669 MT, lower by 4.0% from a comparable year-earlier period total at 757,205 MT. This consisted of 448,219 MT (485,296 MT) coconut oil and 278,450 MT (271,909 MT) palm kernel oil. Based on cumulative data, the Philippines was the leading origin of lauric oil (52.1% share), trailed by Malaysia (35.3%) and Indonesia (12.6%). Supply from the Philippines was solely coconut oil while from Malaysia and Indonesia was a mix of palm kernel oil and coconut oil.

       Peru?s first biodiesel plant located south of Lima started production early this month, reports the Heaven Petroleum Operators, owners of the plant. The company is also investing some $200 million in crop production to supply the facility. The firm?s general director, Samir Abudayeh, said that the factory will initially produce 120,000 gallons or 3,000 barrels of biodiesel a day and will use soya oil as its raw material until the production of local feedstock, such as jatropha oil, can surpass that of soya.

       Under a given development scenario, the analytical framework assesses the country?s technical biomass potential; biomass production costs; the economic bio-energy potential; macroeconomic consequences; national and household-level impact, and consequences on food security. Existing mathematical modeling tools which calculate global bio-energy potential up to 2050, and which models the agricultural sector of developing countries, will be used. The framework will be tested in Peru, Thailand and Tanzania before the methodology is made available to the international community at large.