For week ending Mar. 27, 2008

Philippine Coco Export Up Sharply in February
Destinations of Coconut Oil, Copra Meal Exports in February
Performance of RP's Top Non-Traditional Coco Exports in 2007
Cement Manufacturers to Assist Coco Farmers Build Copra Dryers
Airlines to Test Biofuel in Airplanes

PHILIPPINE COCO EXPORT UP SHARPLY IN FEBRUARY

       Preliminary UCAP data show Philippine coconut products export in February this year surged 56.0% to 143,187 MT in copra terms from 91,798 MT at the same time last year. Estimated revenue generated during the month at USD98.116 million leaped sharply by 139.2% from USD41.016 million, propelled for the most part by massive improvement in volume traded and high prices paid for coconut oil.

       Export of coconut oil soared by 74.7% year-on-year from 43,918 MT to 76,745 MT. Shipment of copra meal skyrocketed by 268.3% to 55,239 MT from 15,000 MT. Outbound oleochemicals at 10,344 MT as copra boosted prior year data at 5,096 MT by 103.0%. Desiccated coconut, in contrast, slashed shipment by 35.1% to 7,131 MT from 10,990 MT.

       January-February 2007 export accumulated to 339,705 MT in copra terms, way ahead of a comparable year-ago period total at 167,076 MT by 103.3%. Breakdown is as follows, in MT: coconut oil 185,545 (72,695 last year), copra meal 90,997 (35,989), desiccated coconut 13,436 (20,789), oleochemicals as copra 24,416 (19,546).

DESTINATIONS OF COCONUT OIL, COPRA MEAL EXPORTS IN FEBRUARY

       Over one-half (54.4%) or 41,749 MT of total coconut oil loaded in February was delivered to the European market. The US market was responsible for 40.6% or 31,193 MT. The remainder (5%) was shipped to Japan 3,140 MT and Taiwan 663 MT.

       In the case of copra meal, Korea consistently captures sizable volume of total trade. Purchases during month at 46,313 MT represented 83.8%. Vietnam similarly retained her ranking in the past six years at second accounting for 15% or 8,300 MT. A limited volume amounting to 628 MT went to New Zealand.

PERFORMANCE OF RP?S TOP NON-TRADITIONAL COCO EXPORTS IN 2007

       There were 10 non-traditional coconut export products that made it to the 2007 top non-traditional exports list based on generated revenue of at least USD1.0 million. Leading the pack was GLYCERINE which earned USD12.894 million from export of 16,548 MT. Volume during the year rose by 46.6% from 11,290 MT year-ago. Top destination was Japan with 6,680 MT (40.4% share), tracked by China with 5,572 MT (33.7%) and United States 996 MT (6.0%). Other countries with uptake no higher than 403 MT shared the remaining volume of 3,300 MT (19.9%).

       Second biggest non-traditional export was VIRGIN COCONUT OIL with foreign exchange receipts of USD4.991 million from sale of 1,854 MT. The volume markedly grew by 267.9% from the previous year at 504 MT. The United States retained market leadership with purchases of 999 MT (53.9%) and Canada as second with 666 MT (35.9%). Limited volume went to Germany at 94 MT and Netherlands 33 MT; while 61 MT went to various other countries.

       SHAMPOO took the third spot with income of USD4.669 million from shipment of 1,470 MT. Traded volume during the year rose by 25.1% from the previous year at 1,175 MT. Thailand was leading buyer at 185 MT or 12.6% of total sales, trailed by Pakistan at 170 MT (11.5%), Taiwan 139 MT (9.5%), Nepal 133 MT (9.1%), Malaysia 129 MT (8.8%) and Ecuador 109 MT (7.4%). The remaining volume aggregating 606 MT (41.2%) went to other countries.

       COCONUT MILK POWDER came in fourth with revenue of USD4.336 million. Volume at 1,648 MT substantially dropped by 39.3% from 2,717 MT of the previous year. France was top buyer of the year responsible for 561 MT or 34.0%% of total sales. Japan was far second capturing 333 MT (20.2%), tracked by Italy 196 MT (11.9%), Netherlands 146 MT (8.8%) and Belgium 114 MT (6.9%). Various other countries took in the remaining 200 MT (18.2%).

       NATA DE COCO ranked number five export valued at USD3.932 million. This year?s volume was 4,586 MT, 1.9% short of the previous year at 4,675 MT. Japan was the biggest importer at 3,463 MT or 75.5% of total sales. Limited volume went to USA at 248 MT and Malaysia at 143 MT and jointly shared 8.5%. The remaining 732 MT or 16% was shared by other countries.

       TOILET/BATH SOAP was the sixth top export and turned in USD3.058 million from delivery of 1,068 MT. The volume during the year reduced by 63.6% the previous year total at 2,942 MT. Indonesia was top market responsible for 221 MT or 20.6% of total delivery, tracked by U.A.E. 191 MT (17.9%), Singapore 147 MT (13.6%), Australia 118 MT (11.0%). Malaysia with 82 MT and Saudi Arabia with 54 MT jointly shared 12.6%. Other countries with sales of 42 MT or lower absorbed the remaining volume of 257 MT or 24.0%.

       LIQUID COCONUT MILK stood in seventh place with revenue of USD2.432 million from sale of 1,928 MT (1,782 MT a year-ago). This year?s market leaders were U.S. at 835 MT and Japan which took in 515 MT, for respective market shares of 43.3% and 26.7%. Other big buyers were Netherlands at 259 MT and Belgium at 171 MT which jointly comprised 22.3%. Other countries which collectively accounted for 7.7% or 148 MT took in much lesser volume no bigger than 67 MT.

       COCO HANDICRAFTS made it to the top eight export list. This sector?s shipment during the year of unspecified volume and product type was worth USD 2.298 million. United States was the primary market valued at USD799,802 (34.8%). Italy?s import amounted to USD261,468, United Kingdom USD163,616, and Germany USD148,240, for a combined market share of 24.9%. Other countries made up 40.3% of the market and with total turnover of USD925,252.

       MAKAPUNO (coconut sport) occupied ninth place with earning of USD1.697 million from 900 MT (572 MT year-ago). The United States was leading importer responsible for 366 MT or 40.7% of total sales, tracked by Canada which took in 106 MT or 11.8%. U.A.E. handled 91 MT and Saudi Arabia 50 MT with respective contributions of 10.1% and 5.5%. The rest of the volume aggregating 287 MT was distributed to other countries which took in no higher than 38 MT.

       Completing the top ten non-traditional exports was?ALKANOMIDE turning in USD1.092 million from shipment of 770 MT. Current volume dropped by 21.1% from 976 MT in the same period year-ago. The top four destinations was led by Saudi Arabia with 213 MT or 27.6%, followed by Australia with 148 MT (19.2%), China 128 MT (16.7%) and Japan 96 MT (12.5%). Other countries bought the remaining 185 MT or 24.1%.

CEMENT MANUFACTURERS TO ASSIST COCO FARMERS BUILD COPRA DRYERS

       A report from Maguindanao says farmers in at least nine towns in Mindanao and Visayas will benefit from the use of more efficient copra drying facilities built with the assistance of the cement industry. Some members of the Cement Manufacturers Association of the Philippines (CeMAP) have offered to bankroll the cost of the cement components of eight copra-drying facilities to be constructed in collaboration with the Centro Saka Inc., an agriculture-based non-government organization.

       A memorandum of agreement was signed between CeMAP, represented by Chairman Renato Sunico, and Centro Saka, represented by Executive Director Romeo Royandoyan, to formalize the cement industry?s effort to help improve the coconut farmers? quality of life through the construction of the copra dryers as a way to promote the use of efficient post-harvest facilities. Eight farmer cooperatives were identified as prospective beneficiaries of the copra dryers. The Coconut Farmers Association of Southern Leyte based in Maasin and Hinundayan towns and headed by Rodolfo Juinio as chairman became the first beneficiary of the CeMAP outreach project.

AIRLINES TO TEST BIOFUEL IN AIRPLANES

       Continental Airlines is teaming up with Boeing and engine maker GE Aviation to test plane powered by a new generation of renewable fuels. This makes Continental the first major US airline to formally experiment in alternative energy. The flight is scheduled for the first half of 2009. Mark Moran, Continental executive said, ?Exploring sustainable biofuels is a logical and exciting new step in our environmental commitment.? The airline industry, which accounts for 2% of global carbon emissions, is high on the watch list of environmentalists and regulators concerned about the global warming.

       The Continental flight next year will be Boeing?s third joint biofuel demonstration with an airline. Last month Boeing and British airline Virgin Atlantic flew a 747 from London to Amsterdam, with one engine powered by a mix of 80% jet fuel and 20% biofuel based on coconut and babasu oils. The biofuel was provided by Seattle-based Imperium Renewables. Boeing also plans a flight with Air New Zealand in the second half of this year.

       Bill Glover, Boeing?s director of environmental strategy, said the tests are part of an industry-wide effort to find a biofuel that works while being environmentally and economically sustainable. He said that in the forthcoming Continental flight, the companies will look at different, more advanced biofuels than in the Virgin Atlantic test, with a blend ratio ranging 20% to 50%. The Air New Zealand flight will also test another set of biofuels.