Preliminary UCAP data show export of coconut products in February this year soared 103.4% to 154,291 MT in copra terms from 75,856 MT in February year-earlier. The increase was largely on account of coconut oil as volume more than doubled during the month. Estimated revenue at USD74.342 million likewise shot up by 61.8% from year-ago at USD45.943 million propelled by sharp rise in volume traded.

       Export of coconut oil rocketed 124.1% year-on-yea to 81,101 MT from 36,195 MT; copra meal leaped 160.6% to 66,556 MT from 25,541 MT; oleochemicals jumped by nearly five-fold (+498.9%) to13,188 MT in copra terms from 2,202 MT. In contrast, shipment of desiccated coconut plunged 23.6% to 8,002 MT from 10,479 MT.

       Europe was primary destination of coconut oil export during the month. Total shipped to the continent at 44,202 MT comprised 54.5% of total trade. China jumped past the US to become the second biggest coconut oil importer during the month with volume at 16,499 MT contributing 20.3%. US took in 8,750 MT to account for 10.8%, followed by Malaysia with 8,000 MT and Japan 3,650 MT for respective market share of 9.9% and 4.5%.

       According to collated country data from the Philippine Coconut Authority and Sri Lanka?s Coconut Development Authority, combined export of desiccated coconut from the Philippines and Sri Lanka, the world?s major desiccated coconut producers, dropped sharply in December 2009 by 30.7% to 10,154 MT from 14,644 MT in a similar month last year as both countries scaled back shipments.

       Export from the Philippines, which accounted for 75.4% of combined volume, declined 28.1% to 7,654 MT from 10,647 MT while shipment from Sri Lanka at 2,500 MT plunged by 37.4% from year-ago at 3,997 MT. Computed average traded price of Philippine desiccated coconut at USD1,184.50/MT FOB was cheaper than Sri Lankan product at $1,312.48/MT FOB although year-earlier, Philippine desiccated coconut was priced higher at USD1,893.48/MT compared to Sri Lanka?s USD1,300.45/MT.

       Plantations in mainland Malaysia are subject to a 15% tax when crude palm oil prices cross M$2,500/MT (USD756.40/MT). In top palm oil producing states Sabah and Sarawak on Borneo Island, planters face a 7.5% tax when prices go above M$3,000/MT. The windfall tax was introduced last November. When added together with other levies, the tax makes Malaysian palm oil the most taxed vegetable oil in the world, industry sources said. The Malaysian government, however, retorted that palm oil companies should not complain as recent corporate earnings have generated strong profits that should be used in part to subsidize edible oil prices.

       An industry official said last week sustainable palm oil production may double to 3 million tons by the end of this year as benchmark Malaysian prices steadily rise. The bulk of it will come from Malaysia as big planters come closer to ensuring their estates, mills and processors comply with commitments set by the industry-driven Roundtable on Sustainable Palm Oil (RSPO).

       A report from the International Service for the Acquisition of Agri-Biotech Applications (ISAAA) says global cultivation of genetically modified (GM)crops grew by seven percent during 2009. With another 134m hectares (330m acres) planted last year, the cumulative area planted to genetically modified crops, also known as biotech crops, since their introduction in 1996 surpassed one billion hectares for the first time.

       Vito Martielli of the Food and Agribusiness Research and Advisory division at Rabobank said Ukrainian rapeseed could be hit harder than other countries by the EU regulation requiring biofuels groups to prove that supplies meet sustainability standards to be eligible for tax exemptions. European legislation on renewable energy will be implemented after July. Mr. Martielli projects higher use for Ukrainian rapeseed in the food sector if it does not meet requirements of European legislation for biofuel as European biodiesel players may decide to use European rapeseed instead, which complies with the renewable energy legislation.

       Scientists at the Commonwealth Scientific and Industrial Research Organization (CSIRO), an Australian government scientific research body have developed plant prototypes genetically modified to boost their omega-3 content beyond alpha-linolenic acid (ALA). The scientists, who are working under the Omega-3 Project, used GM methods to mesh algae-sourced omega-3s like DHA (docosahexaenic acid) with canola plants to create the new plants. Results though are not expected to see commercialization for 10-15 year. The Omega-3 Project is part of a CSIRO project called Food Futures Flagship which aims to add $3 billion to Australia?s agrifood sector.