For week ending Apr. 02, 2009

       Meanwhile, Energy Utilization and Management Bureau Director Mario C. Marasigan said as long as there is sufficient supply locally, there is possibility a 5% blend will be available. Seaoil Philippines, Inc. believes local supply can sustain a 5% blend. Independent Philippine Petroleum Companies Association Chairman Fernando L. Martinez said they are amenable to the higher blend, but noted that additional costs have to be incurred. He estimated that an additional 3% would translate to P1.00 per liter for the diesel fuel blend.

       Effective April 1, 2009, Raco Commodities Phils., Inc. will have a new man on the trading desk in the person of Mr. Danilo L. Valdez. He has been designated as OIC of Raco Commodities. He takes over the post with the early retirement of Mr. Bert Padrigon, Jr. Mr. Archie Asistores will continue to assist in local coconut oil trading and market monitoring. Both will be under close supervision by Mr. John Peter Hager, VP/Director, Raco Trading Phils., Inc. Mr. Valdez/Mr. Hager will represent Raco at ACBI (Association of Coconut Brokers, Inc.)/UCAP effective April 01, 2009.

       Export in January went to 35 countries. The top five importers held volumes above 200 MT and collectively accounted for 70.8% of total trade. Leading the pack was UAE/Dubai with 1,065 MT and market share of 25.5%, followed by Pakistan with 828 MT, UAR/Egypt 573 MT, France 266 MT and Saudi Arabia 229 MT. Four other countries took in between 115 MT and 147 MT and together comprised 12.5% of the market. They were as follows, in descending order, Germany, Spain, United States, and Portugal. The remaining twenty-six other countries with combined share of 16.7% bought volume ranging 1-75 MT.

       Last week Philippine fine and medium grade desiccated coconut was quoted at $1,030/MT c&f Europe, down from $1,070/MT a week earlier and $2,300 /MT during the peak of the market in July and August of last year. Sri Lankan fine grade dropped $120/MT to $930/MT c&f Europe while Indonesian fine and medium grade declined $100/MT to $1,020/MT c&f Europe.

       This is seen as a key breakthrough as consumer acceptance of transgenic crops could grow more quickly if they see benefits rather than the crops merely benefiting farmers. High oleic soybeans have highlevel of oleic acid and 25% less saturated fat, with a health profile similar to olive oil. The product could compete with palm and other vegetable oils. The oil is designed to offer better frying characteristics for food preparation and there are also industrial applications where it could replace petroleum-based products. The high-oleic soybean is among many new biotech and conventional crop products Dupont?s agriculture and nutrition business unit is developing.

       Jeffrey Hollender, Seventh Generation President and Chief Inspired Protagonist, explained that the company is one of the country?s largest non-food users of palm oil. ?If it?s not sustainably produced, ultimately our cleaners aren?t sustainable either. We have to transform the industry- not just for the sake of our own products, but for the future of the world. We?ve dedicated ourselves to leading that effort and reversing the devastating impact palm oil is having on people, on ecosystems, and on the global climate.?

       To find out the most effective ways to increase canola production, the SBQQ research network will carry out a series of experiments conducted across the major soil zones and ecoregions of Western Canada. The Alberta Canola Producers? Commission is the lead organization for SBQQ. Other participants include the University of Alberta, the University of Saskatchewan, the Alberta Biodiesel Association, Olds College, and the Canola Council of Canada. Funding for this project is being provided through Agriculture and Agri-Food Canada?s Agricultural Bioproducts Innovation Program, a federal funding program designed to integrate Canada?s talent from universities, industry and government in order to stimulate creativity, leverage resources, reduce costs and accelerate progress towards commercialization of bioproducts and bioprocesses.

       Malaysia started the B5 program on February 1, 2009 with Dewan Bandaraya Kuala Lumpur and the Armed Forces, in the central region. ?Discussion with the biodiesel producers and petroleum companies are ongoing on areas critical to the implementation, namely logistics and financing mechanism,? Chin said. He added that challenges to the biofuels industry this year include exports of subsidized US biodiesel to EU which distort prices and trade, the EU energy directive, and the global economic slowdown.

       The US biodiesel industry will suffer from the new trade barriers that threaten to end its lucrative export business to Europe. In Texas, which is home to 30 biodiesel plants with total capacity of 691 million gallons per year, the measure could be devastating. As the largest US producer of the alternative fuel, Texas has a number of companies that relied heavily on selling biodiesel in Europe and now face gaping holes in their businesses that may prove difficult to fill. The port of Houston has been a major hub for storing, handling and shipping biodiesel overseas, and companies in those businesses also stand to lose.