For week ending Apr. 03, 2008

       Notable among the new products at Coconut House is coconut sugar which is produced from the coconut sap. If white sugar rates 100 percent on the glycemic index, coco sugar is only 35 percent. Thus, it is safe for those with diabetes. At the restaurant one can find an ice cream bar whose main attractions are the popular smoother than silk coconut ice cream in ube, corn and regular flavors as well as the skimmed coco milk whose light nutty flavor is undeniably refreshing. It is the best non-dairy milk in the world. Other bestsellers are pancit buko and buko-okoy.

       Last year, Gil M. Dureza, head of the Board of Investments Mindanao Extension Office, said the company’s general manager for new business, Una Lee, informed him that the company will spend P500,000 to pilot test the project, particularly the supply line to ensure that it will have a sustainable supply of coconut shells. If it fails to find sustainable supply, the company will get raw materials from as far as Indonesia, another big coconut producer in the Asian region.

       EU-27 was the biggest importer of lauric oil with uptake at 1.432 million MT accounting for 48.5% total import. The volume rose by 3.9% from last year’s figure at 1.378 million MT and comprised of coconut oil at 774,000 MT (740,000 MT) and palm kernel oil at 658,000 MT (638,000 MT). The United States handled 738,000 MT (768,000 MT) of which 459,000 MT (494,000 MT) was coconut oil and 279,000 MT (274,000 MT) was palm kernel, with market share of 25.0%. China was third with trade at 502,000 MT (457,000 MT) accounting for 17.0% and consisting of 125,000 MT (166,000 MT) of coconut oil and 377,000 MT (291,000 MT) of palm kernel oil. Japan captured 134,000 MT (118,000 MT) made up of 61,000 MT (64,000 MT) coconut oil and 73,000 MT (54,000 MT) palm kernel oil. Brazil bought only palm kernel oil amounting to 88,000 MT (60,000 MT) and South Korea coconut oil only at 58,000 MT (56,000 MT) and jointly shared 5.0%.

       A number of countries, including the US and some European countries, have introduced legislation that requires disclosure of TFAs on labels of food products, leading many companies to move away from edible oils such as soya that have to be partially hydrogenated. However, representatives of the European dairy industry do not believe that natural TFAs should be labeled in the same way as industrially produced TFAs. Indeed, the study concluded that TFAs from milk do not have the same impact on cardiovascular disease risk factors as industrially-produced TFAs. Results suggest that the deleterious HDL-C lowering property of trans fatty acids is specific to industrially-produced sources.

       The Indonesian government raised the export tax on crude palm oil (CPO) to 20% for April shipment from 10% in March as edible oil prices in the world market reached record high. Indonesia Trade Minister Mari Elka Pangestu told delegates at an edible oils conference in East Java that the average price of CPO in March has gone up to $1,200/MT so that the export tax has been raised to 20%. Indonesia adjusts the CPO export tax rate one month ahead based on the average price in Rotterdam in the prior month.

       Edible oil prices sold retail have gone up over 37% to Tk110 ($1.60) a liter over the past six months. Bangladesh is a net importer of crude and refined soya and palm oils to meet domestic demand.

       India’s commerce and industry ministry said the country has banned exports of all edible oils for one year effective March 17. While there were no reasons cited for the ban, the trade believes the action was meant to improve the domestic supply situation and check on rising prices, which have caused inflationary pressure in the country. The Solvent Extractors Association of India however said the move is likely to be ineffective since the country exports only limited quantities: around 30,000 to 40,000 MT of groundnut oil, 5,000 to 10,000 MT of mustard oil and coconut oil for the marketing year ending October 31, 2007. The group, however, has urged the government to exempt exports of conventional oils in small packs and non-conventional oils like rice bran saying that efforts for the last five years to develop rice bran oil export as value-added product in the international market will be jeopardized.

       In another move to fight inflation, the government of India has cut the import tax on crude palm oil (CPO), sunflower oil and rapeseed oil. Import duty on CPO now stands at 20%, down from 45% previously, refined palm oil at 27.5% from 52.5%. Sunflower oil import tax was down to 20% from 40% and refined sunflower oil at 27.5% from 50%. Crude rapeseed oil import duty is now at 20% from 75% and refined rapeseed oil at 27.5% from 75%. Soya oil import duty was left unchanged at 40% but is expected to be cut as well shortly.

       The next five imported oils were: olive oil 17,182 MT (9,604 year-ago), maize 2,256 MT (5,543 MT), rapeseed oil 1,593 MT (272 MT), groundnut oil 86 MT (186 MT), cottonseed oil 24 MT (24 MT). Import of coconut oil has seen steady annual rise in all but one year since 1997’s 15,655 MT. Malaysia and Indonesia were the top suppliers, with the former boosting delivery by 134% to 60,824 MT and the latter 19% to 43,922 MT. Palm kernel oil imports likewise came mainly from Malaysia and Indonesia amounting to 24,587 MT and 23,419 MT, respectively.