Newsbrief 15

For week ending Apr. 13, 2006

PHILIPPINE EXPORT OF SELECTED NON-TRADITIONAL COCONUT PRODUCTS IN 2005

MAKAPUNO. Figures from the Philippine Coconut Authority show export of makapuno (coconut sport) in 2005 plunged steeply by 33.1% to 622 MT from 930 MT in the previous year. Income likewise skidded 33.3% to USD1.230 million from USD1.843 million. Major buyer was the United States with 265 MT which accounted for 42.6% share. Significant amounts also were imported by United Arab Emirates (59 MT), Canada (54 MT), the Netherlands (39 MT), Guam (25 MT), and Saudi Arabia (25 MT). Forty-one other countries individually bought volume no higher than 14 MT.

COCO CHIPS. Export of coconut chips in 2005 stood at 596 MT, expanding by 16.2% the prior year total at 513 MT. Revenue amounted to USD838.994 thousand, higher by 29.7% when compared with year-ago at USD646.655 thousand. The United States was primary destination with 160 MT comprising of 26.8% of the market, trailed by Germany with 137 MT for a 23.0% market share. Quite substantial shipment also was channeled to the Netherlands (55 MT), Japan (46 MT), Belgium (38 MT), Spain (34 MT), and Canada (25 MT), while 22 other countries each took in much lesser volume of 22 MT and below.

COCO VINEGAR. Shipment of coconut vinegar in 2005 rose by a hefty 73.5% to 392 MT from 226 MT a year earlier. The volume was worth USD271.924 thousand, 38.7% higher than year-ago at USD196.119 thousand. The United State was the leading importer with uptake at 130 MT representing one-third (33.2%) of total export. Other significant buyers were United Arab Emirates (37 MT), Japan (30 MT), Australia (28 MT) and Saudi Arabia (25 MT). Twenty-nine other countries were recipients of volume no higher than 23 MT.

COCONUT WATER. Coconut water export took a massive dive of 45.5% in 2005 to 232,924 liters from 427,095 liters a year earlier as major buyers last year slashed uptake appreciably. Earnings likewise dropped considerably by 37.8% to USD195.957 thousand from USD315.193 thousand. The United Kingdom was top market with 98,311 liters and was responsible for 42.2%. The volume depleted by 50.2% the prior year data at 197,406 liters. Export to Japan at 35,977 liters cut by 55.5% year-ago at 80,838 liters as well as Canada whose uptake dwindled sizably by 72.5% to 28,604 liters from 103,975 liters.

On the other hand, expansions were noted in the Netherlands from 14,118 liters to 29,191 liters and the United States from 7,527 liters to 11,261 MT, respectively by 1.06% and 49.6%. Export to Saudi Arabia at 17,000 liters was the first in two years. Fourteen other countries separately had uptake no higher than 5,137 liters.

SRI LANKAN DESICCATED COCONUT EXPORT DOWN SHARPLY IN 2005

Figures from the Coconut Development Authority in Sri Lanka show the country’s export of desiccated coconut in 2005 at 33,377 MT, a massive drop by 38.3% from 54,098 MT a year earlier due drought-reduced coconut harvest. Average traded price during the year was USD1,001/MT FOB, dearer by 14.0% when compared with prior year data at USD878/MT FOB.

For the month of December, shipment at 2,461 MT expanded by a whopping 44.7% December year-ago total at 1,701 MT. Average paying level at USD927/MT FOB was cheaper by 16.6% than previous year at USD1,111/MT but USD25 higher than the prior month. UAR/Egypt was market leader for the month with 564 MT (22.9% share), tracked by UAE/Dubai with 284 MT (11.5%), Saudi Arabia 198 MT (8.0%), Portugal 153 MT (6.2%), Pakistan 135 MT (5.5%), and France 109 MT (4.4%). Nine countries which took in volume ranging 50-89 MT, namely in descending order, Germany, Turkey, Italy, Belgium, Spain, South Africa, Greece, Netherlands, Lithuania collectively comprised 27.7%. Sixteen other countries each held volume ranging 1-49 MT and jointly accounted for 13.7%.

... MIXED TRENDS FOR COPRA, COCO OIL EXPORT

The same source also show Sri Lankan export of copra in 2005 reached 16,857 MT, exceeding by 12.0% the prior year shipment at 15,050 MT. For the month of December export was 1,357 MT, a decline by 8.4% from 1,481 MT in a similar month year-ago. Virtually all of the month’s shipment went to Pakistan with 1,337 MT or 98.5% of total. Limited volumes were sold to Lebanon (11 MT) and United Arab Emirates (9 MT).

On the other hand, export of coconut oil in the same year fell substantially by 31.9% to 1,426 MT from 2,095 MT year-earlier. Total for the month of December stood at 203 MT, almost a five-fold increase from volume a year ago at 34 MT. Bangladesh was a primary destination with 128 MT (63.1% share), followed by Pakistan with 44 MT (21.7%) and Germany 31 MT (15.3%).

SOYBEAN-BASED BIODIESEL CONTRACT MULLED

At a Futures Industry Association meeting last month, Chicago Board of Trade (CBOT) Chief Executive Bernard Dan disclosed CBOT is studying a new contract for soybean-based biodiesel. If this happens, this would be the world’s first such contract and CBOT’s second agricultural energy contract after ethanol, Dan said. However, CBOT still needs to find out if the market for biodiesel is strong enough to support a futures contract.

CHINA-U.S. SOYA TRADE PACT

A delegation of Chinese soybean buyers on a relationship-building tour in the U.S. signed a letter of intent with U.S. soybean exporters at the Chicago Board Trade. The agreements, signed by 13 Chinese soybean processing companies, were for the purchase of 4.98 million MT of U.S. soybeans and 20,000 MT of U.S. soybean oil in 2006. The 13 companies are reported to account for 67% of Chinese soybean import trade. China is top buyer of U.S. soybeans and accounts for 40% of U.S. exports.

INDONESIA TO BUILD FOUR BIODIESEL PLANTS

The Indonesian government announced plans last week to build four biodiesel plants in Kalimantan and Sumatra this year with a view to promote wider use of alternative fuels. Industry Minister Fahmi Idris said the government has set aside USD6.67 million to finance development of four biodiesel plants which will use castor oil and crude palm oil as feedstock. The agriculture ministry has been asked to prepare lands for castor oil plantations to supply feedstock, he added. The four plants, which will have a total production capacity of 6,000 MT annually, are expected to be completed by the end of this year.

TAX BREAKS FOR BIOFUELS IN AUSTRALIA

To further support the biofuels industry in the country, Australian Prime Minister John Howard announced that the government would amend relevant legislation that would make biodiesel made from tallow using a new technology, that does not form esters, enjoy the same tax breaks as biodiesel made by existing esterification processes. The present law excludes biodiesel made from tallow for favorable tax preferences as opposed to biodiesel and fuel ethanol which are subject to excise but effectively tax-free until July 01, 2011.

The move is tied to oil giant BP commitment to add ethanol to Australia’s fuel supplies and produce 200 million liters of biofuels within two years, more than half of which will be based from tallow. Specifically, BP will produce 110 million liters of ethanol derived from tallow through a new process it has developed for its Bulwer oil refinery in Brisbane. The rest will be wheat-based and sugar-based ethanol at 80 million liters and 23 million liters, respectively. The volume of biofuel that will be produced by BP will account for more than half of the federal government target of 350,000 liters of biofuel by 2010. BP will use 10% biofuel blend.

CARGILL ERECTING BIODIESEL PLANT IN GERMANY

Cargill is building a new biodiesel production facility in Hochst industrial park. The plant location was credited for its excellent infrastructure and proximity to existing and potential costumers. Costing around 25 million euro, the facility will have a 250,000 MT per year capacity. The plant will use crude vegetable oil as feedstock, mainly rapeseed oil. Cargill announced last year it was expanding its oilseed crushing capacity in Germany and neighboring countries, a move aimed at facilitating supply of raw materials for the biodiesel plant.