Newsbrief 16

For week ending Apr. 19, 2007

COCOHOUSE LUNCHEON IN APRIL

The Cocohouse luncheon held last Tuesday, April 17, at the City Grill restaurant on Jupiter St., Makati City, had a longer program than usual. Since the occasion happened just after the palm and lauric oils price outlook forum and the NIOP convention, reports on these events were rendered by Mr. Bert N. Padrigon (Raco Commodities), on the price outlook forum, and Mr. Greg L. Ellescas (SMC Oils and Fats), on the NIOP convention. The members appreciated the information shared by both gentlemen.

During the occasion, the UCAP chairman, Mr. Jose L. Querubin presented to Mrs. Violeta Baldonado a UCAP resolution posthumously honoring Atty. Jose T. Baldonado for his significant contribution to UCAP and the Philippine coconut industry. She was accompanied by her daughter Heidie B. Gregore. Cocohouse also welcomed four first time attendees namely, Ms. Sally Faylon (CIIF Oil Mills Group); Mr. John Huang (Franklin Baker Co. of the Philippines); and Mr. Tomohiro Yaheshita and Mr. Luis Jocson (Minola Marketing Corp.).

The members then were updated on the status of the Implementing Rules and Regulations on the Philippine Biofuels Act of 2006 by Ms. Evelyn N. Reyes, OIC, Energy Utilization and Management Bureau, Department of Energy. The regulation will definitely take effect on May 06, 2007 as scheduled, she said. Thus starting this day, all diesel fuel used in the country for the transport sector or otherwise, will be blended with 1 percent coco-biodiesel (coco methyl ester). As has been the usual, the Cocohouse luncheon does not end without the closing remarks of Mr. Manuel Igual (Igual Commodities).

CHEMREZ ACQUIRES ISO CERTIFICATION FOR IMS

Chemrez Technologies, Inc. (ChemrezTech), marked a milestone in local manufacturing history by becoming the first and only producer of biodiesel to date whose Integrated Management System (IMS) was formally certified as of April 10, 2007 as conforming to ISO 9001: 2000 for quality management system, ISO 14001:2004 for environment management system, and OHSAS 18001:1999 for health and safety management system. As such, ChemrezTech has achieved world-class stature as a manufacturer of biodiesel with the highest assurance of quality while adhering to strict environmental health and safety practices throughout the entire process.

This feat is expected to enhance the competitiveness of the Chemrez organization as well as meet the needs and expectations of many of its customers who are themselves ISO-certified in many areas of their respective businesses. Additionally, the company’s achievement of IMS certification comes at an opportune time as the implementing rules and regulations of the Biofuels Act 0f 2006 are about to be issued and would likely contain an eventual IMS prescription for eligible producers of biofuels.

…FIRMS UP PLANS FOR EXPANSION

Following its ISO certification as biodiesel producer, Chemrez Technologies Inc. plans to further expand operations in the country, according to Dean A. Lao Jr., Chemrez chief operating officer. He added, however, that the company has yet to identify the areas where expansion would be made. He cited some factors under consideration before the company finally decides to expand such as growing competition, logistics, location, changing regulations like allowing other feedstock such as jathropa as well as the mandatory minimum blend, and among others.In a related development, PNOC Alternative Fuels Corp. (PNOC-AFC), a subsidiary of Philippine National Oil Co. is negotiating with ChemrezTech for the establishment of a 200,000 MT biodiesel facility. Mr. Lao said although the company is still on the discussion stage as it tries to resolve some commercial issues, signing of an Memorandum of Understanding seems to be where it is going. He explained that it would make sense for ChemrezTech to team up with PNOC-AFC considering that the latter can possibly be able to provide a good location for the planned biodiesel facility and that his company would be able to satisfy the criteria that PNOC-AFC had set in selecting partners.

CAGAYAN DE ORO BUSINESS GROUP TO ASSIST COCO SUGAR PRODUCERS

The Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber) based in Misamis Oriental in Northern Mindanao region will hold its 2nd Barangay Micro Business Enterprises Conference (BMBE) on May 3 this year. Highlight of the biannual conference is the midterm evaluation report of Oro Chamber’s Creating Opportunities and Resource Management for Enterprises Project as the local chamber’s delivery mechanism under the Promoting Regional Opportunities for Enterprise and Livelihood Development Program.

Among others, the program has provided technical and marketing assistance to the coconut sugar industry in Balingasag, Misamis Oriental. Oro Chamber Secretary-General Heidi Grace Mendoza said apart from the BMBE conference in May, they have also scheduled a Product Development Training in July, the launching of its Website to promote coconut sugar, and extending funding to Balingasag coconut sugar producers for the physical improvement of new processing plant which was recently accredited by the Bureau of Food and Drugs.

HIGH TRANS FAT INTAKE TRIPLES HEART DISEASE RISK- STUDY

A new study shows women who eat diets rich in unhealthy trans fats have three times the risk of heart disease as those with the lowest intake. Dr. Frank Hu, senior author of the study and an associate professor of nutrition and epidemiology at the Harvard School of Public Health in Boston said the study just reinforces the idea that trans fat is bad - worse than saturated fat - and thus would need concerted effort to reduce trans fats on the part of individuals, food manufacturers, as well as policy makers. The American Heart Association’s journal, Circulation this April published the results of study.

The Harvard team examined blood samples collected from almost 33,000 women participating in the ongoing Nurse’s Health Study. During the six-year study period, 166 women developed heart disease. The researchers then pulled information on 327 healthy women to serve as controls. The women were grouped into four different quartiles based on the levels of trans fats in their blood. The researchers found that women in the fourth quartile, those with the highest trans fats levels, had three times the risk of heart disease when compared to women with the lowest levels, those in the lowest quartile. Women in the second and third quartile had a 60 percent greater risk of heart disease.

Hu and colleagues also estimated the average daily trans fats intake from the trans fats blood levels. Women in the lowest quartile were estimated to have an average daily trans fats intake of 2.5 grams, while those in the highest quartile were estimated to take in 3.6 grams per day trans fats intake. Hu stressed though that these averages should be considered rough estimates. The U.S. Food and Drug Administration (FDA) estimate that the average American diet contains about 5.8 grams of trans fat daily. The American Heart Association advises that trans fats should make up no more than one percent of daily caloric intake.

CHINA MULLS SWITCHING TO IMPORTED SOYBEAN OIL

China is looking at importing more soya oil this year as palm oil finds increasing use in biodiesel resulting in smaller supplies being available for food use. Palm oil accounts for the bulk of China’s edible oil import and the shift to soybean oil could buoy global demand for the oil respectively prices, traders said. Malaysia is the country’s leading palm oil supplier responsible for 67% of palm oil uptake.

China’s import of soybean oil in the first two months of this year totaled 364,259 MT which is 20% higher than similar period a year earlier. Argentina so far supplied majority of this volume accounting for 84% or 309,447 MT. Delivery from the US at 30,337 MT during the period under review has effectively overtaken Brazil as second biggest soybean oil supplier.

TAIWAN TO USE BIODIESEL STARTING NEXT YEAR

With effect next year, drivers in Taiwan will be required to add biodiesel in addition to gasoline in their vehicles to reduce air pollution. This came after the Energy Administration Law was revised by a committee of the Legislative Yuan. The new rule is aimed at coping with a possible shortage of supply in energy, particularly petroleum. Several other measures are in store to enable the country to better cope with energy and environment problems, among them the recycling of waste cooking oil for biodiesel production.

The Taoyuan and Chiayi counties have been designated as the first counties to implement the biodiesel program, Economic Minister Steve R.L. Chen said. This means all gas stations in the area will supply biodiesel beginning in July this year. All vehicles are required to add one percent of biodiesel to their total purchase when they fill up, under the law. The ratio will be increased to two percent by 2010. The state-run Chinese Petroleum Corp. and the private sector’s Formosa Petrochemical Corp. will be responsible for supplying biodiesel at gas stations that use their gasoline.