For week ending April 22, 2010

Philippine Coco Products Export Up Sharply in January
Destinations Of Coconut Oil Export in January
...Of Copra and Copra Meal
...Of Desiccated Coconut
...Of Coco Shell Products
CIIF-OMG Seek Higher Biodiesel Content in Diesel Fuel Blend
Coconut Oil-Based Face Cream May Help Treat Acne - Study
Chinese Import of Lauric Oils Down in February
Unilever Acquires GreenPalm Certificates
Segregated Palm Oil Available Soon on Europeean Market

PHILIPPINE COCO PRODUCTS EXPORT UP SHARPLY IN JANUARY

       Official data from the Philippine Coconut Authority show export of Philippine coconut products in January this year leapfrogged to 248,443 MT in copra terms from 58,571 MT in a similar month year-earlier (+324.2%). Gross export receipts likewise soared to USD126.186 million from USD42.825 million (+194.7%).

       Coconut oil almost exclusively accounted for the increase in total export with lifting at 146,971 MT dwarfing year-ago at 24,579 MT by 498.0%. Shipment of oleochemicals likewise posted significant growth of 32.5% at 2,913 MT in copra terms from 2,198 MT contrasting with delivery of desiccated coconut which fell appreciably by 29.6% to 7,903 MT from 11,228 MT. Outbound copra meal stood at 88,940 MT and that of copra at 24 MT; there were no recorded exports of these products in January last year.

       Other products performed as follows: coco shell charcoal 2,108 MT (+59.1% from 1,325 MT year-ago), activated carbon 1,426 MT (-33.5% from 2,145 MT), glycerin 1,850 MT (+275.4% from 493 MT), fresh coconuts 65 MT (-59.9% from 162 MT), Others 1,876 MT ( 34.4% from 2,862 MT).

DESTINATIONS OF COCONUT OIL EXPORT IN JANUARY

       Export of coconut oil in January largely consisted of crude coconut oil at 127,713 MT or 86.9% of aggregate coconut oil shipment; cochin oil (refined, bleached oil) was 17,349 MT and RBD coconut was1,909 MT. Europe was leading importer during the month responsible for 76,200 MT (51.8% of total) all of which was crude coconut oil, specifically for Netherlands 68,200 MT, United Kingdom 5,000 MT and Spain 3,000 MT. The United States landed second with 37,900 MT (25.8%) which was a mix of crude coconut oil at 23,500 MT and cochin oil 14,400 MT. Third biggest market was Malaysia with 20,000 MT (13.6%), solely crude coconut oil.

       Apart from Europe, US, and Malaysia, other buyers of crude coconut oil during the month were China with 7,500 MT, Iran with 298 MT and Taiwan with 215 MT. Next to the US, second biggest importer of cochin oil was Japan with 2,930 MT, while limited amount at 19 MT was importer by China. On the other hand, Iran was the largest buyer of RBD oil in January with 997 MT, followed by China 279 MT, Taiwan 215 MT, Pakistan 142 MT, Russia 89 MT, Singapore 71 MT, Israel 63 MT, Bangladesh 37 MT, and Vietnam 15 MT.

?OF COPRA AND COPRA MEAL

       All export of copra in January amounting to 24 MT was delivered to Korea.

       In the case of copra meal with total shipment of 88,940 MT during the month, Korea maintained its position as leading buyer with purchases at 41,307 MT (46.4%). Similarly, Vietnam was second major importer with 20,724 MT (23.3%), with China a strong third at 19,650 MT (22.1%). A good volume at 5,500 MT went to Pakistan (6.2%). Other destinations were Taiwan 690 MT, Australia 477 MT, New Zealand 400 MT, Japan 176 MT and India 17 MT.

?OF DESICCATED COCONUT

       Export of desiccated coconut in January at 7,903 MT went to 40 various countries. The US remained a market leader with uptake at 1,555 MT (19.7%), trailed by Belgium with 1,372 MT (17.4%) and Netherlands 932 MT (11.8%). Sixteen other countries also took in substantial volume in the range 100-472 MT and jointly comprised 42.2% of the market, namely in descending order: France, Canada, Australia, Germany, United Kingdom, Turkey, Brazil, Russia, Israel, Japan, Venezuela, Egypt, Taiwan, Korea, South Africa, and Chile. On the other hand, 21 countries with combined import of 709 MT (8.9%) took in much smaller volume from a low of 290 kilos to a high of 77 MT.

?OF COCO SHELL PRODUCTS

       Coconut shell charcoal export amounting to 2,108 MT in January went only to four Asian countries led by Japan with 1,018 MT (48.3%). Tracking Japan were China with 649 MT (30.8%), Korea 401 MT (19.0%) and Hong Kong 39 MT (1.9%).

       In contrast, activated carbon export during the month at 1,426 MT had 21 market destinations, the top five being responsible for over two-thirds (67.5%). Leading the pack was Ghana with 286 MT (20.1%), followed by Japan with 263 MT (18.5%), Indonesia 179 MT (12.5%), US 134 MT (9.4%), and Belgium 100 MT (7.0%). The remaining 16 other countries with combined market share of 32.5% for a total uptake of 464 MT had purchases ranging 3-66 MT.

CIIF-OMG SEEK HIGHER BIODIESEL CONTENT IN DIESEL FUEL BLEND

       The CIIF Oil Mills Group (CIIF-OMG) has asked the government to raise the mandated biodiesel blend from the current two percent to five percent to spur the growth of the local coconut industry. CIIF-OMG President and CEO Jesus L. Arranza, in a letter to Energy Secretary Angelo T. Reyes, said that the upward adjustment would result in sustained demand for copra/crude coconut oil, lessen dependence on foreign buyers of crude coconut oil, generate savings in foreign exchange that would otherwise go out to pay imported oil, and increase the utilization of refining capacity of biodiesel producers. He pointed out that domestic production of copra has been abundant since last year and assured Reyes that CIIF-OMG and other crude coconut oil producers in the country would have enough capacity to support requirement for an increase in the biodiesel blend.

       Mr. Arranza explained that a five-percent blend would require an estimated 350,000 MT of crude coconut oil annually which translate to only 23 percent of the annual crude coconut oil production in the country at 1.5 million MT. The volume can very well be supplied by the various coconut oil mills. CIIF is pushing for the increase in the blend to increase the non-traditional market for coconut oil which would, in turn, benefit more than three million coconut farmers in the country, he added. Besides, increasing the use of coconut oil would also substantially contribute to the reduction of pollution in the country brought about by the use of fossil fuel.

COCONUT OIL-BASED FACE CREAM MAY HELP TREAT ACNE - STUDY

       A new study claimed that a face cream made from breast milk and coconut oil could cure acne. A natural product lauric acid, found in both coconut oil and human breast milk, may offer treatment for acne. Dissaya ?Nu? Pornpattananangkul, a bioengineering graduate student from University of California San Diego Jacobs School of Engineering, developed a ?smart delivery system?- published in the Journal ACS Nano in March - capable of delivering lauric-acid-filled nano-scale bombs directly to skin-dwelling bacteria (Propionibacterium acnes) that cause common acne. Pornpattananangkul performs this research in the Nanomaterials and Nanomedicine Laboratory of UC San Diego NanoEngineering professor Liangfang Zhang from the Jacobs School of Engineering.

       The new smart delivery system includes gold nanoparticles attached to surfaces of lauric-acid filled nano-bombs. The gold nanoparticles keep the nano-bombs (liposomes) from fusing together. The gold nanoparticles also help the liposomes locate acne-causing bacteria based on the skin microenvironment, including pH. Once the nano-bombs reach the bacterial membranes, the acidic microenvironment causes the gold nanoparticles to drop off, thus freeing the liposomes carrying lauric acid payloads to fuse with bacterial membranes and kill the Propionibacterium acnes bacteria. ?Precisely controlled nano-scale delivery of drugs that are applied topically to the skin could significantly improve the treatment of skin bacterial infections. By delivering drugs directly to the bacteria of interest, we hope to boost antimicrobial efficacy and minimize off-target adverse effects,? said Zhang. ?All building blocks of the nano-bombs are either natural products or have been approved for clinical use, which means these nano-bombs are likely to be tested on humans in the near future.?

CHINESE IMPORT OF LAURIC OILS DOWN IN FEBRUARY

       According to statistics from Oil World, China imported 52,500 MT of lauric oils in February this year. As against uptake of 54,200 MT in a similar period last year, current level indicates a shortfall by 3.1%. Palm kernel oil, which accounted for 56.2% of total lauric import, dropped by 29.9% to 29,500 MT from 42,100 MT. In contrast, coconut oil, which shared 43.8%, increased by 91% at 23,000 MT from last year total at 12,100 MT.

       Indonesia remained the biggest supplier responsible for 80.4% of total during the month with delivery of 42,200 MT (47,000 MT year-ago) of which 20,500 MT was palm kernel oil (35,100 MT) and 21,700 MT (11,900 MT) was coconut oil. Shipment from Malaysia was 9,000 MT (7,000 MT) of palm kernel oil and accounted for 17.1%. The Philippines was responsible for 1,200 MT (200 MT) of coconut oil or 2.3% share while other countries contributed 100 MT of coconut only.

       ?Total import in January-February this year stood at 135,600 MT, a substantial growth by 64.0% from volume imported in a similar period last year at 82,700 MT. Of this total palm kernel oil was 80,600 MT (65,900 MT) and coconut oil 55,000 MT (16,800 MT) for respective shares of 59.4% and 40.6%. Import of coconut oil gained by a whopping 228% while palm kernel at 22.3%.

UNILEVER ACQUIRES GREENPALM CERTIFICATES

       Unilever announced last week it has bought enough sustainable palm oil certificates to cover the requirements of its European, Australian and New Zealand businesses. The purchase of the GreenPalm certificates is part Unilever?s commitment to buy all of its palm oil from certified sources by 2015. GreenPalm is a certificate trading program endorsed by the Roundtable on Sustainable Palm Oil (RSPO) and designed to reward the sustainable production of palm oil by giving sustainable producers the right to sell certificates to manufacturers for a premium price. Although the oil they receive is not necessarily sustainably certified, in buying certificates equivalent to a certain volume of palm oil, a manufacturer is promoting the sustainable production of the crop.

       Since the segregated supply chain, the ability to keep sustainable palm oil separate from non-sustainable from plantation through to finished products, is still relatively undeveloped, Unilever argues that the GreenPalm scheme is a viable alternative in the meantime. Gavin Neath, Unilever?s senior vice president of global communications and sustainability said: ?Until sustainable segregated supply chains become available, GreenPalm certificates are the best option to encourage growers to comply with the requirements of the RSPO and certify their plantation as sustainable.?

SEGREGATED PALM OIL AVAILABLE SOON ON EUROPEAN MARKET

       Segregated sustainable palm oil will be available soon on the European market as IOI-Loders Croklaan and New Britain announced their new refineries opening in Europe will be dedicated to sustainable oil. IOI-Loders Croklaan will open its new dedicated refinery in Rotterdam in June, treating oil coming from plantations it owns in Malaysia. UK firm New Britain declared that its new Liverpool refinery will be up and running starting this month, handling only segregated oil from its Papua New Guinea plantations. These announcements mark the latest step towards a developing segregated supply chain.

       The multi-stakeholders Roundtable for Sustainable Palm Oil (RSPO) has been working towards turning the supply chain around towards sustainable practices. However, the complexity of commodity supply chains makes its difficult to ensure sustainably produced oil is segregated from non-sustainable oil. In order to prepare the market and meet demand, two interim schemes have been in operation: (1) Book and Claim, which allows manufacturers to buy GreenPalm vouchers equivalent to the palm oil volumes they are using, but the actual oil they receive is not certified. (2) Mass Balance, a proportion of the oil received is certified sustainable. At present, segregated palm oil commands a premium of 5-10% over the price of non-segregated palm oil.