For week ending May. 01, 2008

       Shipment of other coconut products similarly shot up from last year except for fresh coconuts which dropped 11.1% to 83 MT from 93 MT. Gainers were as follows, in MT: coconut shell charcoal 1,407 (+67.6% from 839), activated carbon 2,648 (+102.5% from 1,308), glycerin 1,624 (+676.8% from 209), Others 2,133 (+29.1% from 1,653).

       Bulk of crude coconut oil export (61.1%) was delivered to Netherlands at 49,500 MT. Shipment to US at 17,312 MT shared 21.4%. Markets outside of US and Europe were Malaysia with 6,900 MT (8.5%), India 6,000 MT (7.4%), Japan 1,000 MT (1.3%) and China 250 MT (0.3%). The US was top buyer of cochin oil responsible for 32,576 MT or 80.9%, trailed by Japan with 3,800 MT (9.4%), Netherlands 2,000 MT (5.0%), Malaysia 1,730 MT (4.3%), and Iran 149 MT (0.4%). Iran led in RBD oil with 149 MT (27.1%), followed by Russia 129 MT (23.5%), China 125 MT (22.7%), Israel 124 MT (22.5%), Bangladesh 19 MT (3.5%) and Australia 4 MT (0.7%).

       Korea remained a primary destination of copra meal with total in January at 15,000 MT representing 41.6% of total trade. Similarly, Vietnam retained its rank at second with uptake at 13,249 MT or 36.8%. Japan and Indonesia also took in substantial volume respectively at 4,125 MT (11.4%) and 3,150 MT (8.7%) while New Zealand and China had limited purchases at 343 MT and 164 MT, respectively.

       Thirty-two countries imported Philippine desiccated coconut in January. Market leadership has shifted to United Kingdom which took in 1,848 MT (22.6% share) from the US which held 1,651 MT (20.2%). The next three major buyers were Canada with 725 MT, Australia 588 MT and Belgium 570 MT which jointly accounted for 23.1%. Nine countries similarly purchased significant volume in the range 113-457 MT, the total of which was 1,949 MT (24.0%), namely in descending order Netherlands, France, Turkey, Egypt, Taiwan, South Africa, Hungary, Germany, China. The remaining 18 countries were recipient of volumes ranging 70 kilos-85 MT, the combined tonnage being 839 MT (10.3%).

       In activated carbon, whose market is more diversified numbering 17 in January, Japan’s top position claimed a lower market share of 35.3% at 935 MT. Five other countries made it to the top six destinations namely, France 480 MT, United Kingdom 366 MT, Belgium 153 MT, Germany 145 MT, Ghana 132 MT. Eleven other countries whose aggregate volume was 436 MT and combine market share of 16.5% took in smaller loads ranging 10-88 MT.

       The Cocohouse luncheon last Tuesday, April 29, at the Valle Verde Country Club in Pasig City was well attended for its interesting and timely topic. This month’s Cocohouse host was APCD (Association of Philippine Coconut Desiccators) who kindly invited Dr. Vaughn Montes, Senior Vice President, Citibank, as guest speaker. Dr. Montes gave Cocohouse members an economic briefing and outlook which surely will be helpful in their business. For the month of May, the Cocohouse luncheon will be hosted by the Coconut Oil Refiners Association.

       Dean Lao Jr., chief operating officer of Chemrez Technologies Inc., Asia’s first continuous-process coco-biodiesel plant, was cited for his comprehensive research studies and tests which served as basis for the landmark Philippine Biofuels Law of 2006, the first in Asia to mandate a coco-biodiesel blend in all grades of diesel used in the country. Coco-biodiesel is derived from coconut oil, the most abundant and indigenous vegetable oil in the country. “Four years before it was passed into law, very little was known about coco-biodiesel. No information was available on biodiesel made from coconut oil. It was then that Chemrez, together with the Asian Institute of Petroleum Studies Inc., started to gather scientific data,” Lao said.

       Zubiri observed that thus far no piece of land has shifted cultivation from rice to biofuel feedstock such as coconut and sugar cane. Escudero for his part said the Department of Agriculture must pursue the formulation of a comprehensive plan on the use of agricultural lands to balance usage for food and biofuels. He stressed that the government must multi-task and not drop the issue on oil just because of the rice crises. Pimentel also said the government must not backtrack from developing alternative fuels and renewable sources of energy because of the rising prices of oil in the world market.

       Trans fats, often found in French fries and other fast-food cafeteria staples, are being targeted around the world by advocates of healthy eating, who say the processed oil contributes to a host of health problems, including childhood obesity. Chocolate bars, potato chips and soft drinks had already been banned from Ontario’s elementary schools. The junk food ban may be expanded to include high schools.

       The European Environment Agency, which advises the EC, earlier recommended that the EC suspend its 10% biofuels target saying that the target would require large amounts of additional imports of biofuels leading to the accelerated destruction of rainforests. The agency also questioned the environmental benefits of biofuels.