Newsbrief 53

For week ending May 07, 2009

PHILIPPINE EXPORT OF COCONUT PRODUCTS DOWN IN JANUARY

Official data from the Philippine Coconut Authority show the Philippines exported in January this year 58,572 MT of coconut products in copra terms. This represents a sharp drop of 72.4% from January year-earlier at 212,378 MT. Gross export receipts during the month likewise nosedived 72.6% to USD42.825 million from USD156.385 million previously, dragged mainly by reduced shipment of coconut oil and low coconut oil border price.

Export of coconut oil slumped 79.8% year-on-year to 24,579 MT from 121,766 MT; average traded price tumbled 30.1% to USD745.76/MT from USD1,066.74/MT FOB. Shipment of oleochemicals plunged 66.0% to 2,198 MT as copra from 6,467 MT. Desiccated coconut was the only gainer among the major exports with delivery at 11,228 MT vastly increased by 37.4% from 8,170 MT. There was no copra meal export reported for the month as against shipment of 36,031 MT last year.

Other products performed as follows, in MT: coco shell charcoal 1,325 (-5.8% from 1,407), activated carbon 2,145 (-19.0% from 2,648), glycerin 493 (-69.6% from 1,624), fresh coconuts 162 (+96.2% from 83), Others 2,891 (+35.6% from 2,133).

DESTINATIONS OF COCONUT OIL EXPORT IN JANUARY

Export of coconut oil during the month consisted of 15,702 MT crude coconut oil, 7,430 MT cochin oil (refined, bleached oil), and 1,446 MT RBD coconut oil. Europe was the biggest market capturing 13,090 MT or 53.3% of total sales, mainly for Netherlands at 9,810 MT and Spain at 3,280 MT, all of which were crude coconut oil. The United States took in smaller load of 6,680 MT or 27.2% made up of 2,300 MT crude coconut oil and 4,380 MT cochin oil. Japan was third biggest outlet with uptake of 3,800 MT or 15.5% consisting of 3,050 MT cochin oil and 750 MT RBD coconut oil.

Apart from Europe and the US, other importers of crude coconut oil were Taiwan (200 MT), Singapore (51 MT), Hongkong (40 MT), and Russia 21 MT. In the case of RBD oil, apart from Japan which was the top destination, other buyers during the month included United Arab Emirates (206 MT), Bulgaria (105 MT), Singapore (103) MT, Iran (75 MT), China (51 MT), Russia (42 MT), Azerbaijan (21 MT), Israel (21 MT), Bangladesh (20 MT), Pakistan (19 MT), Australia (18 MT), and New Zealand (15 MT).

?OF DESICCATED COCONUT

Export of desiccated coconut in January went to 38 countries with US as market leader cornering 2,652 MT or 23.6% of total trade, trailed by United Kingdom with 1,660 MT (14.8% share), and the Netherlands with 1,473 MT (13.1%). Substantial volume likewise went to France at 808 MT, Russia 685 MT, Belgium 610 MT and Canada 538 MT which jointly accounted for 23.5%. Other significant importers, with volume ranging 102-488 MT and combined market share of 18.6%, consisted of the following, in descending order, Australia, Ireland, Korea, Singapore, Germany, Sweden, Taiwan, Hongkong, Brazil, China. Twenty-one other countries took in volume ranging 3-84 MT and together accounted for 6.4% of the market.

?OF COCO SHELL PRODUCTS

Japan was the leading destination for coconut shell products exports from the Philippines. An almost exclusive market for coco shell charcoal, Japan captured 1,125 MT or 84.9% of total January delivery. Other markets were Korea with uptake of 182 MT and Taiwan with 18 MT.

As top market for activated carbon, Japan was responsible for 528 MT or 24.6% of total export in January. Strong second was Singapore with 481 MT (22.4%), tracked by Korea with 270 MT (12.6%), US with 268 MT (12.5%), and Russia with 104 MT (4.8%). Eleven other countries jointly accounted for 23.1% of total export with purchases ranging 20-90 MT.

NEW ENGINEERED SOYBEAN AVAILABLE SOON IN THE MARKET

Johnston-based Pioneer Hi-bred has engineered a soybean that will make oil with no trans fats that could be used in fast food kitchens and by snack makers. Walter Fehr, an Iowa State University agronomy professor who started research in 1968 that eventually led to a different type of zero trans fat soy oil was bullish on the impact of the new engineered soybean on the soybean oil market. Food companies are testing the genetically-engineered oils now, but none will say much about its testing procedures or progress.

The FDA has approved the genetically-engineered soybean. Pioneer hopes to get U.S. Department of Agriculture approval to begin selling the soybean to farmers this fall for planting next year. Farmers will get a premium of up to 60 cents per bushel to grow the genetically-engineered soybeans, as is typical with new grain traits introduced into the market. Researchers say the oil could start to develop a market by 2010, and could get a ?full break? by 2018.

REFINED VEGETABLE FATS FROM PALM OIL MAY CONTAIN POTENTIAL CARCINOGEN - GERMAN FEDERAL AGENCY

The German Federal Institute for Risk Assessment (BfR), however, says refined vegetable fats derived from palm oil, used for margarine and in infant formulae, may contain glycidol fatty acid esters. BfR has highlighted analytical results from the CVUA (Chemischen und Veterinaruntersuchungsamter) in Stuttgart which suggest that glycidol fatty acid esters are present in refined vegetable fats derived from palm oil. Glycidol in its pure form is a reported human carcinogen, based on results of animal studies, and because refined edible fats are used in products like margarine and infant formulae, it is taking the findings of the CVUA very seriously.

A spokesperson for the BfR, however, said that a lot of questions remain unanswered. These include uncertainty over what levels of glycidol are released from the glycidol fatty acid esters during digestion in humans, adding that it is not clear if glycidol fatty acid esters are metabolized in the same way as glycidol in its pure form. As the exact levels of glycidol fatty acid esters in refined vegetable fats could not reliably be determined until now, BfR has adopted the hypothetical assumption that one kilogram of edible fat contains one milligram of glycidol. Based on this calculation, BfR has concluded that infants who are fed exclusively on industrially prepared infant milk formula would take in harmful levels of glycidol.

VITAMIN B3 MAY REDUCE ACRYLAMIDE FORMATION - STUDY

Research findings published in the Journal Food Chemistry shows that in a model system, both vitamins B3 and B6 in the pyridoxine form were able to inhibit over 70 per cent of the formation of the carcinogen acrylamide in French fries. Xiaohui Zeng, lead author from the University of Hongkong, said the effectiveness of vitamin B3 was eventually corroborated in fried potato strips, thus suggesting its great potential for application in food processing to decrease acrylamide formation. The study potentially adds another option to formulators seeking to reduce the acrylamide content of their fried or baked foods.

Zeng and co-workers tested the effects of 15 vitamins, both water- and fat- soluble, on the formation of acrylamide in a model chemical system containing asparagines and glucose (the precursors for acrylamide), and in a model food system (fried potato strips). Results show, only vitamins B3 (nicotinic acid) and B6 (pyridoxine) inhibited acrylamide by over 70 percent in the chemical model. Researchers said several other water-soluble vitamins, including biotin (vitamin B7), B6 in the pyridoxine form, and vitamin C, also produced acrylamide reduction of over 50 percent. When tested in the model food system, several of the vitamins, including thiamin (B1), B3, B6, biotin and vitamin C, reduced acrylamide formation by 40 percent. The best performance was observed for B3, with a 51 percent inhibition of acrylamide formation in fried potato strips.

Acrylamide is a suspected carcinogen formed by heat-induced reaction between sugar and an amino acid called asparagine. Known as Maillard reaction, the process is responsible for the brown color and tasty flavor of baked, fried, and toasted foods. Although a carcinogen in the laboratory, many epidemiological studies have reported that everyday exposure to acrylamide in food is too low to be of concern.

ADM, CANADIAN BIOENERGY CORP. MAY ERECT BIODIESEL PLANT IN ALBERTA

Vancouver based renewable fuel supplier Canadian Bioenergy Corp. is considering building a biodiesel plant in Lloydminster, Alberta., with major U.S. crop processor Archer Daniels Midland Co. Canadian Bioenergy announced that the plant which will produce 265 million liters of canola-based biodiesel per year, will be located at the site of ADM?s existing canola crushing plant. Chief Executive Doug Hooper however said the cost of the plant has not yet been worked out, but mentioned that the company is planning a stand-alone 225-million-liter-per-year plant near Edmonton at an estimated cost of $90 million.

SOUTH KOREA TARGETS 3% BIODIESEL BLEND IN 2012

The USDA said in a report recently that Korea will require more imported soya oil in 2009/2010 in order to meet the requirements of its growing biofuel sector, while demand for food purpose oil is forecast to remain flat. The South Korean government plans to gradually increase the biodiesel blend ratio from its current level of 1.5% in calendar year 2009 to 3% by calendar year 2012, which will increase demand for biodiesel feedstock, mainly imported soybean oil. Other feedstock used are palm and rapeseed oils. USDA projected that local biodiesel producers would use around 200,000 MT of imported soya oil in the 2009/10 season, up 33% from the previous year.