This month?s UCAP Cocohouse luncheon held last Wednesday, May 21, 2008 was well attended. The event, which was held at the Makati Palace Hotel, was hosted by the Coconut Oil Refiners Association. Senator Juan Miguel Zubiri was guest speaker. Senator Zurbiri, principal author of the Philippine Biofuels Act of 2006, updated UCAP members and guests on the implementation of the Act. Currently, the National Biofuels Board is preparing the Philippine Biofuels Development Masterplan which will serve as roadmap towards energy self-sufficiency.

       It?s final! Ten teams will compete at this year?s bowling tournament which will be held on Wednesdays on June 04-25, 2008 at the SM Bowling Center, SM Megamall, Mandaluyong City, Metro Manila. The tournament is sponsored by Cargill Philippines, CIIF Oil Mills, Intertek Testing Services, Pilipinas Kao, and United Coconut Planters Bank. Trophies will be given out to the top bowlers/teams and winners of special awards.

       Official data from the Philippine Coconut Authority show export of Philippine coconut products in February this year totaled 121,863 MT in copra terms, increasing by a hefty 32.7% February last year figure at 91,800 MT. Gross export receipts at USD104.26 million, however, more than doubled last year at USD49.35 million following substantial increases in volume traded and sharply improved border prices.

       Export of coconut oil leaped 36.4% year-on-year to 59,905 MT from 43,918 MT, copra meal rocketed 308.2% to 61,236 MT from 15,000 MT, oleochemicals shot up 135.6% to 12,007 MT in copra terms from 5,096 MT; while desiccated coconut fell 13.1% to 9,552 MT from 10,990 MT. Other products performed as follows, in MT: coco shell charcoal 1,134 (-18.2% from 1,386), activated carbon 3,115 (+56.2% from 1,994), glycerin 1,374 (+444.2% from 252), fresh coconuts 57 (+67.3% from 34), Others 2,411 (+30.9% from 1,842).

       Export of coconut oil during the month consisted of 48,752 MT crude coconut oil, 10,370 MT cochin (semi-refined or refined, bleached) oil, and 784 MT RBD oil. Europe remained the top destination with 29,940 MT (50% share). The US with 24,268 MT maintained second place (40.5%), and Japan was third with 4,577 MT (7.6%).

       Desiccated coconut was shipped to 35 country destinations of which 19 took in volume no lower than 100 MT. The combined volume of these countries was 8,837 MT or 92.5% of total trade. The US was market leader with uptake of 2,519 MT (26.4%); trailed by six countries which took in substantial volume namely, Belgium 874 MT, Australia 861 MT, Canada 685 MT, Israel 667 MT, United Kingdom 570 MT, and Netherlands 533 MT, the combined share being 44.0%.

       Japan continues to dominate the coco shell products market. In coco shell charcoal, Japan shared the market this month only with China. The former cornered 876 MT and the latter held 257 MT, for respective market shares of 77.3% and 22.7%.

       The entire ASEAN region is looking at the Philippines as a ?test case? in the implementation of biofuels policy. At the recently concluded Bioenergy Forum 2008 in Bangkok, Thailand, all eyes have been set on the Philippines on how its introduction of coco methyl ester (CME) as initial blend to diesel and ethanol as blend to gasoline would eventually fare. The roughly 100 delegates from United Kingdom, Austria, New Zealand, France, United States, Taiwan, India, Thailand, Singapore, Malaysia and Indonesia have in fact regarded the Philippines as ?brave soul? in embracing the biofuels program. While other Asian countries have been unclear with their policies on how to promote their national biofuels policy, the Philippines has been the model for its decisive mandate on the use of coco-biodiesel and fuel-ethanol, through Republic Act 9367, also known as the Biofuels Act of 2006.

       USDA figures reveal U.S. import of lauric oils in March this year totaled 66,589 MT, higher by 10.6% compared to 60,191 MT in the same month year-ago. Of this total, coconut oil accounted for 71% or 47,299 MT (35,402 MT in the prior year) while palm kernel oil contributed the remaining 29% or 19,290 MT (24,789 MT). January-March 2008 total at 176,842 MT slumped by 5.1% from 186,462 MT at the same time last year. Coconut oil was 122,834 MT (110,990 MT) of which 71.5% or 87,795 MT (101,123 MT) came from the Philippines. Palm kernel oil was 54,008MT (75,472 MT) the bulk of which at 85.2% or 46,008 MT (69,973 MT) originated from Malaysia.

       Indonesia will adopt strict criteria to ensure palm oil companies meet stringent standards before being allowed to label their products as environmentally friendly. Desi Kusumadewi, spokesperson for the Roundtable on Sustainable Palm Oil (RSPO) for Indonesia said the group will employ independent surveyors to audit palm oil plantations in order to certify them as ?eco-friendly.? Basically, Indonesia will use the international standards but will personalize the criteria based on its own considerations.

       A senior UN official said that international prices of edible oils are likely to remain at around their current high levels this year despite higher output in key producing countries. Peter Thoenes, an oil crop specialist at the UN?s Food and Agriculture Organization (FAO) noted that for the last two years vegetable oil stocks were down to levels that require a considerable rise on production to boost supplies. Although there has been some replenishment of inventories, this has not been enough. He further explained that high prices of vegetable oils have failed to dampen demand from major importing countries such as China and India.