Newsbrief 21

For week ending May 27, 2010

DESTINATIONS OF COCONUT OIL EXPORT IN FEBRUARY

Export of coconut oil in February consisted of 68,615 MT crude coconut oil, 4,166 MT cochin oil, and 1,797 MT RBD oil. Europe remained the primary destination accounting for 59.3% at 44,251 MT, specifically for Netherlands 34,501 MT and Italy 9,750 MT all of which being crude coconut oil. China was second biggest market, dislodging the US, purchasing solely crude coconut oil at 16,500 MT (22.1% market share). Shipment to the United States at 8,765 MT (11.8%) was made up of 7,500 MT crude coconut oil and 1,265 MT cochin oil.

ther destinations held lower than 5% market share such as Japan 3,652 MT thereof cochin oil 2,901 MT, RBD oil 751 MT; Iran 876 MT thereof 298 MT crude coconut oil, 578 MT RBD oil; Pakistan 221 MT of which 10 MT was crude coconut oil, 211 MT RBD oil. Other countries such as Israel bought 78 MT, Bangladesh 74 MT, Singapore 56 MT, Russia 43 MT, Australia 36 MT, New Zealand 15 MT, and Lebanon 10 MT. All shipments to these countries were RBD oil, with the exception of Singapore which held crude coconut oil.

?OF COPRA MEAL, COPRA

Korea remained the leading market for Philippine copra meal. Of total shipment in February of 70,785 MT, over one-half (51.4%) or 36,395 MT went to Korea. China was this month?s second biggest buyer with 20,395 MT or 28.8%, consigning consistent second placer Vietnam to the third spot with uptake of 13,375 MT (18.9%). Other markets were Taiwan and Singapore with respective volume at 500 MT and 120 MT.

In the case of copra, all export during the month amounting to 22 MT was delivered to Korea.

?DESICCATED COCONUT

Export of desiccated coconut in February at 8,629 MT went to 39 countries. The United States remained the top market with shipment at 2,355 MT representing 27.3% of total. The next four major outlets consisted of Belgium with 826 MT, Netherlands 610 MT, Canada 593 MT and United Kingdom 557 MT and jointly accounted for 30.1%.

Eleven other countries purchased substantial volume ranging 122-457 MT and together comprised 32.1% of the market. They were as follows, in descending order: Russia, Turkey, Australia, France, Brazil, Korea, Germany, Uruguay, Taiwan, Japan and Spain. The remaining 10.5% of total sales was delivered to 23 other countries whose orders were in the range 12-98 MT; aggregate load amounted to 903 MT.

?COCO SHELL PRODUCTS

Asia remained an exclusive market for coco shell charcoal. Shipment in February at 1,621 MT went to five Asian countries led by Japan. The country cornered 45.5% or 738 MT and was trailed by Korea with 458 MT (28.3%), China 261 MT (16.1%), Singapore 84 MT (5.2%), and Taiwan 80 MT (4.9%).

On the other hand, activated carbon had more diverse outlets which counted 20 during the month. Japan likewise was market leader in this field. Of total export of 2,388 MT in February, Japan was responsible for 463 MT (19.4%), followed by the United States with 374 MT (15.7%), Ghana with 286 MT (12.0%), Indonesia 193 MT (8.1%), Russia 187 MT (7.8%), Korea 161 MT (6.7%) and Belgium 100 MT (4.2%). Thirteen other countries shared the remaining 625 MT (26.1%), each of which took in tonnage ranging 10-93 MT.

PHILIPPINE TECHNOLOGY TRANSFER LAW ENACTED

Republic Act 10055 or the Philippine Technology Transfer Act of 2009 seeks to roll out mature and potentially important technologies generated by government-funded researches to the market. President Gloria Macapagal-Arroyo signed last March 23, 2010 the republic act, otherwise known as ?An Act Providing the Framework and Support System for the Ownership, Management, Use, and Commercialization of Intellectual Property Generated from Research and Development Funded by Government and for Other Purposes?. The new law is expected to serve as the blueprint for a nationally coordinated technology transfer framework of government-funded researches.

A key provision in the law grants incentives to researchers by according them a share in the royalties as well as allowing them to start up their own companies. The law was a brainchild of Department of Science and Technology (DOST) Secretary Estrella F. Albastro, having recognized the need for a national backbone and framework that would push technology generation and application to its maximum potential through efficient and coordinated transfer capability and intellectual property assertions around the country, similar to the Bayh-Dole Act in the US. DOST and the Intellectual Property Office are preparing the basis for the Act?s implementing rules and regulation.

COCONUT WATER FEATURED IN TIME MAGAZINE ONLINE

Entitled ?Coconut Water: Nature?s Sweet, Low-Cal Hangover Relief?, the article was written by Charlie Duerr who, in describing his encounter with the product said ?its most important attribute, at least among barflies, is that it is an excellent rehydrater?. Find the article at: http://www.time.com/time/magazine/article/0,9171,1990805,00.html.

Long a dietary staple in the tropics, coconut water has recently caught on among athletes, health nuts and bleary-eyed urbanites in the U.S., where sales topped $50 million last year. Coca-Cola and Pepsi have bought into two of the top three brands, Zico and O.N.E. The third, VitaCoco, counts Madonna among its big-name investors.

SRI LANKAN EXPORT OF DESICCATED COCONUT DOWN IN FEBRUARY

Figures from Sri Lanka?s Coconut Development Authority show the country?s export of desiccated coconut sharply dropped in February this year by 60.5% to 2,969 MT from 1,173 MT in February of the prior year. The shipment was worth USD1.697 million. Average traded price during the month was USD1,446.92/MT FOB, up by 13% from USD1,280.47 MT year-ago. Cumulative January-February figure at 2,488 MT contracted from a comparable last year period total at 6,668 MT by 62.7%.

Export in February went to 20 countries. The top four importers held volumes above 100 MT and collectively accounted for 62.9% of total trade. Leading the pack was UAE/Dubai with 418 MT and market share of 35.6%, followed far behind by France with 110 MT (9.4%), Saudi Arabia 106 MT (9.0%) and Iran 104 MT (8.9%). The remaining 16 other countries with combined share of 37.1% bought volume ranging 1-64 MT.

COMBINED EXPORT OF WORLD?S TOP DESICCATORS DOWN IN FEBRUARY

According to collated country data from the Philippine Coconut Authority and Sri Lanka?s Coconut Development Authority, combined export of desiccated coconut from the Philippines and Sri Lanka, the world?s major desiccated coconut producers, dropped sharply in February by 27.1% to 9,802 MT from 13,448 MT in a similar month last year as both countries scaled back shipments.

Export from the Philippines, which accounted for 88% of combined volume, declined 17.6% to 8,629 MT from 10,479 MT while shipment from Sri Lanka at 1,173 MT was nearly one-half of last year total at 2,969 MT (-60.5%). Computed average traded price of Philippine desiccated coconut was USD1,165.31/MT FOB (USD1,423.51/MT last year) as against Sri Lankan product at $1,446.92/MT FOB (USD1,280.47/MT).

The cumulative figure for January-February this year at 19,020 MT was down by 33% from 28,376 MT in the same period year-ago. Export from the Philippines at 16,532 MT was 23.8% short from 21,708 MT in the same period year-ago, while Sri Lanka saw shipments slashed by 62.7% from 6,668 MT to 2,488 MT. In terms of market share, however, the Philippines was responsible for 86.9% and Sri Lanka 13.1%.

FOOD SAFETY TRAINING FACILITY TO BE ESTABLISHED IN UNIVERSITY OF MARYLAND

The University of Maryland and Waters Corporation announced this week they have partnered to open a facility in Maryland to train foreign food manufacturers and scientists in methods of analysis to help them meet US food safety standards. The International Food Safety Training Laboratory (IFTSL) is set to open next year and will be run by the Joint Institute for Food Safety and Applied Nutrition (JIFSAN), a new collaboration between the University of Maryland and the US Food and Drug Administration (FDA).

Imports accounts for about 15 percent of the total US food supply and are valued at USD80 billion. Sources are 150 countries worldwide. According to the Government Accountability Office, there are about 189,000 registered foreign sites where food is made for sale in the United States, but the FDA only inspects a tiny fraction of them and just 153 in 2008. The IFTSL, located at the University of Maryland, College Park, will provide year-round science-based, hands-on training that supports the FDA?s food safety goals. JIFSAN said that in addition to training foreign and US scientists in best food safety practices, it would also support the APEC (Asia-Pacific Economic Cooperation) forum?s goal to establish laboratory capacity building measures for the 22 member countries.

WILMAR PLANS ADDITIONAL INVESTMENT IN CHINA

Kuok Khoon Hong, chairman and chief executive at Wilmar, the world?s leading palm oil trader by volume, disclosed plans to invest in China between $400 million and $500 million this year, mainly in the food business, noting the company?s growing business in the country. More than half of the company?s revenue comes from China. Mr. Kuok said the company did ?reasonably well?, adding: ?While the global economic recovery is gaining momentum, credit tightening in some countries to restrain inflation has started. Nevertheless, the group is positive on the prospects of Asian economies, especially China, India and Indonesia, and will continue to leverage on its well-established presence in these markets for growth.?

In its recent quarter ending March, Wilmar saw a 5.6% rise in net profit to $498.9 million, while revenue soared 36.4% to $6.764 billion. Sales volume grew due to stronger demand and further expansion in its manufacturing presence and distribution network in major consuming markets. Palm and lauric oils saw a 29% rise in sales volumes to 5 million tons but pre-tax profit fell 30% to $150.9 million as palm oil became less competitive versus rival oils, whereas oilseeds and grains sold 12% more by volume at 4 million tons to turn in 8% higher profit at $182 million.