For week ending June 03, 2010

Philippine Export of Coco Products Up Sharply in April
Destinations of Coco Oil, Copra Meal Exports in April
Performance of RP Top Non-Traditional Coco Exports in February
CIIF-Oil Mills Group Netted P79-Million in 2009
Pakistan, Indonesia to Ink Agreement on Palm Oil
E.Coli can Convert Glycerin into Biofuel

PHILIPPINE EXPORT OF COCO PRODUCTS UP SHARPLY IN APRIL

        Preliminary UCAP data show coconut products export in April this year more than tripled year-ago figure. Total at 231,978 MT in copra terms exhibited an exponential growth of 250.4% year-on-year from 66,201 MT. However, volume slightly declined by 2.8% from the unofficial March data at 238,585 MT.

       Export of coconut oil leapfrogged by 300.6% to 128,510 MT from merely 32,080 MT last year helped by improved demand from consumers abroad and lower coconut oil price compared to palm kernel oil. Copra meal export shot up by 54.5% to 54,808 MT from 35,474 MT. Export of desiccated coconut rose slightly by 2.1% to 9,607 MT from 9,414 MT last year. Foreign trade of desiccated coconut has seen continuously increasing volume since January this year. Estimated oleochemical export at 13,141 MT in copra terms rose by more than 17-fold when compared with last year at 726 MT.

       January-April export this year at 853,015 MT in copra terms clipped last year data at 289,725 MT by a massive194.4%. Breakdown is as follows, in MT: coconut oil 481,518 (137,474 year-ago), copra meal 279,186 (68,507), desiccated coconut 35,248 (41,320), oleochemicals in copra terms 34,159 (7,629), copra 46 (nil).

DESTINATIONS OF COCO OIL, COPRA MEAL EXPORTS IN APRIL

       Based on UCAP preliminary data, of the total coconut oil export in April of 128,510 MT, nearly one-half (48.8%) or 62,710 MT was delivered to the European market while the United States was responsible for more than a third (35.1%) or 45,080 MT. China?s uptake at 15,920 MT (12.4% share) landed the country in the third spot. Other markets were Malaysia with 2,550 MT and Japan with 2,250 MT for respective market share of 2.0% and 1.8%.;

       n copra meal, China took over market leadership in April as it jumped past consistent top two importers Korea and Vietnam. Of total shipment during the month of 54,808 MT, China handled more than one-third (38.5%) or 21,095 MT. Korean purchases at 18,370 MT represented a third (33.5%) and delivery to Vietnam at 12,343 MT comprised nearly a quarter (22.5%). Considered as newest copra meal buyer, India took in 3,000 MT to account for 5.5% of total trade.

PERFORMANCE OF RP TOP NON-TRADITIONAL COCO EXPORTS IN FEBRUARY

       Based on Philippine Coconut Authority data, there were 10 non-traditional coconut export products that generated over USD100,000 in February this year and thus included in the top non-traditional exports category. GLYCERIN continued to lead the pack with earnings of USD1.500 million from export of 1,913 MT. The volume doubled same month last year shipment of 957 MT. Top destination was Japan with 1,251 MT (65.4% share), followed far behind by China with 446 MT (23.3%). Ten other countries shared the remaining volume of 216 MT or 11.3%.

       TOILET/BATH SOAP landed in second place with export receipts of USD602,353 from sales of 290 MT. This month?s volume was almost triple (+199%) same time last year total at 97 MT. Thailand was top buyer at 103 MT or 35.5% of total sales, tracked by Vietnam at 88 MT (30.3%), United Arab Emirates at 34 MT (11.7%), Malaysia 21 MT (7.2%), and Saudi Arabia 13 MT (4.5%). Nineteen other countries shared the remaining volume of 31 MT or 10.8%.

       VIRGIN COCONUT OIL bagged the third spot with income of USD562,398 from 219 MT delivery. Current month volume shot up by 135.5% from previous year at 93 MT. United States took the bulk of the export with 74 MT (33.7%), trailed closely by Australia at 73 MT or 33.3%, Canada with 52 MT (23.7%). Other destinations were Belgium (10 MT), Malaysia (6 MT), and Others market category which comprised of five various countries that imported a total of 4 MT.

       COCONUT MILK POWDER came in fourth with gross receipts of USD418,664 from turnover of 227 MT. Volume presently shrank substantially by 22.3% from 292 MT in a similar month year-ago. Israel was top buyer at 87 MT or 38.2% of total sales, followed by Belgium at 25 MT (11.2%), Malaysia at 24 MT (10.6%), United States at 18 MT (7.8%), Taiwan at 15 MT (6.8%), United Arab Emirates and United Kingdom at 14 MT apiece while Japan and Mexico similarly at 13 MT apiece. Three other countries shared the remaining volume of 3 MT or 1.4%.

       SHAMPOO ranked number five with proceeds of USD299,704 from trade of 56 MT. Tonnage during the month was a hefty climb by 86.7% from a similar month year-ago at 30 MT. Taiwan was primary market with 24 MT (43.0%), tracked by Malaysia at 13 MT (22.7%), Thailand and United Arab Emirates at 5 MT a piece. Thirteen other countries contributed the remaining volume of 8 MT or 10.7%.

       NATA DE COCO was the sixth top export and earned USD273,184. The month?s volume at 172 MT was 41.3% lower compared to the previous year at 293 MT. Japan remained the biggest buyer at 58 MT comprising 34.0% of total sales. Limited volume went to Dominican Republic at 26 MT (15.2%), United States at 19 MT (10.9%), Canada at 17 MT (9.8%), Hongkong 11 MT (6.6%) and United Arab Emirates at 9 MT (5.2%). Seventeen other countries bought the remaining volume of 32 MT.

       LIQUID COCONUT MILK was number seven with volume at 143 MT valued at USD225,787. Current month load rose by 110.3% from similar month year-ago at 68 MT. United States was the market leader with 63 MT (43.8%), trailed by Japan at 37 MT (25.6%), Brazil at 25 MT (17.5%) and Belgium 18 MT (12.6%).

       ALKANOMIDE occupied the eighth place and generated income of USD196,256. Volume at 139 MT plunged by 9.1% from 153 MT of the previous year. There were five country destinations led by Thailand at 91 MT or 65.1% and followed by Turkey at 16 MT, Pakistan at 15 MT, Korea at 13 MT and Vietnam 4 MT, with respective shares of 11.5%, 10.9%, 9.6% and 2.9%.

       MAKAPUNO which turned in USD139,386 from export of 70 MT (41 MT year-ago) filled in the ninth place. Major buyers were Canada with 17 MT (24.3%), followed by United States at 12 MT (17.3%), Saudi Arabia at 10 MT (13.9%); Australia, Netherlands and United Arab Emirates at 6 MT apiece, with a combined share of 25.9%. The remaining 12 other countries shared 13 MT or 18.7%.

       Rounding up the top ten non-traditional exports was COCO PEAT/DUST contributing USD129,526 from 367 MT shipment. This month?s volume was 18.4% higher from 310 MT at the same time last year. A big chunk of shipment went to Taiwan at 179 MT (48.9%). Other markets were United States at 50 MT, Korea at 44 MT, Japan at 37 MT, Singapore at 36 MT and Canada at 20 MT which collectively shared 51.1%.

CIIF-OIL MILLS GROUP NETTED P79-MILLION IN 2009

       The CIIF-Oil Mills Group (CIIF-OMG) recorded a P79-million net profit in 2009, a sharp turnaround from prior year. The feat was credited to the management team headed by CIIF-OMG President and CEO Jesus Lim Arranza. The CIIF-OMG consisted of: Legaspi Oil Company, San Pablo Manufacturing Corp., Cagayan de Oro Oil Co., Inc., Southern Luzon Coconut Oil Mill, Inc., and Granexport Manufacturing Corp. The Group actually posted a remarkable P228-million profit last year. However, it had to pay P149 million in interest to banks as it was forced to borrow P2 billion for operating capital pending the release of its accruing CIIF dividends from its San Miguel Corporation shares.

       Mr. Arranza, who has been in the coconut oil industry since the early 80?s and made Baguio Oil and later Minola the top brands in the market, was asked by President Arroyo to head CIIF-OMG early last year and fix its operational problems. He assembled the management team composed of lawyer Jun Nario, vice president for corporate services; Anthony Felipe, vice president for Finance; Henry T. Lao, vice president trading and operations; lawyer Dodie Aguila, vice president for agribusiness and special projects, and Mamerto Bernardo, national sales manger handling Minola and Mitra cooking oil.

PAKISTAN, INDONESIA TO INK AGREEMENT ON PALM OIL

       Indonesia and Pakistan are to forge an agreement on palm oil soon, perhaps in a month or two according to Nasir Ibrahim, a senior member of the Pakistan Vanaspati Manufacturers? Association. The agreement would cut duty on Pakistani palm oil imports from Indonesia to around 5% from the present rate of 15%. The duty on Malaysian palm oil is zero. The 15% spread between duties of palm oil imports from Malaysia and Indonesia has kept Indonesia out of the Pakistani market. The agreement, once signed, will allow Indonesia to compete again with Malaysia and increase its market share in Pakistan. However, Malaysia will still have an edge with Indonesian palm oil to be levied 5% duty against zero duty on Malaysian palm oil.

E. COLI CAN CONVERT GLYCERIN INTO BIOFUEL

       A team of researchers headed by Dr. Ramon Gonzales at Rice University in Houston identified the metabolic processes and conditions that allow a known strain of E. coli to convert glycerin into ethanol. Glycerin is the major byproduct of biodiesel production. Dr. Gonzalez says scientists previously believed that the only organisms that could ferment glycerol were those capable of producing a chemical called 1,3 propanediol, also known as 1,3 PDO. But neither the bacterium E. coli nor the yeast Saccharomyces - the two workhorse organisms of biotechnology - were able to produce 1,3 PDO

       The Rice researchers, however, discovered pathways and mechanisms that mediate glycerol fermentation in E. coli. That enabled their efforts to develop new technologies for converting glycerol into high-value chemicals. In essence, they designed strains of E. coli that could produce a range of products from biodiesels, ethanol, hydrogen and organic acids. Dr. Gonzalez?s team created a new version of the bacterium that produces up to 100 times more succinate, a high-demand chemical feedstock that is used to make everything from noncorrosive airport deicers and nontoxic solvents to plastics, drugs and food additives. Most succinate today comes from nonrenewable fossil fuels. These technologies are being licensed commercially so they can be brought to market.

       Dr. Gonzalez, William W. Akers Assistant Professor in the Departments of Chemical and Biomolecular Engineering and Bioengineering at Rice University in Houston, was bestowed the 2010 Glycerin Innovation Award during the Annual Meeting & Expo of the American Oil Chemists? Society (AOCS) for his work. The Award, sponsored by the Soap and Detergent Association and the National Biodiesel Board, recognizes outstanding achievement for research into new applications for glycerin, with particular emphasis on commercial viability.