For week ending June 18, 2009

       Total export for the first quarter of the year stood at 223,525 MT in copra terms, a precipitous drop by 51.2% from 458,339 MT at the same time last year. Breakdown is as follows: coconut oil 105,394 (247,145 last year), copra meal 33,033 (149,813), desiccated coconut 31,907 (25,347), oleochemical as copra 6,903 (26,858); coco shell charcoal 7,703 (4,041), activated carbon 5,652 (6,728), glycerin 3,847 (5,202), fresh coconuts 415 (312), Others 7,935 (7,013).

       Europe was leading importer of crude coconut oil (20,376 MT), mainly Netherlands 10,500 MT, Italy 6,250 MT, Spain 3,600 MT, and France 26 MT. The US took in only 4,151 MT, Singapore 51 MT and India 20 MT. Major buyers of cochin oil were US with 16,266 MT and Japan 1,950 MT. Other destinations were Malaysia 500 MT, China 125 MT and Hongkong 15 MT. Market for RBD oil was most diverse although most volumes were quite limited. Leading the pack was China 414 MT, Iran 391 MT, Taiwan 134 MT, Egypt 53 MT, Pakistan 37 MT, Europe 23 MT mainly Romania 21 MT and Netherlands 2 MT, Australia 26 MT, Russia 22 MT, Israel 21 MT, Bangladesh 19 MT, United Arab Emirates 15 MT, Venezuela 10 MT.

       Japan was primary market for copra meal in March with purchases of 4,000 MT (53.4%). This is the second time this year where consistent top buyer Korea was out of the market. However, Vietnam continued to remain in the second spot with uptake of 2,400 MT (32.0%), trailed by Taiwan with 980 MT (13.1%). Other markets were China 95 MT and US 17 MT which jointly accounted for 1.5%.

       There were 42 outlets for desiccated coconut in March with US still the market leader at 2,490 MT representing 24.4% of total sales. The next set of big buyers namely, Australia 932 MT, Netherlands 900 MT, United Kingdom 657 MT, and Canada 522 MT had a combined market share of 29.4%. Other significant importers took in volume ranging 102-495 MT and together comprised 37.5%. They were as follows, in descending order: Belgium, Taiwan, Japan, Brazil, Russia, Germany, Egypt, Korea, France, Turkey, Hongkong, China, Denmark, and Chile. Twenty-three other countries held tonnage ranging 2-93 MT for a total of 891 MT collectively contributing 8.7% to total turnover.

       Shipment of activated carbon in the same month went to 18 countries led by Japan with 271 MT (17.9%). Five other major buyers consisted of Singapore 191 MT (12.6%), US 163 MT (10.8%), Korea 136 MT (9.0%), South Africa 132 MT (8.7%), and China 115 MT (7.6%). The remaining 12 countries accounted for a third (33.3%) of total sales or 503 MT with each taking in between 10 MT and 88 MT.

       Seven were recipients of special awards: First 4 Consecutive Strikes (male) - Marc Matias, UCPB; First 4 Consecutive Spares (female) - Bin Zabala, Ducom; First 5 Consecutive Spares (male) - Domeng Veloria, Chemrez; First Split Conversion (M & F) - John Valencia, Ducom and Alma Valdez, Sakamoto; Club 200 (male) - Marc Matias UCPB with score of 231, Ton Carabeo, UCPB with 215.

       Alvin Lao, Chemrez chief finance officer, said the company remains the local market leader in biodiesel. Chemrez?s other products are resins, colorants and specialty chemicals which are either number one or a strong number two in their respective markets. He said the company would continue to build on its coco-methyl ester (biodiesel) export markets by developing new product applications. The company?s oleochemical products include glycerin and other methyl ester derivatives, which are used mainly as surfactants, or foaming agents, for soaps and detergents which are mainly sold in the export market.

       Indian edible oil buying may have to slow down as reserves have sharply increased due to prior month?s strong buying activity. Govindlal Patel, director of Dipak Enterprise, estimated that Indian edible oil reserves may have risen appreciably by 55% to 1.7 million MT during the seven-month period ending May. This volume, he said, already exceeded normal level of 1.1 million MT. He added that lower Indian purchases may keep a lid on the recent rally in crude palm oil futures in Malaysia. ?India will have to reduce the pace of imports as offtake has slowed in the local market,? Mr. Batel told Bloomberg. ?The rush to buy large quantities of crude palm oil has slowed?.

       Raisio?s CEO Matti Rihko said: ?The deal is an important step for Raisio towards focusing on grain-based business. The price is also very good. The transaction will bring Raisio a new, significant Benecol partner, who is looking to develop Benecol and functional foods.? The Benecol ingredient, which makes up a separate division for Raisio and is a strong driver for the group as a whole, is understood not be included in the sale. Raisio will continue selling margarine in Finland, Sweden and Estonia in a partnership carved out under the agreement.

       India?s Department of Health Secretary V K Subburaj said the department will study the levels of trans fat in edible oils in an attempt to standardize levels as was done in Denmark. Quoting laboratory tests conducted by the Delhi-based Centre for Science and Environment (CSE) on various vanaspati brands, vegetable oil, ghee and butter sold in Indian markets, the Secretary said trans fat levels were several times higher in the country compared to the recommended standards worldwide. He added that edible oil supplied at ration shops also have trans fat as high as 50%, as against the recommended maximum of 2% of the total oil.

       Reports from Australia say the country?s olive oil industry together with the US olive oil sector is to develop a new set of international olive oil standards. Dr. Rodney Mailer, from the Australian Oils Research Laboratory, says the European International Olive Council?s standards are too restrictive and treat unique aspects of Australian oils as negative traits. He explained that one of the sterols in olive oil, campesterol, is a little bit higher in Australian oils but that does not mean there is anything wrong with the oil. Australian producers have some trouble trying to export to Europe because of these standards.

       Cargill announced it will launch Clear Valley ? low saturate canola oil, a high stability canola oil with 4 to 4.5 percent saturated fat. The company claims it has 25 percent less saturated fat than conventional canola oil and the lowest amount of saturated fat of any vegetable oil offered to food manufacturers to date. It will be available for customer testing in early 2010. With 4-4.5 percent saturated fat, Clear Valley ? low saturate canola oil may allow food manufacturers to differentiate their brand with nutrient content claims such as low in saturated fat, reduced saturated fat or saturated fat free. Primary market research demonstrates that market share gains are possible if companies promote reduced saturated fat as a front of box claim.

       The northern and eastern parts of the country are renowned for oil seed growing. Bhargava said the firm would buy the seeds in the project area where there is high production of oilseeds. He said this project was in line with the Government?s policy to transform agriculture from subsistence to commercial farming under the Plan for Modernization of Agriculture. The project is a partnership between three businessmen, Tarsem Chand Aggarwal, Arvind Mittal and Atul Mittal. The trio has petroleum and edible business interests in Arusha and Dar es Salam.