Preliminary UCAP data show Philippine export of coconut products in May rose 5.9% year-on-year, reversing 10 months of consecutive decline. Total stood at 100,889 MT in copra terms as against May last year data at 95,271 MT. The volume likewise soared 44.8% from prior month total estimated at 69,655 MT. Excluding revenues from oleochemicals, this month?s export was worth USD44.339 million, a massive drop by 47.1% from last year at USD83.839 million, mainly on sharply reduced traded prices.

       Coconut oil exclusively accounted for the rise in aggregate export volume during the month as total shipment leaped 15.7% to 53,387 MT from 46,132 MT at the same year-ago. Other products under review reflected double-digit deficit. Outbound copra meal plummeted 34.8% to 26,326 MT from 40,358 MT, desiccated coconut slumped 29.0% to 7,396 MT from 10,424 MT, and oleochemicals tumbled 20.5% to 4,713 MT from 5,929 MT.

       Export of coconut oil in May went largely to Europe. Total at 36,662 MT accounted for over two-thirds (68.7%) of total lifting. The United States was responsible for 7,500 MT (14.0% share) while buyers from Asia namely, Japan 3,725 MT, China 3,000 MT, and Korea 2,500 MT together contributed 17.3%.

       After the second playoff last Thursday, June 18, 2009, the top three teams fortified their hold on their ranking: United Coconut Planters Bank (UCPB), Chemrez Technologies, and Inter-Asia Marine Transport. Moving up to fourth place was CIIF Oil Mills, trailed by Transeaboard-Raco, Dumaguete Coconut Mills (Ducom), Sakamoto Orient Chemicals, Intertek Testing Services Phils., UCAP Secretariat., Mixed Nuts (EU Sons Trading, Iligan Bay Milling and Trading, Mitsubishi Living Essentials, Pacific Royal Basic Foods).

       There were seven non-traditional coconut export products that qualified to the top exports list, that is with export revenue of at least USD100,000 during the month. GLYCERIN was top performer with foreign exchange receipts exceeding the USD2.0 million-mark at USD2.034 million from shipment of 2,397 MT. The volume increased by 8.8% from 2,204 MT at the same time last year. Top destination was Japan with 1,223 MT (51.0% share), followed by China with 954 MT (39.8% share). Limited tonnages went to Korea 67 MT, Spain 43 MT, Russia 40 MT, Malaysia 27 MT, Denmark 23 MT and Australia 20 MT, for a combined share of 9.2%.

       VIRGIN COCONUT OIL landed in second place with export receipts of USD566,887 from 206 MT sales. Current month volume shot up by 183.5% from the previous year figure at 73 MT. The United States was the top outlet with 145 MT (70.6%). Distance behind was Canada with 53 MT (25.6%). Other markets comprising of Australia, Finland, Indonesia, Hawaii and five other countries took in limited amounts aggregating 9 MT.

       COCONUT MILK POWDER took the third spot with income of USD497,956 from 170 MT delivery. Volume loaded during the month rose by a whopping 527.3% from a similar month year-ago at 27 MT. Malaysia was major buyer cornering 51 MT (29.9%), trailed by United States 50 MT (29.6%). The next four countries namely Japan 26 MT, China 18 MT, Canada 13 MT and Taiwan 12 MT jointly shared 40.5%.

       TOILET/BATH SOAP came in fourth with earnings of USD459,969. Volume at 106 MT plunged substantially by 14.9% from 124 MT of the previous year. United Arab Emirates was almost an exclusive buyer with purchases representing 70.2% or 74 MT. Smaller volumes went to Malaysia at 5 MT, while Indonesia, Nigeria, United Kingdom and Singapore took in 3 MT apiece and Australia, Guam, Trust Territory of the Pacific and Bahrain held 2 MT apiece. Nine other countries jointly contributed 7 MT.

       NATA DE COCO ranked number five with revenue of USD370,444. Traded volume at 364 leaped by 5.1% from similar period year-ago data at 347 MT. Japan remained the leading buyer at 302 MT comprising 82.8% of total sales. Limited volume went to United States at 23 MT and Canada at 10 MT, and 24 other countries led by Guam with uptake no higher than 3 MT and totaling 28 MT.

       SHAMPOO was the sixth top non-traditional export which turned in USD332,098 from the delivery of 130 MT. The quantity was a sharp rise by 39.2% from 93 MT year-ago. There were 24 country destinations topped by Singapore which captured 82 MT or 63.6%, followed far behind by United Arab Emirates at 23 MT (17.6%) and Mongolia at 9 MT (6.8%). Twenty-one other countries led by United Kingdom and Guam bought no bigger than 3 MT with combined volume of 17 MT.

       CIIF Oil Mills Group, the largest oil miller in the country, is considering producing biodiesel as it explores higher-value uses for coconut oil. CIIF President and CEO Danilo M. Coronacion explained the company already has the feedstock as part of its supply chain and an integrated set up, hence it could conveniently go into biodiesel production without needing much capital and adjustment. The group has oil milling and refinery facilities and an oleochemical plant which is Cocochem (United Coconut Chemicals Inc.), although it is not directly under CIIF, which can be retrofitted to produce biodiesel. CIIF is already involved in biodiesel indirectly by supplying the feedstock to biodiesel producers.

       Unilever?s Chief Executive Officer Paul Polman has re-stated the importance of the Roundtable on Sustainable Palm Oil (RSPO) as a crucial measure in reducing deforestation. Polman, co-founder of RSPO in 2004 along with WWF, drew attention to the issue at the World Business Summit on Climate Change in Copenhagen, as part of a broader speech which called for governments to support a moratorium on deforestation as a crucial measure to tackle climate change. He specifically focused on the production of palm oil as one of the main drivers of deforestation in South East Asia, particularly Indonesia.

       At the recently concluded FO Licht World Biofuels 2009 conference in Seville, Spain last month, USDA Foreign Agricultural Service Director of Global Trade and Biofuels Analysis, Michael Dwyer, said the economics of the US biodiesel industry have become extremely negative particularly since the imposition of preliminary anti-dumping measures in March by the EU. After the sharp expansion in production capacity to 2.7 billion gallons, current US utilization is just 30%, half of which are exported to the EU. Although soya oil has traditionally accounted for the lion?s share of biodiesel feedstock, its market share has fallen to roughly 50% as producers seek out lower priced feedstock, such as tallow, yellow grease and recycled vegetable oils.

       In the short-term both 2009 and next year will remain difficult for US producers following the imposition of anti-dumping and countervailing duties by the EU, equal to 30% to 55% ad valorem equivalent against recent US export prices. ?Even with the increased consumption envisaged under the revised Renewable Fuel Standard (RFS2), the domestic market cannot replace the expected losses to European markets. If these duties are made permanent in July, as expected, this will mean that more small independent players will go to the wall,? Dr. Dwyer predicted.