For week ending Jun 26, 2008

7th Annual UCAP Bowling Tournament Results
Cocohouse Luncheon a Success
Performance of Top Non-Traditional Coco Products Exports in March
Philippine Import of Vegoils Down in January
Indonesia: Leading Vegoils Supplier to RP
Philippine Coco Oil Refiners to Import Palm Oil
Chinese Import of Lauric Oils Down in April
Malaysia Acts to Regain Palm Oil Foothold in India
Global Biodiesel Production Sustains Growth
Czech Biofuels Program Moving Forward

7TH ANNUAL UCAP BOWLING TOURNAMENT RESULTS

       The United Coconut Planter Bank (UCPB) team successfully defended its crown and bagged its 7th championship win in the tournament that ended last night, June 25. First runner up was the team of Inter-Asia Marine Transport, with team Minola (CIIF Oil Mills) and team Pilipinas Kao as second and third runner up, respectively. Following the top four are Cargill Philippines, Transeaboard-Raco, Mixed Nuts (EU Sons, Iligan Bay Milling and Trading, Mitsubishi Living Essentials, Pacific Royal Basic Foods), Sakamoto Orient Chemicals, Dumaguete Coconut Mills, Intertek Testing Services Philippines.

       Six men bowlers made up the Club 200 (minimum score of 200) namely Ton Carabeo (UCPB, highest score 246), Joven Plan (Cargill, 222), Ric Cruz (Cargill, 210), Rey Doronila (Mixe Nuts ? Pacific Royal, 208), Marc Matias (UCPB, 203), Adrian Tabora (UCPB, 200); while five lady bowlers comprised the Club 175 (minimum score of 175) as follows, Annie Macato (Inter-Asia Marine, 225), Choy Asong (UCPB 209), Joji Milan (Sakamoto, 195), Angie Pacumberto (Minola, 178), Evelyn Lagamon (Transeaboard-Raco, 176). Choy Asong and Ton Carabeo also won the High Series category, and Annie Macato and Ton Carabeo the High Game and High Average categories.

       UCAP thanks the sponsors: Cargill Philippines, CIIF Oil Mills, Intertek Testing Services, Pilipinas Kao, and United Coconut Planters Bank as well as the players for the successful tournament. The tournament results and photos can be viewed at the UCAP website at www.ucap.org.ph.

COCOHOUSE LUNCHEON A SUCCESS

       The Cocohouse luncheon held last Tuesday, June 24 at the Kava Bar and Restaurant was another well attended affair. The Philippine Oleochemical Manufacturers Association (POMA) which hosted the event made sure their members were around, including the prospective members. The guest speaker, Dr. Jaime Z. Galvez-Tan, made an excellent presentation on how to stay Happy, Healthy and Wealthy. He also challenged the stakeholders of the coconut industry to increase and expand investments in research and development and create the Filipino global brand of The Coconut.

PERFORMANCE OF TOP NON-TRADITIONAL COCO PRODUCTS EXPORTS IN MARCH

       Data from the Philippine Coconut Authority show eight non-traditional coconut products made it to the top non-traditional exports list, products that generated during the month at least USD100,000. These were: glycerin, toilet/bath soap, nata de coco, shampoo, alkanomide, makapuno, virgin coconut oil and coco peat/dust.

       GLYCERIN was the leading non-traditional export with revenue of USD3.080 million from export of 2,204 MT. The volume rocketed by 126.4% from same month last year shipment of 973 MT. Top destination was Japan capturing 1,514 MT (68.7% share). Limited volume went to Korea 234 MT, China 120 MT, Australia 113 MT and United States 100 MT with combined share of 25.6%. The balance of 122 MT (5.5%) went to 5 other countries.

       TOILET/BATH SOAP was the second biggest export with revenue of USD422,909 from 124 MT sales. Current volume substantially rose by 39.7% from prior year total at 89 MT. There were 22 country recipients of this product with Australia leading the pack at 50 MT (40.4%), followed by U.A.E at 25 MT (19.8%), Guinea 15 MT (12.0%). Export to Indonesia 7 MT, Japan 6 MT and Saudi Arabia 4 MT collectively shared 13.8%. Sixteen other countries jointly accounted for the remaining 17 MT or 13.9%.

       NATA DE COCO took the third spot with income of USD404,971. The month?s volume at 347 MT was 2.8% short of the previous year at 357 MT. Japan remained the biggest buyer at 254 MT or 73.3% of total sales. Limited volume went to USA at 44 MT and Canada at 15 MT, and 13 other countries led by Qatar with uptake no higher than 7 MT.

       SHAMPOO came in fourth place and generated income of USD305,041 from 93 MT export. Volume, however, slumped by 59.4% from the same period year-ago at 229 MT. Taiwan was the biggest destination cornering 48 MT or 51.6% of total market, tracked by Thailand at 15 MT (16.6%) and Fiji 11 MT (11.4%), while 17 other countries led by UAE took in much lesser volume no bigger than 5 MT.

       ALKANOMIDE ranked number five which earned USD272,477 from purchases of 142 MT. Tonnage during the month rose by a hefty 142.9% from a similar month year-ago at 58 MT. Almost all shipments representing 88.9% went to China with 126 MT. Other destinations were Vietnam 13 MT (8.8%) and Thailand 3 MT (2.3%).

       MAKAPUNO was the sixth top export and earned USD197,603 from delivery of 106 MT. The volume was 36.9% higher against the previous year at 77 MT. The United States was leading buyer capturing 48 MT or 45.4% of total business while Canada handled 13 MT or 12.2%. Limited volume went to Qatar at 8 MT, Italy and United Kingdom at 5 MT apiece and Saudi Arabia 4 MT. Twelve other countries shared the remaining volume of 20 MT or 5.8%.

       VIRGIN COCONUT OIL landed in seventh place with gross export receipts of USD196,227 from 73 MT export. Total delivery during the month cut prior year data at 131 MT by 44.8%. The United States was the biggest outlet cornering 53 MT or 73.5% of total market. Limited amounts went to Taiwan at 10 MT, Malaysia at 6 MT, and six other countries led by South Africa which took in no bigger than 2 MT.

       Completing the top eight non-traditional exports was COCO PEAT/DUST which earned USD128,218 from shipment of 649 MT (598 MT same period-year-ago). Korea was the top destination capturing 352 MT (54.3%); trailed by Taiwan at 255 MT (39.2%). Smaller volumes went to China 29 MT and Japan at 13 MT.

PHILIPPINE IMPORT OF VEGOILS DOWN IN JANUARY

       Figures from the National Statistics Office show the Philippine imported 2,141 MT of vegetable oils in January this year. This is less than one-half of imported volume in January last year at 5,210 MT, a deficit of 53.6%. The decline was largely on account of soybean oil which shrank by a massive 98.4% year-on-year to 47 MT from 2,918 MT.

       Palm oil remained the top import with total during the month recovering sharply by 57.5% to 1,528 MT from 970 MT in prior year to account for 63.1% of aggregate uptake. Purchases came mainly from Indonesia amounting to 1,479 MT. Significant volume of rapeseed oil, sunflower oil and palm kernel oil were imported as well respectively at 345 MT, 233 MT, and 120 MT. Other deliveries consisted of corn oil, sesame oil, and castor oil.

INDONESIA: LEADING VEGOIL SUPPLIER TO RP

       Indonesia was the leading origin of vegetable oil import in January delivering 1,584 MT which comprised of 1,479 MT of palm oil and 105 MT palm kernel oil. The total was responsible for 65.6% of total trade. Second biggest supplier was Denmark with 473 MT (19.6% share) of which 334 MT was rapeseed oil and 139 MT sunflower oil.

       Singapore was third with 134 MT (5.6%). The country supplied the widest range of vegetable oil, although in much smaller quantities, consisting of corn oil (68 MT), sunflower oil (20 MT), soybean oil (17 MT), palm kernel oil (15 MT), rapeseed oil (11 MT) and sesame oil (3 MT). Malaysia landed fourth with 111 MT made up of 49 MT of palm oil and 62 MT sunflower oil.

PHILIPPINE COCO OIL REFINERS TO IMPORT PALM OIL

       Local coconut oil refiners will be importing cheaper palm olein for distribution in the wet markets and GMA rolling stores to bring down the cost of cooking oil. The group estimates a reduction by P10 to P15 per kilo in the price of cooking oil. Jesus L. Arranza, President of Coconut Oil Refiners Association said in a statement the project is in coordination with the Office of the President and the Department of Agriculture (DA). An initial 2,000 metric tons of palm olein will be brought in from Malaysia and Indonesia and depending on the price and supply situation, the volume may be increased later. Mr. Arranza explained the move will help the local farmers and coconut industry as they can take advantage of the rising coconut oil prices in the international market while consuming the cheaper palm olein internally.

CHINESE IMPORT OF LAURIC OILS DOWN IN APRIL

       According to statistics from Oil World, China imported 52,800 MT of lauric oils in April this year. As against 58,300 MT uptake in a similar period last year, current level indicates a 9.4% shortfall. Palm kernel oil, which accounted for 88.4% of total lauric import, increased volume by 9.1% to 46,700 MT from 42,800 MT. Coconut oil, which shared 11.6%, dropped substantially by 60.6% to 6,100 MT from 15,500 MT.

       Indonesia remained the biggest supplier responsible for 89.6% of total during the month with 47,300 MT (56,700 MT year-ago) of which 42,100 MT was palm kernel oil (41,800 MT) and 5,200 MT was coconut oil (14,900 MT). Shipment from Malaysia was 4,600 MT (1,000 MT) of palm kernel oil and accounted for 8.7%. The Philippines was responsible for merely 800 MT (600 MT) of coconut oil or 1.5% share. Other countries aggregately delivered 100 MT of coconut oil.

       Total imports in January-April this year stood at 227,100 MT, a substantial increase by 24.7% from volume imported in a similar period last year at 182,100 MT. Of this total palm kernel oil was 156,800 (139,200 MT) and coconut oil 70,300 MT (42,900 MT) for respective shares of 69% and 31%. Import of coconut oil rose by 63.9% while palm kernel oil increased by 12.6%.

MALAYSIA ACTS TO REGAIN PALM OIL FOOTHOLD IN INDIA

       Noting the sharp drop last year in India?s palm oil purchases from his country, Malaysia?s Minister of Plantations Industries and Commodities Peter Chin has proposed that both countries jointly focus on downstream facilities for palm oil rather than just importing the edible oil. Indian import of palm oil from Malaysia dropped to 510,000 MT in 2007 from 2.3 million MT in prior years. He added that joint ventures with Malaysian companies to do downstream products or refinery will create new opportunities as againts just selling the commodity to India.

       Indonesia is the preferred source for Indian imports of palm oil as it is generally cheaper than Malaysian origin and is sold in crude form for refining by Indian refiners. Palm oil has become a divisive topic in trade negotiations between Malaysia and India in recent years because of the high tariffs imposed on edible oil imports and Malaysia?s reluctance to sell crude palm oil to Indian companies. Earlier this year, India scrapped its import duties for crude palm oil but retained a 7.5% import tariff on refined palm oil.

GLOBAL BIODIESEL PRODUCTION SUSTAINS GROWTH

       At the recently concluded FO Licht Biofuels Production Workshop in Warsaw, Poland, Nitin Shete, vice president of biodiesel technology at India-based Praj Industres, reported that world biodiesel production has reached 9.8 billion liters, up 46% from 6.4 billion liters in 2006. He projected that output will continued a healthy growth of 10% to 12% a year, reaching about 31 billion liters in 2012.

       Europe will remain the biodiesel market leader with production estimated at 6.5 billion liters this year, followed by the United States with 1.35 billion, Argetina and Brazil each with 500 million liters, and the rest of the world including Asia at 1 billion liters in total. On forthcoming capacities, he cited the US with some 62 biodiesel plants currently under construction, followed closely by Europe with 58 new plants in the pipeline. Brazil will have 15 new plants and Argentina five; while Malaysia, Indonesia and the Philippines, about 15 in the planning stage.

CZECH BIOFUELS PROGRAM MOVING FORWARD

       Jiri Trnka, Czech Republic director of the Department of Environmental Policy at the Ministry of Agriculture reports at the FO Licht conference in Warsaw Poland that the country?s biofuels program is now taking off with growing support seen for higher biofuel blends and second generation technology. He added that the Czech government had recently legislated for the inclusion of 2% biodiesel and ethanol by volume in diesel and petroleum. From 2009 the blend will rise to 4.5% for biodiesel and 3.5% for ethanol although these low blends do not attract state subsidies. Higher blends such as E85 for fleet cars and E95 for trucks and buses will attract subsidies.

       The Czech government is also funding research into second-generation biofuels, with a view to commercialization of these from 2015 onwards. Until now, the country has had much higher biofuel capacity than demand, leading to idle plants and significant exports. However, domestic demand is now set to increase, given the legislative framework now in place. Last year, biodiesel production in the Republic was 81,806 MT, of which 53,572 MT was exported and 34,368 MT used in low-percentage domestic blends. Agropodnik and Setuza are the largest biodiesel producers.