Newsbrief 26

For week ending Jun. 29, 2006

PHILIPPINE COCONUT EXPORT UP IN MAY

Preliminary UCAP figures show export of coconut products in May this year rose 9.0% to 191,961 MT copra terms from 176,170 MT in the same month a year ago. Excluding revenue from oleochemicals the month’s export generated USD63.966 million, reducing by 13.8% corresponding prior year data at USD74.184 million due substantial drop in border prices.

Coconut oil and copra meal exports recorded gains while desiccated coconut and oleochemicals suffered losses. Coconut oil export hiked 14.4% to 104,656 MT from 91,487 MT; copra meal leaped appreciably by 49.4% to 42,844 MT from 28,682 MT. On the other hand, desiccated coconut shipment shrank 27.7% to 8,189 MT from 11,323 MT; oleochemicals declined marginally by 2.0% to 13,180 MT as copra from 13,446 MT.

January-May 2006 export reached 904,351 MT copra terms, topping by 12.4% comparable year-earlier period figure at 804,319 MT. Breakdown is as follows, in MT: coconut oil 491,876 (421,120 MT year-ago), copra meal 196,461 (152,393), desiccated coconut 47,479 (52,334), oleochemicals as copra 50,189 (54,962).

DESTINATIONS OF COCONUT OIL, COPRA MEAL EXPORTS IN MAY

Europe and the United States took the bulk of export with Europe taking the upper hand with 47,218 MT representing 45.1% of total trade. The United States at 38,502 MT accounted for 36.8%. Other destinations were Japan with 6,650 MT (6.4% share), Malaysia 5,500 (5.3%), Korea 4,222 (4.0%), Indonesia 2,000 MT (1.9%), Taiwan 500 MT (0.5%), China 64 MT (0.1%).

Export of copra meal went exclusively to Korea and Vietnam. Korea remained the market leader cornering substantial part of the export totaling 34,369 MT which comprised 80.2% of total sales; Vietnam held 8,475 MT or 19.8%.

EXPORT OF SELECTED NON-TRADITIONAL COCONUT PRODUCTS IN MARCH

Of 11 various products reviewed, six recorded increases in volume from similar month last year, based on Philippine Coconut Authority figures. These were: coconut milk powder, coconut flour, makapuno, frozen coconut meat, coconut water and fresh coconuts. Those that scaled back volume were nata de coco, liquid coconut milk, coconut chips, coconut vinegar and virgin coconut oil.

COCONUT MILK POWDER. Export of coconut milk powder expanded by 75.2% to 244 MT from 139 MT and was valued USD479,205. There were only six destinations namely, in MT: Netherlands 92, Belgium 69, U.S. 41, Japan 21, Canada 17, and China 3. The top three outlets respectively shared 37.8%, 28.3%, and 17.0%.

COCONUT FLOUR. Export of coconut flour increased 29.1% to 152 MT from 118 MT with earnings amounting to USD91,517. Four countries were recipients of the product led by Jordan with 94 MT representing 61.6%. The others were United Arab Emirates 38 MT, Romania 19 MT and U.S. 2 MT, for respective market shares of 24.7%, 12.3% and 1.4%.

MAKAPUNO. Export of makapuno rose modestly by 3.5% to 40 MT from 29 MT worth USD85,147. The U.S. was market leader in this field responsible for 19 MT or nearly one-half of total business. Next was United Arab Emirates which held 7 MT or 18.6%. The rest had market shares lower than 8.0% notably Canada, United Kingdom, Saudi Arabia, and Others.

FROZEN COCONUT MEAT. Frozen coconut export at 23 MT nearly doubled year-ago total (+96.9%) at 12 MT and contributed USD41,478 to aggregate coconut revenue during the month. These were destined for U.S. with 16 MT (70.2% share), Australia and United Kingdom at 3 MT apiece, and Kuwait with 1 MT.

COCONUT WATER. Export of coconut water grew substantially by 135.4% to 57,213 liters from 23,303 liters costing USD38,556. The shipment went to six destinations namely, in liters: United Kingdom 19,350, Saudi Arabia 17,000, Canada 9,750, Japan 9,722, U.S. 1,335 and Guam 56. The top two destinations respectively accounted for 33.8% and 29.7%.

FRESH COCONUTS. Export of fresh coconuts increased considerably expanding last year’s volume of 32 MT eight folds to 257 MT (+714.8%) and was paid at total USD31,345. China was the top importer with 127 MT, nearly one-half (49.4%) of aggregate. Other buyers were Japan 54 MT, Hongkong 35 MT, Turkey 24 MT, Taiwan 17 MT and Korea 1 MT. (To be continued next week.)

AVOC MEETING IN MANILA

The 26th Board of Directors meeting of the ASEAN Vegetable Oils Club will be held in Manila on Saturday, July 08, 2006. Venue will be the Citrine/Emerald Room, 2nd Floor, Diamond Hotel, on Roxas Blvd., Manila. The meeting starts at 8:30 AM. The Philippine Coconut Oil Producers Association will host the meeting and lunch which follows the meeting. On Friday, July 07, UCAP is hosting a dinner for the meeting participants at the Restaurant Le Bellevue, Diamond Hotel.

UNIOIL NOW OFFERS BIODIESEL AT RETAIL STATIONS

Unioil Philippines, Inc. is the newest local oil firm to offer coco methyl ester (CME) or coco-biodiesel at its retail stations, Chemrez Inc. said. Chemrez is one of the Department of Energy-accredited manufacturers of CME under the brand name “Bioactive”. At present, Petron Corp., a semi-government entity and the country’s leading oil company; Flying V and Eastern Petroleum Corp., two of the most aggressive independent oil players, sell bottled coco-biodiesel products in their respective selected gasoline refilling stations. Flying V also sells the pre-blended coco-biodiesel product (B1) at its selected gas stations.

To increase awareness on the benefits of the biodiesel product, Chemrez and Flying V conducted a series of seminars in the past two weeks in Luzon. The program was in preparation for the eventual rollout of B1 product of Flying V in all of its 150 stations nationwide, said Carlos Palad, Chemrez Inc., public affairs manager. Next month, the company would embark on a road show in every region in the country to introduce the biodiesel product to gasoline dealers and large industries.

SRI LANKA DESICCATED COCONUT EXPORT UP SHARPLY IN FEBRUARY

Figures from the Coconut Development Authority in Sri Lanka show the country’s export of desiccated coconut in February rocketed 168.6% to 2,372 MT from merely 883 MT in a similar month a year ago. Average traded price during the month was USD912/MT FOB, down from month-ago at USD923/MT and year-ago at USD1,283/MT. Total for January-February at 4,495 MT shot up by 151.4% from 1,788 MT in the same period last year.

This month’s export went to 30 various countries led by UAE/Dubai which held 795 MT or one-third of total (33.5%), followed by UAR/Egypt at 431 MT (18.2%). Completing the top five importers list were Saudi Arabia with 143 MT, Turkey 136 MT, and Spain 100 MT, with combined market share of 15.9%. Twenty-five other countries together accounted for the remaining one-third (32.4%) and took in parcels between 1 MT and 89 MT.

... EXPORT OF COPRA, COCONUT OIL LIKEWISE UP

The same source also revealed export of copra in February stood at 1,412 MT, nearly double the previous year volume at 735 MT. Pakistan was almost an exclusive market responsible for 1,285 MT (91.0% share). Others market comprised of Bangladesh 97 MT, Iran 20 MT and United Kingdom 10 MT. January-February total reached 2,938 MT, increasing by 45.4% prior year data at 2,020 MT.

Export of coconut oil during the month at 180 MT was a modest rise by 9.8% from 164 MT at the same time last year. The shipment went to Bangladesh which cornered nearly three-fourths (71.7%) at 129 MT, Pakistan which held 36 MT (20.0%), and U.S.A. with 15 MT (8.3%). January-February export which amounted to 361 MT dwarfed prior year volume at 140 kilograms.

EC TO REVIEW BIOFUELS POLICY

The European Commission (EC) is set to review the EU’s biofuels policy by the end of the year, said Paul Hodson, head of the EC’s biofuels policy division, at the FO Licht European Sugar Conference in Brussels recently. The review would assess all aspects of current policy - notably current and future targets for biofuel use in transport fuels, and appropriate measures for reinforcing the implementation of these targets. A consultation process on the subject would remain open until July 10, Mr Hodson told delegates.

The review would determine whether the current target for 5.75% biofuels use by 2010 should be adjusted. It would also address issues such as whether the targets should become mandatory, rather than simply indicative as at present; and whether current European energy legislation should be adjusted to allow for the possibility of a ‘biofuels mandate’, i.e. a stipulated minimum rate for incorporating biofuel in each liter of fossil fuel sold. Mr Hodson added that the commission was also “interested” in the question of whether mandating fuel companies to achieve a certain proportion of biofuel sales in their total turnover was more effective than fiscal incentives such as reduced taxes on biofuel sales.

NEW CARGILL SOYA CRUSHING PLANT IN CHINA LAUNCHED

U.S. agribusiness giant Cargill Inc. launched recently its biggest soybean crushing plant in China as it capitalizes on growing Chinese demand for soybean products. The facility, which is also its second biggest in the world after the 7,000 MT a day plant in Argentina, has a capacity of 5,000 MT per day and situated in Nantong City in Jiangsu province. The plant was erected at the cost of USD60 million.