For week ending July 02, 2009

8th Annual UCAP Bowling Tournament Results as of June 25
Japanese Firm to Put Up Sunflower Plantation in RP
UK Firm to Plant Coconut In Luzon for Biodiesel Project
Chinese Import of Lauric Oil Up in April
China to Reduce Soybean Import in 2009/10
Vegetable Oil Demand to Increase in Kenya
High Ozone Level Diminishes Rapeseed Yield: New Study
China to Subsidise Rapeseed Crushers
Soy Industry Sets Sustainability Standards
EC Adopts Template for National Biofuels Plan

8TH ANNUAL UCAP BOWLING TOURNAMENT RESULTS AS OF JUNE 25

       The team ranking remains unchanged after the third playoff last Thursday, June 25, 2009, as follows: United Coconut Planters Bank (UCPB), Chemrez Technologies, Inter-Asia Marine Transport, CIIF Oil Mills, 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).

        Following were recipients of special awards during the third playoff: First 3 Consecutive Strikes (Women?s) - Annie Macato, Inter-Asia; First 4 Consecutive Strikes (Men?s) - Marc Matias, UCPB, who actually scored 7 consecutive strikes; First 4 Consecutive Spares (W) - Bin Zabala, Ducom, who actually scored 6 consecutive spares, Choy Asong, UCPB, who scored 5 consecutive spares; First 5 Consecutive Spares (M) - Rey Tumalad, CIIF; First Split Conversion - Bin Zabala (W), Alex Untalan (M), Sakamoto. Club 175 (W) - Choy Asong (with score of 189), Bin Zabala (187), Annie Macato (186); Club 200 (M) - Marc Matias (257), Ton Carabeo (213), Onie Betonio, Transeaboard-Raco (203).

JAPANESE FIRM TO PUT UP SUNFLOWER PLANTATION IN RP

       Sun Care Fuels Corp. of Japan plans to put up a sunflower plantation in the Philippines to produce seeds, oil and biofuel, according to a draft agreement with National Development Co. The company has selected a 500-hectare site in the provinces of Misamis Oriental and Bukidnon, where a pilot farm will plant a specific variety of sunflowers for the production of biodiesel, sunflower oil and certified seeds. The company plans to lease up to 50,000 hectares to raise sunflowers and has already begun test operations on a three-hectare plot within a university in Mindanao.

       Sun Care Fuels started making feasibility studies for the sunflower project in the Philippines as early as 2007. The company is actively promoting eco-friendly energy development in its business interests in Japan and overseas. NDC, the investment arm of the Trade and Industry Department, is tasked to promote investments in commercial, agricultural, and other sectors of the economy.

UK FIRM TO PLANT COCONUT IN LUZON FOR BIODIESEL PROJECT

       A Reuters report from Tokyo says Pacific Bio-Fields Holdings Plc has received approval to use 400,000 hectares of land in the Philippines to plant coconut trees to produce alternative auto fuel which it aims to sell to Japanese users in five years. The company, which plans to list on the London Stock Exchange?s Alternative Investment Market later this year, said the agreement allows it exclusively to cultivate unused public land on Luzon for free for up to 50 years.

       Yuji Taniguchi, head of the UK-based holding company with its main operations in Japan and the Philippines said it is the first time the Philippine government has allowed any local or foreign company to use land for coconut oil-made biodiesel project. Competition with food is not an issue for this project, whose location is in the northern part of Luzon, where fields are largely abandoned after once-dominant tobacco production receded, Mr. Taniguchi said. The company plans to start operating its first crushing plant with capacity of 2,000 tons of oil per month in northern Luzon by August, with the oil initially for sale to local biodiesel makers. By 2014, the company plans to build five other crushing plants of same capacity as well as a refinery plant to turn the feedstock into 300,000 tons of biodiesel a year, part of which will be for export to Japan.

CHINESE IMPORT OF LAURIC OIL UP IN APRIL

       Figures from Oil World show China imported 56,000 MT of lauric oils in April this year. This is 6.1% higher than April last year total at 52,800 MT. Palm kernel oil comprised the bulk of import amounting to 47,600 MT (85.0% share) while coconut oil was 8,400 MT (15.0%). Purchases of coconut oil during the month increased by 37.7% from last year at 6,100 MT, while that of palm kernel oil rose by 1.9% from 46,700 MT.

       The month?s biggest supplier was Indonesia responsible for 85.4% of total with 47,800 MT (47,300 MT year-ago) of which 40,500 MT was palm kernel oil (42,100 MT) and 7,300 MT was coconut oil (5,200 MT). Shipment from Malaysia was 7,100 MT (4,600 MT) of palm kernel oil and contributed 12.7%. The Philippines supplied 800 MT (800 MT) of coconut oil, while import from other countries totaled 200 MT (100 MT) of coconut oil only.

       Total imports in January-April this year stood at 212,500 MT, a substantial drop by 6.4% from volume imported in a similar period last year at 227,100 MT. Of this total palm kernel oil was 171,600 (156,800 MT) and coconut oil 40,900 MT (70,300 MT) for respective shares of 80.8% and 19.2%. The cumulative palm kernel oil data rose by 9.1% from year-ago while coconut oil dropped by 41.8%.

CHINA TO REDUCE SOYBEAN IMPORT IN 2009/10

       The China National Grain and Oils Information Centre said in a report that the country?s imports of soybean for the year October 2009/September 2010 were likely to fall 7.5% to 37 million MT from the 40 million MT projected for the current year 2008/09 citing record imports in the current year and state stockpiling in the last two years. The estimate, however, still reflects a substantial 32.1% increase from 28 million MT imported in 2006/07 to meet demand for animal feed and edible oils. The Centre said that China?s purchases for state reserves will eventually come to an end and the government may release some of its domestic soya reserves to the market, which is likely to reduce demand for imported soybeans.

       China?s consumption of edible oils, including soya oil, rapeseed oil and palm oil, is expected to rise 4% from prior year to 22.44 million MT in 2009/10. Soya oil usage will increase 8.5% to 8.95 million MT. Demand for soya meal, the high-protein animal feed ingredient, will rise 8.5% to 32 million MT. The Centre also projected the country?s imports of soya oil in 2009/10 to stagnate at 2.3 million MT while palm oil to rise 1.9% to 5.5 million MT.

VEGETABLE OIL DEMAND TO INCREASE IN KENYA

       USDA projected that consumption of vegetable oil in Kenya is to increase to nearly 800,000 MT in 2010 from 700,000 MT in 2009. Supply will come largely from imports rather than domestic production. Its main oilseed crop is coconut, although it also produces groundnuts, sunflower, soybean and palm oil. The country is expected to increase oilseed harvest to just over 100,000 MT in the current year.

       The shortfall in supply, the report said, is to be made up largely of imported palm oil from Malaysia, which accounts for 90% of Kenya?s total annual domestic requirement. It is preferred over US soybean oil by consumers because it is cheaper. The report added that the government has also started the process of increasing local production of palm oil in line with its target of food self-sufficiency in the country by 2030. USDA, however, concedes ?there appears to be little hope in the vegetable oil sector.?

HIGH OZONE LEVEL DIMINISHES RAPESEED YIELD: NEW STUDY

       Increased ozone levels can cause a 30% reduction in yield and an increase in the concentration of a group of toxic compounds within rapeseed plants, according to a new study conducted by scientists at the University of Antwerp. The research, presented by Maarten De Bock at the Society for Experimental Biology Annual Meeting in Glasgow early this week, showed changes in the concentration of glucosinolates, a family of compounds involved in plant defenses against herbivores, in rapeseed plants. Such changes could influence crop resistance to insect pests, or the palatability of food crops.

       The researchers suggested that increased ozone levels as a result of climate change could affect crops in various regions in Europe differently than previously expected. Higher levels of ozone affect not only yield, but also the percentage of oil content, according to Karine Vandermeiren, research manager at the Veterinary and Agrochemical Research Center in Brussels. ?If the predictions of the global panel on climate change are correct, we could be looking at a 10-15% reduction in yield by 2100. If you combine that with oil productivity loss it?s even more. Combined, these two aspects would be serious for farmers?, she added.

CHINA TO SUBSIDISE RAPESEED CRUSHERS

       The Chinese Government is to offer subsidies to 136 crushers to process and purchase rapeseed from farmers as the country expects a record harvest of at least 13 million tons. It may also provide direct support to crush soybeans as the government looks into ways to persuade farmers to plant more soybeans and buyers to rely less on imports.

       The State Administration of Grain said on its website that it has agreed to subsidize big plants to crush the new rapeseed harvest to help farmers sell their crops at a set price by government, offering yuan200 ($29.27) per ton of oilseed crushed. Among the plants, 47 crushers are owned by the state-run COFCO. The government?s purchasing agency Sinograin will buy rapeseed from farmers for state reserves, as it did last year.

SOY INDUSTRY SETS SUSTAINABILITY STANDARDS

       The soy industry has come under fire for causing widespread deforestation, displacing indigenous peoples and destroying natural habitats, particularly in South America. The Round Table on Responsible Soy (RTRS), a group of producers, industry and trade representatives, and environmental organizations, aims to address these issues by establishing guidelines for good industry practice, promoting and monitoring sustainable soy production. The RTRS Campinas Declaration on Conservation and Compensation was agreed at the organization?s fourth international conference in Brazil early this month, starting from the premise that there is a need to expand food supply as a result of global demand, but it must be done in an environmental sustainable way.

       The RTRS Executive Board has set up a 12-month field test period to trial its initiatives starting May 28, 2009, after which it said it will review farm impacts and then revise the document in an effort to increase its effectiveness. The declaration specifically forbids expanding soy cultivation on land cleared of native habitat during the field test period. But it excepts producers if they produce ?scientific evidence from a comprehensive and professional third party assessment of the area concerned? showing that it does not contain primary forest, other High Conservation Value Areas or local peoples? lands.

EC ADOPTS TEMPLATE FOR NATIONAL BIOFUELS PLAN

       The European Commission this week adopted a template for national renewable energy action plans, requiring member states to show how they intend to attain respective national targets for the share of renewables in their energy mix. The action plan is contained in the new Renewables Directive, which became in effect last month, that sets a binding target to source 20% of EU?s energy consumption from renewable sources by 2020.

       European Energy Commissioner Andris Piebalgs said the template would help member states to produce a ?credible plan which in turn will help the EU meet its targets on time?. The 40-page document asks member states to specify what policies they intend to enforce as well as action plans including details on enabling measures. Each member states will have until June 30, 2010 to submit its plan to the commission, which will assess whether such reflects national targets and trajectories.