For week ending Jul 10, 2008

       SMC Chairman and CEO Eduardo M. Cojuangco, Jr., speaking at the signing of the memorandum of agreement said, “We will be offering up to $1 billion for the project, to be deployed as soon as the government identifies the land to be developed.” Hectarage targeted under the deal will be used for the production of rice, corn, sugar, coconut and other crops. SMC and Kuok Group committed to purchase all the farm goods produced. Kuok Group Chairman Robert Kuok, in a statement, said skyrocketing prices of fossil fuels has affected not only farming but also the transportation of goods and rise in prices of fertilizers as having major impact on food supply and food prices, adding that urbanization, biofuel production, population growth, and climate change also have led the rise in food prices.

       Corn oil was the third biggest import with delivery of 169 MT posting a sharp dive of 64.0% from 470 MT. Other imported vegetable oils were rapeseed oil 89 MT (372 MT last year), olive oil 18 MT (17 MT), sunflower oil 11 MT (465 MT), sesame oil 4 MT (56 MT), coconut oil 3 MT (nil). At the same time last year, imports of linseed oil at 149 MT and palm kernel oil at 500 MT were recorded as opposed to nil in the current month.

       The National Statistics Office data also show bulk of imported vegetable oils in February came from Indonesia at 605 MT, solely palm oil. Singapore supplied 273 MT made up largely of corn oil at 166 MT; others included palm oil 50 MT, rapeseed oil 33 MT, soybean oil 21 MT, and coconut oil 3 MT. India was third with delivery of 120 MT of soybean oil. The top three country origin respectively contributed 55.2%, 24.9% and 10.9% to total inbound vegetable oils during the month.

       Due to the sharply low volume in the preceding months, January-March 2008 figure at 2,672 MT shrank by 75.9% from a comparable last year period total at 11,106 MT.   Export in March went to 20 various countries. Saudi Arabia was the top destination and the only one to log over 100 MT level at 153 MT representing 28.7% of total sales. The remaining 19 other countries with combined share of 71.3% bought volume ranging 1-79 MT.

       The move is aimed at safeguarding the country’s foreign trade order, protecting the legal right and interest of traders, and providing information service on import of bulk farm products. MOC has entrusted the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products to take charge of the collection, summing up, analysis and examination of the reported information on import of the six products.

       The deal is in line with Unilever’s on-going worldwide strategy of increasing its focus on core business areas and moving away from primary products. At the same time it plans to acquire the soap business of Cosmivoire, an Ivorian producer with a market presence throughout Francophone West Africa and subsidiary of SIFCA. The deal, which is still subject to approval by the regional authorities, is expected to be completed by the end of 2008.

       International Parcel Tankers Association General Manager Janet Strode said at the same conference that the regulatory framework has not kept pace with the development of this relatively new market, citing the strict rules governing the shipment of liquid biofuels, which are determined by the International Maritime Organization, an agency of the UN. Both ethanol and FAME (fatty acid methyl ester) are classified as noxious liquid substances under Annex 2 of Marpol, which covers the prevention of marine pollution. Although chemical tankers are not strictly required for ethanol cargoes, they are for biodiesel, which has to be carried in double-hulled vessels. At present, cargoes are limited to biofuel blends up to 15% (B15 or E15).

       Neste Oil will build a biodiesel plant, its fourth such plant investment so far, in Rotterdam to meet growing demand for biofuels. The plant, which will have a capacity of 800,000 MT per year and cost around USD1.0 billion, is expected to be completed in 2011. Neste Oil, based in Finland, aims to become the world’s leading producer of renewable diesel fuel. The company has an existing 170,000-MT per year plant producing its proprietary biodiesel NExBTL operating in Porvoo, southern Finland. It is building a second similar one next to it, due to be ready next year.

       The NBRA, as proposed in the National Biotechnology Regulatory Bill 2008, will be headed by a chairperson and consist of chief regulatory officers, regulatory branches for different products, a risk assessment unit, and cross-sectoral officer for national and global policy coordination, legal affairs, economic analysis, and capacity building.

       Pushpito K. Ghosh, institute director said CSMRI has been doing pioneering research on Jatropha Curcas since 1997. They are currently awaiting approval from the National Biodiversity Board in Chennai for sending the necessary jatropha germplasm needed for research to Oman. A team from Argentina had visited CSMRI’s premises in Bhavnagar and had a first-hand experience about the development of Jatropha-based biodiesel. The institute is also looking to forge tie-up with Ras Al Kaimah, one of the emirates of UAE, to set up a research institute similar to CSMRI.