For week ending Aug. 09, 2007

Performance of Top Non-Traditional Coco Exports in April
Cenapro to Assist Coco Farmers Improve Product Quality
DA Reviews Agriculture Programs
Chemrez Eyes Industrial, Martime Users for Coco-Biodiesel Products
VCO to be Exported to China, Africa
Indonesia Forecasts Slower Growth in Palm Oil
China to Announce New Cooking Oil Standards

PERFORMANCE OF TOP NON-TRADITIONAL COCO EXPORTS IN APRIL

       There were six 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 took the lead with foreign exchange receipts of USD639,961 from shipment of 907 MT. Volume, however, slumped by 64.5% from 2,552 MT at the same time last year. China was market leader with 400 MT (44.1% market share); followed by United States with 270 MT (29.8%). Limited tonnages went to India 72 MT (7.9%), New Zealand 41 MT (4.5%), Korea 30 (3.3%), while 5 other countries together accounted for 95 MT (10.4%).

       SHAMPOO was the second biggest export with income of USD480,180 from sale of 163 MT. Shipment during the month rose by a whopping 149.5% from similar month year-ago at 65 MT. Pakistan was major buyer capturing 51 MT (31.4%). Ecuador took in 29 MT (17.8%). Other considered significant buyers like Bangladesh, Malaysia, Thailand, UAE held volumes ranging 12-15 MT for a combined share of 33.5%. Other countries comprising 17 countries jointly held 28 MT (17.3%).

       VIRGIN COCONUT OIL took the third spot with revenue of USD268,449 from delivery of 78 MT, slightly higher by 28.3% from prior year at 61 MT. A big chunk of the shipment went to United States at 56 MT or 71.5% while Germany took in 19 MT or 24.3% of total sales. Eight other countries took in no higher than 1 MT, among them South Africa, New Zealand, Australia.

       NATA DE COCO came in fourth with revenue of USD221,410. Volume which stood at 291 MT was a sharp drop by 41.2% from 495 MT in same period year-ago. Japan remained the top outlet with 250 MT (86.0%). The USA was far second at 15 MT (5.3%). Twenty other countries with volume 5 MT and lower jointly comprised 8.7%.

       COCONUT MILK POWDER ranked number five which earned USD193,079 from export of 84 MT. The volume slashed by 67.1% prior year data at 255 MT. France was top destination capturing 51 MT (60.8%). Smaller volumes went to Netherlands at 18 MT (21.5%), Japan 13 MT (15.4%), and US 2 MT (2.2%). Australia handled the balance.

       Completing the top six non-traditional export was MAKAPUNO which earned USD119,714 from shipment of 68 MT (32 MT year-ago). Major buyers were United States at 19 MT (27.9%) and United Arab Emirates at 10 MT (15.2%). Limited volumes went to Canada 7 MT (9.7%), Saudi Arabia and United Kingdom at 5 MT apiece, and Qatar (4.7%). Others market comprising 18 countries held 18 MT.

CENAPRO TO ASSIST COCO FARMERS IMPROVE PRODUCT QUALITY

       Cenapro Chemical Corp., an activated carbon manufacturer based in Cebu, has asked coconut farmers from six towns in Leyte to submit samples of charcoal from coconut shell for quality analysis. The company will visit and inspect the production processes of farmers at these towns, namely Tanauan, Dagami, Dulag, Burauen, Palo and MacArthur, as part of efforts to improve quality of coconut by-product from Eastern Visayas. Joel Pilapil, assistant regional manager of the Philippine Coconut Authority (PCA) in Eastern Visayas, said Cenapro executives and about 50 coconut farmers agreed to improve the quality of coconut by-products such as charcoal.

       The PCA, Cenapro and the provincial government of Leyte held a forum on proper charcoal making procedures. “It was emphasized during the forum that the products that are being produced in the region, especially those in large scale level, should meet the quality standards in both the domestic and the international markets,” Mr. Pilapil said.

DA REVIEWS AGRICULTURE PROGRAMS

       Key programs of the Department of Agriculture are up for review to determine if their growth targets for 2007 are achievable. DA officials led by Agriculture Secretary Arthur C. Yap are to present overviews of the program on the production of major farm commodities, such as rice, corn, coconut, high-value commercial crops and livestock. In a two-day workshop, agriculture officials would also present status reports on the progress of the department’s various projects.

       These programs include barangay food terminals, bagsakan or drop-off projects, coconut intercropping, irrigation facilities, small water-impounding projects, farm to markets roads, and post-harvest facilities. The agriculture sector posted a 3.55 percent growth in the first quarter of the year. This was attributed to the sustained growth of key sub-sectors such as fisheries, palay and corn, and the recovery of the one-ailing poultry sub-sector. This growth buoyed the department’s hopes of meeting its growth targets of between 4 percent and 5 percent this year and between 7 percent and 8 percent next year.

CHEMREZ EYES INDUSTRIAL, MARITIME USERS FOR COCO-BIODIESEL PRODUCTS

       Chemrez Technologies (ChemrezTech) said industrial and maritime users of diesel may also be a market for its coco-biodiesel products, adding the two industries would benefit from improved engine combustion as well as reduced carbon emissions. In a statement, the country’s largest producer of coco-biodiesel said that while users of biodiesel in the country are primarily land-based vehicles, industrial plants and sea-based transport will also enjoy the positive effects of using the alternative fuel. The company said industrial plants that use heavy fuel oil as a power source will also benefit from coco-biodiesel blending since the harder-to-burn industrial fuel oil will undergo improved combustion.

       Florello Galindo, director of the Asian Institute of Petroleum Studies (AIPSI), said “Coco-biodiesel is 100 percent miscible with diesel and will result in a homogeneous mixture,” which means that the alternative fuel will blend perfectly with standard diesel in a highly stable mix. AIPSI is a leading authority that has conducted extensive studies on coco-biodiesel. ChemrezTech, however, said that using coco-biodiesel would add at most P0.22 per liter at the pump assuming that the price of diesel is pegged at P36 per liter and coco-biodiesel at P52 per liter wholesale.

VCO TO BE EXPORTED TO CHINA, AFRICA

       A marketing agreement that will boost Philippine virgin coconut oil export to non-traditional market has been signed between the Philippine International Trading Corporation (PITC) represented by Executive Vice President Teddie Rivera and VCO Philippines represented by President Tess Santos. Present as witnesses during the signing were Sammy Latay and Gerry Natividad, VCO Philippines chairman and vice-president, respectively; and Joel Rodriguez and Ma. Victoria Magcase, manager and VP for countertrade and exports, respectively of PITC.

INDONESIA FORECASTS SLOWER GROWTH IN PALM OIL

       While Indonesia expects palm oil output to grow sharply in the next two years, stricter forest protection could slow expansion. Indonesia is poised to overtake Malaysia as the world’s top palm oil producer this year because of rapid expansion in the last five years. Said Derum Bangun, executive chairman of the Indonesian Palm Oil Producers Association, “We expect to see output grow by 8% to 9% until 2009, but we have yet to see if we can sustain the growth beyond that period.”.

       Indonesia’s crude palm oil output is projected to hit 17.4 million MT in 2007, up from 15.9 million MT in 2006. Indonesia, which currently has 6 million hectares of oil palm plantations, may also restrict expansion of holding companies despite record high crude palm oil prices. The government does not want holding companies to own too much land. Bangun also expects Indonesia’s palm oil exports to slow down in 2007, mainly because of the growth in biodiesel demand in the country.

CHINA TO ANNOUNCE NEW COOKING OIL STANDARDS

       China will have new standards for cooking oil which is due to take effect soon. Du Zheng, director of the Standards and Quality Center of State Administration of Grain, said they are considering a total of 92 standards for the cooking oil industry and expect the standard regulatory authority to issue some shortly. He added that thirty of the standards are almost decided upon, 10 of which address the edible sector.

       The 10 edible oil standards will address product quality and the manufacturing processes of the country’s categories of edible oil such as sesame oil, olive oil, palm oil and multi-purpose nutrition oil. China has already issued product standards for eight kinds of plant-based oil, such as soybean and peanut oil. “The new standards will help guide manufacturers and ensure the market as a whole is well regulated. Since the manufacture of cooking oil is complicated, the healthy development of the segment will also depend on self-regulation.”