Last Tuesday’s (August 19) Cocohouse luncheon held at the Rockwell Club, Meeting Rooms 1-3, Lower Level 1, Amorsolo Square, No. 23 Amorsolo Drive, Rockwell Center, Makati City, Metro Manila, was another well attend event. The Virgin Coconut Oil Producers and Traders Association of the Philippines (VCO Philippines) which was this month’s Cocohouse host invited two speakers who gave excellent presentations on the topics assigned to them.

       Director Senen Perlada, Bureau of Export Trade Promotion – International Trade Group, Department of Trade and Industry, and concurrently Executive Director of Export Development Council, gave an insightful view on “Positioning VCO in the Global Market”. Visiting scientist from Canada, Universite de Montreal, Dr. Victor C. Gavino, under the Department of Science and Technology’s Balik Scientist Program shared his expert opinion on coconut oil research needs.

       The tournament which will be held on four consecutive Fridays starting August 29, 2008 is taking place at Smashville, 100 Autocamp, Ortigas Avenue, Ortigas Center, Pasig City. Confirmed teams include the defending champion United Coconut Planter Bank, Cargill Philippines, Chemrez Technologies, Minola (CIIF Oil Mills), Pilipinas Kao, United Coconut Chemicals, Mixed Nuts (Igual Commodities, Cosay & Co., Iligan Bay Milling and Trading, Mitsubishi Corp. Living Essentials, Pure Essence, UCAP).

       Official figures from the Philippine Coconut Authority show export of Philippine coconut products in May plunged 40.8% to 95,271 MT copra terms from 160,939 MT in the same month last year. Gross export receipts, however, at USD96.935 million slightly exceeded by 2.4% prior year total at USD94.646 million mainly on account of substantial rise in border prices. Sharp drop in coconut oil shipment of 46.3% year-on-year from 85,977 MT to 46,132 MT, for the most part, dragged total lower.

       Other major exports likewise saw appreciable reduction in volume traded during the month. Copra meal delivery slumped 41.0% from 68,458 MT to 40,358 MT, desiccated coconut dwindled 10.9% from 11,703 MT to 10,424 MT, oleochemicals fell 7.0% from 6,375 MT as copra to 5,292 MT. Other products performed as follows, in MT: coco shell charcoal 1,949 (-21.2% from 2,475 last year), activated carbon 1,388 (-32.7% from 2,064), glycerin 1,072 (-27.3% from 1,474), fresh coconuts 82 (+66.2% from 49), Others 1,911 (-35.2% from 2,948).

       Coconut oil export in May consisted of 12,483 MT crude coconut oil, 32,893 MT cochin oil (refined, bleached oil), and 756 MT RBD oil. This month marked a first in history where cochin oil lifting surpassed that of crude coconut oil. The United States was leading market at 34,373 MT to account for 74.5% of total sales. This comprised mainly of cochin oil at 28,743 MT and crude coconut oil at 5,630 MT.

       Export of desiccated coconut in May went to 43 countries, expanding from last month’s 40 destinations. Top market during the month was United Kingdom with 1,815 MT (17.4% share), with Netherlands narrowly tracking at 1,807 MT (17.3%). Consistent market leader US placed third with 1,613 MT (15.5%). Other significant importers (581-890 MT) namely Belgium 890 MT, France 689 MT, Canada 677 MT, Australia 581 MT collectively shared 27.2%.

       Export of coconut shell charcoal in May went to Japan and Korea. Japan was virtually an exclusive market with tonnage at 1,926 MT accounting for 98.8%. Korea handled the remainder 23 MT (1.2%).

       Italian agricultural research agency, ISMEA has projected that olive oil output in Italy, Europe’s second biggest producer, will top last year’s volume of nearly 500,000 MT by around 10-15%. The report cited good weather as major factor that should bring about the increase, adding that harvesting would commence on time this year as opposed to last year when hot weather led to premature harvest.

       A study by the International Financial Corporation (IFC), a member of the World Bank Group, revealed Liberia’s oil palm sector has the potential to attract significant private investment, and to be key driver of inclusive growth, development and job creation for the country. IFC Resident Representative, Jumoke Jagun noted that with the right business and policy environment, Liberia’s oil palm sector has the potential to grow and contribute to the economic revitalization of the country in the long term, adding that Liberia can be a net exporter of oil palm products.

       The Renewable Fuels Agency (RFA) published its first monthly report on the supply of biofuels under the Renewable Transport Fuel Obligation (RTFO), covering the period April 15 to May 14, 2008. The data revealed the following: Biofuels accounted for 2.14% of UK road fuel against a target for the year of 2.5%. More biodiesel (86%) has been supplied than bioethanol (14%). The market has been dominated by imports. The feedstock is known for nearly 90% of biofuels, while both feedstock and country of origin are known for 57%. The most widely reported feedstock was American soy (22%), for biodiesel and Brazilian sugarcane (79%) for bioethanol.