For week ending October 22, 2009

Performance of Top Non-Traditional Coco Exports in July
Combined Export of World's Top Desiccators Up
Chemrez Executive is Finalist in 8th Asia Business Leaders Awards
"Tuba" Sippers set Guinness World Record
Vegetable Oil Mix as Port Fat Substitute in Meats
Quality Sustainable Plam Oil Supply Tight
New U.S. Food and Agriculture Research Agency
Consumers Now Prefer Buttery Spreads and Soft Margarine Spreads

PERFORMANCE OF TOP NON-TRADITIONAL COCO EXPORTS IN JULY

       There were eight coconut export products that qualified in the top non-traditional coconut exports list having generated at least USD100,000 in export revenue during the month. Topping the list was GLYCERIN which grossed more than a million dollars in July this year (USD1.133 million) from export of 1,526 MT. Volume, however, slumped by 25.6% from 2,052 MT at the same time last year. Top destination was China with 779 MT (51.0% share), trailed by Japan 593 MT (38.8%). Limited volume went to Russia 78 MT, Denmark and Malaysia 23 MT apiece, Australia 21 MT and Singapore 10 MT

       NATA DE COCO was the second biggest non-traditional coconut export with foreign exchange receipts of USD544,324 from 515 MT. Tonnage during the month rose by 19.5% from similar month year-ago at 431 MT. Japan was major buyer capturing 395 MT (76.6%). Limited volumes went to United Arab Emirates at 48 MT, U.S. 28 MT, Canada 18 MT, and 17 other countries led by Qatar with uptake no bigger than 8 MT and totaling 27 MT.

       COCONUT MILK POWDER took the third spot with income of USD509,352 from sale of 157 MT. Shipment during the month rose by a whopping 205.3% from similar month year-ago at 51 MT. Malaysia was the primary market with 87 MT (55.7%), followed far behind by Japan and France at 26 MT apiece, Taiwan 17 MT and U.S at 1 MT.

        LIQUID COCONUT MILK came in fourth with revenue of USD447,510. This month?s sales which stood at 249 MT was up by 33.8% from 186 MT in same period year-ago. The United States was market leader with 65 MT (26.1%), tracked by Brazil at 50 MT (20.1%), Russia at 42 MT (16.9%), Japan at 33 MT (13.3%), Hongkong at 20 MT (8.0%), Netherlands at 18 MT (7.2%) and Taiwan at 15 MT (6.2%). Others category comprised of three countries with total uptake of 5 MT or 2.2%.

       TOILET/BATH SOAP ranked number five with turnover of USD306,044 from delivery of 101 MT. Tonnage during the month was a hefty climb by 145.2% from a similar month year-ago of 41 MT. United Arab Emirates was leading importer with uptake of 28 MT or 27.9% of total business. Smaller amounts went to Indonesia at 19 MT (19.2%), Singapore at 17 MT (16.7%) and Thailand at 16 MT (16.2%), while 20 other countries led by Saudi Arabia bought no bigger than 5 MT and aggregating 20 MT.

       VIRGIN COCONUT OIL was the sixth top export with proceeds of USD208,881. Volume at 65 MT slumped steeply by 63.4% from 176 MT of the previous year. The United States remained the biggest buyer at 52 MT comprising 79.9% of total sales, followed far behind by Germany at 10 MT or 15.9% and Croatia and Japan at 1 MT apiece.

       MAKAPUNO was in seventh place with income of USD153,755 after trading 84 MT. Current volume shrank substantially by 19.4 % from 104 MT in a similar month year-ago. Top outlets were United States at 35 MT and Canada at 27 MT with respective share of 41.4% and 32.1%. Twenty other countries led by United Kingdom bought no bigger than 4 MT with combined volume of 23 MT or 27.4%.

        Completing the top eight non-traditional exports was COCO FLOUR which earned USD145,914 from shipment of 84 MT (29 MT same month year-ago). There were three country destinations led by Jordan at 38 MT (44.8%), followed by France at 27 MT (32.3%) and Australia 19 MT (22.4%).

COMBINED EXPORT OF WORLD?S TOP DESICCATORS UP

       Combined export of desiccated coconut from the Philippines and Sri Lanka, the world?s major producing countries, in January-July this year increased by 4.1% to 92,505 MT from 88,825 MT in the same period year-ago, according to collated country data from the Philippine Coconut Authority and Sri Lanka?s Coconut Development Authority.?The increase in export was on account of Sri Lanka which saw shipments leaped by 88.8% from 12,748 MT to 24,070 MT. Philippine export at 68,435 MT was short by 10.0% from 76,077 MT last year. In terms of market share, however, the Philippines was responsible for 74.0% and Sri Lanka 26%.

       Computed average price show Philippine desiccated coconut at USD1,307/MT FOB, dropping by 13.3% from prior year at USD1,508/MT. The price of Sri Lanka desiccated coconut similarly declined though by a steeper 38.8% at USD1,200/MT FOB from USD1,960/MT. The data also show that presently Philippine desiccated coconut has a price premium of USD107/MT over Sri Lanka while last year, it was trading at USD452/MT below Sri Lankan product.

CHEMREZ EXECUTIVE IS FINALIST IN 8TH ASIA BUSINESS LEADERS AWARDS

       Dean Lao Jr., Chemrez managing director and COO was nominated by the University of Chicago and CNBC for the Asia Viewers? Choice Award for the prestigious 8th CNBC Asia Business Leaders? Awards (ABLA). Lao is the only Filipino executive to make it to the final 12. CNBC is counting votes collected from its contest website http://www.cnbc.com/id/33017147 f or finalists until October 23. CNBC will broadcast the ABLA LIVE for the first time from the Capella hotel in Singapore on Nov. 26, at 8 p.m. (SIN/HK), with a same-day delayed broadcast in the US and Europe.

       Dean Lao, Jr. oversees the marketing, production and technical developments of Chemrez?s diverse product line that includes biodiesel, oleochemicals, resins, colorants and additives. Lao was integral in the Philippines? advocacy for renewable fuels by steering Chemrez into forming partnerships and investing in research and development to come up with baseline data on the benefits of using coco-biodiesel. With Lao at the helm, Chemrez has been earning a reputation as a green technology company by using cutting-edge R&D to produce environment-friendly chemicals which mainly use organic substitutes for petroleum-based products. Lao developed the concept of Green Chemistry to change the impression that chemical companies are harmful or hazardous to the environment.

       Only two Filipinos have won in the ABLA: Ernesto Tanmantiong of Jollibee Foods Corp. as Asia Corporate Citizen of the Year during the 5th ABLA and Gerardo Ablaza Jr. of Globe Telecom as Asia Business Leader of the Year and CEO?s Choice of the Year during the 3rd ABLA.

?TUBA? SIPPERS SET GUINNESS WORLD RECORD

       Some 9,300 ?Warays? (Eastern Visayas residents) broke a Guinness world record last week in Palo City for a wine-tasting session, besting the previous record held by Spain with 5,095 people imbibers. The event, organized by the An Waray Party list and the Leyte local government, was held at the MacArthur Shrine where General Douglas McArthur landed upon his return to the Philippines during the World War 11. The event was sanctioned by the Guinness Book of World Records and endorsed by the Philippine Coconut Authority, Philippine Tourism Authority and Department of Tourism.

       The wine tasters partook of ?tuba?, Eastern Visayas? famous local brew from coconut sap. Tuba or bahalina, reddish in color, is the local wine staple in Eastern Visayas, mainly comprising the coconut-producing island provinces of Leyte, Samar and Biliran. Felimon Imperial Jr., wine connoisseur from the International Wine and Food Society, led the thumps up sign after the record-breaking feat. ?This is a very impressive gathering, I have not seen this in my 27 years as a wine expert,? Imperial said, adding that the Waray tuba has the potential of making it into the global wine market.

VEGETABLE OIL MIX AS PORK FAT SUBSTITUTE IN MEATS

       A study entitled ?Development of combinations of chemically modified vegetable oils as pork backfat substitutes in sausages formulation? published in Meat Science, found that chemical modification of a variety of vegetable oils, including sunflower, soybean, palm, canola, cotton, cartamo, olive and maize led to a pork backfat substitute with up to 20 percent less saturated fat. The melting point of the oil mixture was also similar to that of porkfat. Despite the promising results, the researchers led by Juana Fernandez-Lopez from the Miguel Hernandez University in Alicante, Spain noted that the oil mixtures needed to be evaluated in a final product ?before they can be recommended for widespread use in the meat industry?.

       The new study initially determined the composition of pork backfat and then combined the vegetable oils in deferent ratios using an interesterification reaction in order to achieve a pork backfat-type composition with improved lipid profile. Three mixtures were prepared, with all leading to a 10-20% reduction in saturated fats. Based on fatty acid profile, two formulations not only improved the polyunsaturated/saturated fatty acids ratio, but also reduced the ratio of omega-6 to omega-3 fatty acids ?to fulfill the levels recommended in the literature?. The researchers concluded that the designs of such combinations of chemically modified vegetable oils will permit the development of safe, tasty and healthier meat products.

QUALITY SUSTAINABLE PALM OIL SUPPLY TIGHT

       Palm oil has become popular with chocolate makers as a texture agent and as a cheaper source of vegetable fat. However, environmental campaigners claim that its cultivation is contributing to deforestation and the disappearance of the Orangutan. While a solution called for industry to buy certified sustainable palm oil, currently there is not enough high quality sustainable oil available to meet the company?s needs, said Alessandro Cagli, Ferroro?s corporate social responsibility (CSR) director.

       Ferroro is working to improve the situation and has just signed a five year agreement with Britain Palm Oil binding the Italian confectioner to buy oil that is certified as conforming to the sustainability criteria of the Roundtable on Sustainable Palm Oil (RSPO). The deal, however, accounts for about a quarter of Ferroro?s palm oil requirements leaving the remainder to come from uncertified sources. New Britain is building a new plant in Papua New Guinea to process palm oil for Ferroro, allowing the confectioner to track and control its supplies.

NEW U.S. FOOD AND AGRICULTURE RESEARCH AGENCY

       A new U.S. government agency, the National Institute of Food and Agriculture plans to bring together government and private scientists to improve research in food and agriculture. The institute, part of the Agriculture Department, will be headed by noted plant scientist Roger Beachy. Congress authorized the creation of the institute in 2008. It will involve U.S. and international scientists.

       The institute will build on recent scientific discoveries like advances in sequencing plant and animal genomes, biotechnology, nanotechnology and large-scale computer simulations. It also will concentrate on improving food safety by identifying and eliminating causes of microbial contamination, and by developing safe food-processing technologies. It will work to improve the amount and quality of plant-based feedstock used to produce biofuels, and to develop new bio-based industrial products. The institute also will focus on improving the nutrition of food.

CONSUMERS NOW PREFER BUTTERY SPREADS AND SOFT MARGARINE SPREADS

       The National Association of Margarine Manufacturers in the U.S. has declared consumers? preference for the ?new spreads? based on recently released findings from a national consumer survey by Kelton Research. According to the survey, 45 percent of consumers rated buttery spread or soft margarine spread as their favorite tablespread at mealtime, compared to 24 percent whose choice was stick butter. The survey also found that in terms of the most heart-healthy choice, consumers indicated strong awareness of the recommendations of health experts, more than half (54%) recognize that buttery spreads and soft margarine spreads are the most heart-healthy choice, compared to 18 percent who thought stick butter is the more healthy option.

       Buttery spreads are typically made with a blend of nutritious, natural plant oils like soybean, canola, and olive. Today?s buttery spreads are much lower in total fat and saturated fat than the margarines of yesterday, have no cholesterol and are rich in polyunsaturated and monounsaturated fats compared with animals fats, such as butter and lard. Choosing buttery spreads in place of butter can have a major impact. In fact, 10 scientific studies have directly evaluated the health benefits of soft margarine spreads versus butter, and all have confirmed that buttery spreads are the healthier choice.