Newsbrief 53

For week ending October 29, 2009

11TH UCAP GOLF TOURNAMENT UPDATE

The tournament venue this year has been moved to SUMMIT POINT GOLF AND COUNTRY CLUB in Lipa City, Batangas, south of Manila; the date, however, remains, on Friday, November 20, 2009. Ongoing repair works due to damage caused by typhoon Ondoy at the original venue, Sun Valley Golf Club, may not be completed in time for the scheduled tournament on November 20, 2009, the Club management has advised. Participants have been advised of the change.

SUMMIT POINT makes up the last frontiers in the world of golf in Lipa City, Batangas, creating a true golfers? paradise. The course itself features 18 of the world?s best and famous holes, providing one of a kind and challenging experience this side of the globe. The magnificent layout, dubbed the World 18, was painstakingly crafted by the world renowned Robert Trent Jones, giving golfers the unique chance to play simulation of holes from Augusta National, America?s most exclusive private club, or playing a hole facsimile of Pine Valley, the world?s number one rated course.

PHILIPPINE COCONUT PRODUCTS EXPORT UP SHARPLY IN SEPTEMBER

Preliminary UCAP data show export of coconut products in September accelerated to 185,734 MT in copra terms, more than double (+103.4%) same month last year total at 91,308 MT. The volume is the highest so far achieved since March last year which recorded 202,090 MT.

The month?s export growth was propelled by coconut oil with volume skyrocketing 162.2% to 104,850 MT from 39,995 MT at the same time last year. In contrast, other major products recorded double digit deficits. Copra meal was scaled back by 41.4% to 24,896 MT from 42,473 MT, desiccated coconut shaved by 27.7% to 9,806 MT from 13,558 MT, and oleochemicals trimmed down by 39.6% to 4,145 MT in copra terms from 6,862 MT.

Year-to-date total, however, at 982,531 MT in copra terms remained behind similar period year-ago data at 1,251,371 MT by 21.5% despite a marked lift in volume traded in September. Breakdown is as follows, in MT: copra 7 (nil last year), coconut oil 521,723 (647,135), copra meal 239,774 (378,770), desiccated coconut 87,385 (105,665), oleochemicals as copra 19,289 (60,807).

DESTINATIONS OF COCONUT OIL, COPRA MEAL EXPORTS IN SEPTEMBER

Almost one-half (49.2%) of the month?s delivery of coconut oil or 51,553 MT went to the United States. Europe was a strong second with uptake at 47,840 MT representing 45.6% of aggregate. The rest was shipped to Japan with 4,508 MT, Korea 930 MT and Pakistan 19 MT.

Korea still was a primary destination for copra meal with purchases this month at 17,267 MT accounting for 69.4% of total. However, perennial second placer Vietnam was dislodged by Japan with import at 4,200 MT comprising 16.9%. Vietnam took in slightly lower load at 3,429 MT for a market share of 13.8%.

21 COCONUT FIRMS IN PHILIPPINES? LIST OF TOP 1000 CORPORATIONS FOR 2008

Leading local business daily Business World released this week its Top 1000 Corporations in the Philippines for 2008. Included in the list of top 1000 corporations for 2008 based on gross revenue were 21 coconut firms, of which 14 are coconut oil millers and refiners, four are desiccated coconut producers, and three are oleochemical manufacturers.

The 14 oil millers and refiners were: Cargill Philippines (80), Wilmar Edible Oils Philippines (106), Tacloban Oil Mills, Inc. (224), New Davao Oil Mill, Inc. (230), Third Millenium Oil Mills, Inc. (281), New Leyte Edible Oil Manufacturing Corp. (376), Dumaguete Coconut Mills, Inc. (431), Minola Refining Corp. (486), JNJ Oil Industries, Inc. (521), Limketkai Manufacturing Corp. (522), Globe Coco Products Manufacturing Corp. (527), Iligan Bay Milling and Trading Corp. (537), Samar Coco Products Manufacturing Corp. (574), and Malabon Soap and Oil Industrial Co., Inc. (666).

The four desiccated coconut producers in the list were: Franklin Baker Co. of the Philippines (611), Superstar Coconut Products Co., Inc. (696), Primex Coco Products, Inc. (790), and Peter Paul Philippine Corp. (926). The three oleochemical manufacturers were: Pilipinas Kao, Inc. (127), Chemrez, Inc. (532), and Sakamoto Orient Chemicals Corp. (809).

U.S. SEEKING JOINT VENTURE WITH PHILIPPINES ON BIOFUEL RESEARCH

Visiting U.S. Agriculture Secretary Tom Vilsack said that the U.S. government is seeking partnership with the Philippines in terms of research on biofuel. Speaking at a press conference, Vilsack said both countries recognize the need to cooperate more intensively in energy security, especially in the development of renewable energy resources and alternative fuels.

The Philippines, the world?s second largest user of geothermal energy which provides 27 percent of the country?s total electricity production, is developing alternative energy sources such as solar and wind energies. Presently, it is advancing the development of biofuels such as coco-diesel and ethanol blended fuels. ?That?s one relationship that we can get at, the biofuel business and I?m sure that we?ll continue to share information, knowledge and discoveries,? Vilsack said.

ASEAN FREE TRADE AREA DEAL TO AFFECT KEY AGRICULTURAL PRODUCTS OF THAILAND

Aat Pisanwanich, director of the Center for International Trade Studies of the University of the Thai Chamber of Commerce said the six founding members of ASEAN (Association of Southeast Asian Nations) will bring down their common effective preferential tariffs (CEPT) starting next year to zero for several key agricultural products including rice, tapioca, palm oil and tea. Thailand is expected to lose 2.04 billion baht in exports to the region of three key agricultural products rice, palm oil and coffee beans over the next five years after the Asean Free Trade Area (AFTA) takes effect early next year.

The import tariff for Thai agricultural products including rice, palm oil, onion, garlic, soybeans, soybean oil, maize, coconut oil, pepper, sugar, instant coffee, tea, raw and flavored milk, and raw silk should be cut starting next year from 5 percent down to zero, according to AFTA. Tariffs on tapioca have already been eliminated. Cuts in tariffs for products on Thailand?s sensitive list vary. Products set to carry a 5 percent tariff include coffee beans (down from 20 percent), copra (from 15 percent), potatoes (from 10 percent) and cut flowers (from 10 percent).

Beginning January next year, CEPT rates will be down to between zero and 5 percent for all products, including those previously deferred under sensitive and highly sensitive lists as the region establishes free trade among the six founding members namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. However, new members in the bloc namely, Burma, Cambodia, Lao and Vietnam have until 2015 to reduce their tariff to between zero and 5 percent on imports from within Asean under their commitments with AFTA.

COMMISSIONING OF CHINA CLEAN ENERGY BIODIESEL PLANT IN JIANGYIN UNDERWAY

China Clean Energy Inc. announced recently the completion of construction of its biodiesel plant in Jiangyin. The commissioning process is now underway and a test-production run is expected to occur next month, November 2009. The plant was designed to produce up to 100,000 tons of biodiesel per year or a combination of up to 40,000 tons of biodiesel and 30,000 tons of specialty chemicals. Mr. Tai-ming Ou, China Clean Energy?s Chairman and CEO said, ?Once fully operational, we expect to ramp-up the new plant to full capacity within six to twelve months which, we hope, will contribute to profitable growth in 2010 as market fully recovers.?

China Clean Energy through its wholly-owned subsidiary, Fujian Zhongde Technology Co., Ltd. and Fujian Zhongde Energy Co., Ltd. is engaged in the development, manufacturing, and distribution of biodiesel fuel and specialty chemical products made from renewable resources. Since its inception, the Company has been engaged in the manufacture of high-quality specialty chemical products from renewable resources. Through its research and development efforts, the Company developed a proprietary process for refining biodiesel fuel from waste grease and certain vegetable oils. Using this proprietary process, the Company began producing biodiesel in 2005 and commenced selling biodiesel commercially starting in December 2005.

MALAYSIA TO STANDARDIZE SYSTEM TO GAUGE PALM OIL IMPACT ON ENVIRONMENT

Senior officials of Malaysia?s palm oil industry said it will standardize the way palm oil?s impact on the environment is calculated. This came in the wake of criticisms that the industry fuels climate change and as the EU, a top biofuels consumer, will impose starting next year a target to only accept biodiesel that can reduce carbon dioxide emissions by at least 35% versus fossil fuel. The target risks cutting out palm oil as the EU considers it only saves 19%. However, there was no clear timetable when Malaysia would present its own system to compute palm oil?s greenhouse gas savings.

Based on current studies, palm oil?s greenhouse gas savings ranged from 19% to 72% over fossil fuels, making it difficult to decide on a standard value for the tropical oil, noted Yusof Basiron, chief executive of MPOB (Malaysian Palm Oil Board). So far, studies conducted by the MPOB showed that palm oil with methane capture at mills could achieve 62% greenhouse gas savings. ?Further greenhouse gas savings can be expected from the Malaysian palm oil industry as the lifecycle assessment of palm oil production determined that methane emission contributes to 51% of its emissions,? he said.

INDONESIA MAINTAINS ITS ZERO EXPORT TAX ON PALM OIL IN NOVEMBER

For the fourth straight month, Indonesia is maintaining its palm oil export tax at zero in November. However, the crude palm oil (CPO) base export price was reduced to $595/MT from $617/MT in October due to lower prices, a trade ministry official said. The country charges a minimum tax rate of 1.5% on crude palm oil exports if the reference price, which is the average spot CPO price in Rotterdam, stands at $701 to $750/MT. Diah Maulida, director general of foreign trade at the ministry said CPO prices in Rotterdam, Europe?s vegetable oils market, averaged $669 per ton in the preceding month.

SOUTH AFRICA AIMS TO REDUCE TRANS-FATTY ACIDS IN FOODS

South Africa?s Department of Health will propose a legislation that aims at reducing certain trans-fats in some processed and prepared foods currently for sale in country. It is hoped that the enactment and implementation of the legislation will contribute towards the reduction of chronic diseases associated with the presence of trans-fatty acids in one?s diet such as coronary heart disease, diabetes, certain cancers and obesity.

The legislation will cover all manufactured and/or pre-packaged foodstuffs, as well as foods prepared by restaurants and fast food outlets, currently sold in South Africa generally containing partially hydrogenated vegetable oil (IP-TFAs) as an ingredient, or where such oil is used for deep frying purposes. Naturally occurring trans-fatty acids in animals fats, such as in dairy products and meat, are excluded from the proposed new legislation as they are believed to have certain health benefits. The department is expected to consult stakeholders in the process of developing this legislation.

FLAXSEED MAY REDUCE CHOLESTEROL

A review of 28 research studies involving more than 1,500 people found that a diet that included flaxseed may help lower cholesterol levels. Furthermore, the cholesterol reduction was stronger in women than men. Study leader Dr. Xu Lin of the Chinese Academy of Sciences in Shanghai says one tablespoon daily of whole flaxseed or flaxseed oil is usually associated with reductions in total cholesterol and low-density lipoprotein, or LDL, the ?bad? cholesterol, particularly post-menopausal women, more than men, and in people with higher cholesterol concentrations at the outset.

However, the whole flaxseed did not appear to significantly alter triglyceride levels or affect the amount of high-density lipoprotein, or HDL, the ?good? cholesterol. Flaxseed is considered healthy for the heart because it contains high amounts of omega-3 fatty acids, fiber and alpha linolenic acid. The review was published in the American Journal of Clinical Nutrition.