For week ending Nov. 08, 2007

44th APCC Session in Manila
Performance of Top Non-Traditional Coco Exports in July
Locally Produced Jatropha Passes US, EU Standard
U.S. Import of Lauric Oil Down in August
Russia to Reduce Import Tariffs on Edible Oils
Germany Develops New Scheme for Good Nutrition Labeling
U.N. Expert Calls for Moratorium in Biofuels Production
China to Subsidize Crops for Fuel

44TH APCC SESSION IN MANILA

       The 44th Session of the Asian and Pacific Coconut Community (APCC), the Ministerial Meeting of APCC, commenced last Tuesday, November 06 and will run until Friday November 09. Venue is the Swire Elan Suites on Annapolis St., Greenhills, San Juan City. The Government of the Philippines which holds the chairmanship of APCC for this year is hosting the session. The meeting is participated in by the policy making body composed of Plenipotentiary Delegates of the 15 member-countries and observers.

       At the Inaugural Session, the Keynote Speech was delivered by the Honorable Undersecretary of Agriculture Jesus Emmanuel M. Paras. Also featured during the Inaugural Session were the launching of two APCC publications namely, Coconut for Rural Welfare and Guidelines Towards the Certification of Organic Coconut Farming and Virgin Coconut Oil; and the awarding of APCC Plaques of Recognition to four posthumous awardees: Mr. Godofredo P. Reyes, Jr., first Executive Director of APCC; Mrs. Maria Clara L. Lobregat, Philippine delegate to the first APCC Meeting in 1969; Mr. Jose R. Eleazar, Jr., Philippine delegate to the first APCC Meeting; and Dr. Conrado S. Dayrit, Doctor of Medicine, Academician, Scientist and Advocate of the health attributes of coconut oil.

       The CIIF Oil Mills Group and United Coconut Association of the Philippines (UCAP) hosted the Welcome Reception in honor of the APCC delegates last November 06 at the Columbus, 42nd Floor, Discovery Suites, Ortigas Center, Pasig City.

PERFORMANCE OF TOP NON-TRADITIONAL COCO EXPORTS IN JULY

       There were nine 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 was top performer with foreign exchange receipts exceeding the USD1.0 million-mark at USD1.180 million from shipment of 1,805 MT. The volume increased by 20.0% from 1,504 MT at the same time last year. Top destination was Japan with 935 MT (51.8% share), followed by China with 383 MT (21.2% share). Limited tonnages went to USA 99 MT (5.5%), Korea 74 MT (4.1%), New Zealand 53 MT (2.9%), while nine other countries together accounted for 262 MT (14.5%).

       NATA DE COCO was the second biggest export with income of USD487,558 from sale of 684 MT. Shipment during the month rose by 4.6% from similar month year-ago at 654 MT. Japan took in bulk of total delivery with 398 MT (58.2%). Malaysia was far second at 116 MT (16.9%). Other markets were Vietnam (69 MT), Hongkong (22 MT), Korea (19 MT). Others market category which comprised 20 various countries imported a total of 60 MT.

       VIRGIN COCONUT OIL took the third spot with revenue of USD400,485 from delivery of 151 MT. The volume is almost three times the figure in July year-ago at 59 MT. This month’s market leaders were Canada with purchases of 80 MT and USA with 62 MT which jointly accounted for 94.5%. United Arab Emirates led the six other markets which took in very limited amounts no higher than 5 MT.

       LIQUID COCONUT MILK came in fourth with earnings of USD399,046. This month’s volume which stood at 329 MT leapfrogged by 355.3% from merely 72 MT in same period year-ago. The United States was the top outlet with 225 MT (68.2%). Distance behind was Japan with 51 MT (15.5%). Other destinations were Netherlands 34 MT (10.2%) and Belgium 18 MT (5.5%). Four other countries with volume aggregating 2 MT jointly comprised a marginal 0.6%.

       TOILET/BATH SOAP ranked number five which earned USD343,065 from export of 144 MT. The volume slashed by 51.1% prior year data at 295 MT. Australia was leading buyer at 33 MT or 23.1% of total sales, trailed by Singapore at 31 MT (21.8%), United Arab Emirates at 26 MT (18.2%) and Indonesia at 16 MT (10.9%). Twenty-one other countries shared the remaining volume of 38 MT or 26%.

       SHAMPOO was the sixth top non-traditional export which turned in USD308,853 from the delivery of 106 MT. Current month volume was 34.3% lower against the previous year at 161 MT. There were twenty five country destinations which was topped by Mongolia that captured 29 MT or 27.4%, tracked by Colombia at 25 MT (23.4%), Thailand at 23 MT (21.9%), United Arab Emirate and Ecuador at 9 MT apiece. The remaining twenty others together shared 11 MT (10.1%).

       COCONUT MILK POWDER made it to number seven with turnover of USD206,002 from the export of 98 MT. Volume, however, slumped by 67.9% from 306 MT at the same time last year. Japan was the market leader with 61 MT (61.7%). The United States at 14 MT, China at 13 MT and Korea at 6 MT, collectively shared 33.7%. Four other countries contributed the remaining volume of 5 MT or 5.3%.

       LAUNDRY SOAP which earned USD167,874 from sales of 138 MT filled in the eighth place. The volume skyrocketed by 622.1% from 19 MT year-ago. Virtually all shipments went to Malaysia at 138 MT or 99.9% of total sales.

       Completing the top nine non-traditional exports was MAKAPUNO with total income of USD164,474 from shipment of 86 MT, a sharp rise by 32.8% from 65 MT year-ago. Major buyer was the United States at 31 MT (35.6%). Limited volumes went to United Arab Emirates at 9 MT (10.5%), Australia and Canada at 6 MT apiece and United Kingdom at 4 MT. Others market comprising 19 countries held 31 MT.

LOCALLY PRODUCED JATROPHA PASSES US, EU STANDARD

       The government’s effort to hasten the development of jatropha plant for use as biofuel feedstock received a boost after tests showed that locally produced biodiesel from the shrub passed European and American Biodiesel Standards. A study conducted by the Technological University of the Philippines (TUP) and Chemrez Technologies Inc. (ChemrezTech) showed the properties of the jatropha biodiesel they produced were within the specifications of EN 14214 (European Biodiesel Standards) and ASTMD 6751 (American Biodiesel Standards).

       The development suggests that oil extracted from local jatropha seeds can be converted to quality biodiesel, which in turn can be used to supply the mandated blending of biodiesel into all diesel engine fuels under the Biofuels Act of 2006. TUP extracted the oil from the jatropha seeds while ChemrezTech converted the jatropha crude oil to jatropha methyl ester, commonly known as jatropha biodiesel. Philippine National Oil Co.-Alternative Fuels Corp. (PNOC-AFC), the biofuels arm of the state-owned PNOC, provided the local jatropha seeds. Under PNOC-AFC’s five-year biofuels program, it will plant over half a million hectares of jatropha nationwide and construct refineries that will process the seeds.

U.S. IMPORT OF LAURIC OIL DOWN IN AUGUST

       Figures from USDA show the U.S. imported 64,089 MT of lauric oils in August, lower by 13.9% from 74,400 MT at the same time last year. Coconut oil at 52,040 MT represented 81.2% of total purchases and the remainder was palm kernel oil at 12,049 MT. Import of coconut oil during the month increased by 11% year-on-year from 46,892 MT, while that of palm kernel oil sharply declined by 56.2% from 27,508 MT. The cumulative figure for January-August at 461,179 MT is slightly behind a similar year-earlier period data at 497,861 MT by 7.4%.

       The Philippines was top supplier of lauric oil to the U.S. during the month with shipment of 36,174 MT of coconut oil, the equivalent of 56.4% of total import. The volume expanded by 3.8% from 34,850 MT a year ago. Indonesia was responsible for 14,795 MT made up of coconut oil only, a reduction by 11.6% from prior year at 16,738 MT that comprised 10,145 MT of coconut oil and 6,593 MT palm kernel oil. Delivery from Malaysia at 13,120 MT slumped by 42.5% from year-ago at 22,812 MT. The lauric mix consisted of 12,049 MT palm kernel oil (20,915 MT year-ago) and 1,071 MT coconut oil (1,897 MT).

RUSSIA TO REDUCE IMPORT TARIFFS ON EDIBLE OILS

       Russia’s Economy Ministry announced plans to cut import tariffs for soya oil, sunflower oil and rapeseed oil to 5% from the current 15% for the next six months in a bid to fight rising consumer food prices. Expectations of a cut by at least 20% in the country’s sunflower seed crop this year has tightened raw material supply for oilseed crushers and contributed to the sharp rise in local edible oil prices.

       SovEcon, Russia’s leading agricultural analyst claimed tariff cut on sunflower oil could be beneficial for Ukraine sunflower oil producers while lower soya oil duties could benefit producers of soya oil from Brazil and Argentina as Russia is poised to increase imports of these oils from these countries. SovEcon estimates Russian imports of raw sunflower oil in the 2006/07 season at 30,000 MT, bottled sunflower oil at 100,000-130,000 MT and soya oil at 20,000-25,000 MT.

GERMANY DEVELOPS NEW SCHEME FOR FOOD NUTRITION LABELING

       The German government has developed new guidelines for increased nutritional information on food packaging that focus on calorie content. Horst Seehofer, federal minister for Food, Agriculture and Consumer Protection, recently announced the labeling initiative. It is part of the Education and Information about Nutrition, Movement and Health plan, which aims to combat obesity and improve consumer information and choice.

       The guidelines advise the ‘1 plus 4’ approach, which prioritizes calorie content. The total calorie amount in one portion of the product and how that translates into the percentage of Guideline Daily Amounts (GDA) appears on the front of the packet. The four refers to fat, salt, sugar and saturated fat, and these can appear on the front or the back, depending on the packaging. The best approach to labeling nutritional information has caused lively debate among regulators, industry and retailers. The two main schools of thoughts are the GDAs on one side, and the traffic light scheme on the other. This was developed by the UK’s Food Standards Agency and represents good and bad foods by color codes.

U.N. EXPERT CALLS FOR MORATORIUM IN BIOFUELS PRODUCTION

       Jean Ziegler, who has been the United Nation’s independent expert on the right to food, since the position was established in 2000, called for a five-year moratorium on biofuel production to halt what he called a growing “catastrophe” for the poor. He called the growing practice of converting food crops into biofuels “a crime against humanity”.

       He opined that scientific research is progressing very quickly and projected that in five years technology will be developed to make biofuel and biodiesel from agricultural wastes rather than wheat, corn, sugar cane and other food crops.

CHINA TO SUBSIDIZE CROPS FOR FUEL

       At the Next Biofuels Technologies forum, Liu Yonglu, China’s deputy director of the ministry of finance’s tax department disclosed that subsidies will be given to farmers who plant crops for biofuels provided such crops are not grown on land that is needed to produce food supplies. Crops for biofuels planted on land not intended for food will be subsidized yuan 200 per mu (USD403.50 per hectare) a year, while such crops grown in forested areas will receive yuan 180 per mu. China aims to ensure that its ethanol industry does not unduly increase agricultural and food prices, which have significant impact on its inflation.

       The subsidies are due to be introduced from early next year and to be given only to producers that have guaranteed that end users of the crops are biodiesel and fuel ethanol makers. There is no restriction, however, on the properties of the producers, which may also include foreign enterprises. The major domestically produced non-grain feedstock for fuel ethanol in China include sweet sorghum, sweet potato and cassava, while jatropha and physic nut are being planted as feedstock for biodiesel.