Newsbrief 47

For week ending Nov. 22, 2007

PHILIPPINE COCO EXPORT DOWN IN AUGUST

Official figures from the Philippine Coconut Authority show the country’s export of coconut products in August this year totaled 147,403 MT in copra terms. This declined by 9.7% from August year-earlier at 163,240 MT. Gross export receipts, however, at USD95.577 million shot up by 34.1% from prior year at USD71.248 million as border prices appreciated sharply.

Major exports depicted mixed trends with copra meal and oleochemicals in the positive territory. Copra meal shipment increased substantially by 36.1% year-on-year to 22,103 MT from 16,243 MT; oleochemicals grew by a whopping 51.7% to 10,553 MT as copra from 6,958 MT. In contrast, coconut oil lifting fell 10.2% to 75,391 MT from 83,993 MT and delivery of desiccated coconut declined 25.2% to 11,113 MT from 14,851 MT. Other products performed as follows, in MT: coco shell charcoal 2,058 (-1.3% from 2,085 year-ago), activated carbon 2,335 (-6.9% from 2,507), glycerin 2,548 (+1,043.9% from 223), fresh coconuts 46 (-63.4% from 134), Others 3,322 (+49.9% from 2,216).

January-August 2007 export tallied 1,006,725 MT copra terms, reducing by 28.9% a similar period year-ago data at 1,414,941 MT. Breakdown is as follows, in MT: coconut oil 506,897 (754,964 last year), copra meal 244,801 (287,174), desiccated coconut 88,088 (92,972), oleochemicals as copra 65,936 (72,844), coco shell charcoal 14,659 (18,000), activated carbon 17,940 (22,820), glycerin 10,902, (9,015), fresh coconuts 542 (1,606), Others 18,940 (18,139).

DESTINATIONS OF COCONUT OIL, COPRA MEAL EXPORTS

Export of coconut oil in August was made up of 54,054 MT crude coconut oil (CNO), 20,399 MT cochin or semi-refined oil, and 938 MT RBD oil. Overall, the US was leading destination during the month responsible for 47.9% with purchases of 36,112 MT, followed by Europe which held 30.5% with 23,001 MT.

Top buyers of crude coconut oil were US with 25,750 MT and Europe, mainly the Netherlands with 23,001 MT. Other importers were China with 3,063 MT, Japan with 2,200 MT and Taiwan with 40 MT. The US also was primary destination for cochin oil with 10,295 MT, trailed by Japan and Malaysia at 5,000 MT apiece, then China with 68 MT, Bangladesh 19 MT, and Taiwan 15 MT. The biggest buyer of RBD oil was Iran with 428 MT, followed by China with 250 MT, Syria 94 MT, Russia 43 MT, Canada 27 MT, Malaysia and Taiwan with 15 MT apiece.

Copra meal was shipped for the most part to Korea with 13,847 MT to account for 62.7%. Vietnam remained the second biggest destination with 8,150 MT for a market share of 36.9%. Limited amounts were also channeled to Australia at 56 MT and Hongkong at 49 MT.

…OF DESICCATED COCONUT

Export of desiccated coconut in August went to 42 various countries of which 22 took in volume no lower than 100 M and which jointly comprised 93.5% of the market. Leading the pack was US with 3,066 MT (27.6% share), tracked by United Kingdom with 1,546 MT (13.9%). Germany with 670 MT, Netherlands with 634 MT, and Canada with 501 MT together were responsible for 16.2%.

Seventeen countries which held between 102 MT and 462 MT had a combined market share of 35.8%. This consisted of the following, in descending order: Korea, Australia, Egypt, Belgium, Japan, Brazil, Russia, Singapore, Spain, Poland, Turkey, Israel, New Zealand, Chile, Sweden, France, Ukraine. Countries numbering 20 that purchased lower than 100 MT took in volume ranging from 11 MT to 74 MT for a total of 720 MT (6.5%).

…AND COCO SHELL PRODUCTS EXPORTS

Japan maintained leadership in coconut shell products business. The country’s uptake of coconut shell charcoal at 1,241 MT made up 60.3% of total sales. Deliveries to Korea at 499 MT and China at 318 MT respectively accounted for 24.2% and 15.4%.

Japan’s import of activated carbon at 1,030 MT represented 44.1% of total shipment for the month. The next five large importers were US with 470 MT (20.1%), France 194 (8.3%), Korea 145 MT (6.2%), Germany 119 MT (5.1%), United Kingdom 103 MT (4.4%). Thirteen other countries with uptake ranging 1-60 MT and volume aggregating 275 MT jointly contributed 11.8%.

16 COCONUT FIRMS IN PHILIPPINES’ 2006 TOP 1000 CORPORATIONS LIST

Data from the Business World Top 1000 Corporations in the Philippines for 2006 show 16 coconut firms made it to the country’s top 1000 corporations list. The combined gross revenues of the 16 firms at Php38,240 Million however, was lower by 6.7% from Php40,980 Million in 2005 and accounted for 3.33% of the aggregate gross revenue of the top 1000 corporations.

The 16 firms in the list are as follows: Cargill Philippines (105), Pilipinas Kao (257), Poms Ventures (307), Oleo-Fats Inc. (337), New Davao Oil Mill, Inc (409), Chemrez, Inc (447), Globe Coco Products Mfg. Corp. (451), International Copra Export Corp. (478), New Leyte Edible Oil Mfg. Corp. (512), Third Millennium Oil Mills (604), Samar Coco Products Mfg. Corp. (791), Franklin Baker Co. of the Philippines (817), Stepan Philippines, Inc. (834), Dumaguete Coconut Mills (885), Superstar Coconut Products (965) and Minola Refining Corp. (980).

INDIAN OIL PROCESSOR TO BUILD NEW REFINERY

KS Oils, an edible oil manufacturing company in Madhya Pradesh, plans to set up a 500 MT/day refinery in Haldia, West Bangal. The plant is expected to start operation in 2008/2009 and will manufacture vanaspati and mustard oil, besides refining palm oil. The facility will cater to the market in the eastern and north-eastern regions, which have more demand for mustard oil. Total edible oil market in the country is about Rs60,000 crore, of which mustard oil alone accounts for Rs12,000 crore. The company, which already has three plants in Madhya Pradesh and Rajasthan, intends to set up two more in Rajasthan and three in Madhya Pradesh in 2007 to 2008 at a cost of Rs400 crore. KS Oils has entered into a joint venture in Malaysia for palm oil production and plans to enter the Paraguay market for soya oil production.

TYPES OF OMEGA-3 CLARIFIED

According to consumer watchdog Which?, some food companies have failed to distinguish to consumers the different types of omega-3s which are ALA (alpha linolenic acid) , DHA (docosahexaenoic acid) and EPA (eicosapentaenoic acid). EPA and DHA are derived from marine sources such as oily fish; DHA can also be derived from microalgae. ALA is derived from plant sources such as flaxseed. Finished products containing EPA, DHA or ALA can claim to be sources of “omega 3”, yet EPA and DHA are significantly more bioavailability than ALA. The shorter long-chain omega-3 fatty acid ALA is a precursor to DHA, and has to be converted by the body before it can be used. While EPA and DHA are 20- and 22- chain carbons respectively, ALA is an 18-carbon. Some of the cognitive, heart health and antioxidant benefits are lost in the conversion process elongating ALA’s carbon chain.

November edition of Which? found some labels simply referred to just omega-3 without saying which type. An analysis of a product found it contained less than 0.002 percent EPA and DHA. Other products failed to inform shoppers how much omega-3 they would need to consume to benefit from any positive effects. The results add to a need for regulators, including the European Food Safety Authority, to establish a recommended daily amount for omega-3 to help consumers.

BREAST CANCER RATES IN CHINA UP, TIED TO POOR DIET AND LIFESTYLE

Increasing rate of breast cancer in Chinese urban women has been blamed on Western-style junk food and unhealthy lifestyle. Also found to raise the risk of breast cancer are poor diets, environmental pollutions and increased stress. In China’s commercial center of Shanghai, 55 out of every 100,000 women have breast cancer, a 31 percent increase since 1997, according to China Daily. Rising affluence has led to more fat and junk in Chinese diets, which traditionally consisted mainly of vegetables, tofu and grains such as rice. An estimated 60 million Chinese which is equal to the population of France, already are obese and rates of high bloods pressure and diabetes are climbing.

BIOFUEL BLENDS IN HOME HEATING OIL PROPOSED IN MASSACHUSETTS

Massachusetts governor and top lawmakers want to set the state on the clean energy map by requiring biofuel blends in home heating oil and providing tax incentives for producers of more efficient ethanol technology, known as cellulosic ethanol. Gov. Deval Patrick said, the state would be the first to require all diesel and home heating fuel sold in Massachusetts to contain a minimum amount of bio-based alternatives in their blends, as well as the first to provide incentives for cellulosic ethanol production.

The bill, introduced with State President Therese Murray and House of Representatives Speaker Salvatore DiMasi, sets standards of a 2% blend by 2010, increasing to 5% in 2013, in all diesel and home heating fuel. Ethanol currently is made from corn. Future sources include cellulosic feedstock such as switchgrass, a hardy prairie grass in great abundance, and wood chips and corn stems. Massachusetts is the third largest home heating oil market in the United States, according to the Northeast Biofuels Collaborative.