For week ending December 03, 2009

Agriculture Department, Philippine Coconut Authority to Establish More Coco
     Seed Farms for Synthetic Variety

Sri Lankan Desiccated Coconut Export Down in September this Year
Indian Government to Set a Cap on Trans Fat Content for Vegetable Oils
US FDA Requests Comments on Nutrition Facts Research
Saudi Arabia Plans to Phase Out Production of All Water Intensive Crops
Price Premium on Sustainable Palm Oil May be Over by 2012
India Marks Record Vegetable Oil Import in 2008/2009 Season
Indonesia to Develop Human Resources for the Palm Industry
Flaxseed Oil Reduces Osteoporosis Risk in Diabetic and Older Women - Study

AGRICULTURE DEPARTMENT, PHILIPPINE COCONUT AUTHORITY TO ESTABLISH MORE COCO SEED FARMS FOR SYNTHETIC VARIETY

       The Department of Agriculture through the Philippine Coconut Authority (PCA) plans to establish more coconut seed farms in strategic coconut-growing areas for its latest hybrid, the Orgullo Tall SV San Ramon Coconut Variety, otherwise known as the synthetic coconut variety. Ramon L. Rivera, head of the PCA-Zamboanga Research Center said this superior coconut breed developed by scientists at the Research Center, a high-yielding coconut variety, is recognized as the first in the world.

       Mr. Rivera presented the business prospects for technology transfer during an investor?s forum at the Nido Fortified Science Discovery Center at the SM Mall of Asia in Pasay City last month as part of the 5th National Biotechnology Week celebrations. Department of Agriculture-Biotechnology Program Office (DA-BPO) outgoing director, Alicia Ilaga, said through the technology transfer, DA-PCA and her office aims to encourage investors to help put up coconut seed farms all over the country to meet the expected increase in the demand for coconut both here and abroad. ?With the increasing demand for coconut because of the biofuels law, the prospects for putting up coconut seed farms are bright,? she said.

       According to Rivera, the product, the first in the country and recognized as the first in the world, has a yield potential of 7,730 to 20,540 nuts per hectare or equivalent to 3.2 to 6.7 tons of copra per hectare. He said the synthetic coconut variety produces 60 to 150 nuts per tree, which is 50 to 260 percent more than current average of 43. ?Unlike the hybrid palms, second generation SV San Ramon nuts can be replanted and assured to bear fruits even more. This pioneering genetically enhanced coconut variety combines high yield precocity, vigor, and durable genetic stability from generation to generation. This characteristic of the SV San Ramon fits the farmer?s unique tradition of planting seeds from any high-yielding tree for successive cropping,? he said.

SRI LANKAN DESICCATED COCONUT EXPORT DOWN IN SEPTEMBER THIS YEAR

       Figures from the Coconut Development Authority in Sri Lanka show the country?s desiccated coconut export plunged by 47.0% in September this year to 2,794 MT from 5,272 MT at the same time a year earlier. The shipment was worth USD3.125 million as against USD9.593 million year-ago. Average traded price during the month at USD1,118/MT FOB dropped by 38.5% from prior year at USD1,819/MT. The cumulative January-September figure at 30,292 MT leaped by 33.7% from year-earlier total in a similar period at 22,658 MT.

       Export in September went to 34 countries. The top three importers held volumes of 200 MT and higher and collectively accounted for 52.5% of total trade. Leading the pack was UAE/Dubai with 812 MT (29.1% share), followed Iran at 407 MT (14.6%) and Saudi Arabia at 247 MT (8.8%). Four other countries took in between 131 MT and 159 MT and together comprised 20.0%. They were as follows, in descending order, Pakistan, United States, Spain and Germany. The remaining twenty-seven other countries with combined share of 27.5% bought volume ranging 1-98 MT.

INDIAN GOVERNMENT TO SET A CAP ON TRANS FAT CONTENT FOR VEGETABLE OILS

       The Indian government is considering setting a maximum allowable limit of 10% on trans fatty acids (TFA) content in partially hydrogenated vegetable oils in a bid to reduce the risk of heart disease from intake of foods containing TFAs. The Food Safety and Standards Authority of India (FSSAI), an autonomous statutory body administered by the Ministry of Health and Family Welfare, has come up with a draft on this that it has presented to stakeholders. FSSAI plans to introduce the cap by January 2010.

       PI Suvrathan, FSSAI chairman, told the Indian Business Standard newspaper that lowering the TFAs in vegetable oils will automatically bring down the TFA content in packaged foods (fried in oil). Over three years, the limit will be reduced to 5%. Denmark, Canada, the US and some other European countries already have a protocol on TFA.

US FDA REQUESTS COMMENTS ON NUTRITION FACTS RESEARCH

       The US Food and Drug Administration (FDA) issued three advance notices of proposed rulemaking (ANPRM) in response to the recommendations, developed through consumer research, of its Obesity Working Group (OWG), two in 2005 and one in 2007. FDA is seeking comments on the three ANPRMs and on proposed experimental study to examine consumer reactions to various approaches to Nutrition Facts labeling. The ANPRMs intend to answer whether and how to emphasize calorie counts on Nutrition Facts panels; whether and how to amend the agency?s serving size regulations; and the third asks whether certain nutrients should be added or removed from the Nutrition Facts label.

       The FDA said that calorie count emphasis could entail using a larger font for total calorie information, adding a ?percentage of daily calories? declaration or eliminating the ?calories from fat? declaration. The ?serving size? or ?serving per container? declaration could also see increased font size. The agency then intends to randomly select 3,600 people to review a Nutrition Facts label from a selection of different formats and judge the food on its nutritional attributes and how healthy it is, and will assess their ability to use the panel to calculate calories and serving size to meet objectives.

       ?The purpose of the study is to help enhance FDA?s understanding of consumer comprehension and acceptance of modifications to the Nutrition Facts label format,? said the Register entry. ?The study is part of the agency?s continuing effort to enable consumers to make informed dietary choices and construct healthful diets.? The FDA also intends to examine use of the Nutrition Facts label and how this relates to health status. Comments are due by January 19, 2010, and notice can be accessed at the FDA website.

SAUDI ARABIA PLANS TO PHASE OUT PRODUCTION OF ALL WATER INTENSIVE CROPS

       Saudi Arabia plans to phase out production of all water intensive crops that have depleted the Kingdom?s scarce water supplies, the Minister of Water and Electricity, Abdullah bin Abdul-Rahman Al-Husayen said recently. The crops include wheat, soybeans and animal fodder, he said, but declined to comment on when the crops will be phased out.

       Agriculture accounts for 66 percent of human water consumption worldwide, according to the World Water Council. In Saudi Arabia, where the resource is already scarce, the government is inclined towards more conservation in the agriculture sector. ?Imports and growing water intensive crops outside Saudi Arabia is more feasible option for us,? said Al-Husayen. The country has been buying foreign farmland in Asia and Africa to secure food supplies after inflation had nearly doubled the price of food last year.

PRICE PREMIUM ON SUSTAINABLE PALM OIL MAY BE OVER BY 2012

       A representative from a leading palm oil producer expects that within two years, the premium enjoyed by palm oil from sustainable sources over non-certified sustainable palm oil may be over as he predicted that output of both palm oil products by then will be about equal. Currently, palm oil from producers which attain the Roundtable on Sustainable Palm Oil (RSPO) certification can charge an extra M$30 (US$8.60) to M$60 a ton for their products, due to the additional costs involved and the benefits of being able to market end products as ?environmentally friendly?.

       Sale of RSPO-certified palm oil has been slow up to now. The World Wildlife Fund reported earlier this year that of the 1.3 million MT produced in the first half of 2009 only 15,000 MT had been sold to supermarkets. It is expected, however, that as the global economy recovers, more will be sold as more manufacturers switch to using RSPO-certified palm oil.

INDIA MARKS RECORD VEGETABLE OIL IMPORT IN 2008/09 SEASON

       The Solvent Extractors Association of India (SEAI) said the country?s vegetable oil imports reached a record high of 8.66 million MT in the 2008/09 November/October season. This is a 37% increase from the 6.31 million MT in the previous year. A rise in per capita consumption of edible oil and low import taxes were the main reasons cited for the rise in imports. Crude edible oil is levied zero import duty and very nominal duty on refined palm olein. The depreciation of the US dollar vs. the rupee also helped boost overseas purchases.

       BV Mehta, executive director of the SEAI said the rise in demand for low-priced oils like palm olein has boosted consumption, and with the current trend, import could reach as high as 10 million MT in two to three years. On the other hand, record imports have reduced the country?s self sufficiency as nearly half of its vegetable oil demand is now being met through overseas purchases, which has become a cause of concern for local oilseed growers, according to Veeresh Hiremath, a senior analyst at Hyderabad-based brokerage Karvy Comtrade.

INDONESIA TO DEVELOP HUMAN RESOURCES FOR THE PALM INDUSTRY

       Indonesia?s Agriculture Minister Ir H Suswono said recently that the ministry had cooperated with the ministries of education, and the association of palm oil producers to develop human resources to support the development of the country?s palm industry. Palm oil is one of the commodities the country relies on for foreign exchange income. In 2007 it earned $8.87 billion and in 2008 boosted revenue by 39.5% to $12.38 billion.

       He also urged palm oil firms to do more for those people who are ready to work for industrial development, but acknowledged many university graduates do not currently meet the standards needed by these companies. Last year, the agriculture ministry conducted a retooling program for university graduates to meet the need of palm oil companies. After participating in the program for a month, the university graduates were immediately absorbed by the firms.

FLAXSEED OIL REDUCES OSTEOPOROSIS RISK IN DIABETIC AND OLDER WOMEN - STUDY

       A research by Mer Harvi and colleagues at the National Research Centre in Cairo suggests that flaxseed oil has beneficial effect on bone mineral density and reduces markers associated with osteoporosis, indicating that this dietary supplement could benefit women with diabetes or older women in reducing their risk of osteoporosis. The findings were published in the International Journal of Food Safety, Nutrition and Public Health.

       The researchers studied 70 female albino rats of which 30 had their ovaries removed (ovx) to simulate the post-menopausal state whereby estrogen is decreased and another group of rodents was rendered diabetic (Type 1) in order to determine the impact of diabetes on the development of osteoporosis. They then classified the rats into seven groups namely, control, sham, diabetic, diabetic received flaxseed oil in the diet, ovx, ovx-diabetic, ovx-diabetic received flaxseed oil in the diet. The authors added that flaxseed oil (rich in omega-3 fatty acids) replaced corn oil (rich in omega-6 fatty acids) in the diet of some of the diabetic and the ovx-diabetic groups with the aim of testing for the impact of this oil on either delaying or preventing the development of osteopenia in ovx rats.

       After two months, urine and blood samples were taken from the rats and measured serum insulin-like growth factor (IGF-1) and the bone-creating protein osteocalcin. The researchers found that these two compounds were present at higher levels in the ovx and diabetic ovx groups, but much lower in the diabetic group. They also found that the levels of deoxypyridinoline in the urine were raised in the diabetic group. Deoxypyridinoline is normally present in healthy bone and its presence in urine is a specific marker for bone resorption associated with osteoporosis. Levels of this marker compound fell when the rats were given flaxseed oil. The team concluded that diabetes has a more pronounced effect on bone health than ovariectomy and they suggest that diabetes in post-menopausal women may also be a greater risk factor for osteoporosis than the decline in sex hormones associated with the menopause. However, their results suggest that the presence of so-called ?n-3 fatty acids? in flaxseed oil may play a role in protecting the processes of matrix formation and bone mineralization, which apparently are compromised by diabetes and the menopause.