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The Executive Director Speaks “Change Being the only Constant is Demonstrated in the Coconut Sector for Improved Sustainability”...................... 2
Prevailing Market Prices of Selected Coconut Products and Oils ....................... 3-4
Market Analysis of Desiccated Coconut ............................................................... 5-6
Community News .................................................................................................. 7-21
Trade News .......................................................................................................... 21-25
Bio-Diesel News ................................................................................................... 25-26
Other Vegeoil News ............................................................................................. 26
Did You Know ....................................................................................................... 26-27
Coconut Recipe “Thai Coconut Soup with Turmeric” ............................................ 27
STATISTICS ......................................................................................................... 28-29
Table 1. Indonesia’s Monthly Exports of Desiccated Coconut, 2016-2018
Table 2. Philippines’ Monthly Exports of Desiccated Coconut (in MT), 2015-2018
Table 3. Sri Lanka’s Monthly Exports of Desiccated Coconut (In MT), 2016-2018
Table 4. Export Volume of Desiccated Coconut by Country of Origin, 2018 (MT)
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
EEXXEECCUUTTIIVVEE DDIIRREECCTTOORR SSPPEEAAKKSS …………………………………………………...
t was a historical event at the 54th APCC Session/Ministerial Meeting last
September in Malaysia for the organization’s last Meeting as the Asian and Pacific Coconut Community (APCC) and that all necessary approvals and requirements were then fulfilled to proceed from 1
st October 2018 as the International Coconut
Community (ICC) thus commencing the transition leading up to the 2019 ceremonial launch to be held in the Philippines. The Malaysian meeting admitted Timor Leste as a new member.
The governments of copra producing countries are bracing themselves as farmers presently are affected by the drastic drop on copra prices. Decreases for Indonesia
and Philippines are in the range of 40-60% with end of September prices at US$458 and US$545 per metric ton respectively. The decline reflects Rotterdam CIF price for CNO at end of September at US$907 compared to same period last year at US$1,525 per metric ton which is also a 40% reduction. Whilst this behavior follows a four-year pattern according to price movement history it is largely now determined by the premium price situation created between Palm Kernel Oil (PKO) and Crude Coconut Oil (CNO). This premium is at the moment in the range of US$300-400 per metric ton. As this premium price gap increases it lowers the price of copra.
During the Bangkok COCOTECH Conference a number of presentations explored opportunities for increased diversification that could further add value to copra itself. Pacific white copra producers in the Solomon Islands reportedly experience a 35% premium for white copra compared to the ‘black copra’. Indonesian experience is a price differential of about 40% for white copra sold in Surabaya buyer by producers.
An economically steady product is Desiccated Coconut (DC) since the 1800s therefore considered more as a traditional product with established markets. Some marginal decline in prices compared to similar period last year however maintaining minimal fluctuation enabling processors, buyers and consumers to continue viable businesses. Export volumes continue to increase in each of the major producing countries of Philippines, Vietnam, Indonesia, Sri Lanka and India. Prices had remained on average of US$2,000 per metric ton over last 5 years. Recent declines record at just over US$1,800 per metric ton. The major challenge is shortage of raw material. Processors are making every effort through their contracted buyers mostly to mobilize famers to enable consistent supply of fresh coconut.
Non-edible products of coconut presently continuing positive trends on the market include coconut shell charcoal with related products and coir pith.
The Government of Malaysia have announced a new look at the coconut industry to be able to revitalize and grow the coconut sector more vigorously. The present downstream processed products are of very high quality in terms of content, packaging and presentation to the public consumer communities around the world making them a global performer. The challenge going forward is to address replanting as wells new coconut lands to be developed to assure long term sustainability in coconut production and supply of all related raw material.
It is evident that Coconut is a viable industry when it is able to manage its constraints and utilizes the challenges to create opportunities as being demonstrated in many parts of the coconut world. Producers should therefore continue to explore viable markets as well as exercise responsibility in maintaining the highest possible standards for exports product and commodities.
I
P
C
URON N. SALUM Executive Director, ICC
“Change Being the only Constant is Demonstrated in the Coconut Sector for Improved Sustainability”
Page | 3
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
Price of CNO decreased Indonesia and Sri
Lanka, but increased in Philippines. The price
of DC decreased in Philippines, Indonesia
and Sri Lanka.
COPRA: The price of copra in Indonesia was
US$458/MT in September 2018, which was
higher than last month’s price of US$456/MT.
When compared to last year’s data for the
same month the price was US$529/MT lower.
In the domestic market of the Philippines
(Manila), the price decreased by US$5/MT
compared to the price in August 2018, and
about US$374/MT lower compared to the
price of US$919/MT in September 2017.
COCONUT OIL: The average price of
coconut oil in Europe (C.I.F. Rotterdam) for
the month of September 2018 increased by
US$4/MT to US$907/MT from US$903/MT in
August 2018. This price was lower by 40%
when compared to the price of September
2017 accounting for US$1,525/MT.
The average local price of coconut oil in the
Philippines in September 2018 was
US$859/MT. This was US$14/MT lower than
the price in August 2018, and it was
US$723/MT lower if compared to the last
year price for the same month which was
US$1,582/MT.
The average domestic price of coconut oil in
Indonesia in September 2018 decreased by
US$14/MT compared to the previous month
from US$874/MT to US$860/MT. September
2018 price was US$720/MT lower than the
price of the same month of 2017 which was
US$1,580/MT.
COPRA MEAL: The average domestic price
of the commodity in the Philippines at selling
points was quoted at US$190/MT. The price
was US$9/MT lower compared to the
previous month, and was US$27/MT higher
than the last year price for the same month.
The average domestic price of copra meal in
Sri Lanka decreased by US$12 compared to
the last month price of US$300/MT, and was
lower than last year price of US$361/MT for
the same month.
DESICCATED COCONUT: The average
price of desiccated coconut (DC) FOB USA in
September 2018 was US$2,334/MT. This
price was US$18/MT lower than the previous
month’s price and US$175/MT lower than the
price of the same month last year. In Sri
Lanka, the domestic price of desiccated
coconut in September 2018 was
US$1,860/MT or US$196 lower than the price
in August 2018. Meanwhile, the price of DC in
the domestic market in the Philippines was
US$1,403/MT, which was US$15/MT lower
than the previous month’s price at
US$1,418/MT and US$317 lower than the
price in the same month last year. Indonesian
price in September 2018 was US$1,634/MT,
decreased by US$166/MT compared to the
last month’s, and decreased by US$796/MT
from last year’s price.
COCONUT SHELL CHARCOAL: In Sri
Lanka, the average price of the commodity in
September 2018 was US$515/MT which was
US$12/MT lower than previous month’s price.
The average price of charcoal in Indonesia
for September 2018 was US$539/MT, which
was US$11/MT lower than last year’s price
for the same month.
COIR FIBRE: Coir fiber traded in the domestic market in Sri Lanka was priced at US$260/MT for mix fiber and US$735/MT – US$1,103/MT for bristle. The Indonesian price for mixed raw fiber was US$331/MT in September 2018 which was higher compared to last month’s price.
PPRREEVVAAIILL IINNGG MM AARRKKEETT PPRRIICCEESS OOFF SSEELLEECCTTEEDD CCOOCCOONNUUTT
PPRROODDUUCCTTSS AANNDD OOIILLSS
4 | Page
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
Price of Coconut Products and Selected Oils (US$/MT)
Products/Country 2018 2018 2017 2018
Sep. Aug. Sep. (Annual Ave.)
Fresh Coconut
Philippines (Dom. Husked) 122 125 189 162
Copra
Philippines (Dom. Manila) 545 550 919 639
Indonesia (Dom. Java) 458 456 987 547
Sri Lanka (Dom. Colombo) 1,166 1,229 1,506 1,424
Coconut Oil
Philippines/Indonesia (CIF Rott.) 907 903 1,525 1,069
Philippines (Domestic) 859 873 1,582 1,033
Indonesia (Domestic) 860 874 1,580 1,035
Sri Lanka (Domestic) 2,030 2,122 2,492 2,382
Desiccated Coconut
Philippines FOB (US), Seller 2,334 2,352 2,505 2,429
Philippines (Domestic) 1,403 1,418 1,720 1,534
Sri Lanka (Domestic) 1,860 2,056 3,188 3,069
Indonesia (Domestic) 1,634 1,800 2,430 2,047
Copra Meal Exp. Pel.
Philippines (Domestic) 190 199 163 190
Sri Lanka (Domestic) 288 300 361 353
Indonesia (Domestic) 196 202 220 211
Coconut Shell Charcoal
Philippines (Domestic), Visayas, Buyer 366 375 464 412
Sri Lanka (Domestic) 515 527 386 508
Indonesia (Domestic Java), Buyer India (Domestic)
539 609
550 628
471 453
537 612
Coir Fibre
Sri Lanka (Mattress/Short Fibre) 260 265 189 230
Sri Lanka (Bristle 1 tie) 735 752 645 760
Sri Lanka (Bristle 2 tie) 1,103 1,129 806 1,134
Indonesia (Mixed Raw Fibre) 331 319 286 334
Other Oil
Palm Kernel Oil Mal/Indo (CIF Rott.) 873 904 1,346 988
Palm Oil, Mal/Indo (CIF Rott.) 524 534 724 620
Soybean Oil (Europe FOB Ex Mill) 651 654 882 768
Exchange Rate: September 30, 2018
1US$= P 54.05 or Indo.=Rp14.937 or India=Rs72.54 or SL=Rs169.15
Euro=US$1.16
Page |
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
5
Price of desiccated coconut (DC)
showed an easing trend until the third
quarter of 2018,. The largest price drop was
recroded in Sri Lanka. Price of DC in Sri
Lanka plunged from US$3,816/MT in March
2018 to US$1,860/MT in September 2018
or dropped by 51.3% in six months only.
High price premium of Sri Lankan DC over
Philippines’ and Indonesia’s DC together
with lowering price trend of raw material,
coconut, has brought about the price of Sri
Lankan DC to fall. In Indonesia, the price
went down from US$2,367/MT in January
2018 to US$1,892/MT in September 2018
or decreased by 20%. Meanwhile,
Philippines’ price (FOB US) was relatively
stable at average of US$2,429/MT until the
third quarter of 2018.
The lower price of DC has given an
incentive for importers to push their
demand. USA, the largest DC importing
country, was recorded to raise their demand
for the product to the level of 32,419 tons
during the first half of 2018. This was
recorded an increase by 11.3% as opposed
to the previous year’s import volume for the
same period. Meanwhile, European
countries recorded a 2.3% increase for
import volume of DC during January-June
2018. The global market of DC is still
supplied mainly by Philippines, Indonesia,
and Sri Lanka.
Philippines maintained its increasing
trend of desiccated coconut (DC) export
since previous year. The official figure from
the Philippines Statistics Authority showed
that the export of DC in the first half of 2018
was 46,840 MT which was 4% higher than
previous year’s volume for the same period.
The export volume has been following a
positive growth in the last two years. It
should be noted that Philippines’ export of
DC rose by 35.6% in 2016 and again went
up by 26% in 2017.
After experiencing a shortage in
supply of raw material due to El nino in
2015 worsened by a series of typhoons,
Philippines’ DC production indicated a sign
to recover following an improvement in
coconut production as favorable weather
came. This has enabled Philippines DC
manufacturers to fulfill the global demands
in international market. The lower price of
DC has given a room for importers to boost
their demand to accumulate stocks. In the
first half 2018, America and Europe were
still major destinations for DC from the
Philippines accounting for more than 48% of
the total export. USA was the main
destination for Philippines DC in America
which absorbed 12,326 MT or 26% of the
total export. In Europe, Netherlands was the
main hub receiving 16% of Philippines DC.
Meanwhile from Asian countries, Japan and
Malaysia were amongst the largest
importing countries of DC from the
Philippines.
In the period of January-August of
2018, accumulated export volume of DC
from Indonesia was 72,836 tons. The export
showed a positive growth of 20% compared
to the previous year’s volume. The growth
was following an increasing trend in the
previous year. In 2017, BPS-Statistics
Indonesia recorded that export volume of
DC from Indonesia during the period was
98,038 MT which was higher by 23.7%
compared to the 2016’s volume. An upturn
MARKET ANALYSIS OF DESICCATED COCONUT
6 | Page
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
in raw material supply with a lower price
compared to other competitors coupled with
processing recovery have given a positive
signal for Indonesian DC processors to
boost their export.
During the period, Asia and Europe
were still the main market for DC from
Indonesia. The two regions absorbed 82%
of total export volume of DC from Indonesia.
In Asia, Singapore is the main hub for
Indonesian DC manufacturers. More than
22% of total DC export was sent to or via
Singapore. UAE, Pakistan and Iran were the
other major importing countries from Asia.
Europe was the second largest market for
DC from Indonesia in the period including
Germany, Russia, Netherlands, Poland,
Turkey and UK. The region received 25,607
MT of DC from Indonesia. The third largest
market was America. Its share of
Indonesia’s DC market was 8.5%. Amongst
American countries, Brazil was recorded as
the largest importing country. The country
imported 5,568 of Indonesian DC
constituting 4.2% of the total export.
Global demand on DC from Sri Lanka
was still affected from the high price of the
product. In the period of January-August
2018, export of DC from Sri Lanka was only
14,344 MT or dropped by 32% compared to
the previous year’s volume. The decrease
was following the trend in the previous year.
In 2017, export volume of DC from Sri
Lanka was 29,418 MT or dropped by 40%
opposed to 2016’s volume. However,
looking at the monthly export data, as the
price is easing, the demand for the product
is improving. In January 2018, export of DC
from Sri Lanka was only 928 MT and
gradually increased to reach 3,009 MT in
August 2018 when the price reached the
lowest level since February 2016.
Europe and Asia are the main market
for DC from Sri Lanka. In the period of
January-August 2018, European countries
and Asia imported 4,412 MT and 4,775 MT
of DC from Sri Lanka respectively. The
imports of the two regions amounted to
more than 64% of the Sri Lanka’s total
export of DC. American continent has
appeared to become an important
destination for Sri Lankan DC. The
continent absorbed 28% of Sri Lanka’s total
export in the period. USA was the main
importing country demanding for 2,502 MT
or 17% of the total export.
Page | 7
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
INTERNATIONAL COCONUT COMMUNITY
The decision to upgrade the Asian
and Pacific Coconut Community to gain
international status was subject of
discussion and deliberation for many years
including the 2015 and 2016 Ministerial
Meetings in India and Indonesia
respectively.
Eventually the 53rd
APCC Session/
Ministerial Meeting held in Kiribati during
October 2017 unanimously resolved to
establish the global organization through an
amendment to Article 5 thus removing the
geographical boundaries defining
membership qualification. This enables all
coconut growing countries to obtain full
membership of the Community.
The United Nations Secretary General
was then notified as required by the Article.
The UN Treaties Office responded with the
Depository Notification dated 20th March
2018 thus fulfilling all official requirements to
establish the International Coconut
Community (ICC). Currently 16 coconut
growing countries are full members of ICC.
The Asian Region members are India,
Indonesia, Malaysia, Philippines, Sri Lanka,
Thailand, and Vietnam. The Pacific Region
members are Federated States of
Micronesia, Fiji, Kiribati, Marshall Island,
Papua New Guinea, Samoa, Solomon
Island, Tonga, and Vanuatu. The associate
members, Jamaica and Kenya would be
submitting application to attain full
membership.
Timor Leste is latest new member
admitted in 2018 awaiting formal process of
notification by UN Secretary General. The
addition would bring total full member to 19
countries.
PROGAMME TO DEVELOP COCONUT
INDUSTRY LAUNCHED
A Government programme to develop
Fiji’s coconut industry and boost the supply
of copra was launched in Savusavu
yesterday.
The policy is formulated for the
development of the coconut industry under
the Government’s assistance scheme.
The Government in the 2018-2019
National Budget announced a collaboration
with Copra Millers Fiji Limited, embarking on
a coconut planting assistance journey.
In the budget, $700,000 was allocated
to Copra Millers Fiji, with a target to plant
30,000 coconuts in the first year.
As part of the initiative, farmers who
are interested will be allocated coconut
seedlings without any costs and will receive
$20 for every successful germinated plant.
At the launch, Minister for Agriculture,
Rural and Maritime Development, and Na-
tional Disaster Management Inia Seruiratu
said the coconut industry was very impor-
tant to economic and social development in
Fiji.
“Over the years, it has been an
important source of livelihood for rural and
maritime people, even though the
performance of the industry has been on a
decline since the 1970s,” Mr. Seruiratu said.
“It resilience has encouraged this
Government to continue to rehabilitate and
develop the industry into a vibrant business
to support an estimated 10,000 farmers who
are dependent on it for their livelihood.”
Increase harvest
The Minister said the plan was to
increase the number of coconuts harvested
annually.
“Currently, Fiji has an estimated 10
million scattered and planted coconut trees,
over an area of approximately 65,000
hectares of land mostly under a mixed
cropping and livestock farming system,” he
said.
“Around 70 to 80 per cent of Fiji’s
coconut palms are more than 100 years old.
CCOOMMMMUUNNIITTYY NNEEWWSS
8 | Page
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
“Average nut production is 25 to 30
nuts per tree per year for older trees while
younger palms below 50 years are around
60 to 70 nuts per tree per year.”
Mr. Seruiratu said the performance of
Fiji’s coconut industry can be affected by
natural disasters, expiring land leases, in-
dustrial development and coconut timber
harvesting from senile palms.
“The shift to a more lucrative shorter
terms crop like yaqona and dalo, and the
low yields and high transportation costs with
unfavourable market prices, have also
contributed to farmers leaving the industry,”
he said.
Years of neglect
“After years of neglect, the current
Government has realised the importance of
this industry based on its sustainability and
its social and economic contribution to the
development of Fiji and its people.
“Government has considered this as a
strategic priority through the Ministry of
Agriculture’s various initiatives to rehabilitate
and revitalise this ailing industry.”
He urged farmers to plant more coco-
nuts, saying the future of the industry was
bright.
“Make use of this opportunity which is
focus towards your livelihood, food security,
for the development of the coconut industry
and for growing of our economy,” Mr.
Seruiratu said.
“The current Government continues to
support our farmers and all those in the
supply chain guarantees that should greatly
benefit from this crop.” (http://fijisun.com.fj)
INDIA TO DOUBLE EDIBLE OIL
PRODUCTION BY 2022
The central government has prepared
a five-year schedule to double India’s edible
oil production and reduce import
dependence, through expansion in sowing
area and yield. This was revealed at a
recent rabi conference by the Ministry of
Agriculture. The plan is to take annual
production to 13.69 million MT by 2022, as
against the current 7.31 million MT.
Sustained increase in consumption against
stagnating production widened India’s
import dependence to 67 per cent for 2016-
17 oil year, with an estimated demand of
24.5 million MT.
“Despite notable performance in
domestic production of the nine annual
crops (compound annual growth rate of 3.89
per cent), it could not match the galloping
rate of per capita demand (around six per
cent) due to enhanced per capita
consumption (19 kg edible oil per annum),
driven by increase in population and
enhanced per capita income. The
production of nine annual oilseed crops
(primary source) has been targeted at 45.64
million MT, from which availability of
vegetable oils would be about 13.69 million
MT by 2022,” said a senior official from the
Ministry.
Total vegetable oil requirement by
2022 is estimated at 33.2 million MT
assuming per capita consumption of about
22 kg per person a year, from 19 kg during
201516. Of increased consumption, the
government aims to meet half from
domestic source. (UCAP Bulletin)
INDONESIA EXPORTS 1,000 TONS
COCONUT SHELL CHARCOAL TO SRI
LANKA
Indonesian Trading Company or PPI,
in collaboration with the Indonesian
Integrated Coconut Cooperative
(KKTI), exports 1,000 tons of coconut shell
charcoal to Sri Lanka.
“This is the first time for PPI to export
the coconut shell charcoal,” said President
Director of PPI, Agus Andiyani in
Tasikmalaya City, West Java, Wednesday,
September 26.
Agus said the total export value of
coconut shell charcoal is US$560,000. The
charcoal will be processed into cosmetics,
filtering tool or water filter, preservatives,
carbon, briquettes, etc.
Page | 9
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
Of the 1,000 tons charcoal, 600 tons
were supplied from West Java. The rest was
supplied from Makassar, Gorontalo and
Palembang. “[The charcoal is] taken from
several provinces but the pilot project is
here,” Agus said.
Agus hopes that the farmers can
increase their production and targets it to
10,000 metric tons per month.
PPI also targets to export the charcoal
to Korea and a number of other countries.
KKTI Chairman Lismayana said the coconut
shell charcoal business could absorb a lot of
labor.
“Indonesian coconuts are the best in
the world and the amount is quite massive,”
said Lismayana.
Chairman of the West Java KKTI,
Yudi Setiadi, said that the raw materials for
charcoal were obtained from Tasikmalaya,
Ciamis and Pangandaran. “Now, there are
60 farmers assisted by KKTI,” he said.
(https://en.tempo.co)
GOVT URGES PRIVATE SECTOR TO
INVIGORATE COCONUT INDUSTRY
The government has urged the private
sector to join in the bandwagon to invigorate
the industry.
Agriculture and Agro-based Industry
Minister Datuk Salahuddin Ayub said the
industry could generate income and wealth,
and bring prosperity to farmers as well as
manufacturers.
“We will encourage the private sector
to come aboard and share technologies in
the industry and the private sector (role) will
become the anchor companies to
encourage smallholders (to plant
coconuts),” he told reporters after the 54th
Asian and Pacific Coconut Community
(APCC) Session and Ministerial Meeting
here yesterday.
Salahuddin said during the 1950’s to
1970’s Malaysia was an exporter of
coconuts before the emergence of oil palm.
He said currently every year the
country imports about 120 million coconuts
mainly from Indonesia to meet domestic
needs which are estimated to exceed 650
million coconuts a year.
“Domestic demand is expected to
increase to up to 1 billion coconuts by
2020,” he said.
Malaysia remains one of the top 10
coconut-producing countries in the world
and coconut is the fourth most important
industrial crop in Malaysia after oil palm,
rubber, and rice.
Salahuddin said coconut, together with
other food crops such as durians and
pineapples, contributed three per cent to
Malaysia’s gross domestic product (GDP)
for five consecutive years.
He said Malaysia has its fair share of
experience in the trade in coconut-based
exports, which increased by 70.7 per cent
from 18,481 metric tonnes in 2012 to 63,074
metric tonnes in 2016.
“Despite a positive growth, more needs
to be done. This includes efforts to increase
productivity as well as adapting to the
dynamic market requirement,” he added.
Salahuddin said Malaysia needs to
explore new technologies to ensure that the
country can compete internationally.
(http://www.theborneopost.com)
SPECIAL UNIT TO OVERSEE COCONUT
SECTOR
The government plans to establish a
special body to manage, drive and regulate
the coconut industry.
Agriculture and Agro-based Industry
Minister Datuk Salahuddin Ayub (pic) said
the industry has seen tremendous growth
with increased demand for coconut-based
products globally.
"As such, I would like to invite other
countries which have conducted similar
practices to share their experience with us
on the process of establishing a coconut
industry governing body," he told reporters
10 | Page
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
at the 54th
Asian And Pacific Coconut
Community (APCC) Session and Ministerial
Meeting here on Monday.
Salahuddin said the World Bank
Commodity Outlook Report released in April
2018 forecast coconut oil price to increase
from US$1,110 per metric tonne in 2016 to
US$1,275 in 2018.
He said the rise in demand was fuelled
by increased use and the perceived benefits
of coconut products, such as coconut virgin
oil, by consumers.
However, Salahuddin said the coconut
industry in Malaysia and some member
countries faced challenges in production
caused by the weather, competition with
other crops due to limited fertile land and
low productivity.
The industry was also affected by the
negative propaganda by certain quarters on
the health status of coconut oil and other
edible coconut products, he said, adding
that the American Heart Association
recommended against the consumption of
coconut oil, claiming potential risks like
heart disease.
"Until we rebut this in proper and
systematic ways, these false claims will not
simply go away.
"We need continuous dialogues,
consultations, scientific findings and
evidence to resolve the issue," said
Salahuddin.
He said Malaysia needed to
strengthen its relationship with other APCC
members, especially in areas such as the
propagation of higher yield seedlings,
prevention of diseases and embryo culture
technology to increase productivity.
Salahuddin said Malaysia had
launched several initiatives to invigorate the
coconut industry, especially in addressing
the increasing need for raw materials for
value-added products, including the
promotion of high-yield coconut seeds to
improve productivity.
He said for more than 30 years, the
Malaysian Agricultural Research and
Development Institute (MARDI) had
conducted coconut-related research and
development to find new high-yield hybrids
or varieties that could produce more seeds,
some of which were introduced recently.
MARDI had produced six new coconut
varieties, including the Karina and Karini
variants which are suitable for drinking while
the rest are for coconut milk.
Nevertheless, he said Malaysia
welcomed the assistance from APCC
countries, especially in sharing research
results and promotion of a sustainable
coconut industry.
APCC is an intergovernmental
organisation of coconut producing countries
established in 1969 under the aegis of the
United Nations Economic and Social
Commission for Asia Pacific.
The APCC has 18 member countries
which produced over 90 per cent of the
world's coconut supply and exports of
coconut products.
The APCC member countries include
Micronesia, Fiji, India, Indonesia, Kiribati,
Malaysia, Marshall Islands, Papua New
Guinea, the Philippines, Samoa, Solomon
Islands, Sri Lanka, Thailand, Tonga,
Vanuatu and Vietnam, while Jamaica and
Kenya are associate member countries.
(http://www.dailyexpress.com.my)
COCONUT A VIABLE CROP NOW
Yesterday morning, I watched Primary
Industries Minister Teresa Kok in Parliament
responding to questions from the opposition
regarding the fall in the price of palm oil.
While agreeing that it is a matter of concern,
the minister explained that the price of the
commodity is market driven, that is by
supply and demand.
Malaysia has gone into palm oil
production in such a big way in the
plantation sector that it is now the country’s
most prominent agricultural commodity,
relegating into the background other crops
Page | 11
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
that we were once well known, such as
rubber, coconut and cocoa.
I grew up in a coconut/cocoa
plantation near Bagan Datoh, Perak. The
coconut trees were the tall variety and there
was a lot of space between them that
allowed for inter-cropping. This was where
the cocoa trees were planted. The
plantation therefore earned revenue from
two sources.
However, with the fall in demand for
coconut oil due to the highly negative
reports it received especially from the
Western soya bean lobbyists, coconut
plantations disappeared and with them the
cocoa that was inter-cropped. Much to my
chagrin, the coconut and cocoa trees gave
way to oil palm trees even in the plantation
where I grew up.
The bad press that coconut oil
received had taken its toll. Where once I
enjoyed the fresh and fantastic taste and
healthy goodness of coconut water from
freshly plucked coconuts, there now stood
gloomy rows of palm oil trees.
Today, the coconut which was
shunned by the medical community and the
commodity market is now being hailed
globally as the best oil for cooking. Health
authorities both modern and traditional,
medical professionals, and manufacturers of
cosmetics and hair care products are now
waxing lyrical about the myriad of health
benefits of coconut oil.
It is truly amazing how the West has
now become the most ardent promoter of
the wonders and benefits of the humble
coconut!
Not surprisingly therefore, the price of
coconut oil has increased tremendously in
the commodity market. Although it is also
seeing a slight decline since the beginning
of the year, it is more than twice the price of
palm oil which is facing an onslaught from
its competitors and detractors. Coconut oil is
also the most expensive oil in retail stores
now.
Chocolate, especially dark chocolate
with a large amount of cocoa, is also
receiving rave reviews for its many health
benefits.
I would therefore like to ask that the
Primary Industries Ministry and the
Agriculture and Agro-based Industry
Ministry consider the reintroduction of
coconut plantations and not focus solely on
palm oil.
It must also be noted that the price of
cocoa is also much higher compared to
palm oil. It is saddening to see the
Philippines and Indonesia having the upper
hand in the production of coconut oil where
Malaysia once reigned supreme.
We must diversify our agricultural
produce and not place all our hopes on
palm oil. Coconut and cocoa should be
given due consideration as viable
alternatives that can complement our palm
oil initiative.
I also hope I can one day go back to
Bagan Datoh and enjoy the taste of fresh
coconut water amid the swaying coconut
palms just like I did many years ago as a
child. (https://www.thestar.com.my)
NEW PCOPA OFFICERS FOR 2018/2020
At a meeting held on August 17 at
Lorenzo’s Way, Bonifacio Global City, the
Philippine Coconut Oil Producers
Association (PCOPA) elected its new
officers. Elected Chairman was Jesse F.
Cheng, WorldVenture Commodities;
President - Anthony L. Dy, Globe Coco
Products Mfg. Corp.; Vice-President -
Jonathan Paul C. Sumpaico, Cargill Oil Mill
Philippines Inc.; Secretary - Kelvin Mark C.
Tantuco, Tantuco Enterprises; Treasurer -
Andrew L. Wee, Philippine International.
Development Inc. Above officers will serve
a term of two years, 2018/2010. (UCAP
Bulletin)
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
D&L HIGHLIGHTS INNOVATIVE USE OF
COCONUT OIL
Two subsidiaries of D&L Industries,
Inc., the flagship of the Lao family, are
leading the local coconut industry with its
innovative uses of coconut oil in food
ingredients as well as for green substitutes
of chemicals made from fossil fuels. During
the 1st World Coconut Congress, Chemrez
Technologies, Inc. underscored its
dominance in tapping the limitless potential
of the coconut or the “tree of life” through
green chemistry. “Green chemistry is a new
discipline in designing products and process
that optimizes the use of resources and
minimizes the generation of waste. We are
guided by the principles of green chemistry
in the engineering and formulation of our
products,” Chemrez Managing Director
Dean Lao Jr. said. In his opening remarks,
Lao, who is also the Chairman of the United
Coconut Association of the Philippines
(UCAP), urged coconut industry
stakeholders to “promote and share the
goodness of coconuts to the world through
sustainable businesses.” (UCAP Bulletin)
KETO COFFEE NOW BREWING AT
RESORTS WORLD MANILA
Ketogenic diet adherents can now
have their keto coffee pick me-up at Resorts
World Manila’s (RWM) Cafe Maxims.
Called “Brain Boost Coffee” for its extra
dose of energy from organic grass-fed
butter and a shot of medium-chain
triglyceride (MCT) oil, each cup is made of
freshly roasted and brewed organic Arabica
coffee from the highlands of Mindanao.
Brain Boost Coffee is available daily for only
P180.00 net at Cafe Maxims, located at GF
Maxims Hotel, Resorts World Manila.
Essentially a combination of coffee,
which is high in antioxidants, and healthy
fats, keto coffee has been shown to
increase energy, promote weight loss, and
reduce hunger pangs, especially when
taken as part of complete ketogenic diet.
Coffee lovers who want to maximize the
richness and flavor of keto coffee can add a
hint or sweetness to their Brain Boost cup
with stevia. (UCAP Bulletin)
SENATE PASSES MEASURE OUTLINING
PHILIPPINE COCONUT AUTHORITY
BOARD COMPOSITION
The Senate on Monday this week
passed on third and final reading Senate Bill
No. 1976 increasing the representation of
coconut farmers in the Philippine Coconut
Authority (PCA) Board. Also known as the
Strengthened Philippine Coconut Authority
(PCA) law, the bill was authored and
sponsored by Senator Cynthia A. Villar,
chairperson of the Senate committee on
agriculture. The proposed measure seeks
to amend Presidential Decree 1468 or the
Revised Coconut Industry Code of 1987
that will reconstitute the PCA board.
Under the bill, the PCA Board will be
composed of six farmer-representatives, two
from each of the island groups (Luzon,
Visayas, Mindanao), four government
representatives, and one representative
from the coconut industry. The four
government representatives are the
Agriculture Secretary as chairperson of the
PCA Board, the Finance Secretary as vice
chairperson, the Budget Secretary, and the
PCA Administrator, to be appointed by the
President. The farmer-representatives must
be Filipino citizens, be listed in the Coconut
Farmers Registry, should have a track
record of promoting the interests of coconut
farmers, and be nominated by coconut
farmer organizations active in the past three
years.
The proposed measure was also the
accompanying bill of Senate Bill No. 1233 or
the proposed Coconut Farmers and Industry
Development Act, which hurdled the
bicameral conference committee in August,
and is awaiting the President’s signature.
Senate Bill No. 1233 created the Coconut
Farmers and Industry Trust Fund, which
was sourced from the P100 billion coconut
levy funds collected during the term of
President Ferdinand E. Marcos. The bill
mandates the reconstituted PCA to manage
and utilize such funds. The fund will be used
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
exclusively for the benefit of coconut
farmers and the development of the coconut
industry. It will be released to PCA at P5
billion annually until it runs out, which is
estimated to be within 25 years. (UCAP
Bulletin)
COCONUT RESEARCH CENTER TO RISE
IN QUEZON
Senator Cynthia A. Villar, Chairperson
of the Senate Committee of Food and
Agriculture, took pride in joining local
officials of Quezon province in signaling the
start of the construction of Luzon’s only
Coconut Research Center with an initial
fund of P100 million.
Villar was joined by Quezon Governor
David C. Suarez in leading the
groundbreaking ceremony for the project in
Barangay San Antonio Pala, Catanauan,
Quezon. Villar and Suarez were assisted by
Philippine Coconut Authority Administrator
Romulo de la Rosa, ALONA Party list Rep.
Anna V. Suarez, Catanauan Mayor Almira
Orfanel, Southern Luzon State University
President Dr. Nilo Placino and other officials
of various government agencies.
Villar commended the provincial
government for the realization of the project
and hoped it would realize its aim of
addressing the challenges that the province
and the whole region is facing in terms of
coconut farming and the coconut industry as
a whole. She added that she knows that
Quezon is the top coconut producing
province in the region and even in the
country with an average annual production
of 1.9 billion nuts. (UCAP Bulletin)
CENTURY PACIFIC TO BUILD COCONUT
MILK FACILITY IN THE PHILIPPINES
Responding to a story in the Philippine
Daily Inquirer, the Pasig City-based food
conglomerate confirmed it will be setting up
a separate production unit at its facility in
General Santos City in the south of the
country.
But it said the PHP250m figure only
covers building costs and does not include
other capital expenditure needed to run the
facility.
The goal is to produce 15.3m
kilograms of coconut milk a year at the plant
which will be exported to Malaysia through
Linaco Manufacturing, a supplier of
coconut-related products.
The project, which is currently
underway, is expected to be fully
operational by early next year.
It has been approved by the country's
Board of Investments and will be able to
access fiscal and non-fiscal incentives
under the country's Investment Priorities
Plan, which is intended to boost certain key
economic activities.
The application was made under the
name of Century Pacific subsidiary Century
Pacific Agricultural Ventures.
(https://www.just-food.com)
A NEW FAIRTRADE COCONUT
PRODUCT IS BEING COOKED UP IN
SAMOA
This July saw the official launch of
Fairtrade ANZ’s engagement with the
Business Partnerships Platform (BPP) in
Samoa. The program is the result of a
partnership between Australia’s Department
of Foreign Affairs and Trade, Fairtrade ANZ,
Krissy Company Ltd. (Krissy Co.) and
Savai’i Coconut Farmers Association
(SCFA) which aims to develop a new
Fairtrade organic coconut cream product for
Australian and New Zealand markets. This
project aims to increase incomes for 200
smallholder coconut farming households on
the rural island of Savai’i and create over 30
new jobs for local Samoans.
Fairtrade ANZ CEO Molly Harriss
Olson explains, “by expanding our
partnership with DFAT, we are able to
deepen our support for Samoan coconut
farmers, who in turn are building their
partnerships and capacity in-country and
expanding their reach in overseas markets”.
Fairtrade ANZ has a long-standing
relationship with Krissy Co. and SCFA. At
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
present, Krissy Co. is the leading exporter
of canned Fairtrade organic coconut cream
from Samoa, purchasing all coconuts
produced by SCFA on Fairtrade terms. The
collaboration between these three
organisations is centered on the shared
value of improving livelihoods for
smallholder farmers in the Pacific, and the
desire to realise the potential of Samoan
organic coconut cream in international
markets. The launch was hosted during the
Samoan Chamber of Commerce’s monthly
meeting and has set a strong foundation for
the new initiative. (http://fairtrade.org.nz)
THE BATTLE TO SAVE OUR COCONUT
PLANTATIONS AND GETTING THE BEST
OUT OF THE PACIFIC’S FAMOUS PALM
It is conferences like the one
happening this morning at the Tanoa
Tusitala Hotel that gives relevance to
regional organisations such as the Pacific
Community (SPC) and the impact that
donors such as the European Union are
having on the lives of the people.
Government officials from 15 Pacific
Island nations including Samoa are meeting
for four days from today to undergo training
on pest and disease management on
coconut plantations around the region.
According to the SPC, an increasing
number of pests and diseases are being
introduced into the region and are a threat
to the Pacific. But the Coconut Industry
Development for the Pacific (CIDP), a joint
initiative of the SPC and the European
Union (EU), has developed a Coconut Pests
and Diseases Toolkit to identify, prevent
and control pests and diseases that affect
coconuts.
“Invited participants are government
and administration representatives with a
biosecurity and agriculture background from
around the Pacific, as they have both the
time and the resource to deliver a similar
training to farmers and other coconut sector
stakeholders in their communities within
their home countries,” stated an SPC
background brief.
“The four-day training includes learning
experiences inside and outside a
classroom-type environment, with field visits
occurring every afternoon. This will ensure
that by the end of the training, the
participants will be able to distinguish the
differences between pests and diseases,
and why the difference is important; learn
how to recognize symptoms; know where to
look and find information on the
identification of pests and diseases;
understand the importance of prevention;
study the practical ways of preventing and
controlling pests and diseases through
examples; comprehend the importance of
diversity to resilience; think about ways that
increased community awareness can help
prevent and control pests and diseases; and
find out how to find further information and
assistance.”
The CIDP programme runs from 2016-
2018 and is valued at €4 million. The SPC
says the funding is being used to improve
competitiveness of small producers in the
coconut value chain, strengthen regional
integration of coconut markets, and boost
production in the Cook Islands, Federated
States of Micronesia, Fiji, Kiribati, Republic
of the Marshall Islands, Nauru, Niue, Palau,
Papua New Guinea, Samoa, Solomon
Islands, Timor Leste, Tonga, Tuvalu and
Vanuatu.
We take our hats off to the CIDP
programme, the SPC and the EU for the
collaborative effort, in a bid to save a sector
that a lot of ordinary citizens in various
Pacific Island nations rely on.
Unstable coconut prices and the onset
of pests and diseases can have a profound
effect on the ability of families – regardless
of where they live in the region – to earn an
income. In Samoa, in recent years, there
has been a movement to produce virgin
coconut oil. Today Samoa, Fiji and Solomon
Islands are some of the region’s three main
players in the virgin coconut oil export
market.
But we are only scratching the surface
in terms of fully benefiting from coconuts
Page | 15
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
and all that it has to offer. There are
markets around the world for other products
such as copra oil, which can be used in hair
and skin care products or even massage oil.
What about coconut water? Is there a
market for coconut water? The good news
is yes there is a market in what is called the
“sport drink” sector. Estimates in a report
authored by the Pacific Island Farmers
Organisation Network titled “An overview of
the market for Pacific Island coconut
products and the ability of industries to
respond” point to a global coconut water
market valued at US$1.3 billion, which is
projected to increase to US$4 billion next
year. The same report, which was
commissioned by the SPC with the support
of the CIDP and the EU, also highlights the
potential of coconut cream and milk
products as well as coconut timber.
The world can become our oyster, in
terms of harnessing the full potential of the
Pacific Islands’ famous palm and its fruit,
but it has to take a concerted effort from
Pacific Island countries governments in
partnership with donor agencies such as the
EU and development partners like the SPC.
But first things first – the famous palm
and its fruit has to be saved from threats of
various forms – which is why the meeting
starting today in Apia is important. We note
the focus of regional organisations, Pacific
Island governments and donor partners in
recent years on matters of significance to
the region, with the conservation and
management of the tuna fishery coming to
the fore. But we would like to think that the
importance of the coconut and its various
products to Pacific Island communities, and
the potential it has to generate income for
citizens should not be discounted.
The classroom-based training that the
conference participants will undergo
becomes the first line of defence, in our bid
to save a tree that has long been associated
and identified with our cultures and origins
as a people.
Kudos to the conference organisers
for choosing Samoa as the host of the four-
day regional conference. We understand
there will be field visits in Samoa after
theoretical learning and application in the
first half of the day, giving our visitors a
chance to explore more of beautiful Samoa.
It is the start of another working week
so give it your best shot and God bless!
(http://www.samoaobserver.ws)
COCONUT OIL RAISES LIVELIHOODS IN
SOLOMON ISLANDS
Kokonut Pacific Solomon Islands
(KPSI) is a producer of top grade coconut
oil and part of this year’s Pacific Islands
Trade & Invest (PT&I) Pacific Path to Market
delegation to Auckland’s Pasifika festival on
March 25-26.
PT&I’s Pacific Path to Market adopts a
structured approach to helping exporters
investigate new markets for their products.
Pasifika is the 3rd
stage of the PT&I
Pacific Path to Market programme giving
businesses an introduction to the New
Zealand market.
KPSI will showcase its star product –
Organic certified, Virgin Coconut Oil (VCO)
and 100% coconut oil soaps.
The company has more than 50
producers on its books, across a wide
network in the Solomon Islands. The good
news is more than 60% of the oil revenue
goes back to the villages providing an
income for over 5000 people. In 2016,
KPSI won a raft of awards including the
Prime Minister’s Business of the Year
Award, the Business Contribution to the
Community and Exporter of the Year.
KPSI was established by Australian
Dr. Dan Etherington in 1994 to improve the
well-being of the rural populations of tropical
islands through the production of premium
grade coconut oil and other coconut
products.
Dr. Etherington learned the process
on a remote island of Tuvalu from the
people who had discovered how to cold
press coconut oil from sun-dried coconut.
16 | Page
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
He went on to create the Direct Micro
Expelling (DME) method of processing
coconuts into coconut oil using a cold press.
One of the beauties of the DME method is
that producers can turn coconuts into oil
within an hour of opening.
The DME solution stands for –
Direct – quick (oil can be produced in
1 hour of opening the nut) and efficiently
expels 85% of the available oil.
Micro – it can be done in small scales
on family sized farms.
Expelling – the extraction of virgin
coconut oil and meal.
KPSI’s company goal is also its motto
– “Empowering and bringing hope.”
The objective was to revitalize the
small holder coconut industries through
using modern technology and partnering
with local communities, local firms, non-
government organisations and
Governments to ensure the right support
systems are in place.
The introduction of DME processing
changed lives through a 5-fold increase in
the value of coconut exports compared to
copra (ref: kokonutpacific.com.au).
(https://news.pngfacts.com)
SRI LANKAN COCONUT PRODUCT
EXPORTERS MEET AUSTRALIAN
BUSINESS ASSOCIATIONS
The Consulate General of Sri Lanka in
Melbourne in collaboration with the Sri
Lanka Coconut Development Authority
organized a well-attended Business
Breakfast Meeting on 11 September 2018 in
Melbourne coinciding with Sri Lanka’s
participation at the Fine Food Exhibition
2018.
Sri Lankan Coconut Products
Exporters are attending the Fine Food
Australia Exhibition 2018, currently being
held in Melbourne, to promote Sri Lankan
coconut products and to interact with
potential business partners and buyers in
Australia.
The event was hosted by H K Udaya
Rupasinghe, Chairman of the CDA and W G
S Prasanna, Consul General of Sri Lanka
for Victoria, South Australia and Tasmania
in Melbourne.
Abdul Raheem, Consul (Commercial)
of the Consulate General of Sri Lanka in
Sydney, delivered the opening remarks
highlighting the importance of enhancing
bilateral trade and investment between Sri
Lanka and Australia and the vital role the
private sector and industry partners could
play in achieving mutual benefits for both
countries.
Delivering his welcome speech at the
event, Consul General, appreciated the
initiative undertaken by the CDA to promote
coconut based products in Australia. The
Consul General recalled the salient aspects
of the long standing and enduring
partnership between Sri Lanka and
Australia. He also highlighted the potential
areas for business in coconut products and
requested the industry partners to capitalize
on this initiative so that they could establish
mutually beneficial partnerships and
initiatives.
Sampath Samarawickrama, Director/ Marketing Development & Research of the CDA, presented to the gathering a general overview of the coconut industry of Sri Lanka, current developments, trends and potential areas for business promotion. Samarawickrama’s detailed presentation also provided an opportunity for the gathering to learn about the vast range of coconut based products originating from Sri Lanka and its worldwide expansion over the years.
Samrawickrama together with Mario
de Alwis, Chairman/Ma’s Tropical Food
Processing (Pvt) Ltd, and Annes Junaid,
Managing Director of CBL Natural Food
(Pvt) Ltd, engaged with an enthusiastic
audience during the Questions & Answers
session.
The event provided an opportunity for over 60 participants to interact and discuss trade, business and investment opportunities. (http://www.ilankanews.com)
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
BUSINESS BREAKFAST MEETING WITH
SRI LANKAN COCONUT PRODUCTS
EXPORTERS
The Coconut Development Authority
of Sri Lanka (CDA), in association with the
Consulate General of Sri Lanka, organised
a well-attended Business Breakfast Meeting
on 11 September 2018 in Melbourne for Sri
Lankan Coconut Products Exporters who
are attending the Fine Food Australia
Exhibition 2018, currently being held in
Melbourne, to promote Sri Lankan coconut
products and to interact with potential
business partners and buyers in Australia.
The event was hosted by Mr. H K
Udaya Rupasinghe, Chairman of the CDA
and Mr. W G S Prasanna, Consul General
of Sri Lanka for Victoria, South Australia
and Tasmania in Melbourne.
Mr. Abdul Raheem, Consul
(Commercial) of the Consulate General of
Sri Lanka in Sydney, delivered the opening
remarks highlighting the importance of
enhancing bilateral trade and investment
between Sri Lanka and Australia and the
vital role the private sector and industry
partners could play in achieving mutual
benefits for both countries.
Delivering his welcome speech at the
event, Mr. W.G.S. Prasanna, Consul
General, appreciated the initiative
undertaken by the CDA to promote coconut
based products in Australia. The Consul
General recalled the salient aspects of the
long standing and enduring partnership
between Sri Lanka and Australia. He also
highlighted the potential areas for business
in coconut products and requested the
industry partners to capitalise on this
initiative so that they could establish
mutually beneficial partnerships and
initiatives.
Mr. Sampath Samarawickrama,
Director/Marketing Development &
Research of the CDA, presented to the
gathering a general overview of the coconut
industry of Sri Lanka, current developments,
trends and potential areas for business
promotion. Mr. Samarawickrama’s detailed
presentation also provided an opportunity
for the gathering to learn about the vast
range of coconut based products originating
from Sri Lanka and its worldwide expansion
over the years.
Mr. Samrawickrama together with M/s
Mario de Alwis, Chairman/Ma’s Tropical
Food Processing (Pvt) Ltd, and Annes
Junaid, Managing Director of CBL Natural
Food (Pvt) Ltd, engaged with an
enthusiastic audience during the Questions
& Answers session.
The event provided an opportunity for
over 60 participants to interact and discuss
trade, business and investment
opportunities.
Hon. Jude Perera and Hon. Craig
Ondarchie, Members of the State
Parliament of Victoria, Councillor Beverly
Pinder-Mortimer of Melbourne City Council,
Mr. James Edwards, Regional Trade
Specialist for India & South Asia of the
Victorian State Government, and Mr. Niels
Strazdins, Victoria State Manager of the
Export Council of Australia, were also in
attendance. (http://www.slhcaust.org/news)
MORE COCONUT SAPLINGS
DISTRIBUTED IN JAFFNA
One more stock of 100 coconut
saplings for cultivation in the general area of
Kurumbasetty in the Thelippalai Divisional
Secretariat was distributed on Tuesday (18)
on a suggestion, made by Major General
Darshana Hettiarachchi, Commander,
Security Forces - Jaffna.
Dharma Vijaya Foundation of Colombo
has provided its sponsorship for supply of
those coconut saplings to the Security
Force Headquarters - Jaffna (SFHQ-J) for
distribution among low-income groups in the
Divisional Secretariat area.
A brief ceremony attended by Major
General Darshana Hettiarachchi distributed
those saplings on Tuesday (18) the
presence of state officials and a gathering of
civilians.
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
SFHQ-J with the objective of
popularizing the cultivation of coconut
saplings in the peninsula has so far
distributed more than 10,000 coconut
saplings among civilians, interested in
cultivating coconut seedlings.
(http://www.army.lk/news)
SRI LANKA PARTICIPATES AT SAITEX
2018 IN JOHANNESBURG
Sri Lanka Tea Board and Coconut
Development Authority (CDA) in
coordination with Sri Lanka High
Commission in Pretoria successfully
participated at the Southern African
International Trade Exhibition (SAITEX
2018) held in Gallagher Convention Centre
in Midrand, Johannesburg from 24th to 26
th
June 2018. SAITEX is Africa's largest
product sourcing and trade event which
provides an opportunity for exhibitors to
network with buyers, distributors and other
interested businesses in South Africa and in
the region. A large number of exhibitors
both from Southern African Region and
other countries were present in this year’s
event
Imperial Tea Exports Pvt Ltd, exhibited
its products under the Tea Board pavilion
while five companies namely Wichy
Plantations Company Pvt Ltd, CBL Natural
Food Pvt Ltd, Ceylon Nutrinuts holding Pvt
Ltd, Madampe Mills Pvt Ltd and A S Agri
Exports Pvt Ltd showcased an assortment
of coconut products under the CDA Pavilion
at Africa’s Big Seven, the Continent’s
largest annual food & beverage industry
trade event co-located with SAITEX.
Samson International Plc also exhibited its
high-quality rubber products as an individual
exhibitor. The Sri Lanka Pavilion was
declared open by Mr. Matt Denton,
President of DMG events- Middle East, Asia
and Africa and Ms. Devi Paulsen -President
of SAITEX, by lighting traditional oil lamp on
24th June 2018. Ms. Thiloma Abayajeewa,
Acting High Commissioner, Mr. Brad Hook,
Commercial Director of SAITEX and Mr.
Kirtan Bana, Editor of the Diplomatic
Society, were also among other dignitaries
participated at the opening ceremony.
The Ceylon tea serving and
promotional campaign were carried out at
the pavilion by highlighting and showcasing
the geographical branding, "Ceylon tea
grades and its unique identity. The Sri
Lankan exhibitors were highly satisfied with
the firm inquiries received for its products
from South African importers and
distributors who visited SAITEX 2018. At the
request by the High Commission, a
delegate from international food buying
department of Shoprite Checkers group,
Africa's Largest retail chain had successful
B2B meetings with all coconut exporters at
the Sri Lanka Pavilion.
Mr. Kapila J. Kumara, First Secretary-
Commercial of the Sri Lanka High
Commission in Pretoria coordinated the Sri
Lanka participation while Mr. Nalaka
Sanjeewa, Market Analyst of Sri Lanka Tea
Board and Mr. M. Puspakantha, Assistant
Director of the Sri Lanka Coconut
Development Authority assisted Sri Lankan
participants throughout the event. The
three-day event was successfully concluded
on 26th June 2018. (http://www.doc.gov.lk)
COCONUT LICENCES TO BE REVOKED
The Commerce Ministry is set to
blacklist 10 coconut importers who failed to
provide clarity on their import data as part of
efforts to deal with the domestic coconut
price slump and help protect domestic
growers.
Adul Chotinisakorn, Director-General
of the Foreign Trade Department, said
officials recently launched an inspection of
29 coconut processing factories nationwide
that were awarded import licences by the
department under the Asean free trade
agreement (Afta). Ten importers failed to
clarify their import data, avoiding further
investigation.
If they refuse to clarify their import data, the department will blacklist them and temporarily revoke their import licences, said Mr. Adul.
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
Officials suspect some importers
abused their agreements and sold their
imported coconuts to local traders, for which
the importers hire people to remove the
husks from coconut shells.
There are more than 80 coconut
importers legally registered with the Foreign
Trade Department that import coconut as
raw materials for their factories.
The Foreign Trade Department earlier
threatened to introduce sanitary and
phytosanitary (SPS) measures to curb
imports.
The SPS measures are meant to
protect humans, animals, and plants from
diseases, pests, or contaminants.
He insisted the domestic coconut
price slump may not stem from the imports,
citing the country had imported 195,303
tonnes of coconuts from January to August,
down 27.03% from 268,672 tonnes
recorded in the same period last year.
Of the total imports for the period,
167,723 tonnes were imported using Afta
tariff privileges, and 27,580 tonnes were
imported under the non-quota system of the
World Trade Organization (WTO).
Thailand is bound by the WTO's
regulations for coconuts, under which
coconut imports are allowed during
January-May and November-December.
WTO tariffs allow Thailand to import
2,317 tonnes of coconuts a year.
Imports within the quota are taxed at
20% and the import tariff for non-quota
trade is 54%.
Eligible importers must be juristic
persons who operate factories that use
coconuts as raw materials.
In 2017, Thailand's imported coconuts
totalled 416,124 tonnes worth 4.62 billion
baht, 384,102 tonnes of which were from
Indonesia, 15,613 tonnes from Vietnam,
2,864 tonnes from Myanmar and 13,524
tonnes from Malaysia.
Thailand is expected to produce
860,000 tonnes of coconuts this year, much
lower than domestic demand, which is
estimated at 1.1 million tonnes.
The country relies on imports of
241,000 tonnes in 2018.
The Office of Agricultural Economics
said coconut plantations cover 1.12 million
rai nationwide, with 203,461 households
engaged in growing them last year.
A network of coconut farmers in
Prachuap Khiri Khan recently urged the
government to address the problem of
falling coconut prices. They blamed imports
for the price drop.
Planters in other provinces have also
made complaints along the same lines.
(https://www.bangkokpost.com)
COCONUT IMPORTS FALL 27% OVER
FIRST 8 MONTHS OF 2018
The Ministry of Commerce has
revealed that coconut imports over the first
eight months of the year have fallen 27% on
the same period last year. It therefore
suspects that a recent price slump was
caused by overproduction and smuggling.
Director-General of the Department of
Foreign Trade, Adul Chotinisakorn said the
country’s coconut policy is dictated by the
World Trade Organization (WTO) and
ASEAN Free Trade Area frameworks, which
stipulate clear timeframes and tax
thresholds.
The WTO agreement imposes an
import quota of 2,317 metric tonnes per
year with duty of 20% from January to
March and November to December. Imports
outside these time frames incur duty of
54%. The ASEAN Free Trade Area does
not impose quotas or duty, but requires that
coconut imports occur during the same time
frames as the WTO agreement.
The country imported around 195,000
tonnes of coconuts during the first eight
months of the year, a decrease from more
than 260,000 tonnes last year. Adul
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
revealed that his department is now
conducting an audit of all 29 registered
coconut importers to ensure they adhere to
their stated purpose of import. Additional
measures that will be considered include
further tightening quotas and import
windows, as well as raising quality
standards. (https://news.thaivisa.com)
IMPORTS BLAMED FOR THE FALLING
PRICE OF COCONUTS IN THAILAND
Thailand’s Department of Foreign
Trade plans to blacklist 10 companies if
they fail to clarify the numbers of coconuts
they have recently imported.
Many Thai factories have been buying
imported coconuts instead of using locally
grown ones stored in warehouses, which
has resulted in a large amount of unsold
fruit.
The middleman-run warehouses have
been facing huge loses after stocking large
numbers of coconuts in their warehouses
and not being able to sell them. With a large
supply of coconuts and few buyers, debts
are also mounting for farmers and suppliers.
To make matters worse in the industry,
the retail price of coconuts in Thailand has
decreased dramatically.
The situation and flood of complaints
has led Adol Chothinisakorn, the General
Director of the Department of Foreign
Trade, to insist that private companies seek
permission to import coconuts under the
Asean Free Trade Area, or AFTA,
agreement.
Ten of the 20 companies being
checked by authorities could not clarify the
number of coconuts they had imported and
now face being blacklisted.
For the past eight months, the amount
of imported coconuts under AFTA had
decreased by 27%, which amounted to a
total of 167,723 tons. This should have
resulted in an increase in the price of
coconuts in Thailand, but the price has not
changed.
Adol blamed illegal imports. New
measure aimed at helping the industry will
be presented on October 18 by Thailand’s
Ministry of Agriculture and Cooperatives.
Somkiet Laonark, the Associate
President of the Coconut Farmers
association in Chumphon, said the price of
coconuts was now lower than the cost of
growing them. The price per coconut was
about 1-2 baht each, depending on size, he
said.
Officials representing growers, factory
owners and producers of coconut-related
products have asked the government to find
a way to help the industry and use
measures that do not go against World
Trade Organization rules.
(https://www.chiangraitimes.com)
COCONUT FESTIVAL TO BE A PART OF
GREEN GUYANA EXPO
Exhibitors for the upcoming Coconut
Festival were on Tuesday (September 25),
briefed on their involvement at the Green
Guyana Expo and International Small
Business Summit. The Coconut Festival will
form a part of the Expo, which will be hosted
at the Guyana National Stadium and
Ramada Hotel from October 18-20, 2018.
The exhibitors are expected to showcase
coconut products and by-products at the
event.
Explaining the role of the Ministry of
Business as facilitators of the Coconut
Festival, Director General of the Department
of Tourism, Mr. Donald Sinclair noted that,
the Ministry has been facilitating contact
with the coconut producers in preparation
for the event. He pointed out that in 2016,
the Ministry, in collaboration with the
Ministry of Agriculture, played a key role in
the coordination of the first Coconut
Festival.
He said, part of the Ministry’s strategic direction, is to assist in the development of various types of tourism and it is felt that agro-tourism, based on coconut development, is an area that has tremendous potential. It is against this
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
backdrop, he added, that the ministry is working with the Green Guyana Expo Secretariat to make the Green Guyana Expo a success.
“People in the coconut sector produce
items that are sought after by visitors; they
produce craft, they produce jewellery, the
produce ornaments. There can even be
building materials based on coconuts,” the
Director General stressed. Mr. Sinclair
added that a tour of a coconut farm can also
be an interesting tourism experience.
The meeting was held at the
Herdmanston Lodge Hotel.
(https://www.business.gov.gy)
OMEGA-ENRICHED SHAKE BOOSTS
KETO INTEREST
Start-up firm Sated has revealed its
new range of Omega oil-infused, ketogenic
replacement shakes have set a new one-
day funding record on Kickstarter in the first
24 hours, doubling the prior one-day record.
Launched last week, the projects’
achievement gave some idea of the
potential of this product. Described as a
“nutritionally complete meal” in a bottle,
Sated’s shakes look to aid consumers who
follow a keto diet with a high fat content
designed to fuel the ketogenic nature of the
regimen.
A key differentiator of the product is its
specific fat blend. Sated ready-to-drink
shakes are created with four kinds of
healthy fats - olive, flax, coconut and
mediumchain triglyceride (MCT) oils. These
sources give the shake its 1:1 ratio of
omega-3 to omega-6 fatty acids. In addition,
the omega-3 content contained in the shake
is equivalent to that contained in 15,441
chia seeds. (UCAP Bulletin)
INDIA’S EDIBLE OIL IMPORT LIKELY TO
FALL 1ST TIME IN 7 YEARS
India’s edible oil import is estimated to
register a fall this oil year (from November
2017 to October 2018), first time in seven
years. Import of vegetable oils during the
10-month period to August was 12.28
million tons. According to Bharat V. Mehta,
Executive Director of the Solvent Extractors
Association (SEA), estimates for the current
oil year in the country would be lower by
around 45%. Last oil year, import was 15.4
million tons.
India import of vegetable oils (largely
edible oil and some non-edible oil for
industrial use) have been on the rise for
many years and almost tripled in ten years
to 15.4 million tons last year. While India’s
average reliance on import a decade ago
was around 50-55 percent, and the rest was
produced in the country, consumer-centric
government policies resulted in India’s
reliance on oil import rising above 70
percent. This trend is also expected to
reverse this year. (UCAP Bulletin)
SIME DARBY AND COFCO INK
AGREEMENT ON PALM OIL TRADE
Malaysia’s Sime Darby Plantation
(SDP) and China’s COFCO Group Co. Ltd.
(COFCO) recently signed an agreement
with a view to collaborate palm oil related
ventures and increase trade between the
two nations. The MOU includes a joint
research project on the health benefits of
palm oil products such as palm tocotrienol,
red palm olein, and palm kernel oil. It also
extends to the manufacturing of specialty
oils and fats, as well as collaborative sales
and marketing efforts over high-value
differentiated palm oil products in China.
SDP is currently the world’s largest
producer of Certified Sustainable Palm Oil
(CSPO) as well as the largest palm oil
plantation corporation, in terms of plantation
acreage, worldwide. It is also one of
Malaysia’s biggest state-owned enterprises.
COFCO is an investment holding company,
providing agricultural and food products in
China and internationally. It is also involved
in the processing, warehousing, distribution,
and trading of oils and oilseeds; sale of
cooking oil, among others. (UCAP Bulletin)
TTRRAADDEE NNEEWWSS
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
PHILIPPINE EXPORT OF COCONUT
PRODUCTS UP SHARPLY IN JUNE
Official data from the Philippine
Statistics Authority show export of Philippine
coconut products in June this year shot up
76.4% to 179,097 MT in copra terms from
101,526 MT in a similar month year-earlier.
This turned in USD194.785 million in export
revenue, increasing only 20.3% over prior
year at USD161.919 million, mainly on
reduced coconut oil price.
Coconut oil export rocketed 90.3%
year-on-year to 99,481 MT from 52,277 MT,
copra meal leaped 60.1% to 31,995 MT
from 19,980 MT, desiccated coconut spiked
38.1% to 11,077 MT from 8,023 MT, while
oleochemicals plunged 33.5% to 4,066 MT
as copra from 6,118 MT. There was no
reported export of copra during the month
as last year. Other products performed as
follows, in MT: coco shell charcoal 7,194
(+250.5% from 2,052 last year), activated
carbon 6,108 (-12.1% from 6,950), virgin
coconut oil 2,565 (-26.1% from 3,471),
coconut water 7.784 million liters (+7.3%
from 7.256 million), fresh coconuts 96,165
nuts (+46.6% from 65,582 nuts), Others
12,149 (-39.2% from 19,996).
Total export for the first half of this year reached 791,960 MT in copra terms, a modest shortfall from same time last year data at 843,088 MT (-6.1%). Gross export receipts nearly reached USD1.000 billion at USD943.266 million but was 16.7% behind last year at USD1.132 billion. Breakdown by volume is as follows, in MT: copra 69 (86 last year), coconut oil 437,274 (465,804), copra meal 208,653 (71,237), desiccated coconut 46,839 (45,022), oleochemicals as copra 25,389 (34,021); coco shell charcoal 40,573 (16,861), activated carbon 35,169 (37,663), virgin coconut oil 10,849 (12,320), coconut water 38.380 million liters (40.586 million), fresh coconuts 722,968 nuts (583,475), Others 53,047 (79,032). (UCAP Bulletin)
DESTINATIONS OF COCONUT OIL
EXPORT IN JUNE
Export of coconut oil in June consisted
of 63,115 MT crude coconut oil, 29,926 MT
cochin (refined, bleached) oil, and 6,441 MT
RBD (refined, bleached and deodorized) oil
with combined value of USD110.048 million.
The US was this month’s top importer of
coconut oil responsible for nearly half
(49.2%) of total trade with uptake at 48,964
MT of the three types of coconut oil
combined. Europe followed closely with
44,810 MT (45.0%) and China was a far
third with 2,066 MT (2.1%) and then Japan
with 2,002 MT (2.0%).
Europe, however, remained a primary
destination for crude coconut oil cornering
44,536 MT (Netherlands 37,536, Spain
7,000), trailed by the US 16,093 MT, Japan
1,904 MT, Argentina 233 MT, Malaysia 156
MT, Taiwan 106 MT, Bangladesh 69 MT,
Canada 19 MT. The US was almost an
exclusive market for cochin oil with
purchases of 29,367 MT. Other
destinations were Sri Lanka 374 MT,
Vietnam 107 MT, Australia 21 MT, Europe
21 MT (Germany), Canada 17 MT, Pakistan
16 MT.
Likewise, the US was major outlet for
RBD coconut oil with 3,504 MT, followed by
China with 2,066 MT. Other buyers took in
limited volume: Europe 253 MT
(Netherlands), Argentina 206 MT, Japan 98
MT, South Korea 82 MT, Taiwan 49 MT,
New Zealand 49 MT, Vietnam 34 MT, Sri
Lanka 21 MT, South Africa 19 MT, Canada
9 MT, Hong Kong 9 MT, Singapore 2 MT.
...OF COPRA MEAL
Shipment of copra meal in June at
31,995 MT earned USD5.421 million. South
Korea was market leader capturing 12,671
MT (39.6%), tracked by India 8,057 MT
(25.2%), China 6,850 MT (21.4%), Vietnam
3,300 MT (10.3%) and Taiwan 1,117 MT
(3.5%).
...OF DESICCATED COCONUT
External trade of desiccated coconut
at 11,077 MT spread out to 45 various
importing countries in June generated
USD25.744 million. The US maintained its
leading position in the trade with uptake at
3,444 MT (31.1%), followed by Netherlands
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
with 1,578 MT (14.2%). The next four
importers namely, Germany 613 MT,
Australia 594 MT, United Kingdom 569 MT,
and Canada 507 MT collectively accounted
for 20.6%. Eleven others with purchases
ranging 117-411 MT jointly comprised
26.0% of the market: Russia, Japan, China,
France, South Korea, Spain, Uruguay,
Turkey, Brazil, Israel, Belgium.
Some 28 other countries with much
lesser uptake ranging 1-94 MT together
accounted for 8.1%. This group consisted
of Guatemala, Sweden, Egypt, Ecuador,
Chile, Paraguay, Thailand, Mexico, Ireland,
Colombia, New Zealand, Hong Kong,
Malaysia, Switzerland, Poland, Italy,
Georgia, Panama, Sri Lanka, Norway,
Czech Republic, Lithuania, Taiwan, Kuwait,
Vietnam, Qatar, South Africa, United Arab
Emirates.
...OF COCO SHELL PRODUCTS
Coconut shell charcoal export in June
which totaled 7,194 MT registered earnings
of USD3.696 million. China was top buyer
absorbing nearly half of the month’s load
with 3,378 MT (47.0%) followed by Japan
with 1,468 MT (20.4%), India 941 MT
(13.1%), Sri Lanka 931 MT (12.9%). Other
destinations held market share of less than
5%: South Korea 350 MT, Turkey 77 MT
and Thailand 49 MT.
Export of activated carbon in the same
month at 6,108 MT was valued USD11.382
million. There were 28 importing countries
registered during the month half of which
took in volume above 100 MT. Leading the
pack was Japan with 858 MT (14.1%),
closely trailed by Germany 843 MT (13.8%),
US 783 MT (12.8%), Sri Lanka 702 MT
(11.5%) and 10 others with imports ranging
113-472 MT which together comprised
39.3% of the market namely, China, Russia,
Taiwan, South Korea, Indonesia, Canada,
Netherlands, Italy, Ghana, Australia. On the
other hand, the remaining 14 other
countries with uptake below 100 MT in the
range 6-86 MT collectively contributed
8.5%: Sweden, South Africa, Belgium,
Israel, Mexico, Spain, Brazil, Dominican
Republic, Finland, Kenya, Estonia, Peru,
Tanzania, Singapore. (UCAP Bulletin)
PERFORMANCE OF PHILIPPINE TOP
NON-TRADITIONAL COCO PRODUCTS
EXPORTS IN JUNE
Data from the Philippine Statistics
Authority show 13 nontraditional coconut
products generated export revenue of more
than USD100,000 during the month to
qualify in the top non-traditional coconut
export products category. The top five non-
traditional exports had respective earnings
of more than USD1.000 million: virgin
coconut oil, hydrogenated coconut oil,
coconut water, glycerin and coco flour.
VIRGIN COCONUT OIL led the pack
with earnings of USD9.485 million from
export of 2,565 MT. The shipment was
down by 26.1% from previous year at 3,471
MT. The United States was top market
capturing 1,560 MT (60.8% of total sales).
Limited volumes went to Canada at 233 MT
(9.1%), Brazil 168 MT (6.5%), Netherlands
138 MT (5.4%), Germany 112 MT (4.4%),
and 18 other countries responsible for 355
MT (13.8%).
Second placer HYDROGENATED
COCONUT OIL had gross export receipts of
USD8.630 million from sale of 3,231 MT (no
export was recorded in same period year-
ago). The United States was primary
destination cornering 1,400 MT (43.3%),
followed far behind by Australia at 713 MT
(22.1%), Canada 307 MT (9.5%), United
Kingdom 186 MT (5.7%), Germany 146 MT
(4.5%), Belgium 127 MT (3.9%) and a
dozen other countries with combined orders
of 352 MT (10.9%).
COCONUT WATER, the third biggest
non-traditional export, generated USD7.811
million from delivery of 7,783,957 liters.
Current volume increased by 7.3% from
year-ago at 7,256,043 liters. The United
States was the biggest outlet responsible for
4,544,398 liters (58.4%), with United
Kingdom distance behind with 1,085,223
liters (13.9%). Smaller volumes went to
Australia 666,762 liters (8.6%), China
24 | Page
COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
360,915 liters (4.6%), Canada 247,104 liters
(3.2%), Sri Lanka 215,264 liters (2.8%),
Taiwan 148,426 liters (1.9%), Netherlands
136,184 liters (1.7%) while 10 others shared
the balance of 379,683 liters (4.9%).
Fourth in rank GLYCERIN recorded
proceeds of USD1.956 million from sale of
2,259 MT, a significant drop in volume by
31.9% from 3,320 MT in prior year. China
was the largest market with uptake at 981
MT (43.4%), trailed by Japan at 765 MT
(33.8%), Iran 205 MT (9.1%), South Korea
115 MT (5.1%), Malaysia 90 MT (4.0%) and
six others with total orders of 104 MT
(4.6%).
In the fifth position was COCO
FLOUR with turnover of USD1.829 million
from overseas purchases of 635 MT. The
shipment substantially increased by 145.4%
over same period last year’s 259 MT. Top
four destination as were: United States at
224 MT (35.2%), Netherlands 127 MT
(20.1%), France 79 MT (12.5%), and Japan
50 MT (7.8%). Seven other country
importers shared the balance of 104 MT
(24.5%).
The top six export, COCONUT MILK
LIQUID, registered earnings of USD888,379
from cargo amounting to 521 MT (555 MT
year-ago). The United States was principal
importer handling 209 MT (40.1%). Other
markets were Malaysia 62 MT (12.0%),
Australia 60 MT (11.5%), Japan 57 MT
(11.0%), Canada 39 MT (7.4%), and five
other countries with combined participation
of 94 MT (18.0%).
TOILET/BATH SOAP landed seventh
and turned in USD883,280 from delivery of
383 MT (720 MT). United Arab Emirates
was leading destination at 96 MT (25.0%),
trailed by Thailand at 74 MT (19.2%),
Vietnam 51 MT (13.3%), Singapore 40 MT
(10.4%), United States 30 MT (8.0%) and
10 others sharing 92 MT.
SHAMPOO which earned USD857,541 from external trade of 306 MT (231 MT) filled in the eighth place. Singapore was the main buyer at 223 MT (73.0%), followed far behind by Fiji at 60 MT
(19.6%) and 10 other countries with total uptake of 23 MT (7.3%).
HUSK CUBES rounded up the top 9 non-traditional export contributing USD668,108 from shipment of 326 MT (414 MT). There were four country destinations led by United Kingdom at 180 MT (55.2%), Japan 95 MT (29.1%), Spain 48 MT (11.6%) and China 3 MT (0.9%).
COIR & COIR PRODUCTS held the 10
th spot with value at USD569,936 from
transactions involving 1,430 MT. Current volume shrank 86.6% from 10,682 MT year-ago. China was almost an exclusive destination controlling 1,224 MT (85.6%). Other destinations were Japan at 104 MT (7.2%), Hong Kong 64 MT (4.5%), and five others which collectively held 39 MT (2.7%).
Completing the top 13 non-traditional exports were: nata de coco, coconut cream and coco dust/peat. NATA DE COCO had revenue of USD363,254 from trade of 519 MT (770 MT). There were only three country markets: Japan with 412 MT (79.4%), South Korea 55 MT (10.6%) and China 52 MT (10.0%).
COCONUT CREAM generated USD304,482 in foreign exchange revenue from total volume of 479 MT (156 MT). There were four country buyers with Netherlands taking the biggest share at 216 MT (45.1%), Thailand 143 MT (29.9%), Malaysia 83 MT (17.4%) and Belgium 36 MT (7.6%).
COCO DUST/PEAT contributed USD121,335 from deals amounting to 1,950 MT (2,715 MT). There were only four importing countries: China was the biggest market at 1,746 MT (89.6%), South Korea at 177 MT (9.1%), Malaysia 18 MT and Guam 8 MT. (UCAP Bulletin)
SRI LANKA ACTIVATED CARBON
EXPORT DOWN IN FIRST FIVE MONTHS
OF 2018
Figures from Sri Lanka’s Coconut Development Authority show the country’s export of activated carbon slid 1.4% to 16,080 MT in January-May this year from 16,315 MT in a similar period year-ago. Shipment value at USD37.658 million was higher by 18.8% from previous year at USD31.699 million. Average traded price
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
calculated at USD2,341.93/MT FOB rose by 20.5% from prior year at USD1,942.96MT. For the month of May alone, export was 3,217 MT, topping by just 59 MT prior year figure at 3,158 MT. Revenue likewise increased at USD8.664 million from USD5.934 million.
Export during the five-month period went to at least 46 countries. The top three importers held volumes above 1,000 MT and collectively accounted for 47.4% of total trade. Leading the pack was United States with 4,492 MT (28.0% share), followed far behind by China with 2,110 MT (13.1%) and Japan 1,015 MT (6.3%). Twenty-three other countries also took in significant volume ranging 106914 MT and jointly contributed 49.1%, namely India, Peru, Estonia, Italy, South Korea, Germany, Taiwan, Turkey, Singapore, Russia, Hongkong, Ukraine, Poland, South Africa, France, Sweden, United Kingdom, Malaysia, Netherlands, Canada, Egypt, Kenya and Finland. The remaining 20 countries which aggregately shared 3.5% of total sales took in volume ranging from a low of 1MT to a high of 73 MT. (UCAP Bulletin)
COMBINED EXPORT OF WORLD’S
MAJOR DESICCATORS DOWN IN MAY
According to collated country data from the Philippines Statistics Authority and Sri Lanka’s Coconut Development Authority, the combined export of desiccated coconut in May by the Philippines and Sri Lanka dropped by 13.6% to 9,879 MT from 11,442 MT in a similar month last year. Export from the Philippines, which accounted for 83.9% of combined volume, was down by 8.2% at 8,285 MT from 9,029 MT. Shipment from Sri Lanka at 1,594 MT radically dropped by 33.9% from 2,413 MT year-ago. Computed average traded price of Philippine desiccated coconut was USD2,376.17/MT FOB (USD2,345.87/MT last year) as against Sri Lanka product with average price at USD3,342.61/MT FOB (USD2,920.87/MT).
The cumulative figure for January-May this year at 42,718 MT dropped by 15.5% from 50,562 MT in the same period year-ago. Export from the Philippines at 35,762 MT slid by 3.3% from last year at 36,999 MT, while delivery from Sri Lanka at 6,956 MT dived by 48.7% from 13,563 MT. In
terms of market share, the Philippines was responsible for 83.7% and Sri Lanka 16.3%. (UCAP Bulletin)
PERTAMINA LAMENTS ABOUT LACK
OF FAME IN EASTERN INDONESIA
Indonesia’s state energy holding company Pertamina complained about a lack of fatty acid methyl ester (FAME) supplied to 43 of its fuel terminals, where the firm refines it into 20 percent blended biodiesel (B20), from the total 112 terminals available, The Jakarta Post reported on September 21. FAME, the raw material of which is crude palm oil, has yet to be supplied to Pertamina in the eastern part of Indonesia, such as in East Nusa Tenggara, Maluku, Papua and Sulawesi.
“All of our terminals are ready to produce B20. However, the production of biodiesel depends on FAME, and we haven’t receive our full supply,” Pertamina President Director Nicke Widyawati said in a press statement. Pertamina retail Marketing Director Mas’ud Khamid said FAME was crucial to implementing the government policy of expanding the use of B20. “Our total need for FAME stands at 5.8 million kiloliters per year. And overall national consumption of Solar diesel fuel is 29 million kiloliters per year,” he said. (UCAP Bulletin)
GREENERGY TO ACQUIRE IDLE
BIODIESEL FACILITY IN AMSTERDAM
UK biodiesel firm Greenergy is purchasing its third biodiesel plant through an agreement reached with tank terminal operator Oiltanking on the latter’s idle manufacturing facility in Amsterdam, Oil & Fats International said. Greenergy planned to convert the Amsterdam plant, built in 2010 to process vegetable oils into biodiesel but never commissioned, to process waste oils, alongside increasing its production capacity.
Greenergy CEO Andrew Owens said demand for waste-based biodiesel was soaring across the EU due to higher biodiesel mandates. The location in
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
Amsterdam benefitted from deep-water access, allowing for break bulk on long-haul shipments of waste oils, according to Greenergy.
Under the agreement, Oiltanking would provide Greenergy with storage facilities for feedstock materials and produce biodiesel, in addition to a range of support services. Greenergy already owns two waste-to-biodiesel facilities in eastern England at Immingham and Teesside. Like the Amsterdam facility, the company’s two existing plants were originally designed to process vegetable oils. (UCAP Bulletin)
PALM OIL COMPANIES SUCCEEDING IN
SUSTAINABILITY EFFORTS
In an interview with FoodNavigator-Asia, Golden AgriResources (GAR) Vice-President of Corporate Communication and Sustainability Relations Anita Neville said efforts being made by the palm oil companies, particularly in Indonesia, were slowing rates of deforestation based on increasing evidence. GAR itself is on its way to achieve 100% traceability to plantation for 427 independent mills by 2020. To achieve this, the company will use supply chain mapping methods and technology.
Earlier in February this year, it had
finished mapping all its suppliers to its own
mills last year, which was equivalent to
more than 600,000 hectares of estates and
accounted for 39% of its total supply of palm
oil. Through mapping, firms can trace the
source of their palm oil supply and find out if
their palm oil are produced in a sustainable
way. As of March 31, 2018, GAR’s planted
area stood at 500,345 hectares, of which
259,473 hectares were certified by the
Roundtable on Sustainable Palm Oil
(RSPO).
According to Supply Change Report
2017, palm trees were responsible for
270,000 hectares of annual tropica forest
loss, while cattle rearing and soy farming
was responsible for 2.7 million hectares and
480,000 hectares, respectively, of forest
loss. Replacing palm oil with other
ingredients such as soy and butter would
not resolve the problem of deforestation.
Neville explained that other agricultural
products have lower yield and thus would
require larger farming areas which in turn
leads to more deforestation. In addition,
replacing palm oil with butter, more soy
would be needed to feed the cows, which
translates to more deforestation. (UCAP
Bulletin)
THREE METHODS OF PRODUCING
COCONUT SHELL CHARCOAL
Shell charcoal is manufactured by burning shells obtained from fully matured coconut in a limited supply of air, sufficient only for carbonization, but not for complete destruction. Charcoal output is just under 30 per cent of the weight of the original shells, which depends much on the efficiency of processing. In Sri Lanka, 20,000 whole shells for one tonne of charcoal is the usual working average. The range may vary from 17,000 to 24,000 whole shells. In Malaysia, four times the number of coconut giving 100 kg of copra is required to make 100 kg of charcoal. This works out to 18,000 to 20,000 whole shells for one tonne of charcoal. In India, the average outputhas been found to be 35 kg of charcoal from 1000 whole shells or about 30,000 whole shells yield one tonne of charcoal. Sometimes especially when the processing is defective, the output is still lower and nearby 50,000 shells are required to produce 1 tonne of charcoal. In the Philippines, the average figure is 20,000 whole shells to a tonne of charcoal. Several methods are in vogue for the production of charcoal. Different methods are available for the production of shell charcoal of commercial quality. The popular methods adopted for the purpose in different countries are discussed briefly below:
a. Covered pit method
In this method, the carbonization takes
place in a pit of 1.25m diameters and 2m
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
deep. The pit is excavated in such a way as
the bottom tapers down to a point. The fire
is started at the bottom and the shells are
heaped as the fire spreads. Towards the
end, a thin mild steel plate is placed on the
heap and as the shells settle down, the lid
comes to rest on the edges of the pit. The
edges of the lid are covered with earth and
left for 4-5 days to complete the
carbonization and further cooling. Then the
lid is removed and charcoal collected. The
charcoal produced is of uniform quality and
is free from earthy contamination. The yield
ranges from 28 to 32 per cent of the original
weight of the shells used.
b. Modified pit method
The pit is lined with firebricks or GI
sheets. The shells are then put in a thin
layer at the bottom and ignited with
kerosene. More shells are heaped during
ignition to completely cover the pit. The pit
is then covered with an old corrugated iron
sheet, leaving a gap of about 2 inches. The
nature of the smoke that emits out is an
indication of the progress of carbonisation.
Towards the end of carbonization, the
colour of the smoke will change to pale blue
from the initial dense white and steamy
smoke. Now, the gap is closed and sides
sealed with mud. The pit is then left to cool
for four to five days.
c. The drum method
An ordinary 55-gallon gasoline drum is
used for the carbonization. The bottom of
the drum is removed by cutting around the
inside rim. The top is provided with two or
three holes equidistant from the two
plugholes which are also kept open. The
holes may be 5 cm x 8c, made by a chisel.
The drum is placed on two 2.5 cm iron pipes
with the open end up. The shells are then
tightly stocked inside and fire lit between the
base of the drum and the ground. As the
charge burns, the contents of the drums are
frequently shaken and fresh shells added in
between. A restricted air circulation is
allowed in the drum which is ensured by
covering a portion of the space between the
drum and the ground with earth. When the
drum is filled with charcoal, the removed lid
is replaced on the top tightly and the drum
with the contents turned upside down on a
bag. It is left standing until the smoke clears
up. The holes are then covered with earth
and bottom also piled up with sand around.
The drum if properly sealed is ready to be
discharges the next morning. (Rethinam, P.,
Bosco, S.J.B. Coconut – Harvest,
Processing and Products, APCC, 2006
pp.158-159)
“Thai Coconut Soup with Turmeric”
Ingredients:
- 1 tbsp coconut oil
- 1 cup brown rice
- 2 large carrots, chopped
- 2 stalks celery, chopped
- 1 large onion, chopped
- 4 cups chicken broth or water
- 1 tbsp Dr. Cowan’s Garden Turmeric
Powder
- 2-inch piece of fresh ginger
- 1 boned and skinned chicken breast
- 1 can full-fat coconut oil
- Sea salt and black pepper to taste
Directions:
- In a large pot, melt coconut oil over
medium heat and add rice, carrots,
celery and onion. Add broth or water
and cover.
- Cut ginger into small pieces and add to
pot, along with the Turmeric Powder.
Cover again.
- Let cook over low to medium heat for
30 minutes. If soup starts to boil,
reduce heat.
- Cut chicken into small chunks and add
to soup. Add coconut milk and cook for
another 15 minutes, or until chicken is
cooked through.
- Add salt to taste and serve
immediately. Serves 4 to 6 people
(https://www.drcowansgarden.com)
CCOOCCOONNUUTT RREECCIIPPEE
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
Table 1. Indonesia's Monthly Exports of Desiccated Coconut, 2016 - 2018
Month
2016 2017 2018
Volume Value(FOB) Volume Value(FOB) Volume Value(FOB)
(MT) US$’000 (MT) US$’000 (MT) US$’000
January 5,150 7,230 5,872 9,170 8,453 16,165
February 4,697 6,805 7,595 12,327 8,464 16,408
March 8,327 10,945 7,494 12,807 9,517 18,292
April 7,484 10,887 6,583 11,432 9,890 17,543
May 7,484 10,216 8,270 14,542 9,014 14,971
June 7,986 12,064 6,837 11,994 6,471 9,974
July 3,810 6,015 7,139 13,524 10,321 15,637
August 6,813 10,724 10,854 20,647 10,706 15,496
September 6,779 10,512 8,544 16,375
October 7,020 10,704 9,350 18,180
November 6,771 10,209 10,749 20,944
December 6,903 10,263 8,751 17,031
Total 79,224 116,574 98,038 178,973 72,836 124,485
Source: BPS-Statistics Indonesia
Table 2. Philippines’ Monthly Exports of Desiccated Coconut (in MT), 2015 - 2018
Month 2015 2016 2017 2018
January 6,092 4,849 6,107 8,307
February 7,107 4,079 8,675 6,251
March 5,894 4,897 7,628 5,249
April 3,734 4,554 5,560 7,671
May 4,842 4,387 9,029 8,285
June 4,026 6,234 8,023 11,077
July 8,469 12,636 12,844
August 6,583 8,268 13,858
September 6,061 15,384 12,907
October 4,883 7,964 16,187
November 4,474 7,939 7,743
December 5,094 10,029 6,444
Total 67,259 91,220 115,005 46,840
Source: Philippines Statistics Authority
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COCOMMUNITY, VOL. XLVIII NO. 10, 1 October 2018
Table 3. Sri Lanka’s Monthly Exports of Desiccated Coconut (in MT), 2016 - 2018
Month
2016 2017 2018
Volume Value(FOB) Volume Value(FOB) Volume Value(FOB)
(MT) US$’000 (MT) US$’000 (MT) US$’000
January 2,970 6,345 2,941 7,069 928 3,387
February 3,494 7,102 2,655 7,271 1,122 3,899
March 4,487 9,192 3,515 9,724 1,830 6,614
April 3,926 8,145 2,039 5,855 1,482 4,863
May 4,210 8,972 2,413 7,048 1,594 5,328
June 4,354 9,428 2,401 7,127 2,163 7,034
July 4,393 9,410 2,521 7,636 2,216 6,710
August 4,669 9,758 2,619 8,547 3,009 7,909
September 4,604 9,876 2,907 9,691
October 4,580 10,048 2,468 8,733
November 3,972 9,004 1,953 6,825
December 3,541 8,,309 986 3,279
Total 49,200 97,280 29,418 88,804 14,344 45,746
Source: Coconut Development Authority, Sri Lanka
Table 4. Export Volume of Desiccated Coconut by Country of Origin, 2018
(MT)
Month Malaysia Thailand India Mexico
January 949 91 128 329
February 897 174 152 251
March 1,770 183 444 275
April 1,263 155 86 335
May 915 108 141 326
June
118 100
July
200 196
August
158
September
October
November
December
Total 5,794 1,187 1,247 1,516
Source: ITC, Thai Customs and Department of Commerce of India
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