Table of Contents

Page/s: The Executive Director Speaks “Focus on Farmers’ Welfare Aligns the Development Strategies For a Sustainable Sector ”……...….…….. 2

Prevailing Market Prices of Selected Coconut Products and Oils ...... 3-4

Market Analysis of ...... 5-6

Community News ...... 7-17

Trade News ...... 17-20

Coconut Technology News ...... 20

Bio-Diesel News ...... 20-21

Other Vegeoil News ...... 21-22

Did You Know ...... 22-23

Coconut Recipe “Nasi Lemak (Coconut Rice)” ...... 23

STATISTICS ...... 24-25

Table 1. Indonesia’s Monthly Exports of Coconut Oil (in MT), 2014-2016

Table 2. Philippine’s Monthly Export of Coconut Oil (in MT), 2012-2016

Table 3. International Prices of Selected Oils, January 2014 - December 2016 (US$/MT)

EXECUTIVE DIRECTOR SPEAKS …………………………………………...

“Focus on Farmers’ Welfare Aligns the Development Strategies For a Sustainable Coconut Sector”

I n December last year the APCC Secretariat was provided with the opportunity to observe progress of Farmer Producer Organizations (FPO) in India. FPO establishment is through a special initiative of the Coconut Development Board of India since 2013. Cooperative society principles are embraced more successfully in India now than most other APCC member countries particularly in this case to benefit, in the first instance, the coconut farmers. The three-tier structured FPOs at the time of the visit numbered 9,292 Coconut Producer Societies (CPS), 721 Coconut Producer Federations (CPF) and 65 Coconut Producer Companies (CPC). The requirement for membership of a CPS is ownership of a minimum of ten yielding coconut palms. Visits made with the CPCs of Parembara, Vadakara and Palakkad were exemplary of progress with establishing FPOs and their commercial operations involving downstream processing of high value coconut products such as Fresh Neera, , Coconut Sap Products, Coconut Cooking Oil and Virgin Coconut Oil. It was a notable advancement within a timeframe of three to four years since inception with membership of FPOs ranging from 15,000 to 25,000 farmers. The advantage of synergy created was demonstrated through a well-structured FPO where farmers working together could secure viable markets, access affordable micro financing, receive appropriate training and are assisted with on- farm technologies transfers to improve productivity, to name a few achievements. Well organized farmer groupings are not only able to access external benefits such as viable markets but also enables assistance from government and its institutional framework to effectively reach farmers. Such assistance, for example, are in the important areas of Integrated Pest Management, Good Agriculture Practices, Good Management Practices and the ongoing capacity building interventions for coconut farmers. Dependence on government is gradually reduced when such suitable structures are established that would result in adequate self-sufficiency amongst farmers. The FPOs literally take over a substantial portion of the community service responsibility of government mainly in terms of providing technical support for farmers. It was worth noting the economic viability of ventures entered into by CPCs hence proving that coconut can be a profitable commercial undertaking provided markets remain viable and that a high level of governance is instituted. As this new coconut year unfolds it would be timely for the socio-economic welfare of coconut farmers to come into focus by governments that should address development policies geared towards providing a positive environment that enables farmers to be viably engaged in the coconut sector with improved farming practices, capturing profitable markets and creating greater opportunities along the supply chain. APCC would encourage its member countries to explore opportunities to assist organize coconut farmers into well structured groupings and to not hesitate to learn from another country, such as India, to be able to activate and empower farmer organizations thus promote inclusive growth that would sustain the coconut sector going forward.

URON N. SALUM Executive Director, APCC

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 3

PREVAILING MARKET PRICES OF SELECTED COCONUT

PRODUCTS AND OILS

Price of CNO increased in month, and was US$34/MT lower than the Indonesia, and Sri Lanka. The price of DC last year price for the same month. increased in Philippines and Sri Lanka, but The average domestic price of meal in decreased in Indonesia. Sri Lanka increased by US$4 compared to COPRA: The price of copra in Indonesia was the last month price of US$245/MT, and was US$917/MT in December, which was higher higher than last year price of US$247/MT for than last month’s price of US$870. When the same month. compared to last year’s data for the same DESICCATED COCONUT: The average month the price was US$314 higher. price of desiccated coconut (DC) FOB USA in In the domestic market of the Philippines December 2016 was US$2,444/MT. This (Manila), the price increased by US$ 71/MT price was US$49 lower than the previous compared to the price in November 2016, month’s price and US$285 higher than the and about US$261/MT higher compared to price of the same month last year. In Sri the price of US$682/MT in December 2015. Lanka, the domestic price of desiccated coconut in December 2016 was COCONUT OIL: The average price of US$2,234/MT or US$29 higher than the price coconut oil in Europe (C.I.F. Rotterdam) for in November 2016. Meanwhile, the price of the month of December 2016 increased by DC in the domestic market in the Philippines US$142/MT to US$1,684/MT from was US$1,406/MT, which was US$83 lower US$1,542/MT in November 2016. This price than the previous month’s price at US$1,484 was higher by 46.4% when compared to the and US$193 lower than the price in the same price of December 2015 accounting for month last year. Indonesian price in US$1,150/MT. December 2016 was US$2,086/MT, The average local price of coconut oil in the decreased by US$8/MT compared to the last Philippines in December 2016 was month’s, and increased by US$44 from last US$1,599/MT. This was US$128 higher than year’s price. the price in November 2016, and it was COCONUT SHELL CHARCOAL: In Sri US$501 higher if compared to the last year Lanka, the average price of the commodity in price for the same month which was December 2016 was US$350/MT. The price US$1,098/MT. was US$30/MT lower than previous month’s The average domestic price of coconut oil in price. The average price of charcoal in Indonesia in December 2016 increased by Indonesia for December 2016 was US$145 compared to the previous month US$383/MT, which was US$7 lower than last from US$1,529/MT to US$1,674/MT. year’s price for the same month. December 2016 price was 51.8% higher than FIBRE: Coir fiber traded in the the price of the same month of 2015 which domestic market in Sri Lanka was priced at was US$1,103/MT. US$180/MT for mix fiber and US$550 - 752 COPRA MEAL: The average domestic price for bristle. The Indonesian price for mixed raw of the commodity in the Philippines at selling fiber was US$280/MT in December 2016 points was quoted at US$184/MT. The price which was unchanged compared to last was US$5 lower than price of the previous month’s price.

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 4 | Page

Price of Coconut Products and Selected Oils (US$/MT) 2016 2016 2015 2016 Products/Country Dec. Nov. Dec. (Annual Ave.)

Fresh Coconut

Philippines (Dom. Husked) 217 207 197 218 Copra Philippines/Indonesia (CIF N.W. Europe) 1,120 1,029 759 981 Philippines (Dom. Manila) 943 872 682 888 Indonesia (Dom. Java) 917 870 603 810 Sri Lanka (Dom. Colombo) 1,095 1,136 1,033 1,164 Coconut Oil Philippines/Indonesia (CIF Rott.) 1,684 1,542 1,150 1,472 Philippines (Domestic) 1,599 1,471 1,098 1,412 Indonesia (Domestic) 1,674 1,529 1,103 1,430 Sri Lanka (Domestic) 1,956 1,878 1,772 1,836 Desiccated Coconut Philippines FOB (US), Seller 2,444 2,395 2,159 2,344 Philippines (Domestic) 1,406 1,489 1,599 1,469 Sri Lanka (Domestic) 2,234 2,205 2,004 2,085 Indonesia (Domestic) 2,086 2,094 2,042 2,088 Copra Meal Exp. Pel. Philippines (Domestic) 184 189 218 233 Sri Lanka (Domestic) 249 245 247 254 Indonesia (Domestic) 205 207 237 232 Coconut Shell Charcoal Philippines (Domestic), Visayas, Buyer 340 340 365 344 Sri Lanka (Domestic) 350 380 409 393 Indonesia (Domestic Java), Buyer 383 390 325 377 Coir Fibre Sri Lanka (Mattress/Short Fibre) 180 182 190 183 Sri Lanka (Bristle 1 tie) 550 552 538 547 Sri Lanka (Bristle 2 tie) 752 759 864 775 Indonesia (Mixed Raw Fibre) 280 280 289 282 Other Oil Palm Kernel Oil Mal/Indo (CIF Rott.) 1,650 1,476 832 1,262 Palm Oil, Mal/Indo (CIF Rott.) 783 751 552 694 Soybean Oil (Europe FOB Ex Mill) 911 880 768 813

Exchange Rate: December 30, 2016

1US$= P49.56 or Indo.=Rp13.470 or India=Rs67.92 or SL=Rs149.5 Euro=US$1.052 n.q.: no quotes

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 5

MARKET ANALYSIS OF COCONUT OIL

Following the declining trend in the declined by 1% following a negative trend in last two years as an effect of unfavorable the previous year. The reverse trend of weather, copra production decreased in global CNO exports is expected to take 2016. Global copra production in 2016 place in 2017 as copra production is dropped for more than 9%. The lagging expected to improve though in limited pace. effect of severe dryness in 2015 is also Philippines’ exports of coconut oil expected to limit the recovery of copra from January to September 2016 were yields in 2017. Competition for raw materials 474,846 MT or decreased by 27.5% with other coconut products has also put a compared to the same period of 2015. It is pressure on production of coconut oil and expected that exports of the products from meal as demand for other coconut products Philippines in 2016 will experience a grows. significant drop and most probably be the The shortage in the global production lowest in the last five years. It is worth has, furthermore, restrained an increasing noting that in the last decade the lowest trend in the global demand. The import export volume of coconut oil from demand of coconut oil in the world market Philippines was in 2011 accounting for was dwindling from 1.01 million MT in 781.411 MT. Meanwhile, exports of the January-June 2015 to 0.79 million MT for commodity in 2015 were 853,152 MT or the corresponding period in 2016. In the decreased by 0.4% compared to that of same period, the other lauric oil, palm 2014. Europe, USA, and Japan were still kernel oil, also fell off by 5% to level of 1.63 the main destinations of coconut oil from the million MT as opposed to 1.55 million MT. Philippines followed by China. Europe As a result, total imports of lauric oils absorbed for more than 58% of the decreased by 11.4% to a level of 2.34 Philippines’ total export of the commodity in million MT as against 2.64 million MT of last the said period, and about 32% went to year for the same period. USA. 5% of the commodity shipped to Japan and 2% sent to China. Apart from the Moreover, the drop in production has drop in the domestic copra production, also curbed export supplies. Philippines and Philippines’ export of coconut oil Indonesia as major exporting countries of significantly declined since the industry also coconut oil experienced a sharp decline in faced difficulties in finding new source of exports of the product. Until the third quarter raw materials as other main source of 2016, total export of coconut oil from the countries such as Indonesia and Papua two countries fell for more than 20% New Guinea faced the same problems due compared to the same period in 2015. The to a lagging effect of unfavorable weather in drop was following a negative trend since 2015. 2014 when the world export of coconut oil eased to the volume of 2.146 million MT or Indonesia, as the second largest experienced a year-on-year decrease by exporting country, has also been affected by 4.9% after experiencing a substantial the drop in copra supply. From January to increase in previous two years at an October 2016, exports of coconut oil from average annual growth rate of 10%. In Indonesia dropped by 22.4% compared to 2015, the global exports of the commodity the same period in 2015. The drop was

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 6 | Page following the declining trend in the previous to US$/MT 1,684 in December 2016. In year which was contracted by 1.6% from international market, coconut oil plays a 771,419 MT in 2014 to 759,381 MT in 2015. complementary role with palm kernel oil. The decline was mainly due to a shortage in Thus, the increase in price of coconut oil raw materials not only due to a long drought has inevitably brought the price of palm but also due to competition for raw materials kernel oil to move up and vice versa. Since with other coconut products as demand for the price of coconut oil increased, it has other products including fresh coconut pulled upward palm kernel oil prices. Price strengthened. Indonesia’s coconut oil was of palm kernel oil in December 2015 was mainly shipped to United States, China, US$/MT 832 and jumped to US$/MT 1,650 Netherlands, Malaysia, and South Korea in December 2016 or improved by 98.3%. which have been considered as traditional The significant increase in price of palm markets for coconut oil from Indonesia. The kernel oil has been narrowing the current US has been the largest importing country unusually large price discount of palm for coconut oil from Indonesia for years. In kernel oil vis-à-vis coconut oil. The price the period, 29.7% export of coconut oil from premium of coconut oil over palm kernel oil Indonesia was sent to the US. Meanwhile, in December 2015 was US$/MT 300 and export of coconut oil to China, Netherlands, narrowed down to only US$/MT 34 in Malaysia and South Korea was 19.3%, December 2016. 14.8%, 13.2% and 8.8% respectively. It is expected that price of coconut oil After experiencing a bearish market in will remain strong at least until the first 2015, coconut oil market showed a reverse quarter of 2017 as production of the product trend in 2016. An expected low copra will hardly improve due to a limited copra production in main producing countries such supply. As price of coconut remain strong, as Philippines and Indonesia has driven price of palm kernel oil will inevitably move coconut oil prices to increase. Price of up to narrow its price discount against coconut oil in December 2015 was US$/MT coconut oil. 1,150 in Rotterdam and increased by 46.4%

Monthly Price of Lauric Oils, 2011-2016

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 7

Many of the business groups have evinced interest in the import of de-husked COMMUNITY NEWS nuts.

In the first eight months of the current NAFED STARTS BUYING COPRA AT fiscal year, ending November, India MSP IN KARNATAKA exported 631.22 tonnes of fresh coconut; Cooperative Nafed started on Friday 758.98 tonnes of coconut oil and 905.99 tonnes of desiccated coconut to Saudi procurement of copra at the minimum support price (MSP) in Karnataka in order to Arabia. protect growers from falling prices of the Besides, coconut oil, activated carbon commodity. Karnataka is the third state after and coconut chutney powder are finding Andhra Pradesh and Tamil Nadu where new markets in the country. Nafed is buying copra at the support price. The cooperative major has also received The figure should further increase approval to start purchase at MSP in with the firming up of more export orders Karnataka. after the trade enquiries from Saudi Arabia materialise into contracts, the official said. The MSP of ‘milling copra’ stands at (http://www.thehindubusinessline.com) Rs 5,950 per quintal, while ‘ball copra’ at Rs 6,240 per quintal for the ongoing 2016-17 STATE TO FIGHT PROPAGANDA crop year (July-June). AGAINST USE OF COCONUT OIL (http://indiatoday.intoday.in) The state agriculture department, with the support of health and food safety SAUDI KEEN ON JVS WITH INDIAN FIRMS FOR COCONUT INDUSTRIES departments, Universities and Research Institutes, will launch a counter campaign The Arab business community is keen against the ‘widespread propaganda’ that to form joint ventures with Indian companies consumption of coconut oil causes heart for setting up integrated coconut-based ailments and other serious health problems. industries in Saudi Arabia. Simultaneously, the Department will The business offers received at the wage a war against the adulterated coconut recently-concluded Foodex Saudi 2016 at oil being sold in the state, through regular Jeddah are a pointer to this. inspections and strict legal actions, The Coconut Development Board got Agriculture Minister V S Sunikumar told a series of enquiries from the trade on reporters here on Friday. several value-added products, such as “Such a campaign against coconut oil, desiccated coconut powder, virgin coconut without any scientific backing, has adversely oil, Neera honey, coconut sugar, etc. affected ’s coconut industry. The Trade enquiries government will make use of authentic scientific studies and available media A CDB official who participated in the platforms to launch a strong campaign for event told BusinessLine that there were the promotion of coconut oil as a healthy good trade enquiries at the Board’s pavilion edible oil,” he said. on the export possibility of different branded value-added coconut products. Citing inputs from experts from countries like Indonesia, Thailand and The Arab community is highly aware Singapore, who took part in the technical of the health and wellness of coconut and session on value addition in coconut at this could be translated into a potential VAIGA 2016, the ongoing international business for the export of coconut products workshop and exhibition on agro-products, in the entire West Asia. the Minister said virgin coconut oil was

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 8 | Page being recommended as the most safe and System (NARS) under the Indian Council of healthy edible oil world across. “Even the Agricultural Research (ICAR). United States which had initiated the false Tracing the history of coconut research campaign against coconut oil to promote in India, a joint paper by CPCRI Director P. Soybean oil, is now recommending virgin Chowdappa and A.K. Singh, Coconut coconut oil for children,” the minister added. Development Board (CDB) Chairman, Pointing out that 70% of the coconut oil observed that the process for collecting sold under various brands in the state was good seed nuts from select palms and adulterated, Sunil kumar said the agriculture selecting good seedlings at nursery-stage department, with the help of food safety based on certain criteria began in 1918. officials, would launch a massive drive to “Thanks to the efforts of J.S. Patel and tackle this menace. his team, the first hybrid was produced and On the promotion of value addition in planted at Nileshwar in 1934 and since then coconut products, the minister said the six coconut hybrids have been developed agriculture department, Kerafed, the State and released from CPCRI,” the paper said. Coconut Development Corporation and the CPCRI considers this as a huge Coconut Development Board would jointly achievement as developing and evaluating provide the entrepreneurs with facilities for a new hybrid takes 20 years. processing, packaging and marketing, besides making a budget provision to A century later, coconut has come a purchase suitable technologies from long way and continues to achieve greater abroad. heights as it is now an important horticultural crop cultivated in 17 states and “The state, over the years has three union territories in the country, making witnessed a decreased productivity in the India the largest producer of , coconut sector due to lack of proper care accounting for 31 per cent of the world and several crop diseases. The government production. will launch a ‘scientific farming scheme’ by providing quality saplings to farmers and Singh observed that coconut plays a forming coconut villages comprising 500- significant role in poverty alleviation and hectre clusters for better care and employment generation besides providing a cultivation,” he said. livelihood to 12 million families. (http://infloria.com/india) “Coconut and its products, including IT’S 100 YEARS OF COCONUT coir, bring in Rs 3,000 crore annually as RESEARCH IN INDIA foreign exchange. The fact that 50 per cent of coconut production is consumed as raw The humble coconut has been in nuts, shows its importance as a food crop existence for over 3,000 years, but it was and, with the demand likely to go up, the only in 1916 that the Coconut Research CDB is formulating strategies from 2016-17 Station was initially established by the then onwards to meet the future demand of Madras government at Kasaragod which coconut in the country,” said Singh. later became part of the Kerala state in (http://www.thefrustratedindian.com) 1956. NEERA TO SPORT A NEW TETRA A 100 years later, this institute is now LOOK known as the Central Plantation Crops Research Institute (CPCRI) and conducts Better packaging, better sales. That research on coconut, arecanut and cocoa. It appears to be the new mantra of the is one of the agricultural research institutes Agriculture Department as it plans a shot in the National Agricultural Research in the arm for neera, once billed as the

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 9 drink that would save Kerala’s ailing KERALA TO HAND OVER COCONUT coconut sector. PROCUREMENT TO THE CO-OP SECTOR The department is planning to discard plastic bottles and encourage Agriculture Minister V S Sunilkumar manufacturers to go in for tetra-packed said the procurement of coconuts would be neera. For this, the first step is to revive handed over to cooperative sector and a the Nadukkara Agro-processing Company discussion in this regard is underway. which is now going through troubled times, While inaugurating the All-India Kisan Agriculture Minister V S Sunil Kumar said. Sabha Kannur district convention in the “The necessary machinery is district on Monday, the minister said during available with the company, but some the previous UDF Government tenure, alterations have to be made. Only 25 per corruption to the tune of Rs 62 crores was cent of the capacity of this facility was alleged in the procurement of coconuts. being utilised. We plan to re-open the “This is being investigated by the Vigilance company in three months’ time and Department. Through zonal agent, the encourage all neera manufacturers in the fund was given to farmers. This had led to state to shift to tetra-packing,” Sunil Kumar the crisis,” he said. said. According to him, the project has two He said that KERAFED is now benefits; it would get rid of plastic bottles, functioning without a chairman and board and, two, the product would have a of directors and there is only managing relatively longer shelf life. Tetra-packed director. Under such a critical situation, neera was first proposed at the just- they are thinking for procuring coconut concluded VAIGA 2016 international through cooperative society. workshop on agro-processing and value addition organised by the department in Earlier, in KERAFED though there . was money in fixed deposit, it is now under severe loss, which is about Rs 55 crores, The five-day workshop introduced he said. farmers to various tetra-packed coconut products like tender coconut water and He encouraged the farmers to from South-east Asian produce value added products. Even as a countries. small country like Sri Lanka is making 30 to 40 per cent value added products, the Launched with much fanfare, the State is producing only 4 per cent. He said neera project today has 29 companies more farmers should come forward to registered with the government but only prepare value-added products, it would around nine are active, the minister said. help them in big way, he said. Sunil Kumar He attributed the waning interest to lack of said the government is taking all efforts to neera technicians and the low availability mitigate the problems of farmers. “After the of short coconut trees. For tetra-packed LDF government came to power in four neera, the department is also looking at a months about Rs 28 crores out of the Rs component for such packaging included in 72 crore has been released to farmers.” the Rashtriya Krishi Vikas Yojana (RKVY). Expressing concern on changing In the long run, the department also climatic conditions, the minister said plans to standardise neera production and drought has severely affected agriculture bring all neera produced in the state under and famers, and has taken toll on 4,000 a common brand. hectares in Thrissur alone. (http://www.newindianexpress.com) (http://www.newindianexpress.com)

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 10 | Page

COMING SOON, COCONUT SUGAR- increase production, he added. BASED DARK CHOCOLATE FROM (http://www.thehindubusinessline.com) CAMPCO WEATHER CHANGE SPURS PEST Campco (Central Arecanut and Cocoa ATTACK ON COCONUT PALMS Marketing and Processing Cooperative) Ltd Weather change has started affecting is all set to launch a new chocolate product, coconut palms. Scientists at the Central with coconut sugar as one of its major Plantation Crops Research Institute ingredients. (CPCRI) have found a new species of white The product is based on the flies attacking coconut leaves. Lack of rain technology provided by the Kasaragod- and low humidity are favourable conditions headquartered Central Plantation Crops for the growth of the species, according to Research Institute (CPCRI). scientists. Suresh Bhandary, Managing Director Pest attack has been confirmed in of Campco, told BusinessLine that the Palakkad and Pollachi. Studies are being cooperative’s new product — Campco conducted in Kuttanad. No loss of yield has Kalpa Dark Chocolate — will be released by been reported, but photosynthetic efficacy Union Agriculture Minister Radha Mohan could be partially affected. Singh at the Kisan Mela being organised by “The pest is spreading, but in localised CPCRI in Kasaragod on December 10. pockets. The identified white fly is a new CPCRI has developed the technology species and more than 3,000 palms have to extract coconut sugar, which is also already been affected,” one of the scientists known as ‘neera’ sugar. (Neera is a sweet associated with the study, who did not want sap tapped from the coconut tree. If not to be identified, told The Hindu. consumed within a couple of hours or stored In Kerala, Tamil Nadu under controlled temperatures, it will ferment into toddy, with alcohol content). The new species, named Aleurodicus, has emerged in certain pockets of Kerala Low glycemic index and Tamil Nadu. Belonging to a sucking This coconut-based sugar has low group of insects under bug category, it glycemic index, he said, adding that feeds from the under-surface of the coconut ‘Campco Kalpa Dark Chocolate’ does not leaf in large numbers and the honeydew have any artificial ingredients. that they excrete attracts the black sooty mould fungus. Widespread appearance of Campco has got certification from black colour on the upper surface of CPCRI in this regard. coconut leaflets is the characteristic Even diabetics and health-conscious symptom that a farmer could notice initially, people can opt for this chocolate, Bhandary the scientist said. said. Reported for the first time from Campco Kalpa Dark Chocolate will be Palakkad and Pollachi, the pest could marketed with an MRP of Rs100 for a 40- spread to other coconut-growing tracts. gm pack. The product will be available in Deficit monsoon and drop in relative the market from December 21. humidity are the immediate reasons for the Asked about the production target, flare-up of the pest. Though reports are Bhandary said Campco is planning to emerging from different coconut tracts in the produce around three tonnes of this product country, there is no need for panic, every month for the time being. Based on according to CPCRI scientists. the response, the cooperative would Another species of whitefly, Aleurodicus dispersus, had been

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 11 reported from Kerala in 1995 which infested for several months, has entered the revival more than 200 host plants then. Besides path with the recent surge in export of coconut palm, it was also found feeding on coconut products. curry leaf, mango, banana, and other plants. Speaking to ‘Express,’ Coconut But the newly identified species is Development Board (CDB) statistical specifically breeding on coconut palms. officer Vasanthakumar V C said coconut Moth-like bug prices increased in the domestic market after July’s big crash. The pest is a small moth like bug that lays eggs in a spiralling fashion in Prices of copra and coconut oil, which discontinuous circles. Females have dark had plunged to Rs 53 and Rs 82 per kg blotches on wings and males have well- respectively in July, recovered to Rs 77 developed claspers on the abdomen. Apart and Rs 117 in December, when most from coconut palms, Aleurodicus sectors have been hit by the dispersus was also found feeding on curry demonetisation. leaf, mango, banana and other plants. “The recovery of the sector can be Scientists said the pest attack could attributed to the surge in export, and low be curbed by encouraging the growth of arrival in the domestic market due to the parasitoids. During an observation of palms demonetisation. While coconut products last month in Pathanamthitta district, it was worth Rs 1,450 crore were exported from found that about 60 per cent of pupae of India in the whole of the last fiscal, the Aleurodicus were found parasitised value of total exports was at Rs 1,446 by Encarsia, another species. crore until November, and the figure is expected to exceed Rs 2,000 crore by the Encarsia is a tiny parasitoid of size end of the current fiscal. less than 1 mm, found effective in the bio- suppression of the whitefly under natural The high demand for Indian coconut conditions. Research efforts for products in the international market and multiplication of the parasite identified by the slump in arrival in the domestic market the scientists of the institute have been following the demonetisation have brought initiated by the ICAR-CPCRI. the much-needed relief to farmers. However, this cannot be construed as a Biocontrol strategies good trend as prices could start falling Biocontrol strategies, including when domestic arrivals pick up installation of yellow sticky trap on palm momentum,” say experts. “On the other trunks and application of 1 per cent starch hand, the last fiscal was relatively good for solution on leaves, have been advised to coconut farmers, with coconut oil and control the pest attack. No insecticide is copra fetching record prices of Rs 124 and recommended. (http://www.thehindu.com) Rs 84 respectively in the most recent DEMON SCARE: COCONUT months. Though a dip in production is SECTOR MANAGES TO PUT UP A expected this season due to BRAVE FACE demonetisation, it would be moderate,” they added. At a time when the commodity market in the State has been hit hard by the Meanwhile, the situation is not very demonetisation, especially spices and rosy for the rubber sector, despite prices rubber, the ailing coconut sector has improving to Rs 138 per kg — marked by a reasons to cheer. Rs 9 rise in just one week — from Rs 103 per kg in the beginning of the year. The traditional coconut oil/copra industry, which had been in the doldrums The ripples of demonetisation that brought about an 11.58 percent drop in

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 12 | Page commercial vehicle sales has created documented, certified then released as the apprehension among rubber farmers, high yielding varieties. The existing coconut considering the high demand for rubber in nurseries will be enlarged.” the tyre industry. Based on the Ministry of Agriculture Experts are of the view that the data, the national coconut productivity is estimated national production of 654,000 now only about 1.2 MT copra equivalent per tonne of natural rubber in 2016-17 would hectare. Some coconut producing areas not be easy to achieve, if the cash crunch have the productivity of 3-4 MT copra continued. (http://www.newindianexpress.com) equivalent per hectare. Seedlings from these areas will be spread out to other INDONESIAN COCONUT PRODUCTION areas. Regional governments who have TO BE IMPROVED high yielding coconut varieties will be This year the government allocated requested to develop coconut nurseries. At IDR 28 billion (USD 2,105,263) to improve the moment coconut farmers develop small coconut production in the country to meet scale coconut nurseries to meet their own the increasing demand for raw materials by needs. Indonesia now has 3.6 million ha local industries. The local industries say that coconut areas but the productivity is still need more raw materials so that they can lower than some other coconut producing operate in full capacity. countries. (Bisnis Indonesia 9/1/2017) Director General for Estate Crops MALAYSIA SPENT RM2.38 BILLION ON Ministry of Agriculture, Mr. Bambang, said SUBSIDY TO STABILIZE COOKING OIL that this year the Government started to PRICE implement the coconut cultivation program The government of Malaysia spent in a national scale in order to boost the RM2.38 billion on subsidy from 2013 until coconut production. He said: “Most of our April this year to stabilize the price of coconuts are senile and many coconut cooking oil in the interest of the people, a community organizations and associations report in Bernama said. Parliamentary suggested that the Government launch Public Accounts Committee (PAC) National Coconut Movement. Therefore in chairman, Datuk Hasan Arifin said the 2017 we are going to conduct a complete government’s decision of getting the inventory on coconut in the country”. Domestic Trade, Cooperatives and He also mentioned that complete Consumerism Ministry (KPDNKK) to take coconut inventory is needed to identify the over the managing of cooking oil subsidy problems so that government intervention from the Plantation Industries and programs will be on the right track. The Commodities Ministry was apt since cooking government will consolidate coconut data in oil is a consumer product, which should cooperation with research institutes under come under the purview of KPDNKK. the Director General of Estate Crops. This The PAC recently held a proceeding year the Ministry of Agriculture will allocate on Cooking Oil Price Stabilization Scheme IDR 28 billion to rejuvenate coconut stands Management by the Plantation Industries in some coconut production centers such as and Commodities Ministry, which was raised West Java, Riau, Central Java, Central in the Auditor-General’s Report 2015, Kalimantan, Southeast Sulawesi, Nusa Series 2, in the Dewan Rakyat on Nov 21. Tenggara, and other provinces. He also The proceeding was attended by secretary- said: “There will a program to map coconut general of the Plantation Industries and stands for seedling production. We have Commodities Ministry, Datuk M. Nagarajan; good mother palms in some coconut Malaysian Palm Oil Board director-general, production centers but they are not well Dr. Ahmad Kushairi Din; and KPDNKK documented yet. Therefore, they will be

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 13 representative, Muez Abd Aziz. (UCAP Insect or cocolisap, those that were given Bulletin) clearance by the Department of Agriculture (DA) and the Department of Agrarian PCA ASKS PUBLIC TO SUPPORT Reform (DAR) for land conversion, holders COCONUT TREE-CUTTING BAN of permit to cut as of December 29, 2016 The Philippine Coconut Authority and coconut trees that pose danger to life (PCA) here is urging public support for the and those that will be affected by the implementation of the national moratorium implementation of government projects. on the cutting of coconut trees, which took Fegarido said that any violation of the effect January 3, 2017. PCA-Western moratorium should be reported to the Visayas Officer-in-Charge Francis Fegarido Philippine National Police (PNP), which has on Wednesday said that those who were been deputized to do apprehensions. given permits to cut before the moratorium (http://www.manilatimes.net) took effect have until January 20, 2017 to execute their permits. “Cutting that is done 16 COCONUT PROCESSING FIRMS IN beyond the period is considered doubtful 2015 TOP 1000 PH CORPORATIONS LIST and illegal,” Fegarido said. Leading local business daily Last month, PCA approved 29 permits BusinessWorld released recently its Top to cut covering 1,143 coconut trees. These 1000 Corporations in the Philippines 2016 include 12 permits for with 568 edition. The publication’s list of the country’s coconut trees; one in for top 1000 corporations for 2015 based on 20 trees; five in for 255 trees; three in gross revenue showed 16 coconut equivalent to 92 coconut trees and processing firms that included oil millers, four in for 208 coconut trees. As of refiners, specialty fats manufacturer, date, there are five pending applications oleochemical manufacturers/biodiesel from Aklan for 310 coconut trees. Fegarido producers, and desiccators. explained that the moratorium was The coconut firms and respective implemented to allow the agency to ranking follows: Wilmar Edible Oils harmonize and streamline the implementing Philippines, Inc. (148), Pilipinas Kao, Inc. rules and regulations (IRR) of two laws, (166), Cargill Philippines, Inc. (216), New Republic Act 8048 and Republic Act 10593, Davao Oil Mill, Inc. (367), Chemrez which amended the former, aimed at Technologies, Inc (403), Peter Paul preservation of coconut trees. Philippine Corp. (476), D& L Industries, Inc. He stressed that even those planted (522), Franklin Baker Company of the in one’s backyard need a permit from PCA if Philippines (567), Primex Coco Products, the owner wishes to cut them down. Inc. (571), Malabon Soap and Oil Industries Fegarido said that has Co., Inc. (618), Tantuco Enterprises, Inc. about 10 million fruit-bearing coconut trees (687), Limketkai Manufacturing Corp. (742), and some 800,000 senile, or trees 50 years Trans-Asia Phils. Manufacturing Industries old or older. The bulk of the plantation is in Corp. (745), JNJ Oils Industries, Inc. (801), Aklan and Negros Occidental with Dipolog Oils Industries (820), and Tap Oil plantations ranging from 30 to 34 hectares Manufacturing (989). (UCAP Bulletin) each. In Iloilo, the bulk is in the northern and SENATORS REACH CONSENSUS ON southern part of the province. COCO LEVY FUND The moratorium will end on April 2 Sixteen senators signed the committee unless extended or terminated by the PCA report on a Senate bill establishing a trust governing board. Exempted from the fund involving the P75-billion coco levy fund moratorium are and City that has remained unused for the past 40 because of the presence of Coconut Scale years. However, the disposition of the fund

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 14 | Page is still pending before at the House of Philippines Corp., for Luzon; Celebes Representatives which formed a technical Coconut Corporation, for Mindanao. (UCAP working group to tackle 13 different Bulletin) proposals submitted by congressmen. PHILIPPINE COCONUT INDUSTRY TO The report on Senate Bill 1233 was TAP CHINESE AND RUSSIAN MARKETS signed by Senators Francis Pangilinan, The Philippine Coconut Authority is Loren Legarda, Richard Gordon, Francis looking at Russia and China as markets for Escudero, Grace Poe, Nancy Binay, coconut products after these countries Gregorio Honasan II, Sonny Angara, Panfilo recently expressed their intention to Lacson, Bam Aquino, Manny Pacquiao, strengthen trade ties with the Philippines. Leila de Lima, Sherwin Gatchalian and Risa “Russia and China have been expressing Hontiveros, Senate Minority Leader Ralph interest and showing their willingness to Recto and Senate Majority Vicente Sotto III. accept more products from the country. We Pangilinan, who sponsored the bill, would like to be as responsive as possible said the bill specifies that P75 billion in cash to address the production,” said PCA and assets of the coco levy fund will only be Administrator Avelino D. Andal. used for the development of the coconut The Philippines has been moving to industry and establishes a perpetual trust strengthen bilateral trade and investment fund which will only use the earned interest ties with China and Russia in key areas income. The bill also creates a trust fund particularly the agriculture sector, among committee composed of 11 members, six of others. Earlier, Trade Secretary Ramon M. whom should either be from coconut Lopez revealed that Russia, during bilateral farmers groups or their representatives. talks in Peru last month, has agreed to The trust fund committee will be chaired by import some $2.5 billion worth of agricultural the Secretary of Finance and co-chaired by products such as fruits, grains, and the Secretary of Agriculture. He said the bill vegetables from the Philippines in the next also seeks to specify the formulation of a few months. Mr. Andal said that the Coconut Development Plan and ensure the agency’s goal apart from expanding foreign active participation of coconut farmers at markets is to encourage the development of every stage of the implementation of the value-added coconut products. It also law. (UCAP Bulletin) wants to promote intercropping in areas COCONUT FIRMS RECEIVE AWARD AT planted to coconut to increase farmer output 2016 NATIONAL EXPORT CONGRESS and ensure food security. Four coconut companies received Last year, coconut products worth Top Exporters Award from the Department USD35.780 million was exported to China of Trade and Industry during the National from the Philippines. This included coconut Export Congress held on Wednesday last oil, desiccated coconut, activated carbon, week, December 07. The award is based coco shell charcoal, virgin coconut oil, on the exporters’ 2015 export revenue as glycerin, baled coir, copra meal, coconut reported by the Philippine Statistics water, fresh coconut, coir dust/peat, coco Authority. milk powder, bukayo in that order. On the other hand, coconut products worth Awarded Top Exporters were Pilipinas USD4.310 million were exported to Russia Kao, Inc. for the Oleochemicals sector; that included desiccated coconut, glycerin, Cargill Oil Mills Philippines, Inc. for the activated carbon, baled coir, virgin coconut Coconut Oil sector. Awarded under the oil, copra meal, coco vinegar, fresh coconut. category Most Outstanding RIPPLES (UCAP Bulletin) (Regional Interactive Platform for Philippine Exporters) Plus Enrollees were: Peter Paul

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COCONUT FARMERS SEEK SUPPORT The Provincial Agriculture Office has FOR ‘GEONET’ PRODUCTION seen the enthusiasm and cooperation of the coconut farmers in the municipality which ’s coconut farmers encouraged them to assist the farmers in has sought assistance from the Department forming a cooperative with coconet of Agriculture’s Philippine Rural production as its main line of business. Development Project (PRDP) for increasing geonet production in the region. Geonet, also known as coconet, has been in demand for mining companies The Libas Farmers Multi-Purpose operating in the many areas of Caraga. Its Cooperative in Jabonga recently presented main use is to prevent soil erosion where its P10-million on business proposal on government agencies such as the Geonet Production and Marketing during Department of Public Works and Highways the two-day PRDP Investments for Rural and the Department of Environment and Enterprises and Agricultural and Fisheries Natural Resources require its public works Productivity (I-REAP) Business Plan and constructors and mining operators to use Technical Review. geonet in their preventive and rehabilitation “The successful geonet production of measures. (http://www.manilatimes.net) the neighboring provinces has inspired us to COCO FARMERS URGED TO duplicate its business for the purpose of ADOPT INTERCROPPING creating additional source of income among the farmers in the locality,” said Tomas Leyte Governor Leopoldo Petilla is Tener, Provincial I-PLAN Component head. encouraging coconut farmers in the province to adopt intercropping in their The proposed project would provide coconut plantations to add to their income the cooperative with hauling and delivery and not depend solely on coconut growing truck, cooperative’s office, warehouse, alone. Successful coconut farmers earn weighing scales, and decorticating, twinning bigger income from their farms by and weaving machines. “These machines intercropping high-value crops like corn, would efficiently translate to 4,000 coconet cacao or vegetables such as lettuce, pepper rolls per year,” Tener said. and cabbage, Petilla said, adding they could Based on the Vulnerability and also raise chickens, carabaos, goats and Suitability Assessment (VSA) result, other farm animals. Poverty in coconut- Jabonga ranked second in its assessment growing areas will be reduced if coconut for most number of coconut trees planted, farmers earn more through intercropping hence the availability of dehusked nuts. and livestock or poultry raising, he said. “It all started when few households The Philippine Coconut Authority began twinning with the coconut husk they regional office in Palo, Leyte, estimates that gathered, until the neighbors also started a coconut farmer in earns the same activity and realized its potential an average of P50 per day from a one- as a lucrative source of income,” said Elson hectare coconut farm by producing copra. Morada, Cooperative chairperson. Because copra production takes three As per financial economic analysis, an months the coconut growers are one of the individual can earn an average of P250 per poorest farm sectors in Eastern Visayas. day producing five-square meter of geonet. About a million coconut farmers in the If the cooperative’s proposal will be granted region suffered huge losses when more under PRDP’s enterprise development than 33 million trees worth P16 billion were component, a farmer can have an annual destroyed by super typhoon Yolanda in income of up to P47,000. 2013. The super typhoon taught coconut farmers not only in Leyte but in other parts of Eastern Visayas that they should not

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 16 | Page depend only on one crop, Petilla said. food, which has led to a proliferation of (UCAP Bulletin) products made from the giant seed over the past 20 years. I wash my face with coconut COCONUT IN WHOLE FOODS MARKET oil and put it in my smoothies for its heart- BUYERS’ FORECAST OF 2017 TOP and immune-health benefits — and also FOOD TRENDS because it's filling and flavorful. Coconut Whole Foods Market’s global buyers water is everywhere, touted as an and experts compiled the trends to watch in electrolyte-packed, low-calorie beverage, 2017 and the trend spotters have included and I'll admit I regularly drink the stuff. I've coconut in their top predictions for the year. experimented baking with coconut flour, and Coconut oil and water have been on my partner likes coconut milk for his the rise, but the forecasters see many new smoothies. Starbucks started offering formats this fruit can be turned into, a report coconut as an alternative milk last year, in Foodnavigator-usa.com said. The trend exposing even more people to it. spotters cited coconut flour tortillas, coconut But as with so many things, we may be sugar aminos and more unexpected loving coconut too much, as the BBC video coconut-based products which are on the below explains. rise. “Virtually every componet of this Our growing demand for coconuts has versatile fruitnut-seed (coconuts qualify for come at the same time stronger-than-usual all three) is being used in new applications. hurricanes and droughts have destroyed or The sap is turned into coconut sugar as an damaged coconut plantations. A lethal alternative to refined sweeteners; the oil is yellowing disease has killed other coconut used in a growing list of natural beauty palms, and in some areas, new trees products; and the white flesh of the coconut haven't been planted fast enough. All of this is now in flours, tortillas, chips, ice creams, has led to a 17 percent decrease in coconut butters and more.” Examples include plantations since 1994, according to the coconut flour Paleo wraps, 365 Everyday Food and Agriculture Organization. Value Fair Trade coconut chips and Pacifica Blushious Coconut & Rose Infused Cheek “It’s fair to say that at this pace, the Color for cosmetics. (UCAP Bulletin) Caribbean is running out of coconuts,” Compton Paul, coordinator of a regional THE LONG-TERM OUTLOOK FOR coconut program at the Trinidad-based COCONUTS IS CLOUDY Caribbean Agricultural Research and At some point during the winter when I Development Institute, told Bloomberg was a kid, my grandma would come home News. from the grocery store with fresh coconuts, Adding to the problem is that it takes all hairy and dark brown, like chocolate. We five years for a coconut tree to mature, would stand outside in the cold of a New meaning a long wait between planting and York January or February with a hammer harvesting. And keep in mind this robust and an ice pick and hack away until we split market for coconuts is new. It wasn't so long them open. We'd drink the coconut's water ago that tropical oils were thought to be immediately, then sit on the floor over unhealthy, and prices for coconuts dropped newspaper, picking out chunks of coconut so low that for years, many went to waste. meat, savoring its rich, tropical flavor, marveling that what we were eating started While other countries, including the its life so very far away. When we couldn't Philippines, India and Indonesia are picking eat any more, the dogs were happy to finish up some of the slack, they are dealing with up the tasty leftovers. the yellowing disease and other diseases too. Part of the challenge for farmers is that There's a reason everyone in our home there's not enough diversity in the coconuts loved coconut. It's an incredibly nutritious

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 17 that have been planted for human yield from aging trees also contributed to consumption, and with the popularity of lower supply of oil in the world market. coconuts being what it is, living seed banks (https://www.pressreader.com) are now being plundered to make all the FLAT GROWTH FOR PHILIPPINE coconut products we enjoy. COCONUT PRODUCTS EXPORT IN (http://www.mnn.com) NOVEMBER 2016

TRADE NEWS UCAP preliminary data show export of coconut products stagnated in November

this year relative to same month year-ago. COCONUT PRODUCT EXPORTS SEE Volume totaled 134,667 MT in copra terms, 50% SURGE barely touched from last year at 134,330 MT (+0.3%). The figure revealed a deficit of Exports of Indian coconut products 8.2% from prior month unofficial data at have seen a 50% surge year-on-year as 146,647 MT but surpassed by an shortage has raised the prices of coconut in appreciable 30.8% the monthly average major producing countries like the (January-October) at 102,995 MT. Philippines and Sri Lanka. Export of coconut oil fell 4.1% year- Following rising shipments of coconut on-year to 76,350 MT from 79,635 MT but oil, desiccated coconut products — copra exceeded the monthly average at 55,734 and fresh coconut – export for the eight MT by a whopping 37.0%. Almost one-half months till November reached Rs 1,447 (47.5%) of the month’s shipment went to the crore, which is nearly the total export of European market at 36,300 MT while over a coconut products achieved in 2015-16. third (35.0%) was absorbed by the US Exports stood at Rs 1,450 crore in the last market at 26,750 MT. Malaysia was third fiscal. The growth of coconut products biggest market at 11,000 MT (14.4%), exports is normally dependent on activated tracked by Japan with total at 2,300 MT carbon, which recorded just 8% growth from (3.0%). a year earlier at Rs 466 crore in eight months. But in the same period, coconut oil Overseas delivery of copra meal recorded a 178% jump at Rs 319 crore. slumped 24.1% to 19,893 MT from 26,197 Desiccated coconut export increased four MT. Tonnage lagged behind by 12.7% times over at Rs 112 crore while copra when compared with the monthly average at exports rose three times over at .Rs 94 22,780 MT. India was leading buyer during crore. the month responsible for 33.2% at 6,600 MT, closely followed by Korea at 6,300 MT “We were competitive in the global (31.7%), Japan 4,000 MT (20.1%) and market as our price was Rs 110 per kg Vietnam 2,993 MT (15.0%). compared with Rs 130 per kg of Sri Lanka. Huge stock of coconuts in Tamil Nadu Desiccated coconut export leaped helped boost export,” said Mayilsamy, MD another 58.0%, extending year-on-year of Shrika Oil Industries. advances continuously for six months beginning last June. This month total In the past few years, Indian coconut oil amounted to 7,067 MT as opposed to 4,474 prices ruled higher than global rates. But the MT last year but was 4.0% short of the situation changed last Feb and international monthly average at 7,360 MT. Export of prices swelled by 30% resulting in oleochemicals rocketed 152.7% to 2,550 shipments of more bulk quantities of MT as copra from 1,009 MT but scaled coconut oil from India, said Vasanthakumar down the monthly average at 3,142 MT by VC, Statistical Officer of Coconut 18.8%. There was no reported shipment of Development Board. Use of coconuts in copra during the month as last year. more value-added products and declining

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The cumulative figure for January- Australia 54,720 liters, Malaysia 52,500 November stood at 1,164,610 MT in copra liters and nine other countries which shared terms, trimming down by 17.9% same the balance 155,008 liters. period last year data at 1,418,782 MT. GLYCERIN which took the third spot Breakdown is as follows, in MT: copra 59 had income of USD2.041 million. Tonnage (480 last year), coconut oil 633,695 at 2,719 MT dropped by 27.0% from the (816,330), copra meal 247,689 (345,926), previous year at 3,722 MT. China took the desiccated coconut 80,664 (62,166), lead during the month capturing 1,273 MT oleochemicals as copra 33,974 (26,426). (46.8%), trailed by Japan at 998 MT (UCAP Bulletin) (36.7%). Limited volumes went to North PERFORMANCE OF PH’S TOP NON- Korea at 168 MT (6.2%), Malaysia 103 MT TRADITIONAL COCO PRODUCTS (3.8%), Vietnam 56 MT, Italy 51 MT, South EXPORT IN SEPTEMBER 2016 Korea 38 MT, Turkey 21 MT, Australia 7 MT and France 4 MT. Data from the Philippine Statistics Authority show 10 nontraditional coconut BATH SOAP, the fourth in rank, products generated export revenue of more earned USD1.307 million from shipment of than USD100,000 in September this year 761 MT. This month load increased by thus qualifying in the sector’s top exports 27.7% from the previous year total at 596 list. The top five exports namely virgin MT. Taiwan was top buyer with purchases coconut oil, coconut water, glycerin, bath of 150 MT (19.8%), followed by United Arab soap and coco milk liquid respectively Emirates at 137 MT (18.0%), Vietnamn at turned in more than USD1.000 million 132 MT (17.4%), Saudi Arabia 83 MT during the month. (10.9%), Thailand 74 MT (9.7%), and 12 other countries with combined uptake at 102 VIRGIN COCONUT OIL which led the MT. pack earned USD11.307 million from export of 3,135 MT. This month load increased by COCONUT MILK LIQUID which 16.5% from year-ago at 2,692 MT. The landed fifth reported turnover of USD1.025 United States was primary market million from overseas purchases of 531 MT. controlling 1,494 MT (47.7% share). The volume was 22.3% higher from year- Following far behind were Germany at 509 ago figure at 434 MT. Japan led the top four MT (16.2%), Canada 342 MT (10.9%), country destinations at 147 MT (27.6%), Belgium 294 MT (9.4%), Brazil 46 MT, followed by United States at 128 MT France and South Africa at 38 MT apiece, (24.2%), Canada 59 MT (11.1%), and Netherlands 36 MT, Taiwan 32 MT, and 17 Germany 58 MT (10.9%). Five other others with combined volume of 201 MT countries jointly held 139 MT (26.2%). (6.4%). COCONUT MILK POWDER was sixth COCONUT WATER, the second top export with earnings of USD878,173 biggest non-traditional export, had gross from 201 MT export. Total delivery during export receipts of USD5.564 million from the month increased by 2 MT from prior sale of 5,200,199 liters. The volume year data at 199 MT. There were only seven reduced by 12.0% prior year total at country destinations: the United States with 5,912,089 liters. The United States was uptake at 120 MT (59.7%), Germany at 28 market leader capturing 3,617,135 liters MT (13.7%), Japan 18 MT (9.1%), France (69.6%), followed far behind by United 14 MT (6.9%), Taiwan 13 MT (6.2%), South Kingdom 533,860 liters (10.3%). Smaller Korea 8 MT (4.1%) and Thailand 1 MT. volumes went to Canada at 285,28 liters COCO FLOUR came in seventh with (5.5%), Netherlands at 259,200 liters offtake of USD524,524 from delivery of 442 (5.0%), China at 104,585 liters, Singapore MT. Outbound load nearly tripled year ago 74,609 liters, Hong Kong 63,296 liters,

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 19 data at 149 MT. There were only six country of 41,900 MT (35,000 MT year-ago), bulk of destinations: Turkey at 194 MT (43.8%), which was palm kernel oil 22,700 MT Germany at 100 MT (22.6%), US 77 MT (19,900 MT). Delivery of coconut oil was (17.4%), Australia 51 MT (11.5%), South 19,200 MT (15,100 MT). The country was Africa 12 MT and China 9 MT. responsible for 49.7% of total lauric oil import. The Philippines was second biggest with revenue of origin of lauric oil contributing 31.7% at USD505,755 filled in the eighth place. 26,700 MT (30,300 MT) of coconut oil only. Delivery during the month at 616 MT was Malaysia supplied 14,100 MT (15,300 MT) more than seven times prior year volume at of which 12,000 MT (8,800 MT) was palm 81 MT. Only six countries took in the kernel oil and 2,100 MT (6,500 MT) was product led by Japan at 356 MT (57.8%), coconut oil, and accounted for 16.7% of followed by China at 158 MT (25.6%), total. Purchases from other countries totaled Thailand 50 MT (8.2%), Malaysia 25 MT, 1,600 MT (700 MT) of which 1,400 MT (600 Netherlands 19 MT and the US at 8 MT. MT) was coconut oil and 100 MT (100 MT) COCO PEAT/DUST with proceeds of was palm kernel oil. USD191,229 from trade of 779 MT took the The cumulative January- ninth position. The cargo was more than September figure stood at 679,400 MT, three times previous year figure at 218 MT. rising by 3.6% from a comparable year- China was almost an exclusive destination earlier period total at 656,100 MT. Coconut with intake of 670 MT (85.9%). Other oil uptake was 396,100 MT (420,300 MT) of markets were South Korea 63 MT (8.0%), which 53.1% or 210,300 MT (243,000 MT) Japan at 27 MT (3.5%), and Taiwan at 20 came from the Philippines. Palm kernel oil MT (2.6%). was 283,300 MT (235,800 MT) of which Completing the top 10 non-traditional 57.6% or 163,300 MT (87,400 MT) exports was FRESH COCONUT which originated from Indonesia. (UCAP Bulletin) contributed USD135,040 from deals CHINESE IMPORT OF LAURIC OILS UP covering 302,800 nuts. Volume during the IN AUGUST month was down by 28.2% from 421,922 nuts of the previous year. There were only Data from Oil World show China two country destinations: China, which held imported 55,700 MT of lauric oils in August, bulk of the volume at 297,100 nuts (98.1%) augmenting by 20.8% same period year- and Japan which took in the residual 5,700 ago total at 46,100 MT. Palm kernel oil nuts (1.9%). (UCAP Bulletin) comprised the bulk of import amounting to 38,200 MT (68.6% share) while coconut oil U.S. IMPORT OF LAURIC OILS UP IN was only 17,500 MT (31.4%). Import of SEPTEMBER 2016 coconut oil during the month increased by Data from Oil World show the U.S. 17.4% from same period year-ago at 14,900 imported 84,300 MT of lauric oils in MT while palm kernel oil leaped sharply by September, slightly increasing by 3.4% 22.4% from 31,200 MT. same period year-ago at 81,500 MT. Palm Indonesia was still the country’s major kernel oil import increased by 20.4% at source of lauric oil contributing 74% from 34,800 MT from 28,900 MT while coconut delivery of 41,200 MT (42,000 MT year-ago) oil slid by 5.9% to 49,500 MT from 52,600 which consisted of 27,200 MT (28,000 MT) MT. Coconut oil still accounted for a bigger of palm kernel oil and 14,000 MT (14,000 share of the lauric oil mix at 58.7% of total MT) of coconut oil. Malaysia supplied import while palm kernel oil comprised the 11,000 MT (3,200 MT) of palm kernel only remaining 41.3%. with 19.7% share. The Philippines was a Indonesia was top supplier of lauric oil minor supplier contributing 1,300 MT (600 to the U.S. during the month with shipment MT) of coconut oil only accounting for just

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2.3%. Supply from other countries was the tree, which helps the user in positioning 2,300 MT (300 MT) of coconut oil only. the cutter to cut the coconuts, he said. Though 67 % of the Indian population Cumulative January-August figure depend on agriculture, there are hardly any which stood at 440,300 MT was 12.4% steps to support them, said Rajesh. behind a comparable year-ago period total at 502,800 MT. Of this total, palm kernel oil Other innovations include rubber was 345,400 MT (400,200 MT), the bulk of tapping robot, rice transplanter--developed which at 272,100 (324,700 MT) came from from repaired bicycle tyres-and robotic Indonesia. Import of coconut oil at 94,900 simulators used to train the medical staff in MT (102,600 MT) likewise came largely epidural anaesthesia ahead of caesarean- from Indonesia at 80,800 MT(90,500 MT). based child birth, Amrita Multi Modal The Philippines supplied 4,600 MT(5,300 Applications Using Computer Human MT) during the eight-month period. (UCAP Interaction (AMMACHI) labs director R Bulletin) Bhavani Rao said. (http://timesofindia.indiatimes.com) COCONUT TECHNOLOGY COCONUT TECHNOLOGY NEWS BIO-DIESEL NEWS

AMRITA VARSITY'S ROBOTIC INDONESIAN INDUSTRY GROUP URGES INNOVATIONS AWAIT LAUNCH STRICT IMPLEMENTATION OF BIOFUEL Offering robotic solutions to human POLICY problems, KaraChara - an orthosis device to Industry players have demanded that treat patients suffering from paralytic stroke the government strictly implement a biofuel and Mudra--hand gesture-based wheelchair mix policy for non-subsidized diesel and for patients with immobility, devised by expand trade in a strategic export hub to innovators of Amrita University, awaits help absorb palm oil supply next year, a commercial launch. report in The Jakarta Post says. The "Initially, we developed a wheel chair to Indonesian Palm Oil Producers Association help people with disabilities who cannot (Gapki) expects its national production to move their limbs due to spinal cord injury . rise by 10 to 15 percent next year to reach The conventional control mechanism of 32 to 33 million tons from an estimated 30 using joy stick requires the user to hold it million tons this year. and exert some force," Amrita University Gapki Executive Director Fadhil Humanitarian Technology (HuT) labs Hasan said the government needed to Director Rajesh M Kannan said. further boost domestic consumption of the "Now, we have developed the hand commodity to increase demand. Next year, orthosis device with its advanced palm the local market may absorb 9.6 million tons holding and Electrooculogram (EOG) of palm oil, up from an estimated 7.2 million signals based on eye movement which tons this year, driven partly by obligatory helps the paraplegics, he said. "We have biodiesel blending, according to the group. filed a patent. Once we get the patent, we Fadhil said the government should apply will go for commercial launch," he said. sanctions to producers that did not comply with the mandatory blending in a bid to "Amaran--a robotic coconut climber--is guarantee available demand domestically. planned for commercial launch in about eight months," Rajesh said. It has robotic The Energy and Mineral Resources technology with wireless smart phone based Ministry has included non-subsidized diesel control and Wi-Fi based camera which can for blending with 20 percent fatty acid send live video of the coconuts at the top of methyl ester (FAME), a palm oil derivative,

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 21 next year. At present, the process only The industry cited a combination of covers subsidized diesel. According to the factors that contributed to the significantly rule, non-subsidized fuel makers that do not higher production: a reassurance of policy mix the B20 will be charged Rp 6,000 (44 at the federal level that included the US cents) per liter. The biodiesel blending biodiesel tax incentive and the official program may reach 2.8 million tons this adoption of the Renewable Fuel Standard, year, but an estimation for next year is still and state level programs such as Iowa’s unavailable. (UCAP Bulletin) B11 excise tax differential that support higher biodiesel output. However, the MALAYSIA DELAYS B10 BIODIESEL federal biodiesel tax credit expired last MANDATE ANEW December 31 and chances are production Malaysia has delayed implementing at this level may not be sustained. (UCAP B10 biodiesel blending mandate for the third Bulletin) time this year, the Minister of Plantation

Industries and Commodities (MPIC), Mah OTHER VEGEOIL NEWS Siew Keong, confirmed on in mid- November. The decision was taken “after a thorough study, taking into consideration the INDONESIA EYES RUSSIA, EASTERN difference between crude palm oil and EUROPE AS MARKETS FOR CRUDE diesel prices in the current volatile market,” PALM OIL Mah said. The B10 mandate was supposed The Indonesian Oil Palm Producers to take effect on 1 December, following Association (Gapki) has said the country’s delays in June and July. However, no new crude palm oil (CPO) and its derivatives can date has been given for its introduction. A penetrate non-traditional markets such as B7 blend was also due to be introduced for Russia and other regions in Eastern the industrial sector on 1 December. Europe. Gapki Treasurer Lakshmi Sidarta The retail price of B10 diesel would be noted that up by the end of 2016, higher than the current B7 blend as the Indonesia’s CPO exports to Russia were price of palm oil was higher than diesel. predicted to reach 700 thousand tons. Malaysian Biodiesel Association (MBA) However, export volume can exceed one President U R Unnithan had said that million tons if the Russian market can be raising the mandate from the current B7 seriously exploited, she added. level to B10 would require 709,000 tons of Lakshmi, together with a number of palm oil to be converted into palm methyl Gapki Executives and representatives of the ester (PME), bringing down palm oil stocks government, visited Moscow in the middle of and supporting prices on the international 2016. At a meeting with Russian business market. (UCAP Bulletin) and government officials, they discussed IOWA POSTED RECORD BIODIESEL various business opportunities, including PRODUCTION LAST YEAR ways to open the Russian market wider for Indonesia CPO and processed palm oil. In Biodiesel production in the state of 2012, Indonesian CPO export to Russia Iowa last year at 297 million gallons bested was 356,000 tons. In 2014, volume the 2015 output at 242 million gallons by 55 increased to 570,000 tons and further grew million gallons, representing a year-on-year to 657,000 tons in 2015. It is expected to hit increase of 23 percent. The volume 700,000 tons this year. (UCAP Bulletin) established a new record high in the state. Soybean oil remained the top feedstock CHINA HIGHLY DEPENDENT ON accounting for 66 percent, while corn was INDONESIAN PALM OIL 10 percent, used cooking oil and canola oil China is highly dependent on at 10 percent, and animal fats 14 percent. Indonesian crude palm oil (CPO) since 70

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 22 | Page percent of the CPO it needs is imported every quart of water stored within its shell. from Indonesia, Julong China Vice This results in coconut water that is President Xu Yibing said during a visit last completely pure and sterile. This is one of month to Pembuang Hulu, Seruyan district, the reasons why it can be used for blood Central Kalimantan province. He informed transfusions. that the five biggest Chinese importers of Well, I am going to share the life- CPO are China National Cereal, Oils & saving properties of the coconut. Coconuts Foodstuffs Holding Limited (Cofco); Tianjin were used extensively in the Pacific during Julong Group; Sinograin Oil Corporation; World War II. Since blood plasma supplies Yinzheng Fangshun Oils & Grains Industry were scarce, it was very common for medics Co. Ltd.; and Wilmar Kerry Investment. The to siphon pure coconut water from tender combined imports of the five companies coconuts to be used as emergency plasma amount to two million tons of CPO annually transfusions for soldiers who were injured. and 80 percent of that comes from Since coconut water is nearly identical to Indonesia, he pointed out. human blood, it was suitable for people of Chinas Julong Group has opened oil all blood types. palm plantations in West Kalimantan and Another benefit of coconut water is the Sumatra. As one of the biggest CPO- fact that it has the highest concentration of importing countries, China pays keen electrolytes than any other superfood found attention to the development of oil palm in nature. This makes it an excellent source plantations in Indonesia. For its part, a of hydration. It is referred to as kalpa vriksha delegation of Chinese CPO importers led by in Sanskrit which means “the tree that Yibing visited Seruyan to learn how oil palm supplies all that is needed to life” in ancient plantations in Indonesia were being India. managed. “China and Indonesia are facing similar issues in CPO production and The coconut palm has been environmental sphere. We hope we can recognized as a top immune booster, learn much from Indonesia about how to antifungal, antibiotic, antiviral and manage oil palm plantations and can antibacterial remedy for thousands of years progress together,” he noted. (UCAP all over the world. Coconut oil has been Bulletin) touted as healthy and been credited with endless lists of benefits including lowering cholesterol levels, improving digestion and DID YOU KNOW regulating glucose levels. It is a miracle oil for diabetics. It builds cells, erases wrinkles COCONUT, THE LIFE SAVER! and has anti ageing properties. It can fight virus and infections. Well, DC readers have been religiously following several articles on the multitude It can stave off memory loss, kill benefits of the coconut. It is lauded as a bacteria, detox the liver, regulate hormones, superfood and has life saving properties. increase thyroid production and increase Yes ..life saving! metabolism and aid visible weight loss. And what’s more, coconut oil is considered the I am pretty sure most of you didn’t best and safest oil for cooking and is even know this! The coconut is one of the considered more superior than extra virgin greatest gifts on this planet. The coconut olive oil when it comes to giving the body flesh, coconut water, coconut oil, and what it needs for optimum health. coconut cream deliver amazing health benefits. Here’s why unsaturated fats found in canola, corn and other vegetable oils, as The coconut is a natural water filter: It well as margarine suppress the metabolism, takes nearly 9 months for a coconut to filter

COCOMMUNITY, VOL. XLVII NO. 1, 1 January 2017 Page | 23 which makes it harder to lose weight and - 1½ cup coconut milk (I recommend easier to gain it. Over time, this metabolism Thai Chaokoh brand) suppression may result in gaining excess - 1 tablespoon ginger root, 2 inches weight that your body cannot get rid of. long, peeled and cut into julienne strips Coconut oil, on the other hand, helps to - 2 star anise increase thyroid function and boost your metabolism. It has important components to - 1 cinnamon bark about 2 inch long shed excess pounds and save your life too! - 4 cardamom seeds (http://www.media-deccanchronicle) - 1 pandan leaf tied in a knot - ½ teaspoon salt

COCONUT RECIPE - 1 teaspoon white sugar Method: “Nasi Lemak (Coconut Rice)” - Wash and rinse the rice in a pot about My mum used to have a stall selling three times or until the water runs nasi lemak with anchovy sambal and long clear, like the boiled rice recipe. Add all beans in a curry sauce. She would get up at the ingredients, including coconut milk, 4am to cook it before selling it from 6am. and stir. The smell of nasi lemak was what woke me - Cook on a medium heat, bringing it to up every morning for school. Malay coconut the boil. Once boiled, turn down the rice is different to typical Thai coconut rice heat, letting it simmer until the rice has that you find in many restaurants. gone fluffy. Stir it with a wooden or Ingredients: plastic spoon. Take off the heat and set aside for 10 minutes before serving. - 2 cups basmati rice, can be replaced (https://www.theguardian.com) with long grain rice - ½ cups water

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STATISTICS

Table 1. Indonesia's Monthly Exports of Coconut Oil (in MT), 2014 - 2016

2014 2015 2016 Month Volume Value (FOB) Volume Value (FOB) Volume Value (FOB) (MT) US$’000 (MT) US$’000 (MT) US$’000

January 53,611 62,377 64,432 73,301 68,868 73,468 February 77,599 93,745 60,555 68,594 47,133 52,896 March 56,913 71,762 69,121 75,683 37,909 44,874 April 80,315 100,903 86,396 92,119 62,600 80,883 May 54,887 71,821 64,948 69,524 53,262 76,470 June 80,873 106,168 73,410 78,453 60,407 84,254 July 50,853 65,287 44,067 48,109 44,267 63,639 August 76,013 95,690 75,479 79,382 39,858 58,516 September 65,553 77,628 62,143 63,381 51,834 76,862 October 59,503 68,130 34,762 35,571 26,577 40,992 November 57,867 64,978 82,811 83,835 December 57,432 65,169 41,257 44,030 Total 771,419 943,660 759,381 811,981 492,715 652,854 Source: BPS-Statistics Indonesia

Table 2. Philippines's Monthly Exports of Coconut Oil (in MT), 2012-2016

Month 2012 2013 2014 2015 2016*) January 63,517 115,186 42,360 60,658 49,678 February 42,854 61,899 69,476 59,179 65,105 March 63,649 142,991 49,091 133,437 33,728 April 58,900 99,070 40,613 54,776 40,374 May 70,680 110,106 81,167 33,909 33,701 June 79,750 102,404 64,595 74,048 64,100 July 92,600 115,104 73,729 75,769 79,867 August 82,325 65,870 111,175 82,866 60,139 September 71,922 69,980 131,275 80,406 48,154 October 80,380 71,661 109,171 81,646 November 45,060 82,126 56,017 79,635 December 30,000 88,389 28,304 36,823 Total 781,637 1,124,786 856,973 853,152 474,846 Source: United Coconut Associations of the Philippines *) Preliminary figures

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Table 3. International Prices of Selected Oils, January 2014 - December 2016 (US$/MT)

Coconut Soybean Oil Palm Oil Palm Kernel Sunflower Year Month Phil/Indo Dutch Malaysian Oil Oil EU (CIF. Rott.) (FOB ex-mill) (CIF Eur.) (CIF. Rott.) (FOB. NW. EU) 2014 January 1,255 1,000 925 1,160 1,110 February 1,284 762 884 1,263 1,137 March 1,385 769 940 1,383 1,152 April 1,293 745 908 1,285 1,125 May 1,370 695 918 1,258 1,127 June 1,363 769 858 1,233 1,112 July 1,304 730 796 1,223 1,122 August 1,177 719 797 985 992 September 1,181 725 715 891 983 October 1,144 657 719 943 1,045 November 1,192 645 726 970 1,067 December 1,195 670 690 967 905 2015 January 1,155 715 694 1030 837 February 1,187 689 670 1060 802 March 1,091 690 667 1062 801 April 1,071 743 661 986 822 May 1,133 781 659 966 904 June 1,110 793 666 922 918 July 1,101 767 647 875 832 August 1,056 738 571 771 915 September 1,063 830 538 798 815 October 1,108 727 583 860 883 November 1,060 713 549 778 818 December 1,150 768 552 832 886 2016 January 1,155 727 566 894 846 February 1,216 758 640 988 869 March 1,448 761 686 1,213 842 April 1,586 796 722 1,304 857 May 1,445 791 706 1,234 868 June 1,563 798 683 1,312 851 July 1,507 788 652 1,277 816 August 1,529 814 736 1,360 815 September 1,547 829 756 1,437 823 October 1,463 858 716 1,331 830 November 1,524 875 755 1,466 827 December 1,684 911 783 1,650 847

Source: BPS-Statistics Indonesia, UCAP, and Coconut Development Authority, Sri Lanka

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