Table of Contents Page/s: The Executive Director Speaks “The Coconut Comeback Assures Wealth and Health under the Coconut Trees!”..……………….………………..….…….. 2 Prevailing Market Prices of Selected Coconut Products and Oils ...................... 3-4 Market Analysis of Coconut Oil…... .................................................................... 5-6 Community News ............................................................................................... 7-25 Trade News ...................................................................................................... 25-27 Coconut Technology News ............................................................................... 27 Bio-Diesel News .……………………………………………………………………… 27 Other Vegeoil News .......................................................................................... 27 Did You Know ................................................................................................... 27-28 Coconut Recipe “Peanut Butter, Banana and Coconut Muffins” .......................... 28 STATISTICS ..................................................................................................... 29-30 Table 1. Indonesia’s Monthly Exports of Coconut Oil (in MT), 2014-2016 Table 2. Philippines’ Monthly Exports of Coconut Oil (in MT), 2012-2016 Table 3. International Prices of Selected Oils, September 2013- August 2016, (US$/MT) EXECUTIVE DIRECTOR SPEAKS …………………………………………... “The Coconut Comeback Assures Wealth and Health under the Coconut Trees!” E very 2nd September is commemorated as World Coconut Day signifying the importance and overwhelming impact of the coconut to humanity in over 90 countries in which the coconut grows and in many more that do not grow but consume a lot of coconuts and products of coconut in many different ways. This has earned the coconut’s reputation as the Tree of Life. The recent hosting of the 2016 Malaysia’s National Coconut Conference by the UPM Alumni ran under the theme ‘Coconut: The Sunrise Industry’. A similar position was taken at the COCOLINK 2016 International Coconut conference in Davao, Philippines, to encourage coconut stakeholders in continuing with the business of coconuts. Similarly the upcoming 47th APCC COCOTECH Conference in Bali, Indonesia, 26-30 September 2016 would discuss innovation efforts that would influence and impact largely on what is termed as the Coconut Comeback. Some of these are: . Interesting clinical studies into the nutrition and health benefits of coconut and its products; . Development of high value coconut products supported by technological advancements to produce for niche markets; . Mitigating impediments to growth beginning at farm level in managing threats of emerging pests and diseases of coconut as well as the devastating effects of climate change to protect existing plantings from being wiped out as Philippines experienced with the recent incidence of Coconut Scale Insect which follows closely after the Typhoon Hayan that destroyed over 30 million coconut trees; . A number of countries are experiencing an acute shortage of coconut planting material to replenish the senile coconut population not to mention new plantings. The innovations through tissue culture are showing promising indications of the potential for rapid multiplication hence the mass production of coconut seedlings to be able to meet the demand for coconut planting that is very quickly setting upon the industry. Manufacturers of equipment and machinery for use in the coconut industry at all stages of the processing of coconut, its products and related by-products are faced with the challenge of continuously improving their products for greater efficiency, cost-effectiveness and meeting the changing requirements of the market place; . Stringent quality standards based on high food safety requirements mostly by the consuming countries is prompting processors of coconut products to ‘lift their game’ by use of innovative technology and knowledge applied towards improved processing methods that meet the relevant quality standards and consumer requirements. Stakeholder groupings are improving mechanisms by which they are able to work together as farmers, processors, traders and industry interest groups in forms of clusters, cooperatives and associations for continuous improvement needed to remain viable and profitable. It is encouraging to observe that generally the markets of coconut products are consistent and steady most of the time though some indications of slightly lowering prices in some product categories. An increasing experience is the declining volumes of raw material initially in terms of fresh coconuts for further processing into high value products such as the VCO, coconut water, milk, cream, desiccated coconut and a few more. This is the current scenario in the South Eastern Asian countries of Thailand, Malaysia and China who buy mostly from Indonesia thus causing even greater shortage with local processors now operating on less than 50% capacity. APCC continues to encourage its member countries to pursue an aggressive planting program to replace senile palms as well as a concerted effort in developing new coconut lands so that the increasing demand for coconuts is met in the years ahead. URON N. SALUM Executive Director, APCC COCOMMUNITY, VOL. XLVI NO. 9, 1 September 2016 Page | 3 PREVAILING MARKET PRICES OF SELECTED COCONUT PRODUCTS AND OILS Price of CNO increased in Philippines and month, and was US$31/MT higher than the Indonesia, but decreased in Sri Lanka. The last year price for the same month. price of DC increased in Sri Lanka, and The average domestic price of copra meal in Indonesia, but decreased Philippines. Sri Lanka decreased by US$9 compared to COPRA: The price of copra in Indonesia was the last month price of US$256/MT, and was US$801/MT in August, which was lower than lower than last year price of US$288/MT for last month’s price of US$818. When the same month. compared to last year’s data for the same DESICCATED COCONUT: The average month the price was US$111 higher. price of desiccated coconut (DC) FOB USA in In the domestic market of the Philippines August 2016 was US$2,458/MT. This price (Manila), the price decreased by US$ 51/MT was US$23 lower than the previous month’s compared to the price in July 2016, and about price and US$427 higher than the price of the US$191/MT higher compared to the price of same month last year. In Sri Lanka, the US$695/MT in August 2015. domestic price of desiccated coconut in August 2016 was US$2,031/MT or US$124 COCONUT OIL: The average price of lower than the price in July 2016. Meanwhile, coconut oil in Europe (C.I.F. Rotterdam) for the price of DC in the domestic market in the the month of August 2016 increased by Philippines was US$1,468/MT, which was US$4/MT to US$1,499/MT from US$12 lower than the previous month’s price US$1,495/MT in July 2015. This price was at US$1,480 and US$352 lower than the higher by 44.5% when compared to the price price in the same month last year. Indonesian of August 2015 accounting for US$1,037/MT. price in August 2016 was US$2,080/MT, The average local price of coconut oil in the decreased by US$45/MT compared to the Philippines in August 2016 was last month’s, and increased by US$130 from US$1,463/MT. This was US$4 higher than last year’s price. the price in July 2015, and it was US$413 COCONUT SHELL CHARCOAL: In Sri higher if compared to the last year price for Lanka, the average price of the commodity in the same month which was US$1,032/MT. August 2016 was US$332/MT. The price was The average domestic price of coconut oil in US$63/MT lower than previous month’s price. Indonesia in August 2016 increased by US$3 The average price of charcoal in Indonesia compared to the previous month from for August 2016 was US$373/MT, which was US$1,480/MT to US$1,483/MT. August 2016 US$4 higher than last year’s price for the price was 45% higher than the price of the same month. same month of 2015 which was COIR FIBRE: Coir fiber traded in the US$1,022/MT. domestic market in Sri Lanka was priced at COPRA MEAL: The average domestic price US$182/MT for mix fiber and US$552 - 759 of the commodity in the Philippines at selling for bristle. The Indonesian price for mixed raw points was quoted at US$248/MT. The price fiber was US$246/MT in August 2016 which was US$12 higher than price of the previous was lower than last month’s price. COCOMMUNITY, VOL. XLVI NO. 9, 1 September 2016 4 | Page Price of Coconut Products and Selected Oils (US$/MT) 2016 2016 2015 2016 Products/Country Aug. July Aug. (Annual Ave.) Fresh Coconut Philippines (Dom. Husked) 186 199 156 225 Copra Philippines/Indonesia (CIF N.W. Europe) 981 988 689 950 Philippines (Dom. Manila) 886 937 695 886 Indonesia (Dom. Java) 801 818 690 773 Sri Lanka (Dom. Colombo) 1,306 1,203 1,025 1,142 Coconut Oil Philippines/Indonesia (CIF Rott.) 1,499 1,495 1,037 1,426 Philippines (Domestic) 1,463 1,459 1,032 1,367 Indonesia (Domestic) 1,483 1,480 1,022 1,377 Sri Lanka (Domestic) 1,893 1,878 1,912 1,802 Desiccated Coconut Philippines FOB (US), Seller 2,458 2,481 2,031 2,304 Philippines (Domestic) 1,468 1,480 1,820 1,472 Sri Lanka (Domestic) 2,037 2,161 1,971 2,029 Indonesia (Domestic) 2,080 2,125 1,950 2,090 Copra Meal Exp. Pel. Philippines (Domestic) 248 236 217 250 Sri Lanka (Domestic) 247 256 288 261 Indonesia (Domestic) 245 230 247 242 Coconut Shell Charcoal Philippines (Domestic), Visayas, Buyer 339 341 353 345 Sri Lanka (Domestic) 332 395 299 396 Indonesia (Domestic Java), Buyer 373 369 349 373 Coir Fibre Sri Lanka (Mattress/Short Fibre) 182 182 154 184 Sri Lanka (Bristle 1 tie) 552 552 491 544 Sri Lanka (Bristle 2 tie) 759 758 822 784 Indonesia (Mixed Raw Fibre) 246 248 298 282 Other Oil Palm Kernel Oil Mal/Indo (CIF Rott.) 1,276 1,258 771 1,174 Palm Oil, Mal/Indo (CIF Rott.) 676 692 571 673 Soybean Oil (Europe FOB Ex Mill) 825 810 738 783 Exchange Rate: August 30, 2016 1US$= P46.46 or Indo.=Rp13.255 or India=Rs67.12 or SL=Rs146.87 Euro=US$1.12 n.q.: no quotes COCOMMUNITY, VOL.