Coco oil export declines by 230% in first half of 2012-A A +A
Tuesday, July 17, 2012
PALO, Leyte – Coconut oil export in Eastern Visayas declined by 230 percent in the first half of 2012 due to global financial woes.
This led to only two foreign countries importing the region’s locally produced oil.
The Philippine Coconut Authority (PCA) in Eastern Visayas reported that the European market, which has been the consistent second top importer of coconut oil from the region, has placed zero shipment from January to June 2012.
Citing data from the region’s three coconut oil processing plants, PCA Regional Manager Edilberto Nierva said Eastern Visayas only shipped 24,200 metric tons (MT) of coconut oil, significantly down than the 79,958 MT during the first two quarters of last year.
“The decrease can be attributed to both financial crisis in Europe and lesser volume of coconut processed into copra,” Nierva said.
Coconut oil export value was reduced by 384 percent from $128.41 million from January to June 2011 and $26.49 million in 2012.
Of the 24,200-MT volume of export, 18,200 MT were shipped to Japan and 6,000 MT to the United States. Netherlands, with 36,214 MT of oil shipment in first half of 2011, has no import this year.
During the first six months, the PCA noted that the highest export was recorded in the month of June with 8,150 MT. January shipment was 2,300 MT; February with 3,700 MT; March with 2,200 MT; April with 4,400 MT; and May with 3,450 MT.
Nierva said that there were also no shipments this year to other traditional markets like Taiwan, China, Indonesia, Malaysia, Singapore, South Korea, Turkey, and Vietnam.
The Tacloban Oil Mills Inc. based in Tolosa, Leyte, has shipped approximately 3,000 MT of oil abroad. The New Leyte Edible Oil Manufacturing Inc. recorded about 18,200 MT oil export. Samar Coco Products Manufacturing Corp. in Calbayog City reported a 3,000-MT shipment from January to June 2012.
Nierva said the whole nut buying has also affected the region’s coconut oil export performance.
“Fewer raw materials have been supplied to the oil mills. Due to declining copra trading price and high production cost, people prefer to sell whole nuts to buyers instead of processing it into copra,” Nierva added.
Prevailing farm gate price of copra in the region dipped from P25 per kilogram in the first quarter to an average of P18 this month, according to the official.
Competing products of copra are experiencing production surge, giving importing countries the option to buy alternative and cheaper oil sources. Other competitors of copra in terms of oil extraction are soya, palm, rapeseed, and sunflower.
Since 2010, Eastern Visayas has maintained an average production of two billion nuts. Last year, the region posted an estimated two percent yield increase, regaining its status as the top coconut producing area in the country, according to Nierva. (Leyte Samar Daily Express)