Philippines Eyes Export Revenue From Virgin Coconut Oil
Nikkei English News via NewsEdge Corporation : Manila, June 2 (Dow Jones) - Amid a growing global consumer preference for organic products, the Philippines is hoping to generate higher export revenue from exports of virgin coconut oil, Philippine Coconut Authority administrator Danilo Coronacion said Wednesday.
Coronacion said virgin coconut oil exports are priced considerably higher, at around $8 a kilogram or $8,000 a metric ton against a crude coconut oil price of around $680/ton, FOB basis.
With annual world demand for coconut oil estimated around 240,000 tons, the Philippines can generate an export revenue of $1.9 billion, said Coronacion.
He said the global organic food market alone was estimated to be worth $23 billion in 2002, as consumers worldwide have shown growing preference for healthy, natural and environmentally friendly products.
The prospects of higher export revenue have prompted the PCA to encourage local farmers to venture into virgin coconut oil production, mainly through an information campaign, Coronacion said.
However, he said local production of the commodity is only enough to supply domestic requirements of around 20 tons a month, adding that current export volumes are minimal.
Virgin coconut oil is extracted directly from the fruit without going through a heat process and thus retains its natural properties.
Export markets for the commodity include the United States, Europe, Japan, China, Australia, Canada and Singapore, Coronacion said.
Virgin coconut oil, used as a dietary supplement in some countries, including the Philippines, is believed to have healing components against certain diseases, including diabetes, epilepsy and viral and bacterial infections.
Sandique-Carlos, Rhea. " Philippines eyes export revenue from virgin coconut oil." Nikkei English News. 06 03. 2004. NewsEdge Corporation . [http://www.soyatech.com/bluebook/news/viewarticle.ldml?a=20040603-7]
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