Low quality threatens RP’s copra meal exports to Europe

The high aflatoxin level in copra meal and hydrocarbon content in coconut oil (CNO) is threatening export revenues worth more than $500 million as the European Union (EU) is moving to impose more stringent health and sanitary standards on these products.

The EU already reduced last July the maximum limit on aflatoxin content in copra meal from 200 parts per billion (pbb) to only 20 parts per billion (pbb), resulting in the suspension of Philippine copra meal exports to Europe.

This year, on the prompting of the EU, the Codex Alimentarius, the international body tasked by the Food and Agriculture Organization (FAO) and World Health Organization (WHO) to develop food standards and guidelines, is expected to also cut the maximum allowable hydrocarbon content in CNO.

Currently, the polycyclic aromatic hydrocarbon (PaH) level of CNO is about 47 pbb compared to other oils’ range of only two to 12 ppb.

PaH is basically a contamination coming from smoke due to incomplete fuel combustion during kiln-drying. It is considered a health carcinogenic organic compound and when tested in rodents, induced tumors in the stomach, causes ovarian, lymphoid, mammary and hepatic tumors.

On the other hand, aflatoxin is produced by yellow-mold greens called paserfillus flavus in copra that are not dried properly. Aflatoxin is considered a cancer-causing agent and it is feared that it maybe passed on to infant milk if the contaminated copra meal is used as feed ingredient.

Agriculture Secretary Luis Lorenzo Jr. said the Department of Agriculture (DA) is raising P225 million to implement a national copra quality improvement program to address these concerns.

"Unless we are able to bring down the aflatoxin content in our copra meal exports to the desired levels, we will virtually be shut out of Europe," Lorenzo said, adding that "the trend is clear and our other trading partners are bound to follow Europe’s example."

The Philippines shipped in 2003 a total of 1.137 million metric tons of CNO valued at $481 million. Copra meal exports last year amounted to 477,814 metric tons worth $33 million.

Europe, a traditional market for Philippine copra, copra meal and coconut oil, pays a premium for these products.

Copra meal is used in preparing feeds particularly for lactating cows as it is said to aid in milk production. Other markets for Philippine copra meal are Vietnam, Korea and New Zealand.

Lorenzo said the proposed copra quality improvement program was already started in some coconut-producing areas in Mindanao, but this needs to be implemented nationwide to make an impact on the entire Philippine coconut industry.

While there are new copra-drying technologies, most coconut farmers still continue bad copra-drying methods such as sun-drying copra at highway shoulder roads while split coconuts are not immediately dried and are usually left exposed to substances such as dust and rain.

Based on data from the Philippine Coconut Authority, the aflatoxin level of copra meal in coconut-producing regions is 95 ppb in Lucena, 100 pbb in Cebu, 43 pbb in Leyte, 48 ppb in Zamboanga, 31 pbb in Cagayan de Oro, 103 pbb in Davao and 100 pbb in General Santos City. – Rocel Felix