Coco oil exports up 33.12% in Q1

The volume of coconut oil exports (CNO), one of the country’s major agricultural export earners, went up by 33.12 percent in the first quarter, pulling up the value of coconut exports to $191 million, from $177.6 million during the same period in 2005.

Philippine Coconut Authority (PCA) Administrator Oscar Garin attributed the improved first quarter performance to increased shipments of major coco-based exports such as CNO and copra meal. He said the higher volume compensated for the decline in the prices of CNO and copra meal.

From January to March, coconut exports totaled 449,364 metric tons (MT), up 26.9 percent from 354,122 MT during the previous year’s levels.

Of these, CNO exports totaled 237,760 MT, 33.12 percent higher compared to 178,607 MT in 2005. The substantial rise in volume offset the downtrend in CNO prices during the period. From an average of $603.24 per MT in the first quarter of 2005, CNO prices for the first three months this year, dropped 14.73 percent to $514.37 per MT.

"The drop in prices of CNO was due to the abundance in global supply, with Malaysia shifting its use of vegetable oils for fuel and energy consumption and replacing the displaced volume with more production and exports of cheaper palm oil," said PCA deputy administrator Arturo Liquete.

"As a result, we see CNO prices just cruising along in the second quarter and any rebound in prices will be a slow and dramatic increase," he added.

On the other hand, exports of copra meal soared 78.53 percent to 120,260 MT from 67,360 MT during the same period in 2005 even as global prices plunged by a hefty 46.31 percent to $40.6 per MT from a high $75 per MT last year.

Garin said exports of other coconut products improved such as oleochemicals which went up 13.02 percent in terms of volume from 24,099 MT to 27,237 MT.

The downside is the decrease in export earnings from coco shell charcoal, down 25.8 percent to $1.57 million from $2.12 million last year. Dessicated coconut shipments slowed down by 3.85 percent to 28,930 MT from 30,089 MT, while coco shell charcoal plunged 28.37 percent to 5,678 MT from 8,053 MT.