COCOINFO 25-2-2018-Final

Prof. Rabindarjeet Singh A study on the effectiveness of fresh young coconut water (Malayan Tall Coconut Variety) for
Director, Sport Science Unit, whole body rehydration, following exercise-induced dehydration shows that although plasma
University Science Malaysia glucose was high when coconut water was ingested, it was significantly higher with CEB
(Carbohydrate-Electrolyte Beverage) due to its higher glucose content. With coconut water
having similar rehydration index with same trend for per cent rehydration and restoration of
plasma volume with the CEB, it can be concluded that coconut water could be used for whole
body rehydration after exercise-induced dehydration. In addition, consumption of coconut water
caused less nausea, fullness and no stomach upset and it is also easier to consume larger
amount of coconut water when compared with carbohydrate-electrolyte beverage or a sports
drink.
(Source: Prof. Rabindarjeet Singh, 2009. Coconut Water: A Rehydrating Drink after Exercise
Cocoinfo International, 16 (1): 19-20, and in Proceedings, Malaysia National Coconut Confer-

Green Coconut has much water and is rich in proteins, minerals, vitamins, calcium, phosphores,
iron, iodine, chlorine, sulphur, potassium, carbohydrates and vitamins, B1, B2, B5 and magne-
sium. The water also helps the hydration of the body. The green coconut has a ratio of amino
acids arginine, alanine, cisteína (essential) and serina, greater than those found in cow’s milk. It
is perfect and natural isotonic to restitute energies in the human body.

Tender coconut water has been used in other areas of the world where intravenous solutions
cannot be obtained. Japanese have used tender coconut water (T.C.W.) intravenously in Suma-
tra, Indonesia in World War I. Pradera et. al. have used intravenous T.C.W. for pediatric patients
in Havana, Cuba without any serious reactions
DR. D.P. Athukorale
Cardiologist, Pharmacologist, (Source: Dr. D.P. Athukorale 2008. Tender Coconut Water – Its Health Benefits Cocoinfo
Academician, Colombo
Sri Lanka International, 15 July: 14-16)

One of the secrets to coconut water’s success as a rehydration fluid is its mineral or electrolyte
content. Coconut water contains the same major electrolytes as those in human body fluids. It

has proven to be a superior rehydration fluid when taken both intravenously and orally.

Today coconut water is used worldwide as a home treatment for dehydration-related diseases
such as cholera and influenza. Death rates from cholera are high. Death, however, is not caused
by the infection itself, but by dehydration resulting from the loss of body fluids. Giving cholera
patients adequate amounts of coconut water results in a remarkable 97 percent recovery rate.
(Source: Fife, Bruce Healthy Ways Newsletter, Vol. 4 No.4)
Dr. Bruce Fife
Certified Nutritionist and Doctor
of Naturopathic Medicine, USA

 Young coconut water could be drunk to alleviate the burning sensation during micturition
 Young coconut water, breast milk, treacle of Saccharum officinarum (F.Graminae) and sugar are
 mixed together and given for hiccough
Leaves of Dregia volubilis (F. Asclepiadaceae) are to be pounded and mixed with tender nut
 water. The juice is extracted and given in treatment of poisoning of Nerium indicum (F. Apocy-
 anaceae)
Water of young king coconut (before flesh is formed inside) is given for fever and it can be con-
Dr. (Mrs.) E.R.H.S.S. Ediriweera sumed as a diuretic in dysuria.
Senior Lecturer, Department of A King coconut is to be opened by slicing off the top.30 gms of powdered fruits (without seeds),
Nidana Chikithsa, Institute of Inde- of Terminalia chebula (F.Combretaceae) are added to the King coconut water inside and stirred.
genous Medicine, University of Co- Sliced top is then replaced (as a cover) and kept outdoors in the dew overnight. Following morn-
lombo, Rajagiriya, Sri Lanka ing, the mixture inside is to be filtered and drunk as a purgative. This is called El Vireka by Sri
Lankan traditional physicians. The number of bowel motions will increase as the person contin-
ues to drink cold water from time to time during the morning. He should not consume hot or warm
food and liquids. This is good for purifying blood and cooling the body.

47 COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018

 Coconut water contains growth factors that function much like a culture broth and that get
used up in the process of growth of the meat.

 Whether in human beings or in plants, growth factors are produced to regulate growth.
These chemicals are very potent. Even tiny amounts produce major growth effects. These
plant growth factors have bewitching, Merlin-the-Magician-like names: gibberelin, auxin, and
cytokinin. Each promote growth.

 One of most studied of the cytokinins is kinetin which is also found especially abundant in
coconut water.

 Because of its size, the growth factors in the coconut are abundant compared to other nuts
in plant kingdom. They are kept in a stable environment (the coconut itself), continue to be
active, and withstand the rigors of heat and storage – perhaps because throughout its life
the coconut is exposed to the sun and the elements at 30 meters or more above the ground.

Vermen M. Verallo-Rowel, M.D.  Kinetin, one of the coconut’s growth factors, has been shown to retard the aging of fruit flies
Award-winning, American Fellow and of human cells in culture, and finally, of people using a cream containing kinetin.
Dermatologist and Medical Re-
searcher based at the Makati Medical
Center, Metro Manila
(Source: Verallo-Rowell, V.M. 2005. RX: Coconuts! (The Perfect Health Nut). Bookman, Inc,
Manila, Philippines)
Philippines

 Dr. Macalalag has proven the effectivity of administering coconut water in treating renal disor-
ders and in reducing or dissolving all kinds of kidney stones. The process involved the endo-
scopic procedure of multiple urethral stenting (MUS) or tubatuin (MUS-T), inserting two to
twelve urethral catheters into the kidney ureter and irrigating it with coconut water from seven
to nine-month old coconuts or buko nectar concentrate powder (BNCP) for a period of 3-19
days. Daily “bukolysis” and renoclysis with BNCP efffects approximately 10 percent reduction
in the size of all types of stones treated.

Dr. Eufemio Macalalag  Dr. Macalalag said that the water from one mature coconut consumed daily, which is equiva-
Director of Urology, the Chinese lent to about two full glasses per nut, could almost guarantee that the formation of stones in
General Hospital, Metro Manila, the urinary tract would be prevented. Dr. Macalalag asserted that the biggest plus factor in
“bukolysis” is its capacity to dissolve kidney stones and arrest their growth.
Philippines

This book describes the many health benefits of this remarkable beverage. It in-
cludes a fascinating account of how coconut water has been used as an emer-
gency IV fluid around the world and why it is becoming one of the most popular
sports rehydration drinks today.

Coconut water isn’t just for rehydration, however. Studies show it provides numer-
ous health benefits, some of which are the following: dissolving kidney stones,
protecting against cancer, balancing blood sugar, providing ionic trace minerals,
improving digestion, feeding friendly gut bacteria, relieving constipation, reducing
risk of heat disease, improving blood circulation, lowering high blood pressure,
helping prevent atherosclerosis, possessing anti-aging properties, and enhancing
immune function.

Coconut water tastes delicious straight from the coconut, but can also serve as
the base for a variety of foods and beverages. Included are 36 tantalizing coconut
water recipes. With 80 percent less sugar than fruit juice or soda, coconut water
makes a healthy, refreshing drink for you and your kids.

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 48

EXPERTS’ FINDING ON THE HEALTH BENEFITS OF COCONUT OIL

If there was an oil you could use for your daily cooking needs that helped protect you
from heart disease, cancer, and other degenerative conditions, improved your diges-
tion, strengthened your immune system, and helped you lose excess weight, would you
be interested? This is what coconut oil can do for you. The oil from the coconut is
unique in nature and provides many health benefits obtainable from no other source.
Coconut oil has been called the healthiest dietary oil on earth. If you are not using co-
conut oil for your daily cooking and body care needs, you are missing out on one of
nature’s most amazing health products.

Dr. Bruce Fife Source: Fife, B. 2004. The Coconut Oil Miracle. Penguin Books (USA.) Inc. New York,
USA.)
Certified Nutritionist and Doctor
of Naturopathic Medicine, USA

The clinical study on the effects of virgin coconut oil (VCO) on immune responses
among HIV positive patients in Dhamais Hospital, Jakarta concludes that the macro-
nutrient intake, mostly in terms of energy, fats and protein were significantly im-
proved among the VCO supplemented group. In addition, the weight and nutritional
status of the subjects, especially among the VCO supplemented group, were main-
tained well throughout the study. By maintaining body weight and nutritional status,
it is expected to have significant increases in CD 4 concentration because nutritional
status is frequently associated with immune status, both humoral and and cell-
mediated.
Walujo Soerjodibroto, MD, Ph.D.
Nutrition Department, Faculty of
Medicine, University of Indonesia, Source: Research Report on the Effects of Virgin Coconut Oil on Immune Responses
among HIV Positive Patients in Dharmais Hospital, Jakarta, 2006:21
Jakarta, Indonesia

Coconut milk and coconut oil are consumed by the majority of Sri Lankans and rural
people which comprise 70% of our population. They get a significant portion of their
calories from coconut. It has been found that the majority of people in the rural areas get
about 35 gram of fat per day from coconut and they consume very little food containing
fats such as milk, butter, cheese, beef, pork, and corn oil as they cannot afford these
expensive dietary items. From our clinical experience, we know that serum cholesterol
level of people in rural areas is very low. When we investigate patients with ischaemic
heart disease (IHD) from rural areas, we find that their serum cholesterol is normal or
low. The commonest risk factor for heart attack in rural areas is smoking.

DR. D.P. Athukorale

Cardiologist, Pharmacologist, Coconut has been used in Sri Lanka for over 1000 years but the epidemic of IHD is of
Academician, Colombo, recent origin. Before 1950, heart attacks were not common in Sri Lanka.

Sri Lanka

Source: D.P. Athukorale 1996. The Truth About Coconut Oil. In Facts About Coconut
Oil, Jakarta: APCC, pp. 52-54 .

Most of the images and metaphors relating to coconut oil and cholesterol that circu-
late in our culture are false and misleading. I offer a counter-image, which is meta-
phorical, but it is true in that it relates to lipid peroxidation, which is profoundly impor-
tant in our bodies. After a bottle of safflower oil has been opened a few times, a few
drops that get smeared onto the outside of the bottle begin to get very sticky, and
hard to wash off. This property is why it is a valued base for paints and varnishes,
but this varnish is chemically closely related to the age pigment that forms "liver
spots" on the skin, and similar lesions in the brain, heart, blood vessels, lenses of
Raymond Peat Ph.D. the eyes, etc. The image of "hard, white saturated coconut oil" isn't relevant to the
A lecturer at some universities oil's biological action, but the image of "sticky varnish-like easily oxidized unsatu-
such as the University of Ore- rated seed oils" is highly relevant to their toxicity.
gon, Urbana College, Montana
State University, National Col- Source: Coconut Oil by Dr.
lege of Naturopathic Medicine, Raymond Peat, http://www.efn.org/%Eraypeat/coconut.rtf

etc

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 49

EXPERTS’ FINDING ON THE HEALTH BENEFITS OF COCONUT OIL

The lauric acid in coconut oil is used by the body to make the same disease-fighting fatty
acid derivative monolaurin that babies make from the lauric acid they get from their moth-
ers’ milk. The monoglyceride monolaurin is the substance that keeps infants from getting
viral or bacterial or protozoal infections. Until just recently, this important benefit has
been largely overlooked by the medical and nutritional community.

(Source: Enig, G.M. 2001. Health and Nutritional Benefits from Coconut Oil: an Important
Functional Food for the 21st Century. Coconuts Today, Special Edition for the 13th Asian
Marry G. Enig, Ph.D. Pacific Congress of Cardiology, October 2-3, 2001, EDSA Shangrila Hotel, Manila, Phil-
Director, Nutritional Sciences ippines).
Division, Enig Associates,
Inc.12501 Prosperity Drive, Suite
340, Silver Spring, MD, 20904-
1689 USA

Never before in the history of man it is so important to emphasize the value of lauric oils.
The medium-chain fats in coconut oil are similar to fats in mother’s milk and have similar
nutriceutical effects. In the past four decades misinformation and disinformation provided
by certain politically biased agricultural groups and repeated in professional and lay
press have led people to believe that all saturated fats are unhealthy. Little attention is
focused on the fact that saturated fatty acids are not single family of fats but comprise
three subgroups: short (C2-C6), medium (C8-C12) and long (C14-C24) chain fatty acids.
The medium chain fats are found exclusively in lauric oils.

Dr. Jon J. Kabara
Emeritus Professor, Michigan State Source: Kabara, J.J. 2000. Nutritional and Health Aspect of Coconut Oil In: Proceedings
University, and Technology Ex- of the XXXVII COCOTECH Meeting/ ICC 200, 24-28 July 2000, Chennai, India,
change Inc. Galena, Illinois 61036, pp. 101-109) .

U.S.A

The Coconut is the Perfect Health Nut. The coconut can help you avoid obesity, boost
your immunity, protect you from bacteria, fungus, and viruses – all while keeping you
heart-healthy and moisturizing your skin to a natural glow and beauty, even treating
acne, and providing beneficial antiseptic, tumor-protecting, and antioxidant effects.

Source: Verallo-Rowell, V.M. 2005. RX: Coconuts! (The Perfect Health Nut). Bookman,
Inc, Manila, Philippines..

Vermen M. Verallo-Rowel, M.D.
Award-winning, American Fellow
Dermatologist and Medical Re-
searcher based at the Makati Medical

Center, Metro Manila
Philippines

With all the opprobrium cast against it, it bears repeating again and again that no evi-
dence has ever been presented to prove that coconut oil causes coronary heart disease
in humans. The human epidemiologic evidence proves that coconut oil is safe. Coconut
eating peoples like the Polynesians and Filipinos have low cholesterol, on the average,
and very low incidence of heart disease. All evidences now point to inflammation and
low HDL as the principal instigators of plaque formation. The chemical properties of co-
conut oil (CNO) and its biologic actions as a medium chain fatty acid make CNO supe-
rior to other oils for cooking and health use. Its anti-inflamatory and immune-regulatory
actions as shown by its remarkable control of diabetes, hypertension, heart disease,
Dr. Conrado Dayrit auto-immune diseases and cancer, make coconut oil unique.
Emeritus Professor, University of the
Philippines, College of Medicine, Source: Dayrit, Conrado S. 2006. Coconut Products and Virgin Coconut Oil (VCO) for Health
Former President, National Academy and Nutrition – A strategy for Making Coconut Globally Competitive. In Proceedings
of Science & Technology, Metro of the XLII Cocotech Meeting, 21-25 August 2006, Manila, Philippines.
Manila, Philippines

Dayrit, Conrado S. 2005. The Truth About Coconut Oil: The Drugstore in a Bottle.
Anvil Publishing, Inc. Manila, Philippines.

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 50

EXPERTS’ FINDING ON THE HEALTH BENEFITS OF COCONUT OIL

If you're going to choose just one product to add to your health arsenal, coconut oil
may be your best bet. Coconut's chemical compounds make this natural ingredient
a powerful tool to solve a whole handful of health issues, including aging, weight
balance and infection. Full of antioxidants, this healthy fat is an Oz-approved essen-
tial for a healthier you.

Dr. Mehmet Cengiz Oz
Director of the Cardiovascular
Division, New York
Presbyterian Hospital Source: www.coconutresearchcenter.org)

Little over 50 per cent of coconut oil is medium chain fatty acid, Lauric acid and another 7-10
per cent is medium chain Capric acid. Lauric acid gets converted inside the human system
into Monolaurins, the best fat that mother’s milk has. Other than mother’s milk monolaurins
are found only in coconut oil. New born babies and infants depend on the monolaurins for
their immune system development and their capacity to withstand any infection. In addition,
coconut oil can be digested by the salivary lipase, getting obsorbed very fast to give energy
like carbohydrates. All other fats need the pancreatic lipase for digestion that the infants do
not have. The coconut oil is the best alternative food fat for the infant when mother’s milk is
not available.

Prof. B.M. Hedge Coconut oil is low calorie fat and as such helps control body weight. Changing the food fat to
M.D. FRCP (London) coconut oil could help reduce weight in obese individuals. It also helps to control blood fat
FRCP (Edinburg), FRCP levels in diabetics. Coconut oil’s regular use in diet would regularize blood fats and is known
(Glasgow), FRCPI (Dublin) to increase the HDL cholesterol fraction while decreasing the LDL and triglycerides signifi-
cantly; disproving the myth that coconut oil increases cholesterol and triglycerides.
FACC, FAMS

Coconut oil is a rich natural source of Medium-Chain Fatty Acids (MCFAs) which contain
highest percentage (up to 92%) of saturated fatty acids with 6-12 carbons, such as Caproic
or Hexanoic acid (C6:0), Caprylic or Octanoic acid (C8:0), Capric or Decanoic acid (C10:0)
and Lauric or Dodecanoic acid (C12:0). These MCFAs usually form esters of glycerol to
become Medium-Chain Tryglycerides (MCTs). Like all triglycerides (fats and oils), MCTs are
composed of a glycerol backbone and three fatty acids. In the case of MCTs, 2 or 3 of the
fatty acid chains attached to glycerol are medium-chain in length. Many recent studies have
demonstrated that MCTs can potentially help in the process of burning excess calorie, and
thus reducing weight gain and promoting loss. MCTs also promote fat β-oxidation and re-
duced the need for more food intake. Compared with long-chain fatty acids (LCFAs), MCFAs
are substantially different in their chemical and physical properties on metabolism. MCFAs
do not seem to require binding to proteins such as fatty-acid binding protein, fatty acid trans-
port protein, and/or fatty acid translocase (FAT, homolog to human CD36). MCFAs are a
Naiphinich Kotchabhakdi, Ph.D. more preferred source of healthy energy (β-oxidation). Recent studies have shown that
Neuroscience, Research Center,
Institute of Molecurlar Biosci- MCFAs are usually incorporated into adipose tissue triglycerides, and can influence adipose
ence, Mahidol University, tissue and other systemic functions more substantially than previously known.

Salaya, Nakornpathom 73170,
Thailand
Source: The International Conference on Coconut Oil 17-20 March 2015, Bitec Conference
and Exhibition Center, Samut Prakan, Thailand)

Ghee, coconut oil and mustard oil are traditional cooking media which have been used
in India and other developing countries for thousands of years. Although they are satu-
rated fats, they do not show a wide Omega-6 to Omega-3 fatty acid ratio which is quite
high in polyunsaturated oils. The desirable ratio is less than 10:1. Increasing prevalence
of diabetes and other related diseases are found correlated with increasing Omega-6 to
Omega-3 ratio. On the other hand, consumption of coconut oil which is deficient in poly-
unsaturated fatty acids has been found to enhance secretion of insulin and utilization of
blood glucose. It is beneficial to consume the traditional edible fats such as coconut oil
along with polyunsaturated fats to reduce the Omega-6 intake and maintain optimum
DR. S.M. Sadikot Omega-6 to Omega-3 ratio in the diet.
Hon. Endocrinologist, Jaslok Hos-
pital & Research Center, Bombay. Source: Coconut Oil for Health and Nutrition, APCC 2004
Hon. Diabetologist, All India Insti-
tute of Diabetes, Bombay

51 COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018

Market Outlook-Coconut Oil

BEARISH COCONUT OIL MARKET
IN THE SECOND HALF OF 2018

Price of coconut oil (CNO) has been sinking over the last 12 months. In November 2018, the price of
CNO was US$787 per ton which was half of previous year and the lowest since January 2010. The price
decrease was perceived in the second half of 2017 when price premium over palm kernel oil (PKO), an-
other lauric oil, reached the highest at US$668 per ton. Though price of PKO was also sliding downward
from US$1,419 a year earlier to US$709 per ton in November 2018, the premium of CNO over PKO
had narrowed to only US$77 in November 2018.

Figure 1. Price of Lauric Oils, January 2014—November 2018
(US$/MT, CIF Rotterdam)

What is happening? Figure 2. Shares of Vegetable Oil Production, 2018
Declining price of vegetables oils
Coconut oil is one of the vegetable oils which are Figure 3. FAO Price Index for Vegetable Oils and Meals Production, 2018
consumed and traded globally. Coconut oil contibutes
to only less than 2% of the global supply of vegetable
oils, hence its price is determined or affected not only
by supply and demand of the oil but also by the supply
and demand situation of other vegetable oils in the
global market such as palm oil, palm kernel oil, soy-
bean, rapeseed, sunflower, olive oil, and groundnut oil.
Since coconut oil’s share to global market is very
small, its price movement of the oil is inevitably
affected by movement of other vegetable oils
particularly palm kernel oil and palm oil, the biggest
volume of oil traded globally (36%), followed by
soybean oil (28%). FAO’s price index of vegetable oils
indicated that vegetable oils have steadily decreased
between the last quarter of 2017 and the last quarter of
2018. The slide was mostly driven by price fall of the
main oils, palm oil and soybean oil. Price of palm oil in
September 2017 was US$729 per ton and gardually
declined to reach US$532 per ton in October 2018.
Likewise, price of soybean oil was US$879 per ton in
September 2017 and slid to US$764 per ton in October
2018.

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 52

Market Outlook-Coconut Oil

Unusual price premium for CNO over PKO

In the last few years, CNO enjoyed price premiums over PKO. As shown in Figure 4 below, over the
last 5 years CNO enjoyed price premium over PKO and reached the highest of US$668 per ton in June
2017 which inevitably put a pressure on CNO price since the two lauric oils have substitution roles in
international consumer market. The pressure was even more severe since the production and supply of
PKO more than doubled compared to CNO during that period which forced demand shift of the oil at
the expense of CNO.

Figure 4. Price Premium of CNO over PKO, January 2014—November 2018

800 Jan
700 Apr
600 Jul
500 Nov
400 Jan
300 Apr
200 Jul
100 Oct
Jan
0 Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct

2014 2015 2016 2017 2018

Increase in production and stocks
After the declining trend over the last five years, supply of CNO was expected to scale up in 2018.
During the year, production of CNO is expected to reach 2.9 million tons or increase by 18% as
opposed to previous year’s production. As indicated in Figure 5 below, the production increased in 2018
after its decline over three consecutive years following a shortage in coconut production due to
unfavorable weather condition. Higher production has pushed stocks of the oil to go up more than
expected. OilWorld reported that stocks of lauric oils increased sharply and may accumulate to a new
high of 1.6-1.7 million tons by December 2018. The increase in production and stocks have inevitably
put a pressure on price and bringing down to a lower level. Historical data confirm that increase in
supply would usually lead to a lower price.

Figure 5. Production, Stocks and Price of Coconut Oil, 2009- 2018, (000 MT)

53 COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018

Market Outlook-Coconut Oil

Impacts on Price of Copra and Coconut
Historical data, as demonstrated in Figure 6 and 7 below, show that copra price responds to movement
in CNO price or in other words, heavily dependent on CNO price (price correlation more than 0.9).
When the Rotterdam price of CNO was US$1,849 per ton in the third week of June 2017, copra price in
Philippines was US$1,047 per ton and US$1,013 per ton in Indonesia. A year later, the price of CNO
was only US$914 per ton which brought price of copra down to only US$520 per ton in Philippines and
US$462 per ton in Indonesia. The movement of CNO price affects both the copra price and price of
mature dehusked coconut. In the third week of June 2017, price of dehusked coconut was US$261 per
ton in Indonesia and US$ 224 per ton in Philippines. A year later the price was only US$151 per ton in
Indonesia and US$150 per ton in Philippines. Philippines and Indonesia mainly ship their CNO to
global markets. Therefore, the coconut oil price is determined by CIF Rotterdam prices (international
market-driven price). As such, the price determination is set by free market mechanism. Unfortunately,
the decreasing price of CNO directly affects the price of copra and the sale value of whole nuts at farm
level.

Figure 6. Weekly Price of CNO, Copra, and Dehusked Coconut in Philippines and Indonesia, 2016-2018

2,500 Philippines
2,000
1,500 Coconut Oil Philippines (FOB)
1,000 Coconut (Husked) Philippines (Domestic, Southern Tagalog)

500
-

Coconut Oil Europe (CIF Rotterdam)
Copra Philippines (Domestic, Quezon)
08/01/16
05/02/16
04/03/16
01/04/16
29/04/16
27/05/16
24/06/16
22/07/16
19/08/16
16/09/16
14/10/16
11/11/16
09/12/16
07/01/17
04/02/17
04/03/17
01/04/17
29/04/17
27/05/17
24/06/17
22/07/17
19/08/17
16/09/17
14/10/17
11/11/17
09/12/17
06/01/18
03/02/18
03/03/18
31/03/18
28/04/18
26/05/18
23/06/18
21/07/18
18/08/18
15/09/18
13/10/18
10/11/18

2,500 Indonesia
2,000
1,500
1,000

500
-

Coconut Oil Europe (CIF Rotterdam)
Copra Indonesia (Domestic, North Sulawesi)
COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018
08/01/16
05/02/16
04/03/16
01/04/16
29/04/16
27/05/16
24/06/16
22/07/16
19/08/16
16/09/16
14/10/16
11/11/16
09/12/16
07/01/17
04/02/17
04/03/17
01/04/17
29/04/17
27/05/17
24/06/17
22/07/17
19/08/17
16/09/17
14/10/17
11/11/17
09/12/17
06/01/18
03/02/18
03/03/18
31/03/18
28/04/18
26/05/18
23/06/18
21/07/18
18/08/18
15/09/18
13/10/18
10/11/18

Coconut Oil Indonesia (FOB, Bitung)
Coconut (Husked) Indonesia (Domestic)

54

Market Outlook-Coconut Oil

In producing countries where domestic consumption is dominant like India and Sri Lanka, the
movement of CNO price is more likely driven by supply and demand in domestic market and not
following price pattern of international market. For example, when price of CNO in international
market started to fall in the second half of 2017, CNO price in India and Sri Lanka showed an
increasing trend. Although both copra and coconut prices in India and Sri Lanka follow CNO prices, it
is much higher than international market price and copra prices can be higher than the international
CNO prices. In India, the Government implements the Minimum Support Price for copra to protect
coconut farmers during such steep decrease in copra prices.

Figure 7. Weekly Price of CNO, Copra, and Dehusked Coconut in India and Sri Lanka, 2016-2018

4,000 India
3,500

3,000

2,500

2,000

1,500

1,000

500

- 22/04/16 05/08/16 18/11/16 04/03/17 17/06/17 30/09/17 13/01/18 28/04/18 11/08/18
08/01/16 Coconut Oil Europe (CIF Rotterdam) Coconut Oil India (Domestic)
Copra India (Domestic, Kochi) Coconut (Dehusked) India (Domestic, Kerala)

3,000 Sri Lanka
2,500

2,000

1,500

1,000

500

-
08/01/16 22/04/16 05/08/16 18/11/16 04/03/17 17/06/17 30/09/17 13/01/18 28/04/18 11/08/18

Coconut Oil Europe (CIF Rotterdam) Coconut Oil Sri Lanka (Domestic)
Copra Sri Lanka (Domestic) Coconut (Husked) Sri Lanka** (Domestic, Industry use)

OilWorld reported that stocks of to slow down in 2019, supplies premium of lauric oils relative
lauric oils increase more sharply of the two lauric oils are likely to palm oil will narrow and
than expected and may to stay ample in the foreseeable lessen pressure on price of the
accumulate to a new high of 1.6 future and this may trigger an lauric oils in the next 3-6
-1.7 million tons as of additional setback in prices in months.
December 2018, or scale up by the near to medium term until
0.3 million tons from a year consumption picks up 1Alit Pirmansah is Market Devel-
earliear. Although the sufficiently. As palm oil price is opment Officer, International
production growth is expected expected to recover, the price Coconut Community.

55 COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018

NEWS ROUND-UP

ASIAN AND PACIFIC COCONUT COMMUNITY ELEVATED TO
INTERNATIONAL COCONUT COMMUNITY

The decision to upgrade the Asian and Pacific Coconut Community to gain interna-
tional status was subject of discussion and deliberation for many years including the
2015 and 2016 Ministerial Meetings in India and Indonesia respectively.

Eventually the 53rd APCC Session/ Ministerial Meeting held in Kiribati during October
2017 unanimously resolved to establish the global organization through an amendment
to Article 5 thus removing the geographical boundaries defining membership qualifica-
tion. This enables all coconut growing countries to obtain full membership of the Com-
munity.

The United Nations Secretary General was then notified as required by the Article. The
UN Treaties Office responded with the Depository Notification dated 20th March 2018
thus fulfilling all official requirements to establish the International Coconut Com-
munity (ICC). Currently 16 coconut growing countries are full members of ICC. The
Asian Region members are India, Indonesia, Malaysia, Philippines, Sri Lanka, Thai-
land, and Vietnam. The Pacific Region members are Federated States of Micronesia,
Fiji, Kiribati, Marshall Island, Papua New Guinea, Samoa, Solomon Island, Tonga,
and Vanuatu. The associate members, Jamaica and Kenya would be submitting appli-
cation to attain full membership.

Newly Approved Logo for All ICC Controlled Documents 56
COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018

NEWS ROUND-UP

CAB INTERNATIONAL COLLABORATION WITH INTERNATIONAL

C COCONUT COMMUNITY
ABI (Center for Agriculture and Bioscience International) has signed a Memoran-
dum of Understanding (MoU) with the International Coconut Community (ICC) to
share its scientific expertise in pest and disease control and management as part of
the ICC’s work to coordinate and harmonise all activities of the coconut industry in
the world .
The agreement to engage in technical cooperation was signed at CABI’s Malaysia office by
CABI’s CEO Dr Trevor Nicholls and Mr Uron N. Salum, Executive Director of the Interna-
tional Coconut Community. The MoU means CABI will assist the ICC in its mission to im-
prove the productivity and profitability of millions of coconut farmers across world.
Dr Nicholls said, "The prospects for the coconut industry are very positive as the health bene-
fits of coconut oil and water are recognised, along with the potential of the crop to provide
food, fuel and fibre. Nevertheless, the industry is facing significant problems from an ageing
tree stock and new pest and disease threats. CABI is delighted to have signed this MoU to part-
ner with the ICC in order to help growers worldwide to overcome these challenges."
The ICC is an intergovernmental organisation of coconut producing countries organised in
1969 under the aegis of the United Nations Economic and Social Commission for Asia and the
Pacific (UN-ESCAP). It was formed to promote, coordinate and harmonise all activities of the
coconut industry in the world which sustains the lives of millions of small farmers as well as
those engaged in production, processing and marketing of coconut products.
The ICC is based in Jakarta, Indonesia, and has 19 coconut producing member countries, in-
cluding Malaysia, Indonesia and India, accounting for over 90 percent of world coconut pro-
duction and exports of coconut products.

Mr. Uron N. Salum (left), ICC Executive Director, with Dr. Trevor Nicholls, CEO, CAB International.
57 COCOINFO INTERNATIONAL, VOL. VOL. 24, No. 2, 2017

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MOU BETWEEN CIRAD AND INTERNATIONAL COCONUT
COMMUNITY

A fter almost 30 years of cooperation in coconut research all around the globe, Cirad and the ICC
- The International Coconut Community (formerly Asia Pacific Coconut Community) - have
decided to formalise and publicise their long-term union by signing a General Memorandum of
Understanding in Jakarta.

ICC is an intergovernmental organization of coconut producing countries organized in 1969 under the
aegis of the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP).
The objectives of the ICC are to promote, coordinate and harmonize all activities of the coconut industry
that sustains the lives of millions of small farmers as well as those engaged in production, processing and
marketing of coconut products.

Three main categories of Specific Projects will be implemented according to their specific aims and tools
and the type of joint activities undertaken by the Parties:
Specific Project for technical assistance: This project category includes the provision of service that
allows the transfer of technology and/or the provision of a service controlled by CIRAD towards ICC or
ICC’s partners. This includes laboratory analyzes, consultancy, technical advice, training, capacity build-
ing, laboratory audits, transfer of technology, transfer of knowledge, experimental developments or R&D
pre-feasibility studies.
Specific Project for research This project category includes any planned research or critical investiga-
tion of joint interest for the Parties, aiming at acquiring new knowledge and skills for developing new
products, processes or services, or generating significant improvements in existing products, processes or
services. Such projects may include staff training if directly related to the project.
Other Specific Project: this type of project covers any other form of collaborative activities including
the training of research and technical staff, the tutoring of interns, study missions and other forms of staff
development or the Exploration of national, regional and international funding opportunities.

A very friendly ceremony celebrated the event at ICC Headquarters in Jakarta, including a delicious Indo-
nesian traditional buffet … with outstanding coconut dessert!

Mr. Uron N. Salum (Second from Left), ICC Executive Director and Dr. Alain Rival of CIRAD Showing the Signed the MOU.

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 58

NEWS ROUND-UP

COLLABORATION WITH MELANESIAN SPEARHEAD GROUP

The Director General of the MSG, Ambassador Amena Yauvoli today signed a historic MOU with
his counterpart at the International Coconut Community (ICC), an inter-government organisation
based in Jakarta, Indonesia.
The ICC formerly the Asia and Pacific Coconut Community currently has 18 members of which nine are
Pacific States. Fiji, Papua New Guinea, Solomon Islands and Vanuatu are all members of the ICC with
Timor Leste joining the organisation in October of this year. In signing the MOU, the Director General
shared that the purpose of the MOU is to strengthen the strategic partnership between the MSG and the
ICC in the hope of rebuilding the fledging coconut industry in our sub-region.
“Coconut is dubbed the tree of life and is one of the most important trees in the Pacific. Every part of the
coconut tree is valuable for either food, drink, medicine, handicraft, furniture, oil and skin products. The
coconut tree is part of our identity as Pacific Islanders and the signing of today’s MOU is to build on the
strategic partnership with the ICC which is the foremost leading organisation on coconut in the Asia and
Pacific region and whose strategic position would help to elevate this fledging industry in our sub-
region”, Ambassador Yauvoli emphasised.
In a presentation to the guests at the signing, the Executive Director of ICC, Uron Salum of Papua New
Guinea shared that in the MSG States, approximately one million households are dependent on coconut
although there is a weak value chain. Further, about 50 million trees are growing on about 500,000 hec-
tares of land, but of which 50% are senile. There is a need for approximately 25 million trees for urgent or
immediate replanting. Further, there are weak institutional frameworks for the coconut sector in our coun-
tries. “If we do not have a good policy the market demand will continue to increase, but we will not be
able to meet this demand”, Uron emphasised.
These issues and more formed the basis of the discussions between the two organisations and leading to
the finalisation of the MOU. Ambassador Yauvoli stressed that, the MOU seeks to strengthen the collabo-
ration between the MSG and ICC; facilitate the formulations of necessary policy conduits such as national
coconut policies (including finance and organisational issues) and frameworks in MSG member countries
and to facilitate technical cooperation with the ICC through the provision of technical advisory and pro-
ject services to MSG members.

The Signing of MOU between ICC and MSG Secretariat Witnessed by Ms. Trisna Ulfatmi, Indonesian NLO Representative and
H.E. Salana Kalu, Ambassador of Solomon Island Government of to Indonesia.

59 COCOINFO INTERNATIONAL, VOL. VOL. 24, No. 2, 2017

NEWS ROUND-UP

(First Row, Left to Right) Ms. Trisna Ulfatmi, Indonesian NLO Representative, Mr. Uron N. Salum, ICC Executive Director,
Ambassador Amena Youvoli of MSG Secretariat, Ambassador Salana Kalu of Solomon Islands’ Embassy
in Indonesia Mr.Isaac Grace, Counselor of Fiji Embassy.

(Second Row, Left to Right Mr Vilikesa Naivalucava, First Secretary of Fiji Embassy, Ms. Hana Hetty Manuela, Asean Foundation,
Ms.Hoang Thi Lien IPC Executive Director, Mr. Tri Broto & Mr. Rezha Wanggai, Indonesian Ministry of Foreign Affairs.

Earlier in the week, Salum took Ambassador Yauvoli and his delegation to visit some essential coco-
nut sectors and partners including the Scientific Research Institute of Indonesia, the “Institut Perta-
nian Bogor”, a state-run agricultural university and to Tom Coco, one of Indonesia’s leading export-
ers of coconut shell briquettes and charcoals. The visit gave the delegation an opportunity to witness
the substantial investment of most Asian states on coconut, and it's significant economic and finan-
cial returns to the farmer, manufacturer, producers and exporters.

In signing the MOU, both the MSG and the ICC committed to strengthening government to govern-
ment advisory support including technical knowledge and knowledge sharing, capacity building and
training programs for MSG states. This commitment will also strengthen agriculture/coconut link-
ages with cooperatives, farmer producers organisations, small business development centres, trade/
investment women, youth and indigenous owned enterprises.

The MOU among other’s recently signed by the Director General is part of the MSG Secretariat stra-
tegic partnership and working smart methodology adopted by the Secretariat following the major re-
form untaken in 2016. It draws its validity from the MSG’s 2038 Prosperity for All Plan and the
2018-2020 Corporate Plan.

Both DG Yauvoli and ED Salum acknowledged that it is incumbent on the parties to operationalise
and make the MOU work through its implementation. A follow-up visit and meeting to agree on and
carry out some key activities with ED Salum are planned for early 2019 in Vanuatu.

Present at the signing were invited guests from Indonesia’s Ministry of Foreign Affairs and Trade,
the High Commissioner for the Solomon Islands in Indonesia, and Fiji’s Counsellor and First Secre-
tary among other dignitaries.

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 60

NEWS ROUND-UP

MALAYSIA: COCONUT A thorities both modern and tradi- the Primary Industries Ministry
VIABLE CROP NOW tional, medical professionals, and and the Agriculture and Agro-
manufacturers of cosmetics and based Industry Ministry consider
Primary Industries Minister hair care products are now wax- the reintroduction of coconut
Teresa Kok was in Parliament ing lyrical about the myriad of plantations and not focus solely
responding to questions from the health benefits of coconut oil. on palm oil.
opposition regarding the fall in It is truly amazing how the West
the price of palm oil. While has now become the most ardent It must also be noted that the
agreeing that it is a matter of con- promoter of the wonders and price of cocoa is also much
cern, the minister explained that benefits of the humble coconut! higher compared to palm oil. It is
the price of the commodity is saddening to see the Philippines
market driven, that is by supply Not surprisingly therefore, the and Indonesia having the upper
and demand. price of coconut oil has increased hand in the production of coconut
tremendously in the commodity oil where Malaysia once reigned
Malaysia has gone into palm oil market. Although it is also seeing supreme. We must diversify our
production in such a big way in a slight decline since the begin- agricultural produce and not
the plantation sector that it is now ning of the year, it is more than place all our hopes on palm oil.
the country’s most prominent twice the price of palm oil which Coconut and cocoa should be
agricultural commodity, relegat- is facing an onslaught from its given due consideration as viable
ing into the background other competitors and detractors. Coco- alternatives that can complement
crops that we were once well nut oil is also the most expensive our palm oil initiative.
known, such as rubber, coconut oil in retail stores now.
and cocoa. I also hope I can one day go back
Chocolate, especially dark choco- to Bagan Datoh and enjoy the
I grew up in a coconut/cocoa late with a large amount of cocoa, taste of fresh coconut water amid
plantation near Bagan Datoh, is also receiving rave reviews for the swaying coconut palms just
Perak. The coconut trees were the its many health benefits. like I did many years ago as a
child.
tall variety and there was a lot of
space between them that allowed I would therefore like to ask that (https://www.thestar.com.my).
for inter-cropping. This was
where the cocoa trees were
planted. The plantation therefore
earned revenue from two sources.
However, with the fall in demand
for coconut oil due to the highly
negative reports it received espe-
cially from the Western soya
bean lobbyists, coconut planta-
tions disappeared and with them
the cocoa that was inter-cropped.
Much to my chagrin, the coconut
and cocoa trees gave way to oil
palm trees even in the plantation
where I grew up.

The bad press that coconut oil
received had taken its toll. Where
once I enjoyed the fresh and fan-
tastic taste and healthy goodness
of coconut water from freshly
plucked coconuts, there now
stood gloomy rows of palm oil
trees.

Today, the coconut which was Samples of Coconut Products from Malaysia
shunned by the medical commu-
nity and the commodity market is
now being hailed globally as the
best oil for cooking. Health au-

61 COCOINFO INTERNATIONAL, VOL. VOL. 24, No. 2, 2017

NEWS ROUND-UP

MALAYSIA: COCONUT A thorities both modern and tradi- the Primary Industries Ministry
VIABLE CROP NOW tional, medical professionals, and and the Agriculture and Agro-
manufacturers of cosmetics and based Industry Ministry consider
Primary Industries Minister hair care products are now wax- the reintroduction of coconut
Teresa Kok was in Parliament ing lyrical about the myriad of plantations and not focus solely
responding to questions from the health benefits of coconut oil. on palm oil.
opposition regarding the fall in It is truly amazing how the West
the price of palm oil. While has now become the most ardent It must also be noted that the
agreeing that it is a matter of con- promoter of the wonders and price of cocoa is also much
cern, the minister explained that benefits of the humble coconut! higher compared to palm oil. It is
the price of the commodity is saddening to see the Philippines
market driven, that is by supply Not surprisingly therefore, the and Indonesia having the upper
and demand. price of coconut oil has increased hand in the production of coconut
tremendously in the commodity oil where Malaysia once reigned
Malaysia has gone into palm oil market. Although it is also seeing supreme. We must diversify our
production in such a big way in a slight decline since the begin- agricultural produce and not
the plantation sector that it is now ning of the year, it is more than place all our hopes on palm oil.
the country’s most prominent twice the price of palm oil which Coconut and cocoa should be
agricultural commodity, relegat- is facing an onslaught from its given due consideration as viable
ing into the background other competitors and detractors. Coco- alternatives that can complement
crops that we were once well nut oil is also the most expensive our palm oil initiative.
known, such as rubber, coconut oil in retail stores now.
and cocoa. I also hope I can one day go back
Chocolate, especially dark choco- to Bagan Datoh and enjoy the
I grew up in a coconut/cocoa late with a large amount of cocoa, taste of fresh coconut water amid
plantation near Bagan Datoh, is also receiving rave reviews for the swaying coconut palms just
Perak. The coconut trees were the its many health benefits. like I did many years ago as a
child.
tall variety and there was a lot of
space between them that allowed I would therefore like to ask that (https://www.thestar.com.my).
for inter-cropping. This was
where the cocoa trees were
planted. The plantation therefore
earned revenue from two sources.
However, with the fall in demand
for coconut oil due to the highly
negative reports it received espe-
cially from the Western soya
bean lobbyists, coconut planta-
tions disappeared and with them
the cocoa that was inter-cropped.
Much to my chagrin, the coconut
and cocoa trees gave way to oil
palm trees even in the plantation
where I grew up.

The bad press that coconut oil
received had taken its toll. Where
once I enjoyed the fresh and fan-
tastic taste and healthy goodness
of coconut water from freshly
plucked coconuts, there now
stood gloomy rows of palm oil
trees.

Today, the coconut which was Samples of Coconut Products from Malaysia
shunned by the medical commu-
nity and the commodity market is
now being hailed globally as the
best oil for cooking. Health au-

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 62

NEWS ROUND-UP

PHILIPPINE COCONUT
PRODUCTION REBOUNDS
The Philippines produced more
coconut in the first half of 2018
compared with the same period
last year, on the back of favorable
weather, specifically enough
rains, and government fertilizer
inputs. Latest data released by the
Philippine Statistics Authority
(PSA) showed coconut produc-
tion in the country rose 5.68 per-
cent to 6.64 million metric tons in
January-June this year from 6.28
million MT a year ago.

The commodity recovered from a
1.6-percent drop in 2017, when
the weather was not so favorable
for the product's growth, the PSA
noted. The country's first-
semester coconut production this
year even exceeded 2016's first-
half production of 6.38 million A Truck Unloading Fresh Nuts in a Processing Plant in the Philippines

MT. Among other commodities,
coconut also registered the high- cent). Growth rates were also ter of 2018, mainly due to gov-
est gain in production this year. lower for cassava (-3.77 percent), ernment fertilization interven-
sweet potato (-2.28 percent), to- tions and favorable weather, the
January-June 2018 production mato (1.06 percent), garlic (-2.48 PSA said.
volume growth rates were lower percent), onion (-6.77 percent),
for palay (1.68 percent), corn cabbage (-3.26 percent), eggplant Second quarter volume of coco-
(1.75 percent), sugarcane (-21.77 (2.16 percent), calamansi (-2.05 nut production grew 3.90 percent
percent), banana (2.95 percent), percent), rubber (2.84 percent), to 3.33 million MT in 2018, ex-
pineapple (2.36 percent), coffee and other crops (0.51 percent). ceeding last year's 3.21 million
(-7.58 percent), mango (-4.27 MT. "More nuts were harvested
percent), tobacco (-1.63 percent), Contributing to coconut's positive as a result of application of
abaca (1.07 percent), peanut (1.09 turn-around this year were pro- salt fertilizer distributed by the
percent), and mongo (4.39 per- duction gains in the second quar- Philippine Coconut Authority and
adequate rains during the fruit
development stage in Soccsksar-
gen," the PSA explained further.

Coconut Seedlings to Support Replanting Prorgram Boosting production in Northern
Mindanao were sufficient rain-
fall during coconut's nut forma-
tion and fruiting stages, as well as
recovery from effects of intense
heat in 2016, the agency also
noted. "There were also addi-
tional bearing trees and more nuts
developed due to sufficient water
during nut formation and devel-
opment stages in Calabarzon," it
added. Fertilization and favorable
weather likewise helped fuel an
even bigger 8.45-percent increase
in nationwide coconut production
in the first quarter of the year, the
PSA said.

63 COCOINFO INTERNATIONAL, VOL. VOL. 24, No. 2, 2017

NEWS ROUND-UP

JAMAICAN COMPANY TO by the Food and Agriculture Or- out of which about 4,018ha have
REVISE REGIONAL STAN- ganisation that is being used been planted with oil palm to
DARDS FOR PACKAGING globally by the bottled coconut
COCONUT WATER water industry. date.

KINGSTON, Jamaica – Jamaican (http://www.jamaicaobserver.com) MFCL also operates two copra
company Technological Solu- mills in Buka and Madang, PNG,
tions Limited (TSL), headed by SIME DARBY BUYS PAPUA with a total combined copra ca-
Dr Andre Gordon, has been con- FIRM PRODUCING COCO- pacity of 55,000 tonnes per an-
tracted by Caribbean Agricultural NUT AND PALM OIL num. MAPL is a private limited

and Research Institute to revise :Sime Darby Plantation Bhd company incorporated in Singa-
the CARICOM standards and (SDP) announced that its wholly- pore. SDP said the oil palm plan-
Code of Practice for the packag- owned subsidiary, New Britain tation is well located close to Lae,
ing of natural coconut water in Palm Oil Limited (NBPOL), has PNG’s largest port, and has the
the region. completed the acquisition of ability to integrate with NBPOL’s
A statement from the company Markham Farming Company existing supply chain.

today said that a team will be Limited (MFCL) for US$52.6 MFCL is also the largest coconut
meeting with coconut-water in- million (RM215.6 million) from oil exporter in PNG and the ac-
dustry stakeholders in five CARI- Markham Agro Pte Ltd (MAPL).
COM countries -- Guyana, St In addition to this, NBPOL had quisition enables SDP to expand
Lucia, Dominican Republic, Suri- also assumed the outstanding net its lauric oils business into coco-
name and Jamaica. debts of MFCL and MAPL total-
According to the statement, Dr ling US$11 million, SDP said in a nut oil production. MFCL has
Gordon headed a research team filing to Bursa Malaysia today. become an indirect wholly-owned
from 2004-2007 which conducted The final purchase consideration subsidiary of SDP effective Aug
a study on coconut water produc- and the eventual total cash outlay
23, 2018.

(https://www.freemalaysiatoday.com)

tion that could identify a means to be paid by NBPOL would be PROGAMME TO DEVELOP
of assessing the quality of the subject to the findings of a post- COCONUT INDUSTRY
product for a growing market. completion audit, it said. LAUNCHED

This, TSL said, resulted in re- MFCL is a private limited com- Sri Lanka Tea Board and Coco-
search and development of sci- pany incorporated in Papua New nut Development Authority
ence-based approaches to im- Guinea (PNG) which owns (CDA) in coordination with Sri
proving the production, quality 6,110ha of agriculture land in Lanka High Commission in Pre-
and shelf life of bottled coconut Markham Valley, PNG. The total toria successfully participated at
water that has become the basis plantable area is about 5,713ha, the Southern African Interna-
of a guidance document produced

tional Trade Exhibition (SAITEX

2018) held in Gallagher Conven-

tion Centre in Midrand, Johan-

nesburg from 24th to 26th June

2018. SAITEX is Africa's largest

product sourcing and trade event

which provides an opportunity

for exhibitors to network with

buyers, distributors and other in-

terested businesses in South Af-

rica and in the region. A large

number of exhibitors both from

Southern African Region and

other countries were present in

this year’s event.

Packaged Coconut Water Produced by Jamaica Imperial Tea Exports Pvt Ltd,
exhibited its products under the

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 64

NEWS ROUND-UP

Tea Board pavilion while five sion in Pretoria coordinated the ing China, South Korea, Japan
companies namely Wichy Planta- Sri Lanka participation while Mr. and Germany.
Nalaka Sanjeewa , Market Ana-
tions Company Pvt Ltd, CBL lyst of Sri Lanka Tea Board and Voranun Thaveesangpanich,
Natural Food Pvt Ltd, Ceylon Mr. M. Puspakantha, Assistant managing director of Thaitan
Nutrinuts holding Pvt Ltd, Director of the Sri Lanka Coco- Foods International, said the
Madampe Mills Pvt Ltd and A S company appointed Thai Agri
Agri Exports Pvt Ltd showcased nut Development Authority as- Foods to distribute and market
an assortment of coconut prod- sisted Sri Lankan participants Real Thai coconut milk in PET
ucts under the CDA Pavilion at throughout the event. The three- bottles starting last month after
Africa’s Big Seven, the Conti- day event was successfully con- successfully marketing UHT co-
nent’s largest annual food & bev- cluded on 26th June 2018. conut milk overseas over the past
erage industry trade event co- 15 years.

located with SAITEX. Samson NEW PLAYERS IN MARKET Demand for coconut milk in
International Plc also exhibited FOR COCONUT MILK Thailand has been rising for the
its high-quality rubber products past few years because of several
as an individual exhibitor. The Thailand`s coconut milk market factors, she said. More people
Sri Lanka Pavilion was declared has picked up, with newcomers cooking at home have boosted the
open by Mr. Matt Denton, Presi- racing to join a market valued at purchase of cooking ingredients,
dent of DMG events- Middle over 6 billion baht a year and including coconut milk. In addi-
East, Asia and Africa and Ms. growing in line with the local tion, more food vendors have
Devi Paulsen -President of food industry. The presence of moved to using instant coconut
SAITEX, by lighting traditional new players could shake up the milk from PET bottles or paper
oil lamp on 24th June 2018. Ms. coconut milk market, which has packaging instead of buying fresh
Thiloma Abayajeewa, Acting long been dominated by two ma- -crushed coconut milk, the pro-
High Commissioner, Mr. Brad jor brands: Chaokoh and Am- duction of which has become
pawa. rare.

Hook, Commercial Director of Real Thai is a new player with Real Thai presented its brand at
SAITEX and Mr. Kirtan Bana, strong market potential, thanks to the recent Thaifex-World of Food
Editor of the Diplomatic Society, its 100-million-baht marketing Asia 2018, where several coconut
were also among other dignitaries plan aimed at building brand milk brands were also present,
participated at the opening cere- awareness. Owned by Thaitan many of them not yet marketed
mony. Foods International Co, Real Thai locally. Ms Voranun said part of
coconut milk has been on the the marketing budget is being
The Ceylon tea serving and pro- shelves of supermarkets for years used to hire actress Ranee "Bella"
motional campaign were carried in more than 70 countries, includ-

out at the pavilion by highlighting

and showcasing the geographical

branding, "Ceylon tea grades and

its unique identity. The Sri

Lankan exhibitors were highly

satisfied with the firm inquiries

received for its products from

South African importers and dis-

tributors who visited SAITEX

2018. At the request by the High

Commission, a delegate from

international food buying depart-

ment of Shoprite Checkers group,

Africa's Largest retail chain had

successful B2B meetings with all

coconut exporters at the Sri

Lanka Pavilion. Mr.Kapila J. Ku-

mara, First Secretary-Commercial

of the Sri Lanka High Commis- Mr. Nat Visuthikraisee, Managing director of Asiatic Agro Industry Co. is Keen on
Overseas Market

65 COCOINFO INTERNATIONAL, VOL. VOL. 24, No. 2, 2017

NEWS ROUND-UP

Campen and actor Tanawat. The upgrade will serve both ex- foreign countries and farmers can
"Pope" Wattanaputi as brand am- ports and the domestic market. In try their hand in this trade, Mr.
bassadors. The company expects addition to the expansion of Co- Sasikumar said. (UCAP Bulletin)
to gain sales of 1 billion baht in comax, the company will export CARGILL OPENS NEW OIL
the first year of operations. Ampawa coconut milk to Malay- BOTTLING LINE IN OHIO
sia and Singapore this year.
Global agrifood giant Car-
In addition, the company plans to VALUE-ADDED PRODUCTS gill has added a new edible oil
export its Real Thai coconut milk TO HELP BOOST REVENUE bottling line at its Sidney, Ohio,
in PET bottles to overseas mar- OF COCONUT FARMERS IN USA, crushing and refinery facil-
kets soon. Meanwhile, Teetiphun INDIA ity. The new line was expected to
Theppadungporn, international Speaking at the inaugural of the increase edible oil bottling capac-
marketing and sales manager of day-long seminar organised by ity by 75% over existing lines
Theppadungporn Coconut Co, the the Chennai region of the Coco- and would reduce packaging ma-
maker of Chaokoh coconut milk, nut Development Board at Belur terial waste by using fully recy-
said the brand will put more ef- near Vazhappadi, Rajeev clable polyethylene terephthalate
fort into expanding its products (PET) plastic, the company said.
abroad, particularly in Asean. Bhushan Prasad, Director, Chen- “By leveraging this unique

"Chaokoh was introduced in nai region of the Coconut Devel- technology, we’re taking deliber-
Myanmar last year, and we saw opment Board said, learning the ate steps to operate in a more effi-
an impressive response from lo- techniques of making value- cient, sustainable way,” said
cal consumers," Mr Teetiphun added products will enable the Ethan Theis, commercial leader
said. As market competition is coconut farmers augment their at Cargill global edible oil busi-
fiercer, the company will main- revenue, a report in The Hindu ness’ North American section.
tain its competitiveness by doing said on September 30. He ex- The bottling line, which costs
plained the steps initiated by the US$10 million, included smart
more research to seek new market Board, a statutory body estab- technology to assess packaging
opportunities for both coconut lished under India’s Union Minis- elements and fill heights, which
milk and related coconut prod- try of Agriculture, for the inte- would reduce material loss and
ucts. grated development of coconut support increased efficiency, Car-

Apart from coconut milk, the and coconut-related products. gill said. The Sidney, Ohio plant
company has recently branched Farmers should understand the was the largest volume crushing
out into coconut-based snacks, value of each and every product and refining facility in Cargill’s
including roasted coconut chips. of the coconut tree such as coco- network. (UCAP Bulletin)
Another player, Asiatic Agro In- nuts, tender coconuts, coconut AGEING TREES THREATEN
dustry Co, the maker of Ampawa leaves, shells etc, and produce SAMOA COCONUT EX-
coconut milk and Cocomax drink, value-added products from them PORTS
views the market as wide open, by mastering the techniques. A senior official in Samoa said
especially for coconut drinks. They can join together and fetch

Managing director Nat Visuthik- loan up to Rs. 50 lakh ($67,200) the country's coconut export in-
raisee said that demand for coco- from the Centre for establishing dustry is under threat if a strin-
nut drinks has been booming for value-added products manufac- gent replanting programme is not
3-4 years, with growth of 15-20% turing units. The Coconut Devel- implemented. The Agriculture
in the first five months of this opment Board will extend all as- Ministry's Assistant Chief Execu-
year -- outpacing carbonated sistance to the farmers for estab- tive, Moafanua Tolo Iosefo, told
drinks, which have negative lishing the units, providing the the Samoa Observer about 80
growth, and orange juice drinks, needed training to the farmers percent of the country's trees are
whose market is saturated. The etc. old and can not hope to meet
trends reflect growing health- Sasikumar, coconut development global demand.
consciousness among consumers, technical expert, said that a spe- He said there are major concerns
pushing the value of coconut cial training program for for the that coconut production is declin-
drinks to 1.2 billion baht this youths in climbing coconut trees ing, but a community-based re-
year. With the continued growth would be conducted for a week in planting programme could help
of premium coconut drinks, Asi- Santhiyur soon. Unemployed maintain exports. Moafanua said
atic Agro Industry will spend youths, including women, in the the government hopes to replant
about 50 million baht to expand age group of 18 to 45 can join the up to 90 percent of coconut plan-
production capacity for its Coco- training program. There is good tations in the next five years.
max drink by 30% from the cur- demand for tender coconuts in (https://www.radionz.co.nz)
rent 12,000 bottles per hour.

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018 66

Statistics

Table 1. WORLD Exports of Coconut Oil, 2013 – 2018 (In MT)

Country 2013 2014 2015 2016 2017r 2018F

A. APCC Countries 1,881,101 1,822,360 1,728,076 1,548,733 1,606,800 1,770,029
0 0 0 0 87 0
F.S. Micronesia
Fiji 1,494 1,630 1,794 1,779 3,262 1,481
India 6,829 7,067 7,725 29,215 11,726 6,704
Indonesia 630,568 771,419 760,072 602,318 510,352 738,716
Jamaica
Kenya 0 9 3 7 60
Kiribati 38 612 161 252 55 47
Malaysia 3,459 2,461 2,220 1,339 1,300
Marshall Islands 131,068 187,665 152,091 115,969 102,735 122,030
Papua New Guinea 3,330 124 1,239 809 1,000
Philippines 13,466 11,068 0 23,866 26,565 19,000
Samoa 814,206 18,467 726,827 912,632 844,461
Solomon Islands 1,080,836 1,450 740,279 546 1,098 1,000
Sri Lanka 1,428 238 1,020 1,487 5,253 5,200
Tonga 196 11,254 1,163 22,679 20,126 18,365
Thailand 3,821 22,032 900 900 900
Vanuatu 0 0 1,020 1,236 1,331 1,325
Vietnam 651 1,960 654 2,546 2,500
5,535 9,208 15 17,539 5,978 6,000
1,841 9,000
991 10,773

B. Other Countries 323,708 284,947 342,894 327,780 373,420 300,000

TOTAL 2,070,02

2,204,809 2,107,307 2,070,970 1,876,513 1,980,220 9

r: revised figures p: preliminary figures

Table 2. Prices of Coconut Products and Selected Vegetable Oils, 2017-2018
(US $/MT)

2017 2018

Products Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Copra
Coconut Oil 1,038 958 942 835 745 756 692 623 614 616 598 558
Copra Meal2
Desicc. Coconut2 1,549 1,456 1,399 1,252 1,124 1,138 1,049 942 908 903 907 840
Mattress Fiber1 162 162 159 162 175 192 213 214 204 199 190 189
Shell Charcoal2 2,418 2,396 2,352 2,334 2,264
Palm Kernel Oil 2,475 2,493 2,437 2,502 2,477 2,475 2,469 255 261 265 260 248
Palm Oil 190 190 193 198 207 208 225 403 389 375 366 362
449 456 454 440 434 429 417 861 881 904 874 800
Soybean Oil 937 633 545 534 524 499
1,419 1,304 1,260 1,148 1,022 1,009 660 786 665 654 651 681
Sri Lanka (FOB) 716 672 677 663 681 664 793
881 866 864 842 834 827

Philippines (FOB)

67 COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018

Statistics

Table 3. World Oil Balance 2016-2018 (1,000 Tons)

Oil/Year 2016 2017 2018

Palm Oil 13,480 10,320 12,990
Opening Stocks 59,240 68,240 70,490
Production 44,110 49,290 49,500
Imports 43,950 49,560 49,580
Exports 62,550 65,290 69,830
Disappear 10,320 12,990 13,570
Ending Stocks
5,220 5,310 5,610
Soybean Oil 51,980 54,190 55,280
Opening Stocks 12,170 11,520 10,830
Production 12,090 11,290 11,080
Imports 51,940 54,120 54,980
Exports 5,310 5,610 5,660
Disappear
Ending Stocks 270 310 330
3,180 4,190 4,180
Groundnut Oil 240
Opening Stocks 250 270 300
Production 240 4,140 280
Imports 3,780 330 4,200
Exports 310 330
Disappear 2,550
Ending Stocks 2,470 19,000 3,010
16,520 10,630 19,050
Sunflower Oil 8,810 10,570 10,110
Opening Stocks 8,960 18,600 10,060
Production 16,280 3,010 19,230
Imports 2,550 2,890
Exports 4,450
Disappear 6,080 25,270 3,590
Ending Stocks 25,340 4,520 25,870
4,430 4,590 4,850
Rapeseed Oil 4,410 26,060 4,900
Opening Stocks 26,990 3,590 26,140
Production 4,450 3,260
Imports 380
Exports 440 4,250 430
Disappear 4,060 4,550
Ending Stocks 130
130 130 150
Cotton Oil 130 4,200 140
Opening Stocks 4,120 430 4,540
Production 380 450
Imports 870
Exports 1,060 7,210 1,010
Disappear 6,340 3,210 7,560
Ending Stocks 3,040 3,250 3,410
3,000 7,030 3,460
Palm Kernel Oil 6,570 1,010 7,420
Opening Stocks 1,100
Production 870 360
Imports 2,440 330
Exports 440 1,590 2,890
Disappear 2,550 1,580 1,850
Ending Stocks 1,630 2,470 1,830
1,660 2,770
Coconut Oil 2,600 330
Opening Stocks 470
Production 360
Imports 68
Exports F: forecast figures
Disappear
Ending Stocks

Source: APCC and Oil World

COCOINFO INTERNATIONAL, VOL. 25, No. 2, 2018