Tree Of Life

Coconut oil exports continue increase

Philippine exports of coconut oil continued to rise as of September this year on the back of stronger demand from the traditional markets, the United Coconut Association of the Philippines (UCAP) said over the weekend.

Yvonne Agustin, UCAP executive director, said that preliminary data showed that CNO exports reached 659,455MT in January to September 2012, or 3.8 percent higher from last year’s level of 634,911MT.

“Demand from our major markets for the product continued to be stable,” Agustin said, noting that ample supply of the commodity allowed the industry to meet demand.

In September 2012 alone, coconut oil exports surged 41 percent to 71,992 MT from 51,007 MT a year ago.

The UCAP official attributed the sharp increase to base effects, as demand from the United States and Europe—the key overseas market for the commodity—had slumped last year.

Agustin also ascribed the higher shipments this year to the market’s shift away from palm kernel oil toward CNO, because of narrowing price differentials.

“These shipments were traded maybe a month before, when coconut oil was still at a discounted price against palm kernel oil. That may have also caused buyers to favor coconut oil,” she said.

Palm kernel oil is coconut oil’s premier competitor in the world market.

Early this year, coconut oil was priced higher than palm kernel oil, but since March, the premium between both began to narrow, Agustin said.

Last month, CNO was priced at an average of $952 per MT during the period, while palm kernel oil was at $971 per MT.

With the continued growth in CNO exports, Agustin also said that the industry remains on-track towards meeting its target.

“It’s unlikely that we’ll exceed it, but we remain hopeful that we sustain this growth,” she said.

The Philippines aims to ship 925,000MT of CNO this year.

Reflection

Based on the article, we can clearly say that coconut has been a major part in the country's export rate. The coconut tree has been called "The Tree of Life"  since every part of it is usable. From the leaves to the root, every part has a purpose. It is no wonder that many Filipinoes depend on it for a living. The most used part of the coconut tree is the coconut itself. It has been made into many products that benefits all people. The Philippines is abundant with coconut since it is a native tree. I think it is a good thing that the exports of coconut based products are doing well. It can result to good economic standing. If coconuts are doing well in other countries, we can expect that many more will come to the Philippines. It is like hitting two birds with one stones. By advertising coconuts to other countries, we can promote it and at the same time promote the Philippines as a tourist spot.

I think it is really great that the one of the Philippines most abundant resources can be the answer to many of it's problem. It just goes to show you that if we use our resources wisely, we can achieve anything.