THE export price for coconut oil in the world market will remain in the high range of $570-$600 per ton for the rest of the year because of increasing demand for cheaper bio-fuels in Europe and the United States, as well as for specialty vegetable oils in Asia, an industry official said.
Also, increasing capacities of oleochemical plants in Southeast Asia, including the Pilipinas Kao Corp. and Pan Century Inc. in the Philippines, will ensure the high demand for coconut oil this year will be met, said Danilo Coronacion of the Coconut Industry Investment Fund (CIIF) group of companies.
The CIIF is one of the country’s largest coconut oil exporters, and accounts for close to 40 percent of total Philippine coconut oil exports.
In 2005, Philippine coconut oil exports grew six percent year-on-year to 1.02 million metric tons.
Oleochemicals, also known as specialty fats, are used to manufacture shortening and other personal care products such as soaps and detergents.
Rising demand of manufacturers for oleochemicals and “escalating demand for vegetable oils in China and India” will keep coconut oil prices “at distinctively high levels,” Coronacion said.
He said farm gate prices might increase to P17 per kilogram of copra meal, the raw form of coconut oil, from P16.
Source: Money.inq7.net April 27, 2006.