FTAs Covering Coconut Products

1
FTAs Covering Coconut
Products
2
What is FTA?

• Agreement between two or more countries to
  establish a free trade area where commerce in
  goods and services can be conducted across their
  common borders, with reduced or no tariffs or
  hindrances.

3
Reasons for PH Participation in FTAs

• Maintain Competitiveness
• Cross border industrial complementation
• Sustain inflows of investments
• Mutual support on issues of common interest
• Re-enforce one anothers strength and weakness

4
Existing FTAs

• Asean Free Trade Area ( AFTA)
• - ASEAN 6 Brunei, Indonesia, Malaysia,
• Philippines, Singapore, Thailand
  (covered tariff elimination on 99 of tariff
  lines)
• Asean-China Free Trade Area (ACFTA)
• Asean Korea Free Trade Area (AKFTA)

5
Existing FTAs

• Asean-Australia-New Zealand Free Trade Area
  (AANZFTA)
• Asean-Japan Comprehensive Economic Partnership
  Agreement (AJCEPA)
• Philippines-Japan Economic Partnership Agreement
  (PJEPA)

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Exportable Coconut Products

• Coconut oil
• - Crude
• - Refined (RBD, Cochin)
• - Virgin Coconut Oil
• Desiccated Coconut
• Copra Meal
• Copra

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Exportable Coconut Products

• Oleochemicals
• - Coconut fatty acids
• - Coconut methyl ester
• - Coconut fatty alcohol
• - Amides
• - Glycerin
• - Biodiesel

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Philippine Coconut Export (Major)
(In 000 MT)
Year Coconut Oil DesiccatedCoconut Copra Meal 1/ Oleo-chem 2/ Total 2/
2005 1,152 126 430 122 2,145
2006 1,070 136 430 124 2,034
2007 887 131 423 99 1,708
2008 848 143 435 68 1,634
2009 826 116 400 23 1,515
2010 1,343 109 724 32 2,332
1/ Not included in total2/ Copra terms
Source of basic data Philippine Coconut
Authority
9
Philippine Coconut Export Earnings (Major)
(In Million US FOB)
Year Coconut Oil DessicatedCoconut Copra Meal Oleo-chem Total
2005 657 127 27 59 870
2006 577 139 30 60 806
2007 729 157 43 60 989
2008 1,034 240 58 64 1,396
2009 588 146 48 13 794
2010 1,257 153 78 17 1,506
Source of basic data Philippine Coconut
Authority
10
2010/2009 Export Comparison Volume
(In Metric Tons)
Commodity 2010 2009 Change
Copra 303 84 260.7
Coconut Oil 1,342,511 826,237 62.5
Copra Meal 1/ 724,376 399,782 81.2
Desiccated Coconut 109,171 116,421 -6.2
Oleochem 2/ 31,694 23,375 35.6
TOTAL 2/ 2,331,753 1,514,942 53.9
1/ Not included in total2/ Copra terms
Source of basic data Philippine Coconut Authority
11
2010/2009 Export Comparison Value
(In 000 FOB US)
Commodity 2010 2009 Change
Copra 239 60 298.3
Coconut Oil 1,257,214 588,016 113.8
Copra Meal 78,322 47,926 63.4
Desiccated Coconut 152,616 145,657 4.8
Oleochem 17,417 12,679 37.4
Others 121,490 89,684 35.5
TOTAL 1,627,297 884,022 84.1
Source of basic data Philippine Coconut Authority
12
2010/2009 Export Comparison Price
(In US/MT)
Commodity 2010 2009 Change
Copra 789.10 708.05 11.4
Coconut Oil 936.46 711.68 31.6
Copra Meal 108.12 119.88 -9.8
Desiccated Coconut 1,397.95 1,251.13 11.7
Source of basic data Philippine Coconut Authority
13
2011 Philippine Coconut Export Forecast
(In Metric Tons)
Commodity 2011f/ 2010 Change
Copra nil 303 -
Coconut Oil 900,000 1,342,511 -33.0
Desiccated Coconut 110,000 109,171 0.8
Copra Meal 1/ 450,000 724,376 -37.9
Oleochemicals 2/ 30,000 31,694 -5.3
TOTAL 2/ 1,628,639 2,331,753 -30.2
f/ Forecast1/ Not included in total2/ Copra
terms
Source of basic data Philippine Coconut Authority
14
RP Coconut Production
(In 000 MT, Copra terms)
2,415
2,863
2,663
2,388
2,257
Sources of basic data Philippine Coconut
Authority
Industry Reports to UCAP Research
r Revisedf Forecast
15
PH Processing Capacity
No. of Mills/Plants Annual Capacity
Oilmilling 63 4.501 Million MT Copra
Refining 39 1.435 Million MT RB/RBD Oil
Desiccated Coconut 10 159,610 MT DCN product
Oleochemicals 10 250,000 MT CNO throughput
Coco Biodiesel 12 400,000 MT output
Source of basic data Philippine Coconut
Authority
16
Markets Coconut Oil
(In Metric Tons)
Destination 2010 Share 2009 Share
Europe 654,210 48.7 347,812 42.1
USA 450,616 33.6 355,032 43.0
China 103,728 7.7 27,770 3.4
ASEAN (Indonesia, Malaysia, Singapore, Vietnam) 61,785 4.6 14,484 1.8
Japan 47,008 3.5 43,481 5.3
Korea 2,495 0.2 10,633 1.3
Australia 169 0.0 261 0.0
New Zealand 37 0.0 30 0.0
Others 22,464 1.7 26,732 3.2
Total FTA Markets (MT) 215,222 16.0 96,659 11.7
(000 US) 192,324 15.3 69,157 11.8
TOTAL (MT) 1,342,511 100.0 826,237 100.0
(000 US) 1,257,214 100.0 588,016 100.0
Source of basic data Philippine Coconut
Authority
17
PH Coconut Oil Export by Destination
20101,342,511 MT
2009826,237 MT
Korea1.3
Asean1.8
Japan5.3
Asean4.6
Korea0.2
Others3.3
Japan3.5
Others1.9
China3.4
Europe42.1
China7.7
Europe48.7
US33.6
US43.0
Source of basic data Philippine Coconut
Authority
18
Markets Virgin Coconut Oil
(In Metric Tons)
Destination 2010 Share 2009 Share
USA 1,498 54.7 1,082 60.1
Canada 569 20.8 496 27.6
Europe 370 13.5 137 7.6
Australia 157 5.7 23 1.3
Asean (Brunei, Indonesia, Malaysia, Singapore, Thailand, Vietnam) 28 1.0 12 0.7
China 9 0.3 2 0.1
Korea 9 0.3 2 0.1
New Zealand 8 0.3 1 0.1
Japan 5 0.2 3 0.1
Others 84 3.1 43 2.4
Total FTA Markets (MT) 216 7.9 43 2.4
(000 US) 575 6.9 205 3.7
TOTAL (MT) 2,737 100.0 1,801 100.0
(000 US) 8,341 100.0 5,588 100.0
Source of basic data Philippine Coconut
Authority
19
Markets Desiccated Coconut
(In Metric Tons)
Destination 2010 Share 2009 Share
Europe 41,171 37.7 48,982 42.1
USA 27,995 25.6 29,187 25.1
Australia 6,792 6.2 6,300 5.4
Korea 2,151 2.0 2,036 1.7
Japan 2,015 1.8 2,558 2.2
China 1,564 1.4 1,668 1.4
Asean (Indonesia, Malaysia, Singapore, Thailand, Vietnam) 1,108 1.0 1,226 1.1
New Zealand 707 0.6 1,054 0.9
Others 25,668 23.5 21,374 18.4
Total FTA Markets (MT) 14,337 13.1 14,842 12.7
(000 US) 19,913 13.0 20,257 13.9
TOTAL (MT) 109,171 100.0 116,421 100.0
(000 US) 152,616 100.0 145,657 100.0
Source of basic data Philippine Coconut
Authority
20
Markets Copra Meal
(In Metric Tons)
Destination 2010 Share 2009 Share
Korea 383,497 52.9 232,927 58.3
China 159,436 22.0 16,170 4.0
Asean (Singapore, Vietnam) 130,769 18.1 111,109 27.8
Japan 17,647 2.4 16,351 4.1
Australia 2,726 0.4 1,133 0.3
New Zealand 1,120 0.2 - -
Others 22,092 5.5 29,181 7.3
Total FTA Markets (MT) 695,195 96.0 377,690 94.4
(000 US) 60,766 77.6 45,229 94.4
TOTAL (MT) 724,376 100.0 399,782 100.0
(000 US) 78,322 100.0 47,926 100.0
Source of basic data Philippine Coconut
Authority
21
Markets Oleochemicals
(In Metric Tons, Copra Terms)
Destination 2010 Share 2009 Share
China 9,986 31.5 6,779 29.0
Asean (Indonesia, Malaysia, Singapore, Thailand, Vietnam) 3,082 9.7 535 2.3
Korea 1,367 4.3 3,548 15.2
Japan 1,107 3.5 937 4.0
Australia 62 0.2 148 0.6
New Zealand 26 0.1 34 0.1
Europe 5,411 17.1 3,268 14.0
Others 10,653 33.6 8,126 34.8
Total FTA Markets (MT) 15,630 49.3 11,981 51.2
(000 US) 27,251 66.4 21,765 68.6
TOTAL (MT) 31,694 100.0 23,375 100.0
(000 US) 41,060 100.0 31,710 100.0
Includes value of amides, glycerin
Source of basic data Philippine Coconut
Authority
22
Exportable Coconut Products

• Coconut Shell
• - charcoal
• - activated carbon
• Coconut Coir
• - fiber
• - peat/dust
• - geotextile

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Exportable Coconut Products

• - stitched fiber
• - pads
• - plant liners
• - pots and hangers
• Coconut Water
• Coconut Sugar
• Coconut Vinegar
• Handicraft items

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Markets Coconut Shell Charcoal
(In Metric Tons)
Destination 2010 Share 2009 Share
Japan 16,836 57.5 22,859 65.8
China 6,260 21.4 6,095 17.5
Korea 4,431 15.1 4,172 12.0
Asean (Singapore) 84 0.3 788 2.3
Others 1,654 5.7 833 2.4
Total FTA Markets (MT) 27,611 94.3 33,914 97.6
(000 US) 8,914 96.1 11,012 98.4
TOTAL (MT) 29,265 100.0 34,746 100.0
(000 US) 9,278 100.0 11,190 100.0
Source of basic data Philippine Coconut
Authority
25
Markets Activated Carbon
(In Metric Tons)
Destination 2010 Share 2009 Share
Europe 5,602 18.9 4,060 20.3
USA 3,825 12.9 3,648 18.2
Japan 6,753 22.8 3,795 18.9
Asean (Indonesia, Malaysia, Singapore, Thailand, Vietnam 2,585 8.7 2,116 10.6
Korea 1,735 5.9 1,155 5.8
Australia 1,481 5.0 459 2.3
China 721 2.4 335 1.7
Others 6,869 23.2 4,460 22.3
Total FTA Markets (MT) 13,275 44.9 7,860 39.2
(000 US) 18,884 46.4 9,264 35.9
TOTAL (MT) 29,572 100.0 20,027 100.0
(000 US) 40,692 100.0 25,808 100.0
Source of basic data Philippine Coconut
Authority
26
Markets Coco Coir Coir Products
(In Metric Tons)
Destination 2010 Share 2009 Share
China 4,192 49.0 2,928 36.7
Korea 1,512 17.7 1,782 22.3
Japan 567 6.6 356 4.5
Asean (Malaysia, Singapore 365 4.3 625 7.8
Australia - - 7 0.1
Others 1,916 22.4 2,282 28.6
Total FTA Markets (MT) 6,636 77.6 5,698 71.4
(000 US) 1,651 84.8 1,038 78.2
TOTAL (MT) 8,551 100.0 7,980 100.0
(000 US) 1,946 100.0 1,328 100.0
Source of basic data Philippine Coconut
Authority
27
Markets Coconut Water
(In liters)
Destination 2010 Share 2009 Share
USA 1,273,324 70.4 88,525 18.3
Europe 72,280 4.0 32,493 6.7
Australia 59,840 3.3 36,130 7.5
Japan 20,886 1.2 49,123 10.2
China 18,750 1.0 - -
New Zealand 2,885 0.2 1,218 0.3
Korea - - 538 0.1
Others 359,618 19.9 274,355 56.7
Total FTA Markets (liters) 102,361 5.7 87,009 18.0
(000 US) 91 5.0 74 20.0
TOTAL (liters) 1,807,583 100.0 483,772 100.0
(000 US) 1,842 100.0 368 100.0
Source of basic data Philippine Coconut
Authority
28
Markets Coconut Vinegar
(In Metric Tons)
Destination 2010 Share 2009 Share
USA 284 51.3 222 53.0
Middle East 112 20.2 45 10.8
Australia 28 5.0 30 7.1
Japan 16 3.0 30 7.2
New Zealand 9 1.6 4 1.0
Korea 9 1.6 1 0.3
Asean (Singapore, Vietnam) 2 0.4 0 0.1
China 1 0.1 - -
Others 93 16.8 86 20.6
Total FTA Markets (MT) 65 11.7 65 15.6
(000 US) 48 10.6 49 15.1
TOTAL (MT) 554 100.0 418 100.0
(000 US) 450 100.0 323 100.0
Source of basic data Philippine Coconut
Authority
29
Markets Coco Handicrafts
(Value in US FOB)
Destination 2010 Share
USA 397,185 42.8
Europe 207,772 22.4
China 106,776 11.5
Korea 7,226 0.8
Australia 6,920 0.7
New Zealand 3,703 0.4
Asean (Malaysia) 1,512 0.2
Japan 1,052 0.1
Others 196,358 21.1
Total FTA Markets (US) 127,189 14.0
TOTAL (US) 928,504 100.0
Source of basic data Philippine Coconut
Authority
30
PH Exports of Coconut Products to Japan
(Volume in MT, Value in US FOB)
Commodity 2009 2009 2010 2010
Commodity Volume Value Volume Value
Coconut Oil 43,481 32,229,190 47,008 46,786,049
Desiccated Coconut 2,558 3,248,560 2,015 2,924,252
Copra Meal 16,351 3,492,567 17,647 3,593,040
Coco Shell Charcoal 22,859 8,530,674 16,836 6,796,000
Activated Carbon 3,795 4,255,205 6,753 10,054,541
Oleochemicals 937 732,247 1,107 1,002,884
Glycerin 10,737 11,375,422 16,088 14,399,495
Nata de Coco 4,713 3,965,500 3,815 3,653,300
Coco Milk Powder 251 866,915 169 596,232
Liquid Coconut Milk 458 705,885 304 493,830
Others (16 products) 675 640,065 728 445,664
TOTAL VALUE 70,042,230 90,745,287
Source of basic data Philippine Coconut
Authority
31
Concluding Statements

• China has huge potential. Currently, it leads in
  coconut oil, oleochemicals, coir products, and
  handicraft items. Other products still have room
  for expansion.
• Japan is market leader in coconut shell products
  as well as coconut water. It also has significant
  market share in coconut oil, desiccated coconut,
  and oleochemicals

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Concluding Statements

• Korea is top copra meal market and demand is
  still rising. There has been more inquiries for
  the product, reason why Korean beef is the best
  in the world according to buyers. It also
  imports substantial amount of coconut oil,
  desiccated coconut, oleochemicals, charcoal and
  activated carbon.

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Concluding Statements

• ASEAN remains a significant market for coconut
  oil, mainly Malaysia and Indonesia. In the case
  of copra meal, Vietnam handles bulk of our export
  in ASEAN. It used to be second to Korea and now
  overtaken by China.
• Australia leads in desiccated coconut in the FTA
  markets and in virgin coconut oil and vinegar.

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Concluding Statements

• There has been little utilization in a number of
  coconut products in FTA markets, perhaps due to
• - Low awareness about the product in the FTA
  market
• - Low awareness on FTAs and benefits by exporting
  FTA country
• - Need for education campaign about FTAs,
  products covered, tariff lines and tariff
  schedules in both countries, among others.

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Thank
You