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Philippines
BETTER CHANCES FOR COCO OIL EXPORTS
by Beverly Natividad
26-October-2005 BusinessWorld
 

The country’s coconut oil exports are expected to gain larger US market next year due to rules set by the United States Food and Drug Administration (USFDA) on trans-fat labeling.

According to the Philippines Coconut Authority (PCA), virgin coconut oil’s low saturated fat content is set to get a boost in the US market with the USFDA’s new requirement for disclosure of trans-fat contents of all manufactured foods sold in the US starting next year.

“Virgin coconut oil – which has only 0.05% to 0.1% trans-fat or free fatty acids content, and which figure maybe the lowest among all vegetable fats – will certainly enjoy great preference and acceptability in the US,” said PCA Administrator Jesus Emmanuel M. Paras in a statement.

Mr. Paras explained that coconut oil is at least 94% saturated fat and, at this amount, already stands to have the lowest trans-fat contents when it is at its natural state. This is because formation of the bulk of trans-fats happens during hydrogenation of unsaturated and poly-unsaturated fats, in order to transform them to saturated state.

Hydrogenation is done to prevent the spoilage of the product. Natural coconut oil, however, does not require hygrogenation, since saturated fat can withstand rancidity in its natural state. Mr. Paras noted, for instance, that coconut oil is ideal for cooking since it ensures longer shelf life.

Increasing interest in the benefits of virgin coconut oil has boosted the country’s exports significantly. PCA deputy administrator for Trade and Marketing Arturo J. Licuete said the country’s virgin coconut oil export volume jumped to 58.44 million tons as of May 2005 from 15.79 million tons in the same period last year, with the United States and the Netherlands topping other markets. Export value of this product rose to $369,094 from $56,000 for the same periods.

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