Coco oil as palm substitute floated
Palm oil stockpiles in Indonesia fell to 4.04 million tons by the end of August, down from 5.91 million tons a month earlier and 6.69 million tons at the end of June
Daily TribunePalm oil stockpiles in Indonesia fell to 4.04 million tons by the end of August, down from 5.91 million tons a month earlier and 6.69 million tons at the end of June
The Philippine Coconut Authority was urged Monday by a lawmaker to seize the opportunity to market coconut oil as a substitute for palm oil in the world market.
Economist-lawmaker Joey Salceda explained that if properly marketed, the country's coconut oil might become a viable "substitute good" for palm oil as the latter's prices skyrocket.
"Coconut is the country's top agricultural export. We are the world's best in coconut production," said the Albay solon. "So this is a super crop for us. And the opportunity is presenting itself."
He pointed out that the January futures prices of palm oil have increased by almost 20 percent this month, with Malaysia and Indonesia expected to have reduced palm oil production this year.
As reported by the Indonesian Palm Oil Association, stockpiles in Indonesia fell to 4.04 million tons by the end of August, down from 5.91 million tons a month earlier and 6.69 million tons at the end of June.
"Coconut oil is a substitute, especially for feed additives. So, there is an opportunity to boost our export sales from coconut oil if we can market this right," said the veteran legislator.
He said that coconut farmgate prices are down 10.15 percent year on year, although prices are going up month-on-month.
Salceda, likewise, sees an opportunity to curb palm oil smuggling through domestic crude coconut oil, especially as it is cheaper than feed-grade palm oil.
