THE PALM OIL INDUSTRY

Performance, Policies and Strategic Directions

INTRODUCTION

1. Oil palm (Scientific name: Elaeis guineensis Jacq.) gives the highest yield of oil per unit area of any crop and produces two distinct oils, palm oil and palm kernel oil, both of which are important in world trade (Purseglove, 1975). Fresh fruit bunches (ffb) comprises about 18-22% crude palm oil and 3-5% palm kernel. Palm oil is obtained from the fleshy mesocarp of the fruit which contains a maximum 24% oil depending on the quality and variety of fruit. Palm kernel oil is obtained from the kernel which contains about 45-50% oil and 40-45% meal. It is a lauric oil which is similar to coconut oil.

2. Oil palm requires an average rainfall of 2,000 mm or more, distributed evenly throughout the year to produce better yields. A mean maximum temperature of 30-32C and a mean minimum temperature of 21-24C provide the most suitable temperature. At least five hours of sunshine per day in all months of the year is desirable. Many parts of Mindanao have the ideal growing conditions. Palms can grow in a wide range of tropical soils. Waterlogged, extremely sandy, highly lateritic, stony or peaty soils and land sloping more than 20 degrees should be avoided. The oil palm tree matures 2.5 to 3 years from planting (Purseglove, 1975). The economic life is about 25 years from planting. Harvested ffb should be sterilized and crushed within 48 hours to obtain good quality oil. Table 1. Palm Oil Farm Size by Region
REGION 9 10 11 Number 1 2 > 36 TOTAL Area (ha) 280 9,800 4,500 14,580 SIZE OF FARM (ha) 280 8,000; 1,800 1,600 / 2,900 REMARKS Menzi FPII; API Kenram / Outgrowers

TOTAL > 39 Source: UA&P-IAP Estimates

3. The major producers/exporters of palm oil and palm kernels are: Malaysia and Indonesia. They contribute about 84% and 88% of the world supply, respectively.

CH ART 1 . PALM OI L TOP FI VE PRODU CI N G COU N TRI ES, 1 9 9 4

Thailand 2% Columbia 2% Nigeria 7% Others 13% Malaysia 50%

Indonesia 27%

Source: Food and Agriculture Organization

CH ART 2 . PALM KERN ELS TOP FI VE PRODU CI N G COU N TRI ES, 1 9 9 4

Zaire 2% Brazil 6% Nigeria 9% Indonesia 19%

Others 14% Malaysia 51%

Source: Food and Agriculture Organization

CH ART 3 . PALM OI L TOP SI X I M PORTI N G COU N TRI ES, 1 9 9 4

Others UK Germany Netherlands Singapore Pakistan China 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

VALUE (Million $) and VOLUME ('000 tons) VALUE

Source: Food and Agriculture Organization

VOLUME

CH ART 4 . PALM OI L TOP SI X EXPORTI N G COU N TRI ES, 1 9 9 4

Others Hong Kong Netherlands Singapore China Indonesia Malaysia 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

VALUE (Million $) and (VOLUME ('000 tons) VALUE

Source: Food and Agriculture Organization

VOLUME

CH ART 5 . PALM KERN EL OI L TOP FI VE I M PORTI N G COU N TRI ES, 1 9 9 4

Others U. K. Japan Netherlands Germany FR U. S. A. 0 50 100 150 200 250 300 350 400

VALUE (Million $) and VOLUME ('000 tons) VALUE

Source: Food and Agriculture Organization

VOLUME

CH ART 6 . PALM KERN EL OI L TOP FI VE EXPORTI N G COU N TRI ES, 1 9 9 4

Others Papua New Guinea Nigeria Netherlands Indonesia Malaysia 0 50 100 150 200 250 300 350 400 450 500

VALUE (Million $) and VOLUME ('000 tons)

VALUE
Source: Food and Agriculture Organization

VOLUME

CHART 7. PALM OI L UTI LI ZATI ON

FRESH FRUIT BUNCHES

MILL PROCESS KERNELS CRUDE PALM OIL CRUSHING EXTRACTI ON REFINING FRACTIONATI ON & REFINING

FR

RESI

OTHER

BE

RESE

TECHNIC PALM KERNEL MEAL PALM KERNEL OIL RBD OLIEN BLENDIN G MARGARI NES FRACTIONATION & REFI NING REFI NING SPLI TTING SHORTENINGS VANASPATI FRYING FATS ICE-CREAM ANIMAL FEED HYDROGENATI ON MARGARINES CONFECTIONERIES SOAPS FI LLED MI LK ICE-CREAM BISCUIT CREAMS STEARIN OLI EN H.P.K.O. H.P.K. OLEIN CONFECTIONERY FATS FATTY CONFECTIONERI ES COFFEE WHITENER FILLED MILK COATI NG FATS ALCOHOLS AMINES AMIDES COCOA EMULSIFIERS HUMECTANTS EXPLOSI VES BUTTER EQUI VALENT FATTY ACI DS MARGARINES GLYCEROL BLENDING PALM MIDFRACTION FRYI NG COOKI NG SHORTENI NGS MARGARINES SHORTENINGS MARGARINES RBD STEARI N RBD PO

SOAP

Source: Palm Oil registration and Licensing Authority, Malaysia

SOURCES OF GROWTH AND TRENDS, 1986-1995

Production 4. Official statistics on domestic palm oil production is not easily available. Based on professional guesstimates the production in 1995 was about 300,000 tons of fruit bunches, or about 60,000 tons of crude palm oil (CPO) and about 10,000 tons of palm kernel. According to Oil World, an international publication, CPO production rose to 61,000 tons in 1994 from 34,000 tons in 1985. Similarly, palm kernel production rose to 9,200 tons in 1994 from 5,700 tons in 1985. The farm value of production was about P700 million in 1995.

CH ART 8 . PH I LI PPI N E PALM OI L PRODU CTI ON ('0 0 0 TON S), 1 9 8 4 -1 9 9 4

10 9 60 8 70

PALM KERNEL

7 6 5 4 3 2

50

40 30

20

10 1 0 0

1984

1985

1986

1987

1988

1989 YEAR

1990

1991

1992

1993

1994

PALM KERNEL
Source: Oil World 1989-1995

PALM OIL

PALM OIL

Area 5. There are only four plantations in the country totaling about 15,000 hectares: Filipinas Palmoil Industries, Inc. (FPII) (Agusan Sur), 8,000 ha; Agusan Plantations, Inc (Agusan Sur), 1,800 ha; Kenram (Sultan Kudarat), 1,600 ha of nucleus farm and 4,500 ha of outgrowers; and Menzi (Basilan), 280 ha. FPII operates the former NDC-Guthrie Plantations. Kenram operates under a nucleus-outgrowers scheme; it requires replanting. 6. Southern Philippine Development Authority (SPDA) identified about 304,000 hectares of land in Mindanao are suitable for oil palm production. This is conservative. According to industry sources, Agusan del Sur alone has a potential of at least 50,000 ha., provided road infrastructure is in place. In contrast to rubber, though, oil palm is not suitable in rough terrain due to the difficulty in hauling the heavy fruit bunches. Yield 7. According to reports, the yields in Agusan plantations can compare with the good plantations in Malaysia. They have already attained the peak yields of 25 tons bunches per hectare provided there are at least 128 trees planted per ha.. This is possible as the plantations have access to good clones from Papua New Guinea and have soils and climate ideal for oil palm. Table 2. Oil Palm FFB Yields Reported in Selected Countries
YIELD REMARKS (TONS/HA/YEAR) Malaysia 10 to 12 low yield 18 to 25 national average 30 to 40 best yield Nigeria 16 national average Papua New Guinea 30 with fertilizer 20 w/o fertilizer Costa Rica 18 to 19 average yield 30 to 32 good yield Source: Rajannaidu, N. Oil Palm Cultivation and Fresh Fruit Bunches Production in Malaysia, 1993 COUNTRY

Trade 8. Exports. According to official data, during 1985-1987 and 1990-1991, the country exported crude palm oil. Thereafter, export ceased despite the growth in production as output was sold in the domestic market. (Note: The official figures do not tally with the Oil World estimates). 9. Imports. Imports of refined palm oil have been erratic since 1985. They rose from (2,700 tons) $1.6 million in 1985 to (11,300 tons) $11.3 million in 1992, and declined to only $3.2 million in 1995. Malaysia, the worlds leading producer and exporter, is the major source of imports. The official statistics appears highly understated when compared to the data of Oil World, a worldreknown publication. The latters data showed an average import of 30,000 tons/year in 19921994. This is equivalent to 35% of total supply, or roughly 7,500 ha of additional area assuming average yield of 20 ffb/ha; and rising to at least 10,000 ha by year 2000.

CH ART 9 . PH I LI PPI N E PALM OI L TRADE, 1 9 8 5 1995

12000 2000

10000

EXPORT ('000 $ FOB) and IMPORT ('000 $ CIF)

8000 -4000 6000 -6000 4000 -8000 2000

-10000

-12000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 YEAR EXPORT VALUE IMPORT VALUE TRADE BALANCE

Source: National Statistics Office

TRADE BALANCE ('000 $)

-2000

PAST AND PRESENT POLICIES

Trade 10. There are no specific trade policies on palm oil. However, the general macroeconomic policies have affected the palm oil industry. These are: the overvaluation of the peso which penalized exports and the rising legislated wages. The rapid increase in wages has affected the profitability of plantations. Tariff and NonTariff Barriers 11. Tariff appears to be the only trade barrier. Between 1972 and 1996, the import duties on crude palm oil ranged from 30 to 50% and for palm kernel 20 to 70%. Palm oil and palm kernel oil compete with coconut in the world market. Palm kernel oil and coconut oil have similar chemical properties; they both belong to the lauric group of oils. There are pressures from some AFTA members to drastically reduce the tariffs on palm oil. Table 3. Import Duty of Palm Oil and Related Products, 1996-2000, in percent
HARMONIZED CODE 15.11 Palm Oil 15.13 Palm Kernel Oil 1996 30 30 1997 30 30 1 JANUARY 1998 20 20 1999 20 20 2000 20 20

Authors Note: Under AFTA-CEPT, the proposed tariff of vegetable oils is 5% by year 2003. Source: EO 264

Enacted Legislation 12. The advent of CARL in 1988 affected land ownership in the palm oil plantations. In FPII and API areas, (which formerly leased the land from the government-owned National Development Company) the ownership of land was transferred to the farmworkers. The companies lease the land from the farmworkers cooperatives. The level and renewal of lease payment have become as cause of concern for the investors. In the case of Kenram plantation, it opted for the ten-year deferment which meant that land will be distributed to the farmworkers by 1998. Both modalities created uncertainties. With CARL, it is no longer feasible to own and manage large tracts of land. Given that the minimum scale of palm oil plantation is 5,000 ha, access to large tracts of land has been made difficult. Thus, the nucleus-outgrowers schemes are now promoted as the viable alternative. Import Policies 13. There are no specific import policies on palm oil. The product is not subject to quantitative restrictions.

Domestic Support Measures 14. There are no domestic support measures on palm oil. The sourcing of clones from overseas, as well as plantation and processing technologies, are private sectors (domestic and foreign) initiatives.

CONSTRAINTS TOWARDS COMPETITIVENESS

Human Resource Development 15. The country lacks the cadre of managerial and technical personnel which are knowledgeable in palm oil plantation and processing. According to industry sources, Indonesian agricultural labor cost is about one-third of Philippine agricultural labor cost. Market Access and Development 16. There are no known barriers to the export and domestic markets. Outside of tariffs, trade is free. Institutional Framework/Bureaucracy 17. The government has no direct interventions on the industry. Palm oil development in the country has been solely a private sector initiative. Public Investments/Infrastructure 18. Infrastructure (farm-to-market roads and arterial roads, etc) is a serious constraint in potential areas. The transport of ffb to the mill require trailers and heavy trucks. Moreover, ffb has to be processed within 48 hours to attain good oil quality. These infrastructure investment requirements are public goods and should be funded by the government. Technology Access and Development 19. Without strategic alliance with foreign investors, there could be constraints in plantation operations given the limited cadre of trained people. However, consultancy firms in Malaysia could be encouraged to provide technical advise. With respect to access to good planting materials, they can be sourced from Papua New Guinea.

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Natural Resource Endowments/Environment 20. There are no constraints in this area. A large part of Mindanao is ideal for palm oil, provided infrastructure constraints are addressed. With CARP, cumbersome nucleus-outgrowers operations will be necessary to develop sizeable areas required for economy of scale. Rural Credit and other Fiscal Matters 21. The major constraint is access to long-term financing for replanting and new planting. Among the major constraints in financing include: Section 79 of the General Banking Act (RA No. 337) allows for only three years grace period on loan; and The lack of long-term funds.

22. In Malaysia, the Government financing scheme provides for four years of grace, moratorium on interest and principal during the grace period, and with loan maturities of at least 12 years. This is appropriate for a perennial crop such as palm oil .

ASSESSMENT AND PROJECTION OF DOMESTIC AND EXPORT MARKET POTENTIALS IN THE NEXT FIVE YEARS AND TEN YEARS AND BEYOND

Domestic 23. Domestic demand for palm oil grew by more than 10% p.a. to about 80,000 tons in 1994 from 31,000 tons in 1986 (Oil World, 1995). As a result, imports rose to an average of 30,000 tons in 1992-1994 from an average of 3,000 tons per year during 1985-1988. Industry sources indicate that imports of palm oil will increase by at least 5% p.a. in the next decade. With lowering of tariffs (20% by 1998) and 5% under AFTA, imports are expected to increase. Table 4. Palm Oil Balance of Trade, Philippines, 1984-1994 (000 tons)
ITEM Production Imports TOTAL SUPPLY Exports (a) Domestic Disappearance (b) TOTAL UTILIZATION 62.4 36.7 40.8 41.3 43.8 49.6 50.8 54.4 81.2 93.0 87.0 1984 34.0 28.4 62.4 --62.4 1985 34.0 2.7 36.7 2.0 34.7 1986 37.8 3.0 40.8 10.0 30.8 1987 39.0 2.3 41.3 9.1 32.2 9188 40.0 3.8 43.8 12.0 31.8 1989 41.5 8.1 49.6 8.6 41.0 1990 46.0 4.8 50.8 7.3 43.5 1991 54.0 0.4 54.4 4.6 49.8 1992 54.0 27.2 81.2 3.9 77.3 1993 55.0 38.0 93.0 7.2 85.8 1994 61.0 26.0 87.0 7.4 79.6

Note: (a) Derived from statistics of known trading partners, considering 1 month shipping time. (b) Residual of the balance. Source: Oil World 1989-1995

11

World 24. The World Bank expects that world demand will increase by about 4% annually in the next decade. Malaysia and Indonesia will remain key players in the world market.

STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS

25. Strengths. PALM OIL: STRENGTHS Ideal growing conditions in Mindanao. Availability of suitable areas on private and public lands. Suitability for outgrower operations. Cost-competitiveness with other countries under outgrowers operations. Access to good planting materials. Established market channels. Foreign technical expertise are available. Palm oil is not susceptible to pilferage. Highest productivity of oil per hectare. On monocrop basis, higher labor intensity. Better stability as cooking oil.

12

26. Weaknesses. PALM OIL: WEAKNESSES Peace and order concerns in some areas. Some areas need replanting. Lack of long-term financing. Inadequate infrastructure in potential areas, i.e. Agusan, Lanao, Maguindanao, and Sultan Kudarat. Shortage of managerial and technical expertise on the crop. Lack of domestic investors. High cost of labor. High transport cost from Mindanao to Manila. Higher cost of development. Less tolerant to varying agro-climatic conditions. Plantation can not be intercropped. Requires processing within 48 hours. Large production area within a radius from the mill. Investments in new mills. More intensive management inputs. Social engineering work to attain minimum economic size production area.

13

27. Opportunities. PALM OIL: OPPORTUNITIES Fast-growing domestic market, including import substitution. Expanding world market. Suitable areas for expansion in Mindanao. Existing plantations want to expand under outgrowers schemes in Agusan. Interest among foreign investors under nucleus-outgrowers schemes.

28. Threats. PALM OIL: THREATS Entry of palm oil under liberalized trade. Uncertainties on land tenure for existing plantations. Competion from other fats and oils.

14

STRATEGIC DIRECTIONS TOWARDS GLOBAL COMPETITIVENESS

Investment Strategies 29. The key strategies will include: Attracting foreign investments from technologically advanced countries, e.g. Malaysia and Indonesia. This will include investment incentives such as income tax holilday, real property tax holiday, and exemption from other local government taxes. Investments in infrastructures (e.g. roads, bridges, and drainage system) in areas with good potentials in Mindanao. Program to dredge the Agusan River to reduce excessive flooding and to allow barging of produce from Agusan to Butuan port. Plantation labor cost must be more competitive by aligning it to agricultural wage rate, not industrial wage rate.

Workable Modalities 30. Innovative farm management schemes should be promoted. Promote domestic and foreign investments via the outgrowers schemes and joint ventures. Integrated development in oil palm areas by providing the complementary infrastructure.

31. Farm management schemes should be promoted in order to achieve globally competitive status. Among these are:

15

Nucleus-outgrowers schemes. An investor will provide the processing plant, technology and marketing to outgrowers. The outgrowers will provide the land and labor. The government must package long-term financing schemes for the growers.

C H A R T 1 0 . N U C L EU S -O U T G R O W ER S S C H EM E

Ou t g r o w e r s

Ou t g r o w e r s

N U C L EU S FA RM / P ROCESSI N G PLAN T

Ou t g r o w e r s

land labor

market technology financing

Ou t g r o w e r s

Source: IAP, UA&P

16

Joint ventures. The investor will provide the market, technology and capital; the small landowners will provide the land and labor.

CH ART 1 1 . J OI N T VEN TU RE
COOPERATI VE PLANTATI ON

Puts in equity (present value of land use) provides ancillary services

Puts in equity

Extends services to members

Pays for produce, profit shares and ancillary services

PARTNER-FIRM J OI NT VENTURE COM PANY

Pays profit share

Pay profit share

FARM ERS
assigns technician to JV, provides infra / PHF support Extends loans

Repays loans

DA / LGU
Source: MAP-ABCD, Joint Agribusiness Ventures, 1996

BANK

A common thread is the importance of centralized management of consolidated areas regardless of land ownership structure.

17

Structural and Legislative Policy-related Reforms 32. Access to long-term financing is a necessary component of a development strategy. Among the factors to consider are: The repeal of Section 79 of the General Banking Act (RA 337). Its repeal will allow banks to lend at longer grace periods and maturities. If amendment to the Act is not possible, the government must explore other schemes that provide for moratorium on interest and principal matched to the gestation period of the crop. (Note: The IRR of the High Value Crops Law indicate that the Bangko Sentral allows financial institutions participating in financing development projects to extend credits with grace periods longer than three years. It is not clear, however, whether it allows for moratorium on interest during the grace period). The exemption from final tax on interest earnings of financial instrument (e.g. bonds) with long maturities, say 10-15 years, will encourage the development of the long term capital market. The liberalization of Islamic banking. A large part of rubber lands are in Muslim areas and this form of banking is an appropriate vehicle for financing long-gestating crops. The expansion of credit guarantee scheme (e.g. Gurantee Fund for Small and Medium Enterprises) for long-gestating crop. The creation of a Perennial Crop Fund.

Executive Actions 33. The agenda for action include: Allocation by the government banks of part of their loan portfolio, say 5%, for long gestating crops; Allocation of infrastructure funds for identified areas for palm oil development (i.e. Agusan, Maguindanao, Sultan Kudarat, Lanao, etc); and Development of a core agribusiness managers to provide management to projects owned by cooperatives. Drafting of necessary legislations regarding paragraph 32.

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ANNEX 1a
PALM OIL PRODUCTS AND ITS MAJOR USES
CRUDE PALM OIL Raw material for rifening or fat splitting Lubrication in sheet steel (during the cold rolling of steel plate) RBD PALM OLEIN Cooking oil Confectionery fat Shortening Palm mid-fraction Noodles RBD PALM STEARIN Shortening Margarine Vanaspati Confectionery fat Soaps HYDROGENATED PALM OIL Dry soup mixes Ice-cream Sugar confectionery Vanaspati HYDROGENATED PALM OLEIN Sugar confectionery Shortening for dry cake mixes Biscuit cream fats Filled milk

CRUDE PALM OLEIN For further refining Textile oils

CRUDE PALM STEARIN Soaps Detergents Oleochemicals RBD PALM OIL Deep-frying Vanaspati (Vegetable ghee) Margarine Shortening Ice-cream Bakery fats Toilet soaps PALM MID-FRACTION Cocoa-butter extender Specialty fats PALM FATTY ACID DISTILLATE Soaps Vitamin E CRUDE PALM KERNEL OIL Raw material for refining or fat splitting

HYDROGENATED PALM STEARIN Soaps PALM ACID OIL Soaps Animal feed RBD PALM KERNEL STEARIN Cocoa butter substitute Specialty fats Shortening Ice-cream HYDROGENATED PALM KERNEL OIL Coffee whiteners Sugar confectionery Biscuit creams fats Filled milk HYDROGENATED PALM KERNEL OLEIN Coffee whiteners Sugar confectionery Biscuit cream fats Filled milk HYDROGENATED PALM KERNEL STEARIN Chocolate-type coatings Imitation cream Coffee creamers Filled milk PALM KERNEL Raw material for palm kernel oil

CRUDE PALM KERNEL OLEIN Oleochemicals Feedstock Soaps Detergents CRUDE PALM KERNEL STEARIN Cocoa butter substitute

RBD PALM KERNEL OIL Confectionery fats Soaps Detergents RBD PALM KERNEL OLEIN Coffee whiteners Filled milk Biscuit cream fats Detergents Cosmetics COCOA BUTTER SUBSTITUTE COCOA BUTTER EQUIVALENT COCOA BUTTER REPLACER COCOA BUTTER EXTENDER Chocolate and coatings

PALM KERNEL CAKE PALM KERNEL PELLET PALM KERNEL EXPELLER Animal feed

Source: Palm Oil Registration and Licensing Authority, Malaysia

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ANNEX 1b
PALM OIL OLEOCHEMICALS AND ITS MAJOR USES
METHYL ESTERS
Plastics Textile processing Metal processing Lubricants Emulsifiers Pharmaceutical products Detergents Plasticizers As diesel substitute

STEARIC ACID
Soaps Cosmetics Candles Crayons Greases Paper coating Buffing compounds Waxes Surfactants

REFINED GLYCERINE
Cosmetics Explosives Pharmaceutical products Food industry protective coatings

SOAP NOODLES / STOCKS

Laudry soaps

OLEIC ACID CAPRYLIC ACID PALMITIC ACID DISTILLED PALM OIL FATTY ACID
Soaps

LAURIC ACID MYRISTIC ACID DISTILLED PALM KERNEL FATTY ACID

Soaps Detergents

Source: Palm Oil Registration and Licensing Authority, Malaysia

20

ANNEX 1c
C OC ON U T U TI L I Z A TI ON C H A RT
C OC O N U T

H U SK

COCO SH E LL

COCO M EAT

LE AV E S

Fa shion Ac c e ssorie s, House wa re s, a nd Giftwa re s

Fa shion Ac c e ssorie s, House wa re s, a nd Giftwa re s

Food a nd Food Pre pa ra tions

Fa shion Ac c e ssorie s, House wa re s, a nd Giftwa re s

DU ST

C O P RA M E AL Anim a l Fe e ds

OI L

Pla stic Ma te ria l Insofle x Insula tor Wa llboa rd Lye Coc o Ga s

Soa p La rd Coc o Che mic a ls Crude Oil Cooking Oil Ha ir Oil Butte r Ma rga rine Poma de

T RU N K / W O OD

PI TH

RO OT

GU I N I T

Me dic ine Lum be r, Ca rvings, a nd Furniture Compone nts Food De sse rts Be ve ra ge Dye Stuff

House wa re s a nd Giftwa re s

I N FLO RE S C E N C E

COCO W AT E R

Ha rd Drinks, Vine ga r, a nd De c ors

Vine ga r Na ta de Coc o Growth Fa c tor De xtrose Substitute

Source: Coconut Industry Yearbook, Philippine Coconut Authority, August 1988

21

ANNEX 1d
C O C O C H EM I C ALS P R O C ES S C H AR T

CRU DE COCON U T OI L

Fa t Sp litting
GLY C E RI N E W AT E R C R U D E FAT T Y AC I D

Pre tre a tm e nt

Distilla tion

FAT T Y AC I D C 8 -C 1 0

Eva pora tion Sa ponific a tion

GLY C ER I N E 8 8 %

FAT T Y AC I D C 1 2 -C 1 8

AC I D FLAK E S C1 2 , C1 4

Fra c tiona tion

SO AP B ASE

Distilla tion a nd Ble a c hing Hydroge na tion

Fla king

GLY C ER I N E 9 9 .7 % U S P

C R U D E FAT T Y ALC O H O L C 1 2 -C 1 8

FAT T Y AC I D C 1 2 , C 1 4 , C 1 6 -C 1 8

Hyd roge na tion Fra c tiona tion Distilla tion

S T E ARI C AC I D C 1 2 -C 1 8 FAT T Y ALC O H O L C 1 2 , C 1 2 -C 1 4 C1 6 , C1 8 D I S T I LLE D FAT T Y ALC O H O L C 1 2 -C 1 8

Fla king

Sulfa tion

ALC O H O L FLAK ES C 1 6 , C 1 8 , C 1 6 -C 1 8

C FAS

Source: CIIF Digest, Volume 1, No. 2, April 1994

22

ANNEX 2a

Major Producing Countries of Palm Kernels, 1985-1994 (000 tons)

COUNTRIES
Malaysia Indonesia Nigeria Brazil Zaire Papua New Guinea Thailand Colombia Cameroon Guinea China Sierra Leone Ghana Cote Divoire Ecuador Honduras Paraguay Costa Rica Philippines Angola Guatemala

1985
1,212 240 360 250 70 51 24 24 35 40 48 30 30 31 3 5 11 12 9 12 *

1986
1,336 284 355 250 70 54 28 25 35 40 49 30 30 38 3 6 15 11 4 12 1

1987
1,315 202 360 250 70 58 30 27 35 40 50 30 30 41 4 6 15 12 5 12 1

1988
1,473 396 270 202 74 43 35 39 50 40 30 32 30 36 20 7 17 13 14 12 7

1989
1,794 404 300 204 74 58 44 48 50 40 20 33 30 20 27 7 17 10 17 12 10

1990
1,845 425 330 229 74 57 50 55 50 40 20 33 30 37 31 7 17 13 18 12 10

1991
1,785 551 369 225 72 50 53 53 53 40 35 30 31 37 26 19 17 15 13 12 1

1992
1,874 625 385 240 72 57 51 56 53 40 36 35 34 41 30 20 17 15 15 14 10

1993
2,266 748 390 240 72 61 57 58 54 40 38 35 34 34 27 21 18 16 16 15 11

1994
2,204 830 380 240 72 66 62 60 54 40 37 35 34 32 29 21 18 17 16 15 11

WORLD 2,593 2,765 2,687 Note: * means less than 500 tons Source: Food and Agriculture Organization

2,904

3,286

3,468

3,574

3,806

4,338

4,353

23

ANNEX 2b

Major Producing Countries of Palm Oil, 1985-1994 (000 tons)

COUNTRIES
Malaysia Indonesia Nigeria Colombia Thailand Cote Divoire Papua New Guinea Zaire Ecuador China Cameroon Ghana Costa Rica Honduras Brazil Philippines Sierra Leone Angola Guinea Solomon Island Liberia Peru Venezuela Guatemala Congo Togo

1985
4,132 1,174 730 125 89 161 123 160 92 192 91 42 40 61 29 34 44 40 45 20 34 10 --4 15 14

1986
4,542 1,351 760 140 105 187 130 155 98 195 90 48 45 70 31 22 44 40 45 15 35 10 --7 16 14

1987
4,533 1,698 730 146 115 215 139 165 120 200 98 55 50 76 40 25 44 40 45 19 35 18 --8 16 14

1988
5,030 1,834 834 199 161 187 107 178 121 205 100 60 59 72 46 43 48 40 45 15 35 24 4 6 16 14

1989
6,057 1,942 857 224 199 167 146 178 135 210 102 78 50 71 53 51 48 40 47 22 35 30 6 8 16 14

1990
6,095 1,937 900 247 226 214 143 180 132 215 108 85 58 73 69 54 50 40 50 21 30 25 7 8 16 14

1991
6,141 2,658 900 291 234 228 180 180 161 140 130 90 76 80 70 54 51 40 40 23 25 23 9 10 16 14

1992
6,373 3,162 940 290 270 261 202 180 153 144 120 100 75 78 62 54 52 48 40 29 25 25 16 16 15 14

1993
7,403 3,421 965 315 310 256 214 181 166 150 120 108 84 74 68 55 54 50 40 26 25 25 24 18 15 14

1994
7,220 3,890 950 329 320 259 225 181 165 150 120 117 90 76 68 61 54 50 40 32 25 25 24 18 15 14

WORLD 7,585 8,277 8,727 Note: * means less than 500 tons Source: Food and Agriculture Organization

9,567

10,871

11,084

11,953

12,810

14,245

14,577

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ANNEX 3
Major World Importers of Palm Oil, 1985-1994 (Million US $)
COUNTRIES
China Pakistan Singapore Netherlands Germany United Kingdom Japan Egypt India Hong Kong Italy Korea Rep. Malaysia Turkey Saudi Arabia Iraq Philippines

1985
33 287 542 101 95 129 95 29 329 * 62 53 9 37 42 112 2

1986
74 230 246 79 97 88 65 22 248 8 45 57 8 30 27 86 1

1987
103 125 222 67 80 97 77 25 442 4 40 58 26 16 27 108 1

1988
207 182 301 84 112 105 112 27 465 5 53 70 49 22 24 136 2

1989
327 206 317 98 131 121 105 115 200 15 53 64 13 57 6 133 3

1990
418 194 270 110 147 106 93 135 154 12 59 63 6 59 17 104 2

1991
390 231 333 105 --122 123 140 87 11 69 76 83 79 28 90 2

1992
258 321 371 145 181 122 144 146 100 6 80 83 59 60 90 22 11

1993
357 458 339 146 169 154 162 190 27 17 76 81 89 89 94 95 1

1994
730 406 239 210 196 195 190 177 152 107 101 98 97 97 93 93 9

WORLD 2,758 2,057 2,115 Note: --- means no data available * means less than 0.5 million US $ Source: Food and Agriculture Organization

2,807

2,899

2,731

3,145

3,383

3,823

4,627

Major World Importers of Palm Oil, 1985-1994 (000 tons)

COUNTRIES
China Pakistan Singapore Netherlands Germany United Kingdom Japan Egypt India Hong Kong Italy Korea Rep. Malaysia Turkey Saudi Arabia Iraq Philippines

1985
68 458 1,080 175 154 211 161 39 658 * 98 107 17 65 72 175 3

1986
214 576 817 254 259 275 196 45 876 24 97 183 36 86 131 227 3

1987
274 438 583 217 221 289 212 40 1,154 9 108 171 91 42 77 240 2

1988
433 458 621 205 230 238 238 121 931 10 116 155 123 46 52 241 4

1989
767 475 706 252 281 305 259 217 500 36 119 164 41 150 12 257 8

1990
1,199 597 838 355 368 286 276 329 487 32 142 216 26 182 54 223 5

1991
1,084 688 719 316 --364 320 307 250 24 164 215 281 208 50 163 5

1992
642 886 720 372 409 324 323 339 207 12 179 206 167 146 160 36 27

1993
881 939 568 374 361 420 356 460 73 36 172 194 252 216 174 157 3

1994
1,535 979 421 468 402 424 349 387 258 198 199 201 219 201 156 150 16

WORLD 4,861 5,970 5,757 Source: Food and Agriculture Organization Note: * means less than 500 tons

5,882

6,763

7,673

7,991

7,859

8,493

9,539

25

ANNEX 4
Major World Exporters of Palm Oil, 1985-1994 (Million US $)
COUNTRIES
Malaysia Indonesia China Singapore Netherlands Hong Kong Cote Divoire Papua New Guinea Cameroon Germany Italy Costa Rica Bel-Lux United Kingdom Solomon Island Denmark Philippines

1985
1,591 237 --554 71 * 37 60 1 21 1 * 9 2 8 6 1

1986
1,167 140 --307 64 8 30 30 5 19 3 --9 2 3 5 1

1987
1,301 185 * 208 56 2 33 26 9 14 2 --7 2 3 5 3

1988
1,788 337 --237 59 3 32 40 10 11 7 4 11 4 6 6 *

1989
1,727 285 5 301 66 13 33 44 12 10 8 2 13 3 8 5 ---

1990
1,626 278 28 244 75 12 65 28 11 11 11 9 13 5 7 8 1

1991
1,799 407 33 245 76 13 60 40 7 --14 5 11 4 6 10 1

1992
2,126 429 19 258 79 8 62 59 20 14 20 8 16 4 11 9 ---

1993
2,243 586 66 199 97 21 70 78 11 18 23 12 14 10 11 8 ---

1994
3,279 908 236 173 117 112 77 62 30 27 24 17 16 14 14 13 ---

WORLD 2,641 1,811 1,890 Note: --- means no data available * means less than 0.5 million US $ Source: Food and Agriculture Organization

2,590

2,569

2,460

2,791

3,192

3,528

5,201

Major World Exporters of Palm Oil, 1985-1994 (000 tons)

COUNTRIES
Malaysia Indonesia China Singapore Netherlands Hong Kong Cote Divoire Papua New Guinea Cameroon Germany Italy Costa Rica Bel-Lux United Kingdom Solomon Island Denmark Philippines

1985
3,215 652 --929 85 * 56 123 7 29 2 * 13 2 19 7 2

1986
4,304 684 --730 101 23 105 129 18 36 4 --14 4 14 8 10

1987
4,075 699 * 508 90 6 110 97 27 28 3 --13 7 12 8 9

1988
4,342 886 --468 85 6 81 97 24 17 6 9 18 5 14 8 *

1989
4,950 913 11 660 105 28 76 132 30 17 7 4 23 4 14 7 ---

1990
5,655 1,097 74 625 122 29 156 116 26 20 9 17 23 4 24 11 3

1991
5,450 1,436 88 533 134 29 140 140 17 --12 10 23 4 22 14 2

1992
5,537 1,271 49 511 127 16 143 178 25 22 17 19 26 6 31 12 ---

1993
5,839 1,703 147 379 178 46 170 243 13 29 21 31 23 12 31 12 ---

1994
6,933 2,116 376 275 181 222 165 195 36 39 24 37 22 15 34 14 ---

WORLD 5,226 6,245 5,781 Note: --- means no data available * means less than 500 tons Source: Food and Agriculture Organization

6,152

7,057

8,083

8,227

8,106

9,029

10,823

26

ANNEX 5
Major World Importers of Palm Kernel Oil, 1985-1994 (Million US $)
COUNTRIES
United States Germany FR Netherlands Japan United Kingdom Brazil China South Africa Bel-Lux Turkey France Spain Denmark Canada Italy Singapore Philippines

1985
91 65 69 10 43 --1 2 4 * 14 9 12 7 14 11 1

1986
63 26 35 5 26 3 1 13 4 1 8 5 7 3 5 9 ---

1987
73 35 39 14 29 1 3 20 2 1 9 8 10 5 6 8 ---

1988
112 63 51 20 28 --12 26 2 2 14 10 11 11 13 15 *

1989
85 95 53 21 30 4 8 13 5 7 9 3 11 7 18 11 ---

1990
66 66 43 14 33 1 6 11 5 9 10 2 6 6 17 13 *

1991
65 --24 12 34 11 8 9 5 8 7 2 6 7 13 17 1

1992
113 79 59 28 33 10 16 15 7 13 11 10 10 10 16 21 *

1993
73 75 41 26 28 15 11 14 10 16 13 9 8 10 12 20 *

1994
94 93 54 34 30 21 19 18 18 16 15 15 12 11 11 11 *

WORLD 410 252 304 Note: --- means no data available * means less than 0.5 million US $ Source: Food and Agriculture Organization

449

451

384

352

517

430

534

Major World Importers of Palm Kernel Oil, 1985-1994 (000 tons)

COUNTRIES
United States Germany FR Netherlands Japan United Kingdom Brazil China South Africa Bel-Lux Turkey France Spain Denmark Canada Italy Singapore Philippines

1985
128 87 108 14 62 --1 20 6 * 19 13 19 11 18 21 1

1986
170 73 100 17 74 5 5 35 10 1 21 16 20 11 12 34 ---

1987
184 84 100 32 67 1 5 34 4 2 21 19 22 12 13 22 ---

1988
212 120 99 35 53 --16 37 4 4 26 17 21 22 18 26 *

1989
153 182 105 42 57 6 15 26 9 12 16 18 20 14 23 15 ---

1990
154 150 105 37 72 2 15 29 11 20 23 18 14 16 22 15 *

1991
149 --72 29 88 25 20 24 11 17 17 20 13 17 15 29 1

1992
183 132 99 43 54 15 36 27 12 19 17 16 16 16 15 24 1

1993
129 156 78 51 54 32 25 31 21 29 25 19 15 22 14 28 *

1994
150 154 80 51 51 35 33 30 34 25 25 25 18 18 18 17 *

WORLD 591 700 710 Note: * means less than 500 tons Source: Food and Agriculture Organization

799

816

840

823

826

823

865

27

ANNEX 6
Major World Exporters of Palm Kernel Oil, 1985-1994 (Million US $)
COUNTRIES
Malaysia Indonesia Netherlands Nigeria Papua New Guinea Cote Divoire Paraguay Singapore United States Benin Bel-Lux United Kingdom Hong Kong Germany FR Zaire Costa Rica Philippines

1985
216 49 19 4 --8 2 11 --2 1 2 * 2 8 -----

1986
126 10 10 3 --4 2 5 --2 1 2 * 1 4 -----

1987
190 33 11 1 1 6 2 6 --1 1 3 1 1 3 -----

1988
260 58 22 4 2 7 3 9 --3 * 4 3 1 5 --*

1989
279 48 17 * 3 3 3 7 3 1 2 2 1 2 2 --*

1990
194 44 11 * 3 5 2 6 1 1 3 2 1 2 1 --*

1991
181 43 12 * 6 5 3 7 1 1 2 2 * --* --*

1992
256 110 13 12 4 12 2 5 1 1 2 2 * 4 1 -----

1993
247 110 11 1 6 6 2 5 3 1 3 1 * 2 1 * ---

1994
295 178 14 12 11 8 3 2 2 2 2 1 1 1 1 1 ---

WORLD 338 175 265 Note: --- means no data available * means less than 0.5 million US $ Source: Food and Agriculture Organization

390

380

279

266

430

402

535

Major World Exporters of Palm Kernel Oil, 1985-1994 (000 tons)

COUNTRIES
Malaysia Indonesia Netherlands Nigeria Papua New Guinea Cote Divoire Paraguay Singapore United States Benin Bel-Lux United Kingdom Hong Kong Germany FR Zaire Costa Rica Philippines

1985
430 98 22 4 --12 3 14 --4 5 2 * 3 19 -----

1986
529 42 19 8 --17 8 10 --8 4 3 * 1 13 -----

1987
505 87 21 2 3 17 4 9 --5 7 5 1 1 7 -----

1988
536 122 37 9 4 17 7 12 --6 6 6 3 2 10 --*

1989
634 135 29 1 7 7 5 11 4 2 4 3 1 3 5 --*

1990
631 158 19 * 6 13 8 10 1 3 4 3 1 3 4 --*

1991
583 136 22 * 14 15 4 14 1 2 3 2 * --1 --*

1992
452 223 18 21 8 23 3 8 1 3 2 3 1 5 3 -----

1993
555 275 18 2 13 14 3 9 5 2 6 2 * 5 3 1 ---

1994
470 341 21 21 22 15 4 3 2 4 2 1 1 1 1 2 ---

WORLD 632 669 681 Note: * means less than 500 tons Source: Food and Agriculture Organization

784

859

874

805

779

917

917

28

ANNEX 7

Palm Oil Production, Philippines, 1984-1994 (000 tons)

YEAR PALM KERNEL PALM KERNEL OIL 4.5 4.0 4.3 4.4 4.4 4.9 5.4 6.3 6.4 6.5 7.3 CRUDE PALM OIL 34.0 34.0 37.8 39.0 40.0 41.5 46.0 54.0 54.0 55.0 61.0

1984 5.7 1985 5.1 1986 5.4 1987 5.6 1988 5.6 1989 6.3 1990 6.9 1991 8.0 1992 8.1 1993 8.3 1994 9.2 Source: Oil World Various Issues

29

ANNEX 8

Potential Areas for Oil Palm Planting in Mindanao

REGION / PROVINCE HECTARAGE Region IX (Western Mindanao) Zamboanga del Norte 7,530 Zamboanga del Sur 31,430 Region X (Northern Mindanao) Agusan del Norte 10,370 Agusan del Sur 7,490 Bukidnon 65,090 Misamis Occidental 10,370 Misamis Oriental 1,440 Surigao del Norte 31,360 Region XI (Southern Mindanao) Davao del Norte 2,070 Davao Oriental 6,220 South Cotabato 17,000 Surigao del Sur 93,790 Region XII (Central Mindanao) Cotabato 1,180 Lanao del Norte 830 Sultan Kudarat 5,630 ARMM Lanao del Sur 3,280 Maguindanao 9,270 TOTAL 304,350 Source: Southern Philippines Development Authority

30

ANNEX 9

Palm Oil Trade, Philippines, 1985-1995

IMPORT Volume Value (Tons) (000 US$ CIF) 1985 2,668 1,601 1986 2,989 1,147 1987 2,307 915 1988 3,781 1,562 1989 8,087 2,995 1990 4,807 1,789 1991 404 198 1992 27,211 11,271 1993 2,840 1,192 1994 16,338 8,614 1995 3,230 3,163 Note: * means less than 1 ton/ US$1,000 --- no data available Source: National Statistics Office YEAR EXPORT Volume (Tons) 2,000 10,012 9,061 15 --3,000 400 ----* --Value (000 US$ FOB) 992 1,236 2,546 27 --746 96 ----* --TRADE BALANCE (000 US$) -609 89 1,631 -1,535 -2,995 -1,043 -102 -11,271 -1,192 -8,614 -3,163

31

ANNEX 10

Palm Kernel Oil Trade, Philippines, 1985-1995

IMPORT Volume Value (Tons) (000 US$ CIF) 1985 1,009 914 1986 ----1987 ----1988 12 11 1989 ----1990 17 18 1991 ----1992 633 230 1993 2 4 1994 34 81 1995 1 4 Note: --- no data available Source: National Statistics Office YEAR EXPORT Volume (Tons) ------102 150 30 300 --------Value (000 US$ FOB) ------58 118 10 59 --------TRADE BALANCE (000 US$) -914 0 0 47 118 -8 59 -230 -4 -81 -4

32

ANNEX 11a

Philippine Palm Oil Export by Type, 1985-1995

PALM OIL REFINED
VOLUME VALUE ('000 $ FOB)

PALM KERNEL OIL CRUDE REFINED

VALUE ('000 $ FOB) VOLUME (tons) VALUE ('000 $ FOB) (tons)

CRUDE
VOLUME VALUE ('000 $ FOB)

TOTAL
VOLUME (tons) VALUE ('000 $ FOB)

VOLUME (tons)

YEAR 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

(tons)

5 12 11 15 0 * 400 0 0 * 0

9 22 20 27 0 * 96 0 0 * 0

1,995 10,000 9,050 0 0 3,000 0 0 0 0 0

983 1,214 2,526 0 0 746 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

0 0 0 102 150 30 300 0 0 0 0

0 0 0 58 118 10 59 0 0 0 0

2,000 10,012 9,061 117 150 3,030 700 0 0 * 0

992 1,236 2,546 85 118 756 155 0 0 * 0

Note: * means less than 1 ton or US$1,000 0 means no data available From 1985 to 1990 NSO used the following codes: 424-2100 (Palm Oil, Crude); 424-2200 (Palm Oil, Refined); 424-4100 (Palm Kernel Oil, Crude) and and 424-4200 (Palm Kernel Oil, Refined). While from 1991 to 1995 there are only two types, namely: 422-2900 (Palm Oil Refined & its fractions) and 422-4900 (Palm Kernel/ Babassu Oil, Refined & its fractions) Source: National Statistics Office

33

ANNEX 11b

Philippine Palm Oil Export Volume by Country of Destination, 1985-1995

PRODUCT / COUNTRY OF DESTINATION PALM OIL, REFINED & ITS FRACTIONS (422-2900) Taiwan Malaysia China TOTAL PALM OIL, CRUDE (424-2100) Netherlands Italy Indonesia TOTAL 1,99 5 1,99 5 1985 1986 1987 1988 VOLUME (tons) 1989 1990 1991 1992 1993 1994 1995

* 5 5 12 12 11 11 15 15 * * *

7,00 0 500 2,50 0

10,000

2,00 0

3,00 0

7,05 0 9,05 0

3,00 0

PALM KERNEL, REFINED & ITS FRACTIONS (422-4900) Indonesia TOTAL PALM KERNEL, CRUDE (424-4100) Taiwan Pakistan TOTAL Note: * means less than 1 ton blank space means no data available Source: National Statistics Office

330 330

85 85

102 102 150 150

30 30

34

ANNEX 11c

Philippine Palm Oil Export Value by Country of Destination, 1985-1995

PRODUCT / COUNTRY OF DESTINATION PALM OIL, REFINED & ITS FRACTIONS (422-2900) Taiwan Malaysia China TOTAL PALM OIL, CRUDE (424-2100) Netherlands Italy Indonesia TOTAL 1985 1986 1987 1988 VALUE (000 US$ FOB) 1989 1990 1991 1992 1993 1994 1995

* 9 9 22 22 20 20 27 27 * * *

983

664 158 393 1,21 5

555 1,97 1 2,52 6

746

983

746

PALM KERNEL, REFINED & ITS FRACTIONS (422-4900) Indonesia TOTAL PALM KERNEL, CRUDE (424-4100) Taiwan Pakistan TOTAL Note: * means less than US$1,000 blank space means no data available Source: National Statistics Office

62 62

20 20

58 58 118 118

10 10

35

ANNEX 12a
Philippine Palm Oil Import by Type, 1985-1995
PALM OIL REFINED
VOLUME VALUE ('000 $ CIF)

PALM KERNEL OIL CRUDE REFINED

VALUE ('000 $ CIF) VOLUME (tons) VALUE ('000 $ CIF) (tons)

CRUDE
VOLUME VALUE ('000 $ CIF)

TOTAL
VOLUME (tons) VALUE ('000 $ CIF)

VOLUME (tons)

YEAR 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

(tons)

2,172 2,989 2,307 3,781 8,087 4,807 404 27,211 2,840 16,338 3,230

1,372 1,147 915 1,562 2,995 1,789 198 11,271 1,192 8,614 3,163

496 0 0 0 0 0 0 0 0 0 0

229 0 0 0 0 0 0 0 0 0 0

0 0 0 12 0 17 0 633 2 0 0

0 0 0 11 0 18 0 230 4 0 0

1,009 0 0 0 0 0 0 0 0 34 1

914 0 0 0 0 0 0 0 0 81 4

3,677 2,989 2,307 3,793 8,087 4,824 404 27,844 2,842 16,372 3,231

2,515 1,147 915 1,573 2,995 1,807 198 11,501 1,196 8,695 3,167

Note: 0 means no data available From 1985 to 1990 NSO used the following codes: 424-2100 (Palm Oil, Crude); 424-2200 (Palm Oil, Refined); 424-4100 (Palm Kernel Oil, Crude) and and 424-4200 (Palm Kernel Oil, Refined). While from 1991 to 1995 there are only two types, namely: 422-2900 (Palm Oil Refined & its fractions) and 422-4900 (Palm Kernel/Babassu Oil, Refined & its fractions) Source: National Statistics Office

36

ANNEX 12b

Philippine Palm Oil Import Volume by Country of Origin, 1985-1995

PRODUCT / COUNTRY OF DESTINATION PALM OIL, REFINED & ITS FRACTIONS (422-2900) Malaysia Singapore Indonesia Hong Kong Netherlands United States Vietnam Taiwan Japan TOTAL 1985 1986 1987 1988 VOLUME (tons) 1989 1990 1991 1992 1993 1994 1995

1,62 6 545

1,37 7 1,57 3

1,80 5 502

3,57 1 205

6,46 4 1,62 0

3,10 3 1,40 8

109 284

25,627

346 1,22 5

2,52 6 305

13,362

2,490 739

1,47 8

1 38 * * 3 1 2 4 10 13 8 * 1,49 8

1 2,17 1 2,98 8 2,30 7 3,78 0 8,08 7 292 4,80 7 403

27,211

2,84 0

16,338

3,230

PALM OIL, CRUDE (424-2100) Malaysia TOTAL PALM KERNEL, REFINED & ITS FRACTIONS (422-4900) Hong Kong Malaysia Singapore Indonesia United States TOTAL PALM KERNEL OIL, CRUDE (424-4100) Malyasia TOTAL

496 496

12

17

13 20 600 1 634

6 * 14 14 34

12

17

1 2

* 1

1,00 9 1,00 9

Note: * means less than 1 ton blank space means no data available Source: National Statistics Office

37

ANNEX 12c
Philippine Palm Oil Import Value by Country of Origin, 1985-1995
PRODUCT / COUNTRY OF DESTINATION PALM OIL, REFINED & ITS FRACTIONS (422-2900) Malaysia Singapore Indonesia Hong Kong Netherlands United States Vietnam Taiwan Japan TOTAL 1985 1986 1987 1988 VALUE (000 US$ CIF) 1989 1990 1991 1992 1993 1994 1995

1,00 7 365

489 628

684 231

1,46 6 87

2,27 0 714

1,05 8 596

48 128

10,361

316 543

1,01 0 152 3

7,33 2 991

2,59 8 566

30 1

8 *

3 9

17

21

51

28

1 291

1,37 2

1,14 8

915

1,56 1

2,99 6

118 1,78 9

197

11,271

1,19 3

8,61 4

3,16 3

PALM OIL, CRUDE (424-2100) Malaysia TOTAL PALM KERNEL, REFINED & ITS FRACTIONS (422-4900) Hong Kong Malaysia Singapore Indonesia United States TOTAL

229 229

11

18

17 23 189 1 230

8 * 18 55 81

11

18

3 4

2 4

PALM KERNEL OIL, CRUDE (424-4100) Malyasia 914 TOTAL 914 Note: * means less than US$1,000 blank space means no data available Source: National Statistics Office

38

ANNEX 13

Most Favored Nation Rates (in % ad valorem)

PRODUCTS Oilseeds Copra 70 Soybeans 10 Palm kernel 70 Seedoils CNO 50 SBO (crude) 50 PKO 50 Palm oil 30 Oilmeals Copra meals 100 Soybean meals 10 Palm kernel meals 100 Source: Coconut Statistics 1993 PD 34 1972 PD 1464 1978 10 10 20 40 40 40 40 50 10 50 EO 413 1990 20 10 30 30 30 30 30 30 3 30 EO 470 1991 50 3 50 50 20 50 50 50 10 50

39

ANNEX 14

Palm Oil World Prices in Current Dollars YEAR US$ / ton YEAR

US$ / ton

1970 260 1983 501 1971 261 1984 729 1972 217 1985 501 1973 378 1986 257 1974 669 1987 343 1975 434 1988 437 1976 407 1989 350 1977 530 1990 290 1978 600 1991 339 1979 654 1992 394 1980 584 1993 378 1981 571 1994 528 1982 445 1995 628 Sources: Market Outlook for Major Primary Commodities, October 1992 and Commodity Markets and the Developing Countries, may 1996 Reference Price --- Palm Oil (Malaysian), 5% bulk, c.i.f. North West Europe

40

ANNEX 15

ACKNOWLEDGMENT

The following provided comments to the first draft of the report: 1. Onofre Grio, President, Menzi Agricultural Corporation 2. Hector Quesada, Chairman, Filipinas Palmoil Industries, Inc. 3. Technical Staff, Congressional Commission on Agricultural Modernization

41

42