Coconut exports deemed priority over biofuel

COCONUT product exports and domestic demand must take precedence before the government raises the coco-methyl ester (CME) content of biodiesel by 1 percentage point, Axelum Resources Corp. said.

- By Kyle Aristophere T. Atienza Reporter

“The proposed deferral (of the hike in the CME content of biodiesel) will certainly ease the current supply constraints, allow the industry to catch up with rising global demand, and normalize supply and stabilize prices sooner than later,” Axelum Vice-President and Investor Relations Officer Paul C. Cheah told Business World.

The Philippine Coconut Authority (PCA) has said that the National Biofuels Board (NBB) is considering the suspension of the increase in CME content of biodiesel scheduled for October.

PCA Laboratory Services Division Chief Celia M. Raquepo last week said the Board is considering the “inflationary” impact of the scheduled increase in CME blend to 4%, citing high copra prices.

She described the supply of coconuts as sufficient, though price of copra is increasing, she noted. “So, the CME price will also increase.”

As of June 3, copra prices rose to about P80 per kilo, more than quadruple the price from a year earlier.