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Lauric oilsCoconut, palm kernel focus of Manila Conference

~

at can you do with lauricoils and their downstreamderivatives?

Vou can eat them. Vou can power adiesel truck with them. You can laun-der clothes with them. You can utilizethem as chemical intennediaries for ahost of purposes.

In fact. you can do just about any-thing you want with them, judgingfrom the speakers and exhibitors at theWorld Conference and Exhibition onLauric Oils that attracted more than500 participants from 31 nations toManila in The Philippines during thethird week of February.

Lauric oils are important enough inthe tropical nations where such oilsare produced that Philippines Presi-den! Fidel V. Ramos invited the 380+technical registrants at the conference

information on lauric oils. the indus-try's future may lie in me answers toseveral questions:

• How fast are consumer markets inSoutheast Asia going to grow? Ifgrowth continues to rise worldwidefor fatty alcbol-based surrectenrs,there will be a need each year for anew 4O,000-ton fatty alcohol facility.Leonard said. On the Saturday beforethe Manila conference. several of theattendees had been invited to theopening of the Salim Group's new6O.000-metric-ton fatty alcohol planton the Indonesian island of Batam.just off Singapore.

• If lauric-bearing rapeseed andcuphea are commercialized. whateffect will thai have on lauric oil con-sumption? What effect will it have onthe economies of lauric oil-producing

to the presidential palace for a briefaddress (see related story).

Coconut oil and palm kernel oil arethe world's dominant commercialsources of lauric oils, and althoughthose oils comprise approximately10% of total world vegetable oilexports, they are unique in their rela-tively short-chain fatty acid compo-nents thai make them the most eco-nomical starting materials for certainindustrial chemicals and specializedfood products.

At the closing session. generalchairperson E. Charles Leonard notedPresident Ramos was the first head-of-state to personally address anAOCS world conference since theworld conference series began in1986. Leonard said although the con-ference had provided a great deal of

INFORM. Vol. 5. no. 5 (May 1994)

571

nations such as The Philippines.Indonesia and Malaysia?

• U.S. coconut oil consumption inedible products declined from 319million pounds in 198610 161 millionpounds in 1990 and rebounded to 202million pounds in 1993. "The healthand nutrition papers presented at thisconference tend to disann the healthquestions on lauric oils," Leonardsaid. "The question is whether lauricoils edible consumption will rise inthe United States back to the levelsachieved before the health scare."

• How much petroleum-based sur-factants will be replaced by products.such as a-sulfa methyl esters. fromlauric oils?

• The real growth of lauric oilprices has not exceeded that ofpetroleum prices during the past twodecades, Leonard noted. What will bethe trend for the next len years?

TOIa! official conference atten-dance was 502 persons, which includ-ed technical registrants, persons work-ing in the 25 exhibits set up in theWestin Philippines Plaza Hotel, newsmedia representatives. accompanyingspouses and others.

Conference highlights in addition tothe presidential visit included planttours (to the largest oleochemical plantin The Philippines and to a desiccatedcoconut facility), a gala ASEANevening with typical foods of SoutheastAsia. and several private receptions.including one at the "Coconut Palace."a luxurious house constructed primari-ly of materials from the coconut tree.Major sponsors for the ASEAN GalaEvening were the Philippine CoconutOil Producers Association, the UnitedCoconut Planters Bank. and Stolt-Nielsen Philippines Inc. Other sponsorsincluded the Development Bank of ThePhilippines, Equitable Banking Corpo-ration, Philippine Commercial Interna-tional Bank. Association of PhilippineCoconut Desiccators, Procter & Gam-ble Philippines and the Land Bank ofThe Philippines.

Exhibitors at the conferenceincluded oleochemical manufacturers,industry suppliers as well as sometechnical and governmental organiza-tions. Some of the commercialexhibitors had been active in thecoconut and palm kernel oil process-

ing areas for some time; others wereusing the conference to sound out thepotential for future business.

Opening ceremoniesThe Philippines Secretary of Agricul-ture Roberto Sebastian opened theconference with a welcome to all par-ticipants.

There are 2.5 million metric tons oflauric oils produced annually in ThePhilippines, Malaysia and Indonesia.with The Philippines accounting forabout one million tons, Sebastian said.

"Twenty million Filipinos findemployment-directly or indirect-ly-from the coconut industry," hesaid. "That's about one-third of our 60million population."

Sebastian noted, however. that ThePhilippines expects increasing rivalryin world markets.

"As world needs and marketschange, our producers know they mustchange to meet the competition," hesaid.

Sebastian led conference digni-taries through the exhibit area beforethe opening ceremonies. Included inthat group were two conferencepatrons, Maria Clara Lohregat, amember of The Philippines House ofRepresentatives and chairperson ofthe Philippine Coconut Federation,and Johannes Korjo, senior executivedirector of the Salim Group, a majorlauric oils producer in Indonesia. Thethird patron, Raja Tan Sri DatukMuhammad Alias, group chairpersonfor the Malaysian Federal LandDevelopment Authority (FELDA).could not attend because of last-minute conflicts. Also attending wereSantanina Rasut. chairperson of ThePhilippines Senate Agricultural Com-mluee. and Ambassador EmmanuelPelaez. Pelaez, former vice presidentof The Philippines (1960-1964) anda former ambassador to the UnitedStates, who has been a longtimechampion of the coconut industry inThe Philippines.

Cielto Habuo. who is a member ofthe Ramos cabinet as Secretary ofNational Economic Planning. told theconference that "Recent developmentsin the international scenario. the con-clusion of the Uruguay Round [ofnegotiations under the General Agree-

ment on Tariffs and Trade (GATf)].and the increasing demand for lauricoils due to developments in the oleo-chemical industry pose brightprospects for the lauric oils market.

"The Philippines and the rest ofASEAN (Association of Southeast

INFORM. Vol. 5. no. 5 (May 1994)

572

Spukers check lectern setupduring pre.m .. tIng bOeIng.

Asian Nations) stand to benefit fromthis inasmuch as the region is con-sidered the major player in the lauricoils industry and. realizing thesepotentials and the ASEAN's signifi-cant role in the industry. the call foreconomic and technical cooperationis crucial for the region to maintainits leadership in the lauric oils mar-ket."

European reductions in oilseedacreage agreed to as pari of theGATT negotiations should "allowthe ASEAN region to enhance its

market for lauric oils in Europe:'Habito said.

If an ASEAN Free Trade Area(AFTA) can be achieved, it wouldprovide easier access to wider marketsnOI only within the AFTA area, bUIalso internationally. he said.

Although Philippine coconut oilexports have declined in recentyears. Habito said this reflectsincreasing production of othercoconut products for expon-coleo-chemicals, desiccated coconut.coconut milk and even green

coconuts. It may also reflect pro-grams to replace aging trees withimproved or better-suited varieties,which will require several years toreach maturity.

Conference sessions included Mar-keting and Economics of Lauric Oils,Sources of Lauric Oils (Traditionaland Nontraditional), Processing ofLauric Oils. and Applications of Lau-ric Oils (Food and Nonfood).Abstracts for presentations were pub-lished in the February 1994 issue ofINFORM.

RegiItI ... IS...-ct foocb: from ~ nteep-tion butte!: In .xposIIIon ....

INFORM. Vol. 5. no. 5 (May 1994)

574

Thefollowing is the text of the speechof Fidel V. Ramos. president of theRepublic of The Philippines.presented to the technical registrantsof the World Conference on LauricOils in Ceremonial Hall. MalacaiiangPalace. Manila. on February 21.1994.

Climbing highwith coconuts

On behalf of OUT people and govern-ment, I welcome you all to Mala-caaang, to Manila. and to The Philip-pines. I thank you for choosing ournational capital as the site for thismost important world conference onlauric oils.

Besides affording me the chanceto show you this palace of our peo-ple, this gives us the opportunity toexchange ideas with you on this firstday of your wide-ranging confer-ence. Your agenda is central to thefuture of lauric oils in the worldeconomy.

II is your task to lay the founda-tions for stability and growth of thisglobal industry we share in common.In your conference. you must addressthe problems we face separately andtogether, particularly on how toexploit the opportunities now openingup to our industry as the world comesout of recessions and into a more lib-eralized trading and investment envi-ronment.

In the case of The PhiJippines. ourcentral contribution to the lauric oilindustry is coconut oil. of which weare the biggest producer and exporterin the world.

The coconut industry is a majorpillar of our national economy. It isthe largest net dollar earner for ourcountry. Eleven of our 15 regions arecoconut-producing areas. And some20 million of our people-nearly athird of our population-are directlyor indirectly dependent on the coconutindustry for a living.

Thus we attach great importance toour current program to revitalize andmodernize the coconut industry andincrease its productivity and produc-tion. It is in the light of this preemi-nence of the coconut in our people'slivelihood and in the national econo-my that Ihave assigned a top team ofcabinet officials and coco experts todialogue. exchange views, and learnfrom our foreign friends during yourbrief stay in TIle Philippines. Iam cer-tain that all of these will result inmeaningful and profitable contribu-tions to each other and the entire lau-ric oil industry as a whole.

I am told that there are concernswithin your community about the CUI-

ung of coconut trees and the decliningcoconut production in The Philippines.Allow me to correct this misimpres-sion. What is really happening is that

we are cutting down senile trees thatare no longer useful and productive.But as we cut down. we also replantthe areas with new trees. and we arefertilizing existing fruit-bearing trees.

AU these fonn part of our revitaliza-lion program for the coconut industry.These measures are designed not only10 maintain our coconut production,but also to enhance and increase pro-ductivity. Our target is to increase pro-duction by 3 to 3.5 million Ions a yearup to the year 2000, using financialsupport from the World Bank and otherfinancial and technological sources.

Like other countries engaged in theproduction of lauric oils. we in ThePhilippines continue in search for newideas-especially those that canimprove efficiency. productivity. uti-lization and quality.

We assure both users and suppliersof lauric oils that free enterprise andintensive research are at the forefrontof our coconut industry- thus open-ing a brighter promise of the future.We will pursue our program to estab-lish a central research agency for thecoconut industry similar to the

INfORM. Vol. 5. 00. 5 (May 1994)

(con/inur:d Q/I pagr: 576)

576

[continued from page 574) ASEAN region is the biggest supplierof lauric oils in the world market. ThePhilippines is well represented inASEAN organizations concerned withthe industry. Mr. Rodolfo Jimenez iscurrently the chairman of the AscanOleochemical Manufacturers Group(AOMG), and Mr. Jesus Arranza.chairman of the United Coconut Asso-ciation of The Philippines (UCAP).chairs the Asean Vegetable OilsGroup (AVOG).

We are also active in the develop-ment of the Asia-Pacific CoconutCommunity.

I wish to add thai in the fonnarion ofthese ASEAN organizations is a plannot to cartelize, but 10 make our regiona more reliable supplier of lauric oil.

Asia-Pacific neighbors are now show-ing in The Philippines.

Japan remains OUf largestinvestor, but the United Stares.China, South Korea, Indonesia,Malaysia, Taiwan, Thailand,Australia, Hong Kong and Singaporealso have made new commitments toexpand, invest in and conduct agreater volume of business in ouragricultural and industrial growthcenters. Foreign investment andother cooperative arrangementsencompassing Mindanao, EastMalaysia, Eastern Indonesia, andBrunei Darussalam have made possi-ble an east ASEAN growth area(EAGA) now rapidly becoming areality. Lest we forget-the EAGA isfull of all kinds of palm trees. espe-cially coconuts.

PORIM (Palm Oil Research Instituteof Malaysia) in Malaysia for palm oil.We are gearing the industry towarddownstream products, which canserve as the main engines to propelthe coconut sector more progressivelyinto the twenty-first century.

In this modernization and revital-ization effort. we welcome the panici-pation of foreign investors. Today wecan truly claim that we have one ofthe best and most hospitable environ-ments for foreign investments in theworld. And this is borne out not onlyby new investors coming in but alsoby old-time investors who are stayingput and expanding because they areprofiting from doing business in ourcountry.

We treasure the importance ofcoordinating and cooperating with ourpartners in ASEAN in this effort. The

The confidence of our Asia-Pacificneighbors

The Philippines is on the road backto sustained progress. We recently

cited in our1993 Repon onEconomic Per-formance theindicators thattell us this isso: in terms ofa growing GNPtrend. reducedinflation andinterest rates. astable Philip-pines peso,more moderntelecommuni-cations.increased for-eign anddomestic in-vestments, a25% growth intourism. andthe best per-forming stockexchange inAsia.

Of theseindicators,there is one ofwhich I amparticularlyproud. Andthat is therenewed confi-dence our

The coconut industry and'Philippines 2000!'One vision, one idea, governs ourefforts in the coconut industry andin other sectors of our economy. Weseek to link up speedily with theworld economy, because in thatcourse lies the real hope for ourdevelopment. As we strive to com-pete economically, so must wecooperate and collaborate with oth-ers. There is room for aIJ to devel-op.

Our peoples' shared vision, called"Philippines 2000!", is anchored onthe medium-term development planof my administration for the mod-ernization of our country. Theenhancement of our coconut indus-try constitutes a major goal of"Philippines 2000!" Because itinvolves so many people and coversa large part of our country, ourcoconut industry has become animportant vehicle for ensuring theempowerment of our people and thedemocratic sharing of the benefits ofprogress. No one will be left behindas this industry grows.

Ladies and gentlemen, I bid youagain the warmest of welcomes toManila. May you have a most mean-ingful and productive conference, andmay this visit be only one of yourmany visits 10 The Philippines in thefuture.

Thank you and good day.

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INFORM. Vol. 5. no. 5 (May 1994)

577

AdeI V. Ramos (fourthfrom lett), p.... ldent of ThePhilippines, spent morethan an hour discussingtechnical and economicfactors In the coconutindustry with amfenJncedelegates. Seated at thehe&td table In the MusicRoom of the Melac8nangPalace are (from lett)AOCS executlv1t DirectorJames C. Lyon;Conference Local enalr-person Alfredo (Jun)ynIgUeZ; Conference Gen-eral Chairperson E.Char1es Leonard; Ramos;Ambassador EmmenualPelaez; and Secretary ofAgriculture RobertoSebestJan. ThePhilippines'~I_lis on the wallbehindPresident ~mos.

Ramos: coconut sector to be revitalizedthat would require surfactants indomestically produced detergents tobe based 100% on fatty alcoholsderived from coconut oil, an increasefrom the present 60% content require-ment.

J.L. Chua, chairperson of the Unit-ed Coconut Association of The Philip-pines, said thai identifying economicuses for additional co-products of thecoconut tree can increase coconutfarmers' income. Approximately 90%of coconut trees are tended by small-holders, producers with less than 24hectares (60 acres) of land. Copra andcoconut oil are the main economicproducts. but Chua noted increasedattention to products as desiccatedcoconut may aid smallholders.

Philippine Secretary of AgricultureRoberto Sebastian summarized forPresident Ramos the formal openingof the conference. in which Sebastianparticipated. Another cabinet official.Cielito Habito, secretary of nationaleconomic planning for The Philip+pines. summarized his presentation on"The Role of the ASEAN (Associa-tion of Southeast Asian Nations)Region in the World Lauric Oil Indus+try." Habito stressed the need toreplace aging coconut trees. He saidapproximately one-third of ThePhilippines' 300+ million coconuttrees are "senile." Coconut does notappear as conducive to tissue culture

The importance of lauric oils to thePhilippine economy was underscoredat the World Conference and Exhibi-tion on Lauric Oils when PresidentFidel V. Ramos of The Philippines.rather than coming to the conferenceto deliver a keynote address as origi-naUy planned, instead invited the con+ference's technical registrants to theceremonial hall in Malacefiang Palacefor a presidential address.

The theme of the presidentialremarks followed those of the confer+ence: sources, processing and applica-tions, with President Ramos' empha-sizing the economic ramifications ofeach-especiaUy for the 20+ millionpersons of The Philippines' 63 millionpopulation whose livelihoods depend,either directly or indirectly, on thecoconut industry.

"We attached great importance toour current program to revitalize andmodernize the coconut industry andincrease its productivity," Ramos said."We assure both users and suppliers oflauric oil that free enterprise andintensive research are at the forefrontof our coconut industry. We will pur-sue our program to establish a centralresearch agency for the coconut indus-try. similar to the PORIM (Palm OilResearch Institute of Malaysia) inMalaysia for palm oil. We are gearingindustry toward downstream productswhich can serve as the main engines

to propel the coconut sector progres-sively into the twenty-first century."

After the general meeting with alltechnical registrants. President Ramosmet for an hour-long give-and-takediscussion with the conference execu-tive committee and a technical regis-tranr from each of the 31 nations rep-resented at the conference.

When President Ramos asked forsuggestions on how to improve theproductivity and economic viability ofThe Philippines' coconut industry, heheard from industry representativesfrom Europe and the United States aswell as The Philippines. F. HeinzFochem of Henkel KGaA urgedexpanded use of producer cooperativesto improve agronomic techniques thatwould reduce aflatoxin levels in copraand also to improve coconut oil quali-ty. Shaw Skillings of Procter & Gam-ble endorsed Ramos' comments in hisformal presentation that The Philip-pines would establish a PORIM-typecoconut research institute; Skillingsasked for further details. He was toldthat preliminary studies on the propos-al are being prepared.

One of the conference patrons,Maria Clara Lobregat, a member ofThe Philippines' House of Represen-tatives and chairperson of the Philip-pine Coconut Federation, noted thatincreased domestic use of coconut oilmay result from pending legislation

INFORM. Vol. 5, no. 5 (May 1994)

578

propagation as does oil palm, Habitcsaid, making the replacement of 100million trees a true economic andagronomic challenge. Agriculture Sec-retary Sebastian briefly describedefforts to use artificial pollination 10increase the vitality of existing trees.rather than waiting for the lime itwould take to establish coconut treenurseries that would produce suffi-cient replacement seedlings. Inter-cropping-planting a separate crop inthe space beneath coconut trees-willbe viable only if the intercrop pro-duced can compete at internationalmarket prices. Sebastian stressed.

Other Philippine government offi-cials briefly discussed other topics.including:

• how establishment of an AsianFree Trade Area (AFTA) may affectlauric oil industries;

• the need to speed replanting toreplace nonproductive trees:

• PSR-Project Self-Reliance-being fostered through use of coopera-tives.

Ambassador Emmanuel Pelaez,who has been an ardent supporter ofimproving the coconut economy formore than 40 years, stressed to Presi-dent Ramos that while there had beenmany government-sponsored confer-ences on coconut in the past, the lauricoils world conference "is the first timewith private interests in control" ofdeciding what would be on the meet-ing agenda. "We in The Philippinesmust realize that if they (private finns)did not make money,they wouldn't bein business," he said. urging regulardialog with private industry represen-tatives as to what improvements areneeded and possible routes to achievethose improvements.

Ramos also described three phasesof his relationship with coconuts.First. as a young military officer head-ing a 30-men platoon opposing insur-gents in the southern Philippines, heand his troops would survive oncoconut water and meats when rationswere used up. Second. as owner of a3.5 hectare "smallhold" on which hisfamily members raised coconut-"They tried imercropping. but thefalling coconuts would smash theplantings when they fell. so they gaveit up." And, third, as president of the

Republic of The Philippines where heis concerned with the macroeco-nomics of coconut as well as its effecton the lives of one-third of thenation's population.

Ramos said that when copra pricesare seven pesos (25 cents) a kilo. arise of four pesos (20 cents) in the

A visit to the palace"You all come." was the invitationPresident Fidel V. Ramos of ThePhilippines told lauric oils worldconference delegates.

So they did. At 12:15 p.m .. Mon-day, Feb. 21, the technical regis-trants formed a police-escorted

seven-bus cara-van from theconferencevenue to theMal a c aft a n gPalace. Thepol ice escortaided travelthrough Manila'scongested busi-

Remy PIwlgan ness district,past the Manila

Bay Yacht Club (which has "Themost beautiful sunset in the world,"said Remy Pangan, who served as aninformal tour guide on one bus),along Roxas Boulevard (named forthe first president of The Philippinesand formerly called Dewey Boule-vard-after a U.S. naval admiralwho brought a U.S. fleet to ThePhilippines-until The Philippinesdecided to name thoroughfares andlandmarks after its own residents),past the U.S. Embassy. past RizalPark. then on to narrower streetsthrough a university area beforefinally turning through the white pil-lars of the gates to the palacegrounds, which includes severalgovernment buildings. adjacent 10the Pasig River.

Each delegate's name waschecked against a master list by sen-tries at the gates to the palace. allcameras were inspected, and therewas another check of conferencebadges before delegates entered a

value of copra would certainly makemany growers feel prosperous.

Ramos gave the country represen-tatives a coconut wood box packagedin a fiber material developed as acoconut co-product by a localentrepreneur who received an awardfor his creativity.

reception hall lined with portraits offamous Filipinos. A short whilelater. white curtains to the Ceremo-nial Hall were opened and delegatesfiled into a room dominated bycoconut wood-from the parquetfloors to the ceiling with its threeornately carved wood chandeliers.

Conference local chairpersonAlfredo (Jun) Yniguez provided abrief orientation: the president wouldenter. speak 10 the group, therewould be an exchange of gifts, andthen. although most delegates wouldreturn to the conference hotel. a resi-:dent of each of the 31 nations repre-sented at the conference and confer-ence executive committee memberswould meet for a "dialog" with Pres-ident Ramos. Each "national repre-sentative" also received copies oftwo books authored by Ramos: ToWin The Future: People Empower-ment for National Development andA Call To Duty: Citizenship andCivic Responsibility in a ThirdWorld Democracy.

Yniguez called a roll of nationaldelegates to assure each nationwould be represented at the smallermeeting with President Ramos. Afew more moments of announce-ments and then President Ramosarrived.

His address (see previous ankle)met with nods of approval andapplause.

There was a brief exchange ofgifts. Ramos presented conferencegeneral chairperson E. CharlesLeonard with an ornate box made ofcoconut wood. Ramos, who receivedhis master's degree at the University

INFORM. VOl. 5, no. 5 (May 1994)

(continued on page 580)

580

to do when handed a hat: Ramos immediately donned thecap for his audience as a phalanx of photographers andvideo cameramen captured the exchange for posterity.

At the conclusion of the presidential talk and giftexchange. most conference participants headed back tothe conference venue at the Westin Philippine PlazaHotel and resumption of technical sessions. Staying

behind were designated nationalrepresentatives and some confer-ence officials who were escorted10 the nearby Music Room. wheretables were arranged in a confer-ence square to accommodateapproximately 50 persons. Presi-dent Ramos, who wants to seeThe Philippines become the nexteconomic tiger of Southeast Asia,made clear he was looking forideas on how to improve ThePhilippines' coconut industry(see accompanying article).

After 25 minutes of the "coffeedialog," a military aide promptedRamos that the allotted time hadexpired. Ramos motioned himaway, then returned his attentionto the discussion, which contin-ued for almost another hour.

Each of the visitors was pre-sented with a duplicate of thecoconut wood box Leonard hadreceived earlier as well as a com-prehensive file of paper on eco-nomic development and invest-ment opportunities in The Philip-pines, including reprints of arti-cles from Asianweek and AsianBusiness.

Ramos left to meet with eco-nomic advisers-who had beenwaiting 45 minutes-on a pro-posal to rescind a fuel oil tax ofone peso per liter of oil. Repealmeant the government wouldhave to find a way to deal with areduction of about II billionpesos (approximately $410 mil-lion) in government revenue.(Official announcement of the taxrescission came later in theweek.)

The conference delegatesreturned to the meeting hotel,where their concerns were how touse the information they weregleaning, and who else theywanted to meet and to talk withduring the remaining days of themeeting.

(cotllinued!rom page 578)

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581

Some of the Cocochem tour participants pose outside an office building In Bauan, Batangas, The Phllpplnes.

Cocochem: largest oleochemical plantMore than 100 participants in the lau-ric oils world conference received afirst-hand look at The Philippines'largest oleochemical plant during amidweek trip to the Cocochem facilityin Bauan, Batangas. 110 kilometers(approximately 70 miles) south ofManila.

Another three dozen other partici-pants opted to lour a desiccatedcoconut production unit operated bythe Franklin Baker organization inSan Pablo.

Cccocbem processes approximate-ly 70,000 tons of coconut oil a yearinto 36,000 metric tons of fatty alco-hols, 29,000 metric tons of fatty acidsand related products. and about 8,500tons of crude glycerine. About half its300 employees are shift workers; theplant operates three shifts a day, everyday of the year, except for mainte-nance periods. A recreational facilityfor Cocochem workers forms part ofthe 42-acre site. About 22 acres arepresently used by Cocochem; aJapanese firm rents part of the site fora facility that prepares Cocochem

products for manufacturing uses at thefirm's home plant in Japan.

The plant, opened in 1981, usesLurgi technology. Addition of a hydro.genation plant, with on-site hydrogengeneration, has expanded the originalproduct line to include stearic acid andother hydrogenated fatty acids. Evennewer is a 20-ton-per-day unit for pro-ducing soap noodles, which providesthe customers an alternative to sulfateflaked product. Ballestra sulfonationtechnology is used.

After a two-hour bus ride fromManila, visitors were served refresh-ments before a brief slide presentationon the Cocochem unit. Tour guideswalked the conference delegatesthrough the central control room andquality assurance labs; buses provid-ed a drive-by look at the other facili-ties, including glycerine processing,fatty acid distillation and fractiona-tion, an on-site power plant, and anearby small dock on Balayan Bay.Six-inch dedicated pipelines for fattyacid, glycerine and alcohols connectthe dock to the plant. Tank farm

capacity is about 50,000 cubic metersfor the various materials processed atthe site.

At the Franklin Baker desiccatedcoconut facility at San Pablo in Lagu-na Province, the conference visitorssaw dehulling operations and asemi mechanized system to separatemeats before the coconut is shredded.

Both tours then headed for VillaEscudero for a buffet lunch on picnictables set in the water downstreamfrom a small waterfall. The visitincluded rides in a cart pulled by awater buffalo and a Philippines cul-tural show that included rnusic-songs and dances-typical of differ-enl Philippine regions and historicalems.

UCAPhonorsHans KaunitzHans Kaunitz. retired clinical profes-sor at the Columbia University Col-lege of Physicians and Surgeons. was

INFORM. Vol. 5. no. 5 (May 1994)

582

honored during the ASEAN Gala Din-ner of the WorldConference.

The UnitedCoconut Associa-lion of ThePhilippines(UCAP) citedKaunitz for "hisinvaluable contri-bution to coconut

HInt; KaIn/tZ producing nationsby his pioneering

work on medium chain rriglycerides."

Kaunitz was not able to attend themeeting. The plaque was accepted onhis behalf by Conrado S. Dayrit ofThe Philippines. a veteran researcheron coconut oil.

Kaunitz served as head of clini-cal laboratories at the University ofThe Philippines from 1938- 1940.In 1973 he received the PresidentialMerit Medal of the Government ofThe Philippines. In 1981 hereceived the Alton E. Bailey Awardfrom the AOeS North Central Sec-tion; the AOeS Northeast Section

annually presents its Hans KaunitzAward to an outstanding graduatestudent from that area of the UnitedStates.

Kaunitz began his work on medi-um-chain triglycerides (MCT). amajor portion of the triglycerides incoconut oil, during the 1950s in coop-eration with Vigen K. 8abayan. Thosestudies have continued to the present.His basic studies on how MCT aremetabolized have been the foundationof much further work in the UnitedStates and elsewhere.

INFORM. \otlI. 5. no. 5 (May 1994)

583

Exhibits:•economic

optimismpervades

Yvonne Augustn, executive secretary 01 the UnIted ceeeoctAuodatIon of The PhIlIppInes, walts In exhibit booth for. viSItor.

Two themes seemed to dominate thelauric oils conference exhibition: eco-nomic optimism and fatty alcohols.

A sense of economic optimismapparently comes easily in SoutheastAsia now. In recent years, as NorthAmerican and European economieswere in recessions or at least dol-drums. the economic tigers of South-east Asia have seen rapid increasesin income and business activity.When asked. exhibiting companyrepresentatives said they expectedthat economic growth to continue.Several exhibiting firms with no CUT-

rent business in the region used theexhibition as a means 10 meet poten-tial customers in the region. The hostcountry. The Philippines. was citedby several as having the potential fordynamic economic growth. Philip-

pines President Fidel V. Ramos in hisremarks to the conference made clearthat he wants The Philippines tobecome the region's next economic"tiger." The withdrawal of U.S. tradesanctions toward Vietnam may meanincreased business there.

Throughout the exhibit area, oleo-chemical firms were emphasizingtheir fatty alcohol production capa-bility; equipment manufacturers dis-cussed how their products could beused to produce fany alcohols, andsuppliers featured products thatcould be used in fatty alcohol pro-duction. Table I, from a conferencepresentation by Ned Rockwell ofStepan Co. on "The IncreasingImportance of Methyl Ester Sul-fonates as Surfactants." showsincreases in lauryl alcohol produc-

tion capacity between 1988 and1993.

To many Southeast Asian nations.fatty alcohols are typical of the "down-stream" increased-value products theywant to export, rather than the agricul-tural commodities that have dominatedtheir exports in the past Fatty alcoholscan be feedstocks for cationic. anionicor nonionic surfactants of diverse types.Their biodegradability is viewed as amajor advantage in areas where envi-ronmental concerns and regulations areincreasing. In The Philippines. legisla-tion requires a minimum content for60% coconut fatty alcohol in detergentbars. the laundry product that bas aboutan 85% market share of laundry prod-ucts in that nation. Proposed legislation

(continu~d on page 585)

INFORM, Vol. 5. no. 5 (May 1994)

585

(continuedjrom page 583) queries on oleochemicals processing.Simpex of Singapore also serves as aDe Smet representative in the region.

exhibit hall. Visitors were learningabout Lccbem's new polishing filterwith improved ease of operation.Lochem representative Frank Veld-kamp said a one-evening seminar onfiltration that he organized attractedapproximately 30 participants. Infor-mation was available on filters for oilrefining and catalyst filters for hydro-genated fatty acids.

Lurgi ()I-Gas Chemic GmbH ofFrankurt/Main, Germany, entered thelauric oils conference with a chance 10talk about its equipping a new 60,000tons/year Salim Group's oleochemicalfacility in Kabil, Batam island, indone-sia, for which an opening dedicationwas held the week before the Manilameeting. Lurgi also supplied technolo-gy for the Cocochem facility in ThePhilippines. Lurgi technology includesproduction of unsaturated fatty alco-hols by hydrogenation of methyl estersthrough use of fixed-bed reactors. The

would increase that requirement to100%.

Here's a brief survey of whatexhibitors were discussing with visi-tors. For further information, contactthe exhibiting firms directly; theiraddresses were published in theFebruary 1994 issue of INFORM aspan of the preview of the conference.

Fractionnemenl Ttrtlaux of Fleu-rus. Belgium, exhibited as a means toexplore business possibilities inSoutheast Asia. Sales manager Jean-Louis Jaminet said the firm believesincreasing economic activity in gen-eral as well as in the fats and oilsarea specifically will mean a demandfor the firm's distillaticnjdeodoriza-tion technology and its "gradualdirected selective" crystallizationtechnology. The latter balch technol-ogy is designed for use where com-position of raw materials varies orwhen there is a frequent change infeedstock.

EquipmentAtlas Industries A/S of Ballerup,Denmark, brought information on itsdry condensing systems to the Asianmarket at the first major fats and oilsmeeting since it became part of theSkako Group on Jan. I, 1994. Atlasrepresentative Steen Lassen said thatSoutheast Asia appears to be an areain which his firm's technology will bebeneficial to firms seeking to becomecompetitive in world markets as wellas meeting increasing environmentalregulations regarding reduction ofwaste materials. Cereol in Hungarycommissioned the largest single drycondensing unit for its sunflower seedprocessing facility at Martfu. Thedeodorizer capacity is 650 tons perday. using the dry condensing units of540 kg/h vapor at 1.5 rnbar,

LFC Lochem, of Lochem, TheNetherlands, and its Philippinelicensee, Zorin Systems of MetroManila, had adjacent booths in the

T_,Estimated wor1dwide lauryI alcohol capacftIes (ftve-ye. comparison)

1988capacity

Producer (MM Ibs)

P&G 190Henkel 0Region total: 190

Henkel 221Crodea 66Hiils 22Henkel 66Albright-Wilson 44Oleofina IIRegion total: 430

,,"0 73New Japan 2.Salim 0P&G 0Henkel 0K", 0Ccccchem 66xac 55

02.

Region total: 247World total: 86'

1993capacity(MM Ibs)

New plantstart-up(year)Country

North/South AmericaUnited Slates

Costruzioni Meccaniche Bernardini(CMB)-Ballestra's joint exhibitshowcased Ballestra's experience inplant equipment, including concentrat-ed detergent facilities, and CMB'scapabilities in aU aspects of operationssuch as fatty acid production, fromconcept through 10 marketing of endproducts. Both firms, with headquar-ters in Rome, Italy. are experienced inthe Southeast Asian markets. One nat-ural topic for Ballestra was to notethat its sulfonation technology is usedat the Cocochem facility seen on aplant tour during the conference.

25088

3381992

EuropeGennany 385

6688754466

724

F~United KingdomBelgium

AsiaJapan "'2.

6688666666556660

6771739

lndones.iaMalaysia

1990199319911990

The De Smet organization had repre-sentatives from several units at themeeting to provide details of its ser-vices in the processing of oilseeds andfats and oils. De Srnet Rosedowos fromHUll, England, received inquiries oncrushing, while De Smet headquartersin Edgedem, Belgium, and the branchoffice in Singapore were fielding

Pbilippines

INFORM. Vol. 5. no. 5 (May 1994)

586

display also highlighted dehydration offatty alcohols to alpha olefins.

Roskamp Champion used the lauricoils conference to introduce its lines ofIlakers. crackers, grinders and sifters topotential Southeast Asian customers."lt's a mailer of making ourselvesavailable so people get to know us,"Mark Hannon, applications managerfor the Waterloo. Iowa, organization,said. Applications for copra and palmkernel were discussed. Roskamp'sagent in the region is CPM/Pacific Pri-vate Ltd. in Singapore.

westfana Separator AG representa-tives explained 10 visitors how its sep-arators can be used in oleochemicalprocessing as well as in edible oilrefining. Recent improvements in thefirm's product line include separatorswith what amounts to self-cleaning

INFORM. Vol. 5, no. 5 (May 1994)

capabilities as well as reduced noiselevels. Westfalia, with home offices inOelde, Germany, is represented inManila by Centrifuge Services Inc.

office opened during the past year inHong Kong, and Alan Fisher to head anew office in Singapore. Engelhardsupplies catalysts (includingnonchrormum catalysts) and sorbentsfor processing of oleochemicals andedible oils. Representative R. BruceWilliams said he was discussing withvisitors how Engelhard matches prod-ucts to customers' needs.

SuppliersJoint-venture partners Albright &Wilson Asia Pte. Ltd. andChemphil-LMG Ltd. shared exhibitspace. The two Manila-based firmshave been involved since the mid-1980s in PPI (Polyphosphates Inc.).The Albright & Wilson organizationhas 17 plants throughout SoutheastAsia (including India), and its prod-ucts include phosphates for detergentuse as well as ethoxylates for personalcare and cleaning products.

Hutchison-Hayes of Houston, Texas,a firm specializing in centrifuge ser-vice and repair, also provided infor-mation on its own decanter cen-trifuges. Its Southeast Asian regionalrepresentative is ATM Technology inSingapore,

Engelhard Corporation of Iselin.New Jersey, which expects increasingbusiness in Southeast Asia, has namedJack La as commercial manager for an

The Siid-Chemie organization,including P.T. Siid Chemie of Jakarta,Indonesia, provided information oncopper chromite catalysts for fatty

For information circle 1125

587

alcohol production. The catalysts aredesigned 10 improve selectivity andactivity at 270-28QoC. Sud-Chemichas two factories in Indonesia produc-ing bleaching clays for the Asian mar-ket.

Oleochemical firmsCOlgate Palmolive Philippines' oleo-chemical plant in Lucena City pro-duces a full range of oleochemicalsincluding methyl esters. amides, (anyacids, alcohols and sodium laurylethcxylate sulfate. A portion of thefacility's output is used at the organi-zation's Manila plant for processinginto consumer products: the rest issold domestically or exported. Mar-kets for coconut diethylanolarnideinclude the Middle East: a portion ofmethyl ester production is exported toNew Zealand and China. The finn'splant was the first in The Philippinesto diversify beyond manufacturingcopra and coconut oil. Colgateacquired the facility in 1985 and hasexpanded the product range.

Pilipinas Kao Iuc., a joint venturecreated in 1977 by Kao Corporation ofJapan and Philippine partner, Alboitizand Co.. is a vertically integratedoperation that includes research rang-ing from how to produce improvedcoconut varieties through the process-ing of them into finished consumerproducts. At the Manila event, Pilip-inas Kao was emphasizing its role as aproducer of oleochemicals-fanyalcohols, methyl esters, amines andothers-as feedstocks for other firms.Recent developments include a bead-ed form of fatty alcohol that offersimproved handling characteristicsover the more traditional flake form.The oleochemical facility is on Min-danao in the southem Philippines. Thefirm also has a manufacturing plant inQuezon City that produces consumerpersonal-care products for the retailmarkets.

PrimoFina Oleochemicals Inc.(PrimeChem) displayed a scale modelof a new oleochemical productionfacility at Joseph Panganiban onLuzon Island on which constructionhas just begun and which is expectedto be in operation by early 1996.

Coconut oil feedstock will come fromthe adjacent coconut crushing millthat processes 600 tons a day. Capaci-ty figures for the new oleochemicalfacility have not been disclosed.Major suppliers of technology for thefacility include De Smet (Belgium),Badger (United States) and JohnBrown (Davy Process Technology ofEngland). Use of low-pressure pro-duction systems is expected toimprove product quality. Productionwill include a full range of coconutfatty alcohols, fatty acids, methylesters and glycerine. The products willbe aimed at export markets.

United Coconut Chemicals Inc ..informally known as Cocochem. oper-ates the largest cocochemical plant inThe Philippines at Buan, Batangas,about 110 kilometers south of Manila,with a capacity to process about70,000 metric Ions annually in termsof coconut oil. Much of that produc-tion is fatly alcohols or fatty acidsplus some crude and refined glycerine.Cocochem hosted the largest planttour of the conference, with more than100 persons visiting the facility at themidweek point of the meeting.

OrganizationsThe ASEAN Oleochemical Manu·facturers Organizaiion (AOMG)was formed in 1986 to represent oleo-chemical organizations within thenations that comprise the Associationof Southeast Asian Nations (lndone-sia, Malaysia, The Philippines, Singa-pore. Thailand and Brunei Darus-salam). Booth personnel were provid-ing visitors with information onAOMG member firms' product spect-fications. The AOMG, with secretariatoffices in Kuala Lumpur. Malaysia,also is establishing a system to pro-vide statistical data on oleochemicalproduction in the ASEAN region. Thegroup held its annual general meetingat the conclusion of the lauric oilsconference.

The Department of Science andTechnology (DOST) is part of a fed-eral research institute. DOST conductsbasic and applied research. In thecoconut industries, this means findinguses for all parts of the coconut plant.

including coconut oil. DOST researchis reflected in commercialization ofsuch products as coconut milk, nata decoco (a confectionery-type product),and fiberboard-type materials for con-struction use. The agency. located inMetro Manila, began research in the1970s on development of diesel fuelsfrom coconut oil and also has workedon gasoline substitutes and a kerosenesubstitute. which has been commer-cialized.

The Palm Oil Research Institute ofMalaysia (PORIM), situated nearKuala Lumpur, Malaysia, providedinformation regarding the diverse usesof palm oil and palm kernel oil, butstressed the complementary role palmkernel oil can play to coconut as a rawmaterial for the oleochemical industry.The PORIM display included suchdiverse products as confectioneryshortenings and polyurethane-typematerials developed from oil palm.

The Philippine Coconut Authori-ty's display included examples ofhybrid coconut varieties that holdpromise to increase the volume orquality, or both. of coconut produc-tion. With approximately 35-40% ofcoconut trees in "senility," or pastprime production years, The Philip-pines is trying to find ways toreplace. as rapidly as possible, theaging trees with either new hybridsor cultivars suited to the locale inwhich they are to be grown. Presentefforts are aimed ar replanting 50.000hectares (approximately 124.000acres) annually. and with about 140trees per hectare, about 7 millionseedlings would be required annually.The agency realizes that number isunrealistic unless additional financ-ing is available to expand nurseryoperations or to develop new propa-gation techniques. Intensive handpollination of hybrid varieties couldincrease seedling production, butwould require additional funds.Meanwhile, the agency is assistinggrowers to improve agronomic tech-niques, urging growers to adopt inter-cropping to raise total income andpromoting use of agricultural inputsto maximize production from exist-ing trees. Offices are in Quezon City.

INFORM. Vol. 5. no. 5 (May 1994)

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the role of chemical specialties used inpersonal-care products. The reportcovers the United States, Nonh Amer-ica and Japan. Hewin's offices are atVan Leyenberghlaan 159. P.O. Box7813, 1088 AA Amsterdam. TheNetherlands (fax; 31.20·6424478).

Salim dedicatesfatty alcohol plantSalim Oleochemicals held dedicationceremonies on Feb. 18. 1994, for itsnew 6O,OOO-metric-ton fatty alcoholfacility on Batam Island. just acrossthe Singapore Strait from Singapore.

The $220 million complex usesLurgi technology and is described asthe first natural fatty alcohol plant 10have a dual-reactor system for methylester feed, providing a simplified sys-

The United Coconut Association ofThe Philippines (UCAP) is a confed-eration of associations and organiza-tions that seeks to coordinate advance-ment in the coconut industry as wellas serve as an information centerabout coconut and related subjects. Its15 member organizations representapproximately one million personsdirectly involved in the Philippinecoconut industries. Among its currentprojects. UCAP is supporting a five-year research program at HarvardUniversity on therapeutic properties ofmedium-chain triglycerides. Offices inPasig City in Metro Manila.

tern for switching between saturatedand unsaturated alcohol production.

Salim Oleochemicals' parem orga-nization is the Salim Group, whichhas become one of the major playersin the Indonesian and world oil palmmarket. Salim controls at least100,000 acres of oil palm plantationsin Indonesia that are expected by 1995to be producing approximately100,000 tons a year of palm kernel oil.The new facility's process control sys-tem will have a computer link toSalim Oleochemicals' offices in Tuas,Singapore. Salim's first fatty alcoholfacility was opened in 1990 on northSumatra with a capacity of 30,000tons a year.

Salim has said it does not intendto enter the consumer product market.but intends 10 remain a supplier 10manufacturers of detergents and per-sonal-care products. •

OthersHewin International Inc., which spe-cializes in marketing studies of thechemical industry, was a late entrantinto the exhibit. On display was a pro-motional leaflet on its 1994 study on

LlPIDFORUM SEMINAR ON DEEP FAT FRYINGScandinavian Forum for Lipid Research and Technology arranges an International Lipidforum Seminar on Deep Far FryingOctober 18·19. 1994. The seminar will take place on MIS Isabella as a 24-hourcruise on the Gulf on Finland outsideHelsinki. The depanure will be at noon on October 18th.

The purpose of this seminar is to provide participants with a comprehensive, fundamental understanding of all peninentaspects of deep fat frying.

SEMINAR PROGRAM(subject to minor changes]

• BASICS OF DEEP FAT FRYINGDeep Fat Frying. History.

Introduction Ch. Gertz. GermanyDynamics of Deep Fat Frying M.M. Blumenthal. USAChemical Changes during Deep Fal

Frying J.L. Sebedio. FranceHealth and Safety Aspects of Frying

Oils W.L. Clark. USA

• PRACTICAL ASPECTS AND REGULATIONSPracrical Frying to be confirmedDevelopment of Frying Oils K. Nielsen. DenmarkFast Methods for Measuring Changes in Frying

Oils K. Schwarz, GermanyMeans for Prolonging the Stability of Frying

Oils M.M. Blumenthal. USAEvaluation of Oil Quality and

Stability H. Vinter, DenmarkFrying-Uses and Abuses M.M. Blumenthal. USA

• ANALYTICAL METHODS FOR EVALUATING FRYINGOILS

Analytical Evaluation of FryingOils J.L. Scbedio. France

Analysis of Cyclic Patty AcidMonomers W.W. Christie. Scotland

Size-Exclusion as a Method 10 Evaluate Frying OilQuality M.S. Dobarganes. Spain

Sensory Evaluation of FryingOils C. Kristoffersson, Sweden

For addltlonallnfonnatlon, please contactLlPIDFORUMs secreteriar, G. Larrertsen. BreistoJen I, N-5035 Bergen. Norway (Phone: +47·55-32 89 56. Telefax:+47-55-325724)ORthe Organizing Secretariat at Raisic Group/MargarineDivision, Mrs. Sirpa Tursas. P.O. Box 101. FIN-21201Rnlsic, Finland (Phone: +358-21-792 754, Telera}!.: +3.58-21-792067)

INFORM. Vol. 5. 00. 5<Moy 1994)

Foeinlotrnatlon circle .190