Philippine Coconut Authority (PCA) Administrator Jesus Emmanuel M. Paras said the labeling regulation will increase markets for the country’s coconut oil, even the nutritional-pharmaceutical product virgin coconut oil (VCO) that health authorities now recognize.
Coconut oil has at least 94 percent saturated fat, a medium-chain fatty acid rather than the health hazard long chain fatty acid that dominates content in other oils. This fat has the lauric acid content to which the medicinal value of VCO is attributed.
"Virgin coconut oil which has only 0.05 to 0.1 percent free fatty acid contents may have the lowest trans-fat content among all vegetable fats. It will certainly enjoy great preference and acceptability in the US," Paras said in a statement.
The policy takes effect on January 1, 2006. PCA urges coconut oil and coconut oil-based product manufacturers to immediately comply with the rule.
The Philippines has gripped a niche position in the VCO market even as VCO’s worldwide demand is estimated at some 300,000 metric tons (MT) yearly valued at about $2 billion. At its price of $8 to $10 per kilo or $8,000 to $10,000 per MT, the country gains an important foreign exchange earnings from markets mostly in health-conscious countries including the US, Singapore, Australia, and those in Europe.
VCO’s price has a high premium over the refined bleached and deodorized (RBD) coconut oil which only commands $600 to $700 per MT in the world market.
The country itself remains the world’s market leader in crude coconut oil and RBD coconut oil with an export expected to reach to 980,000 MT by yearend valued at about $600 million.
PCA has established that VCO should not be hydrogenated as this is the process that transforms saturated fats into transfats. In the first place, authorities said that VCO’s high 94 percent saturated fat content leaves a very insignificant room for hydrogenation and that this has kept VCO’s quality against rancidity.
Despite expected positive impact of this policy, government is expecting the US FDA to issue an even more important regulation putting distinction between animal saturated fats which is the cause of cholesterol accumulation in the body and vegetable oils.
"This one is important for consumers since only animal saturated fats are linked to cholesterol build up. All vegetable fats including coconut are almost absolutely cholesterol free," PCA said.
The government has also opposed proposed US FDA policy which will put saturated fats under the trans-fats category which is precisely contrary to coconut oil’s nature.
