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Copra shortage not due to biodiesel only
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Myrna M. Velasco

A group supporting biodiesel producers has countered allegations that the anticipated shortfall on copra production can be attributed largely to biodiesel production.

The Philippine Coconut Authority (PCA) has projected shortfall of about 100,000 metric tons of copra by 2009.

"The 2.43 million MT of copra production (or 1.458 million MT of coco oil) is not exclusive to biodiesel production alone," Asian Institute of Petroleum Studies Inc. managing director Rafael Diaz argued.

The recent up-ticks in food prices and the crunch in food supply have just recently intensified debates on "biofuels impinging on supply for the food chain."

Diaz claimed the projected copra production shortfall "would represent a 4 percent reduction from the 2.43 million MT that will be produced this year and bring it down to 2.33 MT."

He added that the biodiesel mandate for B1 (or the 1.0 percent blend of coco methyl ester in diesel) would just account for 63 million liters of CME per year (or 54,810 MT by weight).

"This translates to just 3.8 percent of the total 2008 production," he said.

Once the higher blend of 2.0-percent takes effect by January next year, he indicated that the oil industry’s CME requirement will double to 126 million liters (109,620 MT by weight); and this shall represent 7.5 percent of total production this year.

"The shortfall in copra production of 100,000 MT by 2009 as stated by the PCA would not be significant enough to affect the required feedstock for a B2 mandate in January 2009," he said.

 

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