Philippine coconut oil exports climbed 64.4 percent on the year in July, recovering sharply from a decline in the previous month, thanks to improved output and overseas demand, initial data from an industry group showed on Friday.

The world's biggest exporter of coconut oil shipped 113,750 tonnes from July 1 to 30, compared with 69,191 tonnes for July 2008, the United Coconut Associations of the Philippines Inc (UCAP) said in a report.

''The increase indicates improvement in copra production especially in (the main island of) Luzon and also better demand from Europe,'' said a Manila-based trader.

Copra is the dried coconut kernel from which coconut oil is extracted.

For the first seven months of the year, coconut oil exports reached 384,106 tonnes, down 32.4 percent from the same period in 2008.

Exports of coconut oil had fallen for 10 consecutive months before rebounding slightly in May and then dropping again in June.

The country exports 80 percent of its coconut oil output.

But it accounts for less than 5 percent of the global fats and oils market due to a drop in local production in the last two years and the growing popularity of other vegetable oils, such as palm. UCAP has forecast exports of coconut oil -- used in food, cosmetics and biodiesel -- to slip to 835,000 tonnes this year from 847,626 tonnes in 2008, on soft global demand and its increasing use as feedstock by local biodiesel producers. (Reuters)