Coconut oil and steel power Northern Mindanao to 34% rise in third quarter

Exports from Northern Mindanao during the third quarter of 2006 totaled US$ 188-million, up 34% compared to the same period last year.

Figures presented by the Department of Trade and Industry Region 10 office during the Quarterly Regional Economic Situationer (QRES) round table hosted by the National Economic and Development Authority (NEDA) Region 10 last week show 96 percent of the region’s total exports were accounted for by Misamis Oriental and Lanao del Norte.

Lanao del Norte contributed 47.91 percent, approximately the same as Misamis Oriental’s 47.78 percent. The latter has traditionally accounted for the bulk of exports from Region 10 but Lanao del Norte’s contribution has been steadily growing due to the continued rise in cold rolled steel exports from Global Steelworks International, Inc. or GSII (formerly the National Steel Corp.) in Iligan City.

Although Camiguin’s exports rose five-fold (543.94%) due to increased demand for coconut shell charcoal, its US$ 34,000 total accounted for only a minuscule 0.02% of total regional exports. Exports from other provinces in the region all rose by double digits, led by Bukidnon with 57.58% and Lanao del Norte (48.77%), Misamis Occidental (26.18%) and Misamis Oriental (20.24%).

Bukidnon’s impressive export growth rate is attributed to increases of its agricultural products, notably sugar and sugar cane products, and fresh bananas.

Nevertheless, cold rolled steel from GSII remains the region’s top export product, accounting for 29 percent of the third quarter total with a value of US$ 54,488,615 although coconut products as a product sector continues to dominate as the region’s leading export category with US$ 65,056,963 and 34.69 percent of the total.

The profile of coconut based products from the region includes crude coconut oil (US$ 28,076,276), mostly from the Granexport Manufacturing and SMC-Agribusiness oil mills in Iligan; oleochemicals from the expanded Pilipinas Kao, Inc. plant in Jasaan, Misamis Oriental (US$15,465,506), cochin coconut oil (US$10,562,000) and dessicated coconut (US$3,741,360).

Other top export products for the quarter include canned pineapple from Del Monte (US$ 22,602,179), sintered ore for the Japanese market from Philippine Sinter Corp. (US$17,253,781), portland cement from the Holcim plant in Lugait, Misamis Oriental (US$7,189,086), raw cane sugar from Crystal Milling in Maramag, Bukidnon and Bukidnon Sugar Co. in Quezo, Bukidnon (US$5,089,074), dessicated coconut from Fiesta Brands in Medina, Misamis Oriental (US$3,741,360) and mike powder from Nestle Phils., Inc. in Cagayan de Oro (US$2,609,817).

Industrial manufactures was the fastest growing export sector for the quarter, growing by an impressive 230.51 percent to US$27,735,599 compared to the third quarter last year. This was attributed mainly to increased demand for ferrochrome high carbon manufactured at the Phidivec Industrial Estate in Villanueva, Misamis Oriental.

Other fast growing export sectors included wood and forest products, mostly from the seven wood processing plants of the Catimco Group in Cagayan de Oro City (99.81%, US$3,739,205), iron and steel products from GSII in Iligan (90.48%, US$55,957,949), and sugar and sugar products from the two sugar mills in Bukidnon (79.64%, US$5,754,307).

On the downside, marine products dropped the most with -76.06 percent (US$502,199) mainly due to low prices in the world market, followed by gifts, toys and housewares with a -57.96% decrease also due to soft demand in the world market.

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