Expanding markets for Philippine vegetable lard and butter.pdf

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extracted text: Expanding Markets For Philippine Vegetable Lard And Butter RADICAL changes have taken place in our lard and butter trade during the last two decades. While Philippine exports of vegetable lard and butter have increased tremendously, our imports of animal lard, lard compounds and lard substitutes, oleomargarine, and frozen and canned butter are fast shrinking to insignificance. Locally produced lard and butter, with coconut oil as base raw ma terial, have become not only very popular to Fili pino homes thereby replacing to a considerable ex tent the imported ones, but also have gained favor and approval in the overseas markets. When our coconut oil industry was still in its infancy and local production of lard and butter re garded as an experiment, Philippine imports of lard in 1921 reached as high as 3,143,997 kilos, lard com pounds and lard substitutes, 107,022, oleomargarine, 64,386, and canned and frozen butter, 331,277 kilos. These imports constituted the highest on record and were valued at over two million pesos. But from that time on, Philippine imports of these items, with certain exceptions in the case of frozen and canned butter, have declined steadily in quantity and value. Last year, total imports of the same articles shrunked to a little over 600,000 pesos, with lard amounting only to 14,937 kilos, lard compounds and lard substitutes, 47,358, oleomargarine, 10,780, frozen butter, 566,260, and canned butter, 64,204 ki los. Import figures for the first seven months of the current year are very much lower. Lard imports, for instance, have barely reached 7,259 kilos and lard compounds and lard substitutes, 21,541. Oleo margarine has dropped to 8,324 kilos and canned butter has lagged behind to 33,054 kilos. But frozen butter may be considered an exception. Imports of this item from January to July, 1941 have a slight edge over those for the whole period of 1940, the quantity 581,469 kilos, or 15,209 kilos more than those of last year. Owing to war conditions at pre sent and the generally unsatisfactory shipping con ditions throughout the world, imports of lard, but ter, and oleomargarine will be very much lower this year and for the duration of the war. Table I of this article shows the declining importance of the Philippines as a market for imported lard, butter, and oleomargarine. Prior to 1924, Philippine shipments of vegetable lard and butter were insignificant and for this rea son these items were not separately classified in the list of Philippine exports. It was only in 1924 that exports of lard and butter in commercial quan tities were made. In that year, 202,944 kilos of lard and 14,359 kilos of butter were recorded as exported to the United States and her territories, British East Indies, China, Hongkong, and Canada. These quan tities exported gradually expanded and the list of Philippine customers lengthened in the subsequent years. Our annual exports of vegetable lard from 1924 to 1941 fluctuated from a low of 141,958 kilos in 1925 to a record high of 3,347,855 kilos in 1936. From 1924 to 1934, Philippine shipments were less than 500,000 kilos. But the shortage of various fats and oils felt the world over in 1935 pushed our lard exports to 1,349,806 kilos and these were almost trebled in 1936. Our exports for the last five years had been steady at about one and a half million ki los. The first seven months of the current year deserve special mention. Despite the shortage of ocean going bottoms, exports have already reached over 2-1/2 million kilos and there are indications that before the year is over, the peak made in 1936 would be duplicated, if not exceeded. The following Table II shows the quantities and value of our lard exports from 1924 to 1941, while Table III indicates the first three leading buyers of Philippine vege table lard. Vegetable butter exports of the Philippines were small previous to 1930. In 1924 only 14,359 kilos were shipped to the overseas markets, declining abruptly in 1925 to 3,159 kilos, and eventually scratched off the list of exports from 1926 to 1929. In subsequent years, however, shipments rose stead ily. Starting in 1930 at 11,985 kilos which were ab sorbed wholly by the British East Indies and Hong kong, exports exceeded 3 million kilos in recent years. Vegetable butter exports from 1936 to 1940 varied from a high of 3,801,802 kilos in 1938 to a low of 1,887,422 kilos in 1936. Shipments from Jan uary to July of the current year are already over 1-1/2 million kilos. Table IV shows the growing ex ports of vegetable butter and Table V indicates the principal countries of destination in the order of importance. Philippine shipments of vegetable lard and but ter prior to and during the present war are shown in the Tables VI and VII. It will be observed from the above tables that lard exports for the first seven months of the cur rent year have exceeded the totals in 1939 and 1940. Shipments of vegetable butter have approached the levels made in 1940 and 1939. The list of Philippine customers is lengthening at expanding volumes. Latin American countries are now included among our buyers of lard and but ter. Costa Rica has to her credit for the current year 38,220 kilos of lard as against 22,588 kilos in 1940. The Republic of Panama purchased last year 30,847 kilos of lard and for the current year 7,350 kilos. While so far no exports of butter have been (Please turn to page 12) PAGE 10 THE COCONUT JOURNAL EXPANDING MARKETS... (Continued from page 8) made to the Republic of Panama, it is gratifying to note that 30,491 kilos went to that sector last year and 10,324 in 1939. Venezuela bought last year 6,259 kilos of lard, while Ecuador was contented with a trial shipment of 111 kilos of lard and 26 kilos of butter. Gua temala imported from the Philippines last year 1,828 kilos of lard, already increased this year to 2,940 kilos, representing an improvement of 60.83% over the previous year. China, Hongkong, and Malaya are competing with each other for first honors in displacing the United States and her territories as our principal lard buyer. China is normally an exporter of ani mal lard, but war conditions in her country doomed to extinction her hog industry which consequently reduced lard for export. Thus, the necessity of in creasing her fats and oils purchases from a next door neighbor—the Philippines. For the first se ven months of the current year, China has become our leading buyer of lard, having imported during the said period 748,793 kilos, valued at P156,160. Demand for lard from Hongkong has picked up rapidly. Her imports from the Philippines last year amounted to 444,188 kilos. This year the totals from January to July have reached 530,600 kilos, or 86,412 kilos more than those of last year. Malaya is among our new list of buyers. Her first imports of Philippine vegetable lard and but ter were made in 1939. Starting with 251,614 kilos of lard and 584,918 kilos of butter in 1939, these volumes expanded rapidly in the case of lard which totalled 434,174 kilos in 1940 and 420,536 kilos for the current year. Philippine exports of butter to Malaya last year were slightly lower than those made in 1939. Exports in 1940 amounted to 850,011 kilos as against 584,918 in 1939. Expectations this year, however, are bright, shipments to Malay for the first seven months of the current year having reached 440,203 kilos. Of the larger countries which have turned to the Philippines since the outbreak of the present war, India merits special mention. Importing from the Philippines for the first time in 1940 which con sisted of 95,758 kilos of lard and 39,819 kilos of but ter, these quantities have attained new high marks for the current year. January to July shipments to India have reached 124,267 kilos of lard or about 30% more than those of last year, and 88,519 kilos of butter which represent more than a 100% gain over the 1940 figures. It may be pointed out, therefore, that unless the shipping situation improves, our imports of lard, oleomargarine, and butter will decline to lower le vels and eventually these imports may be reduced to a minimum quantity. Domestic consumption of Philippine vegetable lard and butter is increasing. We are now fast making up for lost time in patron izing made-in-the-Philippines products and the steadily growing popularity of our vegetable lard and butter in Philippine homes is a juicy example. The new outlets for our vegetable lard and but ter in the overseas markets may eventually find per manence in those sectors. The termination of the present war will create new demands from Europe. Our old customers will also likely remain in the list of buyers of vegetable lard and butter. In other words, the expanding markets for Philippine vege table lard and butter may cushion, to a certain ex tent, the expected fall of the coconut industry when the curtain drops in 1946 terminating free trade relations with the United States. PHILIPPINE VEGETABLE BUTTER EXPORTS BEFORE AND DURING THE PRESENT WAR 1941(x) 1940 1939 TOTALS .......... 1,544,277 461,224 3,628,523 1,112,046 3,801,802 1,119,138 Destination Quantity (kilos) Value (Pesos) Quantity (kilos) Value (Pesos) Quantity (kilos) Value (Pesos) U. S. & Territories 546,558 189,839 1,598,618 497,616 1,467,810 434,726 Dutch East Indies 66,746 20,149 892,779 304,629 1,236,376 445,962 Malaya 440,203 127,829 580,011 179,586 584,918 172,828 British East Indies 19,687 6,200 209,055 47,106 296,684 83,137 Thailand 67,730 16,101 131,386 34,680 113,383 37,173 Hongkong 237,204 53,570 125,774 25,782 52,376 10,482 India 88,519 21,995 39,819 9,367 — — Panama, Republic of — — 30,491 8,075 10,324 2,396 Burma — — 8,457 1,937 — _____£. British Africa — — 4,525 1,190 2,284 603 West Indies, Dutch 47,212 14,431 3,543 906 — — French East Indies 24,178 8,136 1,485 500 28,561 9,808 China 6,240 2,974 1,551 390 8,830 1,940 Great Britain — — 1,003 272 — — Ecuador — — 26 10 — — French Oceania — — — 256 83 (x) January to July, 1941 only. PAGE 12 NOVEMBER, 1941 LEADING BUYERS OF PHILIPPINE VEGETABLE BUTTER YEAR FIRST SECOND THIRD 1924 United States and Territories Canada China 1925 Hongkong Egypt 1926 No exports No exports No exports 1927 99 99 99 99 1928 »» 99 99 99 99 1929 1930 British East Indies 99 99 Hongkong 1931 99 99 99 China 1932 99 99 99 99 1933 99 99 99 99 Dutch East Indies 1934 • Dutch East Indies British East Indies Thailand 1935 ” n >> 99 99 99 99 1936 United States and Territories Dutch East Indies British East Indies 1937 ” ,, n >> »» » >> 99 99 99 1938 Dutch East Indies United States and Territories 99 99 99 1939 United States and Territories Dutch East Indies Malaya 1940 United States and Territories Dutch East Indies Malaya 1941(x) United States and Territories Malaya Hongkong PHILIPPINE IMPORTS OF LARD, OLEOMARGARINE, AND BUTTER Lard Compounds and Year Lard (Kilos) Lard Substitute (Kilos) Oleomargarine (Kilos) Frozen Butter (Kilos) Canned Butter (Kilos) 1941(x) 7,259 21,541 8,324 581,469 33,054 1940 64,973 47,358 10,780 566,260 62,204 1939 99,862 44,909 32,537 505,346 107,587 1938 85,575 59,798 40,746 671,028 83,149 1937 159,793 41,988 48,617 502,919 97,905 1936 139,809 132,034 65,698 634,944 81,766 1935 131,969 100,731 50,865 634,819 77,179 1934 307,873 69,660 39,761 554,461 211,956 1933 853,482 40,250 65,969 522,024 93,098 1932 2,603,591 42,324 114,382 494,085 111,996 1931 2,680,313 71,544 396,436 654,187 143,303 1930 2,134,741 61,846 346,672 357,951 180,700 1929 2,657,773 85,472 503,392 425,101 181,955 1928 2,221,006 143,032 460,442 445,740 194,928 1927 2,370,215 179,048 363,696 314,256 171,939 1926 1,899,493 148,146 386,289 305,547 233,520 1925 1,735,359 138,456 296,829 (a) 449,438 (b) 1924 2,093,252 185,542 278,022 588,649 (b) 1923 2,034,251 104,723 177,400 387,028 (b) 1922 2,333,806 82,118 167,995 468,206 (b) 1921 3,143,997 107,022 64,386 331,277 (b) 1920 2,080,891 191,671 111,898 593,690 (b) 1919 2,342,675 93,655 35,956 522,298 (b) 1918 1,061,014 115,401 10,235 242,291 (b) 1917 477,064 299,063 34,747 239,034 (b) 1916 461,047 531,377 70,247 222,751 (b) 1915 1,107,665 854,709 69,638 268,406 (b) (x) January to July, 1941 only. (a) Not separately stated prior to Jan. 1, 1926 (b) Including Frozen Butter. (Please turn to page 17) PAGE 13 NOVEMBER, 1941 EXPANDING MARKETS... (Continued from page 13) PHILIPPINE Destination Malaya Hongkong U. S. & Territories China Dutch East Indies British East Indies India Thailand (Siam) Egypt Panama, Republic of West Indies, Dutch Costa Rica Venezuela China, Portuguese Burma Guatamela Japan Ecuador British Africa France French East Indies Kwantung VEGETABLE LARD EXPORTS BEFORE AND DURING THE PRESENT WAR 1 9 4 I (X) 1 9 4 0 1 9 3 9 Quantity (Kilos) Value (Pesos) 420,536 86,686 530,600 117,206 576,755 135,638 748,793 156,160 4,067 974 5,821 1,237 124,267 27,083 30,205 4,658 7,350 1,671 11,759 3,268 38,220 7,265 4,088 1,042 2,940 568 272 60 — .-----■ - 2,932 720 1,466 315 Quantity Value (Kilos) (Pesos) 434,174 89,760 444,188 86,110 320,503 65,435 198,358 38,198 115,668 33,821 132,947 29,853 95,758 26,253 63,276 12,515 46,074 11,405 30,847 8,208 22,588 5,362 22,204 4,699 6,259 1,671 7,350 1,430 6,700 1,320 1,828 404 544 126 111 19 — — — — Quantity (Kilos) 251,614 291,481 839,503 48,438 136,622 36,607 53,895 6,222 14,700 Value (Pesos) 53,139 59,714 177,015 10,485 38,479 6,637 12,069 1,647 4,200 TOTALS (x) January to July, 1941 only. 340 47 4,934 3,532 150 15 1,200 683 544,553 1,949,377 416,589 1,687,935 365,433 LEADING BUYERS OF PHILIPPINE VEGETABLE LARD United States and Territories YEAR FIRST 1924 United States and Territories 1925 British East Indies 1926 United States and Territories 1927 1928 »» >» ,> ,, 1929 1930 British East Indies 1931 Dutch East Indies 1932 » » »> 1933 ” »» „ SECOND British East Indies United States and Territories British East Indies 1934 1935 Dutch East Indies United States and Territories Hongkong United States and Territories Dutch East Indies THIRD Hongkong China Japan Hongkong Dutch East Indies Hongkong British East Indies Hongkong 1936 1937 1938 1939 1940 1941(x) Hongkong Hongkong China Malaya United States and Territories Dutch East Indies Malaya United States and Terri tories Hongkong (x) January to July, 1941 only. 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Date: 1941
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