Dried Fruit

Desiccated coconuts: 100 million new trees to revitalise industry

May 27, 2024 at 12:41 PM , Der AUDITOR
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MANILA. In planting 100 million coconut trees the Philippine government aims to revitalise the industry. High freight rates present quite a challenge.

Prices on the rise

As TM Duché reports the Philippine government intends to plant 100 million coconut trees to boost production and revive the industry, which is confronted with many challenges. Coconut products are important for the country's exports. Yet, a prolonged dry spell is affecting the trees and giving rise to concerns that crop volumes will be reduced in the next six to eight months. This has prompted traders to pruchase supplies for the fourth quarter as shortages are anticipated. Desiccated coconut is trading at USD 0.80-0.95/lb FOB for shipments to the USA and Europe.

Exports slump

Dirven by adverse weather conditions that impacted production monthly coconut exports only reached 40,000 mt in April, which is 33% down on the 59,347 mt shipped in April 2023. Freight rates have, in addition, surged to levels not seen since the pandemic. The main reasons are high demand, supply chain disruptions and the Red Sea crisis, which is forcing container ships to travel around Africa causing delays and pushing up costs. This situation is made worse by port congestions and the fact that containers are in short supply in China. 

 

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