Desiccated coconuts: 100 million new trees to revitalise industry

May 27, 2024 at 12:41 PM , Der AUDITOR
Play report as audio

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. 

 

View more
price chart, desiccated coconuts, Sri Lanka
price chart, desiccated coconuts, Indonesia
price chart, desiccated coconuts, Philippines 
price chart, coconut oil, Indonesia
more price charts

 

View related articles

Go to the News Overview
Nuts
Mar 18, 2025
THERAN/FRESNO. Attractive prices have propelled Iran’s pistachios exports to a four-year high. Yet, the tide is turning. Contrary to this, US exports have slumped by 30% with Poland being the biggest surprise.
Dried Fruit
Mar 18, 2025
MALATYA. With the weather expected to turn cold farmers are anxiously preparing for agricultural frosts that may impact this year’s dried apricots. The market is paralysed at present. A stark warning has been issued against the incorrect use of pesticides.
Nuts
Mar 17, 2025
NEW DELHI/ATLANTA. Indian peanuts are indirectly profiting from the US tariffs and their international repercussions. For US exporters the market has become more complex. Aggressive pricing is an issue in Argentina and Brazil. China is closely monitoring international consumption.
Nuts
Mar 13, 2025
ORDU. While speculations over potential frost damages are making headlines, the first official estimate for the year’s crop has been issued. Demand for hazelnuts has changed and prices have taken an odd turn.