Desiccated coconuts: big plans for 2025
February 19, 2025 at 4:54 PM ,
Der AUDITOR
China as an important trading partner
As FreshPlaza reports in relation to VNExpress, Vietnam exported coconut products worth a total of EUR 1.1 billion last year, an increase of 20% on the previous year. The export value of fresh coconuts alone increased by 61% in this period and totalled USD 390 million.
In Vietnam, coconut palms are cultivated on around 200,000 hectares and the annual crop is around 2 million mt, of which around a third can fulfil the requirements of the EU and the USA for organic goods. With more than 600 companies involved in the production and processing of coconuts and coconut products, Vietnam ranks fifth among the world's largest coconut exporters. Around 25% of coconut exports from Vietnam go to China, while the EU, the USA, Canada and South Korea are also important sales markets.
However, Vietnamese coconut farmers have been reluctant to expand their plantations in recent years and the pressure of competition from Thailand, India and the Middle East is growing. As a result, the Secretary General of the Vietnamese Coconut Association has approached the Vietnamese government with a request to enter into negotiations with China to allow further acreage in Vietnam for export.
Sri Lanka plans to plant 2.5 million palm trees
As the experts from T.M. Duché write in their latest report, the year 2025 will also be characterised by strong price fluctuations for desiccated coconuts and coconut oil. This is due to high demand and existing challenges in supply chains worldwide.
The shortage of goods in Malaysia has caused prices there to rise and raises questions about reliable supply availability. Periods of increased demand such as Ramadan and other major holidays are particularly critical.
Meanwhile, 20 land development projects have been halted in Sri Lanka in order to protect the coconut plantations, and around 2.5 million coconut palms are to be planted in 2025. The efforts to expand coconut production are therefore clearly noticeable and could influence global market dynamics.
The Philippine Coconut Authority (PCA) is also planning a large-scale planting campaign in Davao, Philippines, which should help to stabilise prices for desiccated coconuts and copra. For the time being, however, the Thai Coconut Public Company Limited in the Philippines wants to commission a new plant for the production of coconut milk. Desiccated coconuts are an essential and unavoidable basic ingredient in the production process, which is why demand for this product could increase significantly.
Prices for desiccated coconuts have stabilised for the time being at a level of USD 0.80-1.70/lb FOB, while coconut oil has risen slightly compared to last week and is currently quoted at USD 1,970-2,040/mt CIF Rotterdam. The increase in coconut oil is due to the scarce availability of copra in the main growing regions as well as the price development of other vegetable oils such as palm oil and soya oil.
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