Dried Fruit

Desiccated coconuts: buyers' plan does not work out

August 18, 2021 4:53 PM, Der AUDITOR
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MANILA. Due to the ongoing lockdown, the situation for coconut producers in the Philippines is currently very difficult. European and US buyers had been holding back on purchases to avoid the high freight costs - but this plan seems to be failing.

Factories are difficult to reach

In their latest report, the experts from T. M. Duché state that the prospects for Philippine coconut producers currently look anything but rosy. The lockdown in the capital Manila has not yet been eased and considering that only about 5% of the Philippine population has been vaccinated against the coronavirus so far, it will take quite a while before the measures will be relaxed. Of course, this makes work much more difficult, since getting to the factories in Manila or the suburbs is difficult. Many office workers work from home, but due to a lack of equipment, this is not an optimal solution either.

Prices could rise further

Buyers in the US and Europe are facing further difficulties. As T. M. Duché reports, demand is at a record high, which is very unusual, especially in the normally quiet summer months. However, freight costs remain so high that many buyers have put their orders on the back burner for the time being. This plan could backfire; experts do not expect delivery costs to decline this year or in the first months of 2022. On the contrary, export prices are likely to rise further due to low availability, probably already in Q4 of 2021.

Currently, prices on the European spot market are still stable at EUR 2.85/kg FCA Spain for fine desiccated coconuts, high fat, origin Sri Lanka.

Desiccated coconuts

Quality, origin

EUR/kg

Fine, high fat, Sri Lanka

2.85

Fine, medium fat, Indonesia

1.75

Fine, low fat, Indonesia

1.60

FCA Spain

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price chart, desiccated coconuts, Sri Lanka
price chart, desiccated coconuts, Indonesia
price chart, desiccated coconuts, Philippines 
price chart, coconut oil, Indonesia
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