Desiccated coconuts: energy crisis impacts Philippine market
May 6, 2026 at 11:45 AM ,
Der AUDITOR
Energy crisis weighs on the coconut industry
Since the end of February, the Philippine economy has been under pressure due to a tight energy supply, as T.M. Duché states in its latest report. The trigger was the closure of the Strait of Hormuz in connection with the geopolitical conflict between the US, Israel and Iran. As the country is almost entirely dependent on oil imports from the Middle East, this led to sharp price fluctuations: diesel exceeded 130 PHP per litre, petrol was over 100 PHP, and liquefied natural gas tripled in price. The government subsequently declared a national energy emergency, whilst available reserves were estimated at around 45 days. Although a ceasefire in early April brought short-term relief, it is still reckoned that previous price levels will not be reached again. Consequently, costs in the coconut industry are rising, particularly for transport, processing and packaging, further exacerbated by higher fuel surcharges for international shipments and US tariffs of 17-19%.
Desiccated coconuts and coconut oil show stability
Export prices for desiccated coconuts remain largely unchanged and have been holding steady between USD 1.09 and 1.90/lb FOB for the past eleven weeks. Domestically, however, a slight increase was recorded. At the same time, according to the United Coconut Association of the Philippines (UCAP), export volumes rose by 5.2% year-on-year in March.
In the coconut oil market, offers from Rotterdam showed a slight downward trend across several delivery dates, as the experts at T.M. Duché further report. Philippine suppliers continued to offer substantial volumes, with prices for crude coconut oil at PHP 120–140/kg and for refined coconut oil at PHP 138–147/kg (excl. VAT). Demand, however, remained subdued. Market reports from Rotterdam recently indicated price levels of around USD 2,300/mt, whilst trader data showed a range of USD 2,200 to 2,385/mt CIF, pointing to low liquidity and a market dominated by supply. What is striking is the contrasting trend between rising raw material costs and, at the same time, weaker export revenues for coconut oil. This is putting increasing pressure on processing margins, unless demand improves.
Copra prices in key growing regions of the Philippines have recently shown a further slight firming. In the Quezon region, selling prices ranged between PHP 6,950 and 7,200 per 100 kg, while bids were slightly lower. A moderate upward trend was also observed in Visayas and Mindanao, according to T.M. Duché.
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Desiccated coconuts, Indonesia |
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Quality |
EUR/mt |
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Fine |
2,800 |
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Medium, high fat |
3,040 |
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Trade sources; EXW PL; price indications |
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