Desiccated coconuts: exporters unwilling to lower prices
June 16, 2026 at 4:50 PM ,
Der AUDITOR
Desiccated coconuts remain stable
The market for desiccated coconuts remains relatively stable. Although domestic prices in the Philippines have fallen in the wake of weaker copra prices, processors are sticking to largely firm export quotations. Suppliers are taking into account potential risks on the supply side, whilst demand continues to be viewed with caution.
The strong earthquake off the coast of Sarangani and Mindanao in the Philippines is causing further uncertainty. In the affected regions, processing plants have been temporarily shut down to carry out safety and structural inspections. Transport, storage and port operations may also be disrupted in the short term. However, no major supply bottlenecks have arisen so far, as the experts at JCP International state in their latest report.
Coconut oil remains under pressure
Coconut oil continues to underperform compared with other coconut products. Prices have fallen significantly from the high levels seen last year. This is due to subdued demand, improved availability in the countries of origin and competition from alternative lauric oils. Furthermore, the price differential with palm kernel oil has narrowed significantly or, in some cases, disappeared entirely, leading industrial buyers to increasingly switch to substitute products.
The performance of other vegetable oils remains a key influencing factor. Palm oil is being supported by biodiesel demand and expectations surrounding Indonesia’s B50 programme. This specifies that diesel fuel may consist of at least 50% biodiesel and a maximum of 50% fossil diesel. Soybean oil, by contrast, was at times weaker due to high availability and uncertainties regarding biofuel policy. Price movements in these markets can have a direct impact on coconut oil.
Weather risks and logistics remain key market factors
Looking ahead to the coming months, weather conditions are increasingly coming into focus. Forecasts point to the development of El Niño conditions in parts of South-East Asia, which could lead to lower rainfall and put pressure on coconut production. At the same time, the typhoon season is beginning in the Philippines. Particularly severe storms can damage plantations, affect crops and temporarily disrupt processing and export activities. This would lead to reduced availability and rising prices.
Logistics costs also remain high. Rising freight rates, capacity bottlenecks, longer transport times and diversions of key shipping routes are complicating planning and increasing costs along the supply chain. As a result, import costs may remain high despite potentially falling FOB prices, according to JCP International.
|
Desiccated coconuts |
|
|
Quality, origin |
EUR/mt |
|
High fat, fine, Indonesia |
2,550 |
|
High fat, medium, Indonesia |
2,850 |
|
High fat, fine, Philippines |
2,950 |
|
Trade sources; FCA EMP |
|
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