Dried Fruit

Desiccated coconuts: massive drop in demand

December 14, 2022 at 12:32 PM , Der AUDITOR
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MANILA. In its latest report, T.M. Duché draws particular attention to the difficult demand situation in 2022, which will continue in the new year. Worldwide recessions and a large amount of available goods are contributing their part.

Significant price declines for coconut oil

In their current annual review, the experts at T.M. Duché revisit the ups and downs of 2022 on the coconut market. It becomes clear that demand for desiccated coconuts has fallen massively; global inflation problems and rising interest rates have severely dampened purchasing power. Add to this China's zero-covid policy, which was declared over last week but had caused major hurdles in trade during the year. Since, according to T.M. Duché, there were more oil mills this year than ever before, low demand met with high supply, which also put noticeable downward pressure on coconut oil prices. According to the experts, costs were still at USD 2,300/mt CIF Rotterdam in February, but in October they were only a good USD 1,000/mt CIF - a drop of almost 60%.

Desiccated coconuts, Indonesia

Quality

EUR/kg

Fine

1.20

Medium

1.30

FOB Indonesia; International Coconut Community

Gloomy outlook

There is good news for the start of the new year, at least on the freight rate side; these have fallen from USD 18,000 for a 40'FCL at the beginning of the year to as low as USD 1,800 in some cases in December. Retail sales are expected to decline further in 2023 as financial problems worsen. T.M. Duché states that plans for more mills have been put on hold for the time being, and smaller mills already in operation have also had to close. Demand is thus likely to remain weak at least in the Q1 of 2023, especially as large stocks still have to be reduced in some cases as well.

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