Dried Fruit

Desiccated coconuts: shift in demand

May 5, 2020 3:35 PM, Der AUDITOR
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MANILA. Due to the corona pandemic, supplies of desiccated coconuts and coconut oil will be noticeably lower this season. Demand is shifting from food service providers to consumers.

Hardly any demand from the food service sector

Due to the current situation, there has been a shift in demand on the coconut market. While before the corona pandemic a large part of the supplies, especially coconut oil, was sold to the food service sector, demand here has declined sharply. Many catering companies and restaurants had to shut down due to the corona measures. In contrast, demand has increased among end consumers, who now cook more at home. This forces producers to rethink quickly and adapt to the circumstances. The extent to which the spread of the virus will affect overall demand cannot be determined at this time, according to the experts at T.M. Duché.

Sharply reduced production

Market players expect stocks of coconut oil and desiccated coconuts to be relatively low this season, as many factories are currently operating at low capacity or have even had to close down completely. This is particularly true in Sri Lanka, while production in the Philippines has resumed at around 40%. However, the trade does not expect the situation to improve noticeably before August. These uncertainties make potential customers hesitant. While buyers from the US are already stocking up on September and October positions out of concern for sufficient supplies, European traders are holding back for the time being. The prices on the European spot market remain relatively stable. For example, desiccated coconuts, fine, high fat, from Sri Lanka currently cost EUR 2.20 per kg FCA Spain.

Desiccated coconuts

Quality

EUR/mt

Fine, high fat, Sri Lanka

2,200

Fine, low fat, Indonesia

1,000

FCA Spain

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