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Desiccated coconuts: shortage of goods causes prices to rise

March 25, 2025 at 4:51 PM , Der AUDITOR
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MANILA. The shortage on the coconut market continues to worsen and there is no end in sight for the time being. This continues to be reflected in prices.

Hardly any prompt shipments possible

The shortage of raw materials on the international coconut market continues and is more than noticeable; for example, the experts at JCP International report that two of the largest Indonesian processors have had to lay off a total of 3,500 employees. This is of course also reflected in prices, which are trending upwards for all coconut products. This is particularly evident in the case of coconut oil, even though palm oil prices are on the decline.

The availability of Philippine products such as desiccated coconuts is extremely limited. According to JCP International, there are no offers for prompt shipments and even ordering small quantities for Q3 is proving to be extremely difficult. In addition to the shortage of raw materials, this is also due to delayed deliveries, which can sometimes be up to a month behind schedule. Indonesian suppliers have a limited quantity available for shipments in May and June, with hardly any goods left for April. Buyers who usually source their products from the Philippines are now trying to switch to Indonesia, which is putting additional pressure on prices. As large quantities of raw coconuts are exported to China and Thailand, Indonesian processors are finding it difficult to obtain sufficient quantities. According to the experts, Sri Lanka remains the most expensive origin, even though prices here have recently fallen slightly. However, suppliers are still finding buyers.

Heat stress and the threat of El Niño

There is no improvement in sight for the time being, as the weather outlook is anything but rosy. Early data indicates a warming of the eastern Pacific, which points to an El Niño weather phenomenon later in the year. It is still too early to make accurate predictions here, but the situation needs to be monitored closely. Many Asian growers are currently struggling with heat stress, which is delaying the harvest and affecting the quality of the coconuts. This is likely to further exacerbate the shortage.

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