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Desiccated coconuts: situation in the Philippines improves

June 3, 2020 at 12:07 PM , Der AUDITOR
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MANILA. Eased quarantine regulations and sufficient raw nuts ensure that the factories can resume their work in greater numbers. This should lead to higher production figures in the coming weeks.

Measures are being eased

After two and a half months in which only systemically important workers were allowed to leave their homes, the quarantine regulations in the Philippines have now been relaxed a little and more people are trying to return to work. This is still hampered by the disrupted infrastructure, which makes it difficult for workers in coconut factories to reach their jobs. There are reports of long waits before people may get a lift. One reason for this is the coronavirus pandemic, which has led to a shortage of staff, and typhoon "Ambo" has also caused considerable damage on the islands. Although the coconut plantations have been largely spared, the roads are additionally blocked by landslides and fallen trees. Cereal farmers who grow wheat or rice were less fortunate and some of them have suffered heavy damage to their crops.

Production increase in sight

The experts at T.M. Duché expect the problems with the infrastructure to improve considerably in the coming weeks as a result of the relaxed quarantine rules, which would lead to higher production capacities. Although the distance regulations in the factories will remain in place, the quota is not fully utilized at present. Raw nuts are available in sufficient quantities and must be transported to the factories, which are spread all over the country.

Stable prices

International buyers still have to expect long waiting times due to backlogs in production and shipping. However, market players reckon that export prices should at least remain stable into Q4. Desiccated coconuts, fine, high fat, origin Sri Lanka, are currently trading at EUR 2,120 per metric tonne.

Desiccated coconuts

Quality

EUR/mt

Fine, low fat, Indonesia, EXW Poland

1,270

Medium, low fat, Indonesia, EXW Poland

1,445

Medium, high fat, Indonesia, EXW Poland

1,890

Fine, high fat, Sri Lanka, FCA Spain

2,120

Trade sources

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