Coco oil exports slip 36%

MANILA, Philippines - Philippine coconut oil exports fell by 36.1 percent in terms of volume in the first nine months of the year because of continued tightness in copra supply following the onslaught of Super Typhoon Yolanda and the natural stress of coconut trees due to aging.

Yvonne Agustin, executive president of the United Coconut Association of the Philippines (UCAP), said coconut oil exports reached a total of 585,189 metric tons (MT) in the January to September period, down from the 915,221 MT  shipped out in the same period a year ago.

For the month of September alone, CNO exports fell 22.6 percent to 69,213 MT from the 89,400 MT recorded in the comparative period last year.

“There’s a continued tightness in supply of copra, which is the raw material for coconut oil. This is expected since many of our coconut areas were still recovering from the damage sustained from the typhoon,” said Agustin.

She also attributed the decline in export volume to biological stress which happens to coconut trees usually after three consecutive years of good harvest.

Higher prevailing price for coconut oil in the world market are also causing buyers to shift to the cheaper palm kernel oil. 

Coconut oil prices averaged $1,170 per MT in September 2014, against the average price of palm kernel oil placed at $894 per MT during the reference period.

“The wider gap in prices might be attributed to seasonal factors since there is a robust production of palm oil,” said Agustin.

Agustin said, however, that the gap in prices is currently narrowing, giving CNO exporters the opportunity to catch up on shipments for the remaining three months of the year.

UCAP expects CNO exports to reach 850,000 MT for the entire year.

The Philippines exports over 70 percent of its coconut oil produce, about 80 percent of which are shipped to Europe and the United States.

Coconut oil is used in the manufacture of various food products, cosmetics, and fuel, is one the country’s top industrial crops.