Coconut oil exports to slip on typhoon damage

MANILA, Philippines — The Philippines is expected to export less coconut oil due to the impact of Typhoon Odette on the local coconut sector, according to the United States Department of Agriculture (USDA).

In a report by its Foreign Agricultural Service (FAS), the USDA said the Philippines may export 930,000 metric tons (MT) of coconut oil in market year 2022 to 2023, which will start in October.

The latest figure is two percent lower than the 950,000 MT export volume projected for the current market year.

The USDA attributed the lower export projection to lower production due the devastation inflicted by Odette on coconut trees in December 2021.

Data from the Department of Agriculture (DA) Disaster Risk Reduction and Management Operations Center showed coconut damage due to Odette may hit P1.62 billion, accounting for 12.2 percent of the typhoon’s total damage to agriculture.

The USDA forecasts coconut oil production in the Philippines to drop by one percent to 1.65 million MT this year due to Odette.

“For market year 2022/23 industrial, food use, and feed waste consumption may slightly increase because of the country’s reopening from COVID-related restrictions,” the report said.

It added that findings by the Department of Science and Technology about the antiviral properties of virgin coconut oil (VCO) against COVID may further increase consumption.

The Philippines is a top exporter of coconut oil. Among its major markets are the Netherlands, the United States, Malaysia and China, among others

Meanwhile, the USDA reported that copra meal production may also decline by 25,000 MT to 840,000 MT during the review period due toOdette.

The typhoon damage is also seen to result in a five-percent drop in copra meal exports to 270,000 MT.

Among the country’s top export markets for copra meal are South Korea, Vietnam and Taiwan.

“Post forecasts market year 2022/23, feed consumption may drop by 10,000 MT to 570,000 MT from the previous year. Consumption is expected to decline because of supply problem due to Typhoon Odette,” the USDA said

Moreover, in the same report, it said the Philippines may import more soybean meal in market year 2022 to 2023 at 2.725 million MT, three percent higher than the year before, mainly due to stronger hog and poultry feed demand.

Soybean meal production is also seen to increase to 85,000 MT from 78,000 MT due to the expected gradual recovery of the hog industry from African swine fever.

It added that poultry production is also forecast to increase in the following year, as the economy reopens following strict COVID-related restrictions.

“Feed consumption in market year 2022/23 is set at 2.10 million MT, up 1.4 percent from the previous year’s level. Hog and poultry feed demand is expected to increase as both sectors aim for greater production in market year 2022/23,” the USDA said.