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Safety, Quality, Responsibility to Sustainable Development
Safety, Quality, Responsibility to Sustainable Development


In 05/2014, desiccated coconut prices stabilized and rose to  2,748USD / MT in the Philippine market, 2,376 USD/ MT for Sri Lanka and Indonesia market was 2,408 USD / MT. Desiccated coconut market earlier also tend to increase or decrease it. After declining to 1,085USD /MT on 7/2009, the desiccated coconut prices rose to the highest level recorded was 3,170 USD /MT

Although this cycle is predicted to occur similar to the previous cycle but increased or decrease happens in many different time. If the period of the first cycle occurred in 02 years, this current time is expected to occur in long time; that ‘s mean desiccated coconut prices will reach the  lowest level in over a long period of time before prices is rising in a new cycle. There are a few reasons that desiccated coconut price increases longer than previous cycles. The first reason is the impact of the storm in the Philippines – called Haiyan (top of producer of desiccated coconut). To restore operation desiccated coconut production, the country needs at least 04-05 years or over 06 years for manufacturing operations to recovery. The second reason is the competition between the production of desiccated coconut with other coconut products in search for raw materials. Because the prices of other products such as coconut oil and coconut milk coconut improved so manufacturers will boost the production capacity of these products; so they need more than raw material.

Exports desiccated coconut (DC) of Indonesia in 02/2014 was 11,286 tons, total exports reached  20.3 million dollars. DC exports in the period from  January - February /2014 is lower than the previous year at 8% - 12,274 tonnes. From Januray - May/2014, the Philippines exported 40, 227 tonnes DC, down 23.5% compared to the same period last year was 52 589 tonnes. The decrease happend due to the effects  in 06 months after Haiyan storm destroyed more than 30 million coconut trees in this country. In contrast, from April January-February / 2014, exports of desiccated coconut in Sri Lanka and significantly increased about 127%, about 7,146 tons (last year exported 3,152 tons of DC).

Desiccated coconut price (FOB Colombo) in Sri Lanka is starting rising price 1,110USD / MT in July/2012 and continue to rising price 2,376USD /MT  in 5/2014; that’s mean average rate of about 5% monthly. Price desiccated coconut in Sri Lanka reached the highest level since August / 2013-January / 2014, about 5.6% higher than the price of desiccated coconut from July/2012 - August/2013 is 2.73% . Price trends in Indonesia and the Philippines also took place in Sri Lanka is similar but the Philippines was ceded the country bids desiccated coconut highest in 03 major producing countries for Sri Lanka in August/2013. During the month June/2013 and July/2013, both the Philippines and Sri Lanka have made ​​similar price reached  1,792USD/MT and 1,778USD / MT (price difference of 02 countries only 14 USD / MT) ; then the price gap between the two desiccated coconut has more differences, Sri Lanka is 1,720USD / MT and the Philippines is  1,593USD / MT (difference 127 USD / MT). However, Philippines returned the country of the highest desiccated coconut price in 03 major producing countries on February/2014. Price of desiccated coconut in February/2014 is 2,652USD /MT, up 15.5% compared to the price of Sri Lanka is  2,074USD /MT. In Indonesia, the price of desiccated coconut is the lowest level in July/2012 to reach  1,150USD / MT and restored in April/2013 is  1,519USD / MT, then increased to 2,408USD/MT in May/2014. The average growth rate in half in 2014 reach at 5.2% and  the highest in the period from September/2013 to January/2014 was 9.9%.

From Januray- February / 2014, Sri Lanka ‘s desiccated coconut exports to major markets in the Middle East (average 28.7% market share) and Europe (37.7%). Middle East market imported 2,048 tons of desiccated coconut in Sri Lanka; that Iran is the main importer with total imports reached 640 tons; Saudi Arabia followed by 544 tons, U.A.E. 251 tonnes and 163 tonnes Jordan. In Asian markets, Pakistan's largest buyers DC to 242 tons. Europe is the second largest importer of desiccated coconut from Sri Lanka, 2,696 tons of imported include key purchasing countries: Spain, Germany, France, Portugal, England, Italy, Ireland, Netherlands , Greece and Belgium. Additionally, the U.S., Brazil, Chile, Uruguay, Colombia, Argentina, Mexico, Egypt, South Africa, Sudan and Australia is the growing market for desiccated coconut in Sri Lanka.

2013, the Philippines exported 100, 238 tonnes of desiccated coconut (last year exported 108,867 tonnes). This is the export output reached its lowest level in the 06 years of this country. Manufacturing exports desiccated coconut from the Philippines peaked in 2008 with 142 626 tonnes. Since 2007 - 2014, the average export desiccated coconut in the Philippines every year to reach 118,159 tonnes. Moreover, if you compare the amount of desiccated coconut exports in the period from January - May/2014 was lower than the amount exported in 2011 (61,181 tonnes), 2012 (62,537 tonnes) and 2013 (52,589 tonnes ). EU is the largest importer of desiccated coconut from the Philippines, reaching 44% market share; followed by 30.3% in North America (U.S. and Canada including 02 major import markets). In the past 05 years, desiccated coconut from the Philippines to the United States every year and Canada range from 34,645-42,232 tons, about one third of the country's total exports. Market share in many countries in Asia and the Pacific, such as Australia, Japan, Taiwan, Singapore and South Korea have reached 27% of total exports desiccated coconut from the Philippines.



Source: APCC - June/2014

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