Coconut oil exports fell by 40% in 2011
Philippine coconut oil exports dropped by 39 percent in 2011 from year-ago level on low supply of raw materials and high prices, according to the United Coconut Associations of the Philippines (UCAP).
Industry data showed that coconut oil shipments for 2011 reached only 819,081 metric tons from 1.34 million metric tons in 2010.
The country was targeting to ship a total of 900,000 metric tons of coconut oil in 2011.
In December 2011, alone, shipments reached 70,200 metric tons.
The United States and Europe were still the top export markets for this product.
UCAP executive director Yvonne Agustin said in a phone interview that production dropped as coconut trees suffered from the effects of drought. Trees also suffered from stress due to high production in the past three years (2008-2010).
To make matters worse for Philippine exporters of coconut oil, palm oil is currently much cheaper, moving some industrial clients to shift to the alternative product.
Agustin said UCAP had yet to set its production target for 2012 as it was still finalizing export figures. An initial forecast may be available soon, she said.
Philippine Coconut Authority Administrator Euclides Forbes also said that demand for coconut oil declined in 2011 as buyers shifted to the cheaper palm oil.
The Philippines, which ships out about 80 percent of its production, is at present the world’s biggest exporter of coconut oil.
Raw coconut oil is used in food and for extracting oleochemicals. Chemicals from CNO, meanwhile, are used in a wide range of products from soap to biodiesel.
