Coco oil seen growing 12.3% in ’12

Philippine coconut oil (CNO) exports may grow by 12.3 percent to 925,000 metric tons in 2012 from 823,381 metric tons in 2011. The growth will come from the recovery in the production of copra, the raw material for CNO, according to the United Coconut Associations of the Philippines Inc. (UCAP).

Philippine coconut production in copra terms may reach 2.487 million metric tons this year from 2.062 million metric tons in 2011.

The 20.6 percent increase in output will come from higher production as trees are expected to recover from stress due to drought in 2010 and high production in prior years, UCAP executive director Yvonne Agustin said in a phone interview.

The United States and Europe are expected to remain the top markets for CNO, along with Japan and China.

The Philippines fell short of its CNO export target of 900,000 metric tons for 2011 as production dropped due to prolonged effects of drought. Coconut trees also suffered from stress due to high production in 2008-2010.

Palm kernel oil was also much cheaper in 2011 at $100 per ton CIF, but this difference narrowed to $50 per ton CIF.

Philippine Coconut Authority administrator Euclides Forbes said demand for CNO 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.