Market Review of Dessicated Coconut
June 2022
Price of desiccated coconut (DC) from Philippines benefited from higher demand especially in USA and Europe. The FOB price of DC from Philippines was US$2,557/MT in December 2021and leveled up to US$2631/MT in May 2022 or appreciated by 3% during the period. Meanwhile, better supply of DC in Philippines in the beginning of 2022 has put pressure on the price of DC in Indonesia. On average price of DC from Indonesia depreciated by more than 28% during January-May 2022. Indonesia’s FOB price of DC in December 2021 was US$2,450/MT and dropped to US$1,850/MT in May 2022. Similarly, Sri Lankan DC price declined from US$2,603/MT to US$1,806/MT in May 2022 mainly due to economic crisis in the country.
Global market of desiccated coconut (DC) showed a positive trend in the first quarter of 2022 following increasing trend in the previous year. Imports of the products by the main importing regions such as Europe and USA increased during the first quarter of 2022. US imports of desiccated coconut rose by 21% compared to the same period in 2021. Similarly, demand of desiccated coconut by European countries went up by 27% during the period. Shipments of DC to European countries amounted for 41,896 tons of during the period of January-April 2022.
On the other side, supply of DC was also improving as most of DC factories is back to normal production capacity supported by higher coconut production. Export of DC from Philippines, the largest exporting country, increased from 35,765 tons in January-March 2021 to 51,214 tons January-March 2022. The increase was following a positive trend in the previous year. In 2021, export DC from Philippines was 160,117 tons which was 10% higher compared to 2020’s export volume. At the same time, Sri Lanka experienced higher export volume of DC. During January-April 2022, export DC from Sri Lanka reached 13,056 tons which was 42% higher as opposed to the volume a year earlier. However, export of DC from another main supplying country, Indonesia, showed a decrease during the first quarter of 2022. Indonesia suffered from higher supply of DC from Philippines.
European countries and US are still the major destinations for desiccated coconut. During January-March 2022, Philippines shipped more than 28 thousand tons of DC to Europe and US market. The export volume was accounted for more than 55% of DC exports from the Philippines. Meanwhile, Middle East is the traditional market for DC from desiccated coconut from Sri Lanka.
Meanwhile, Asia and Europe are the major destinations for DC from Indonesia. Singapore is the main hub for DC from Indonesia. During January-April 2022, 12,067 MT of DC was shipped to Singapore. It constituted for more than 30% of the total export volume of DC from Indonesia during the period. In Europe, Turkey, Russia, and Germany were the largest importing countries during the period. They received 2,171 tons, 1,895 tons, and 1,817 tons respectively.
