Coconut oil exports fall 5.8% in Feb. on weak output

COCONUT OIL exports in February declined 5.8%, the Philippine Statistics Authority (PSA) reported, with an industry official citing raw material availability issues that weighed on output.

Citing preliminary data, the PSA said shipments of coconut oil, the leading Philippine agricultural export commodity and eighth overall among exports, slipped 5.8% year on year to $237.41 million in February.

The PSA said that, as a share of the country’s total exports, coconut oil declined to 3.2% from 3.7% previously.

In the first two months, coconut oil exports fell 11.6% to $442.97 million. The decline happened in the face of a 7.4% year-to-date rise in agro-based exports.

Charles R. Avila, chairman and chief executive officer of the Confederation of Coconut Farmers’ Organizations of the Philippines, said the drop in exports was mainly due to supply-side constraints stemming from weather disturbances.

“There is no denying that the 2024/2025 El Niño and subsequent dry conditions reduced coconut yields, affecting copra production and leading to a tightening in the supply of exports,” Mr. Avila told BusinessWorld.

According to the PSA, output of mature coconut, the raw material for copra, stagnated at about 14.08 million metric tons (MMT) in each of the last two years, against 14.47 MMT in 2023.

Mr. Avila added that dry weather tends to encourage the spread of the coconut scale insect, known as cocolisap, which also reduces production.

In June, the Philippine Coconut Authority (PCA) reported cocolisap infestations in nine regions, which resulted in an estimated P280 million in lost production.

About 516,000 coconut trees were struck by the pest, many of them in Calabarzon, a leading coconut producer.

Mr. Avila said increased domestic consumption of coconut products, including by the biofuel industry, may have also contributed to the decline in coconut oil exports.

“Despite the mandatory biodiesel blend, the mandate was suspended at 3%, and we have not yet reached the expected mandatory 5% (B-5). Overall, it is not yet such a big factor as to substantially reduce export supply,” he said.

Meanwhile, Mr. Avila said  the anticipated production rebound this year may not materialize, despite the government target of boosting coconut exports to $3 billion.

“Even with rising demand, a corresponding increase in supply is not a given,” he said.

Mr. Avila said limited farmer access to funding, infrastructure gaps, and weak coordination among producers and government agencies continue to hamper efforts to expand output. — Vonn Andrei E. Villamiel