1. Analysis of APCC desiccated coconut market
In the period from January to December 2017, the situation of Philippine desiccated coconut exports continued to increase since the previous year. According to official data from the Statistics Office of Philippines, the amount of desiccated coconut exports from January - December 2017 was 115,005 tons, up 26% compared to the same period last year. Export volume in this period has even reached the highest level since 2015. However, according to the latest statistics, in the first quarter of 2018, the export volume of desiccated coconut decreased by about 11.6%, a decrease. from 22,410 tons to 19,806 tons. This data is showing a reverse trend of desiccated coconut exports from the Philippines.
After experiencing a shortage of raw materials due to the phenomenon of el nino in 2015 that made the coconut industry worse by a series of storms, the Philippine desiccated coconut industry has shown that signs of recovering after improving the situation of coconut production due to favorable weather conditions. This could allow Filipino desiccated coconut producers to meet global demand in the international market. Price of desiccated coconut in Sri Lanka is also rising, making desiccated coconut of the Philippines more competitive in the global market. In 2017, the Americas and Europe were still the two main import markets of desiccated coconut from the Philippines, accounting for more than 82% of total exports. The United States is the main import market for Philippine desiccated coconuts in the Americas, importing 33,362 tons or 92% of total exports. In Europe, the Netherlands is the main import destination, receiving 14% of total Philippine desiccated coconut exports. While from Asian countries, China, South Korea and Malaysia are the largest importers of desiccated coconut from the Philippines.
In the first quarter of 2018, the situation of desiccated coconut exports from Indonesia showed a positive development, reaching 26%. This development is continuing following the upward trend of the previous year. In 2017, the BPS Statistics Office of Indonesia recorded an output of desiccated coconut from Indonesia during this period was 98,038 tons., 23.7% higher than the same period last year. This level of export is even higher than that of 2014 of 86,797 tons. The increase in raw material supply along with lower product prices compared to other competitors plus a recovery in processing has shown an optimistic signal for desiccated coconut processors. Indonesia to boost exports. It is worth noting that the export volume of desiccated coconut from Indonesia decreased from 86,797 tons in 2014 to 85,715 tons in 2015 and once again decreased to 79,224 tons in 2016. This decrease is mainly due to shortage of raw materials due to bad weather conditions and competition with other coconut products.
In the period from January to April 2018, Asia and Europe were still the main import markets for desiccated coconut from Indonesia. These two regions imported 81% of the total desiccated coconut exports from Indonesia. In Asia, Singapore is the main import destination for Indonesian desiccated coconut producers. More than 20% of the total desiccated coconut exports are exported to or through Singapore. The UAE, Iran, Saudi Arabia, Pakistan, and Iraq are other major import markets from Asia. Europe was the second largest import market for desiccated coconut from Indonesia in the said period, led by Germany, Russia, Finland, the Netherlands, Turkey and the United Kingdom. This region has imported 11,588 tons of desiccated coconut from Indonesia. The third largest market is Africa with 9% market share of Indonesian desiccated coconut market. Among African countries, Egypt is recognized as the largest importer. The country imported 4,570 tons of desiccated coconut from Indonesia, accounting for 6.7% of total exports.
Demand for desiccated coconuts from Sri Lanka is declining following a significant increase in the price of the product. In the period from January to December 2017, the output of desiccated coconut from Sri Lanka was 29,418 tons or down about 40% compared to the same period last year. The negative trend continued in the first quarter of 2018. In the period from January to April 2018, Sri Lanka's output of desiccated coconut exports was 5,362 tons or about 52% lower than the same period. High coconut prices have forced desiccated coconut producers to increase product prices and even limit demand for desiccated coconut globally. However, Sri Lanka is still the main player for desiccated coconut in the international market. Sri Lanka has grown rapidly to become a competitor to the Philippines and Indonesia as the main producer of desiccated coconut. In 2016, the output of desiccated coconut exports from Sri Lanka was recorded as a remarkable development, reaching 36% compared to the previous year's export output.
Europe and the Middle East are traditional import markets for desiccated coconut from Sri Lanka. In the period from January to April 2018, European and Middle East countries imported the equivalent of 1,802 tons and 1,164 tons of desiccated coconut from Sri Lanka. Imports of these two regions account for more than 55% of the total export of desiccated coconut in Sri Lanka. The American continent has emerged to become an important import market for desiccated coconut in Sri Lanka. The continent imported 29% of Sri Lanka's total exports of desiccated coconut during the said period. The United States is the main importer with 977 tons or 18% of total exports.
The price of desiccated coconut in the first quarter of 2018 showed a relatively stable trend in the Philippines with an average price of US $ 2,472 / ton. In Indonesia, meanwhile, the price of desiccated coconut is declining from US $ 2,438 / ton in December 2017 to US $ 2,100 / ton in April 2018. In Sri Lanka, the price of desiccated coconut remained high at an average of US $ 3,622 / ton although the price of this product has tended to decrease slightly. Prolonged increases have prevailed in Sri Lanka as desiccated coconut prices have risen about 47% from January to December 2017. This increase has set the price of desiccated coconut in Sri Lanka higher than the price of desiccated coconut in the Philippines and Indonesia and made Sri Lanka less competitive for this item in the global market. The price of raw materials and coconut is higher in Sri Lanka, forcing desiccated coconut processors to adjust product prices. In December 2017, domestic coconut prices in Sri Lanka were twice as high as domestic coconut prices in Indonesia and the Philippines.
2. Monthly export price of desiccated coconut from 2011 - 2018
Source: Translated from The COCOMMUNITY, VOL publications. XLVIII NO. 6, 1 June 2018
