Market Review Dessicated Coconut
October 2021

Global trade of desiccated coconut (DC) was facing many challenges during last one and half year as Covid-19 pandemic causing delays in shipments and disruption in production. Global imports were struggling to recover until second half of 2021. During January-July 2021, global imports of DC recorded a drop by more than 15%. Imports of DC by European countries (EU28) declined during January-June 2021. Demand of DC from the continent during the period was only 51,800 MT of DC which was lower by 4% to the volume a year earlier. Meanwhile import of the coconut product from US market, a major destination of DC, showed a positive signal of recovery. In the period of January-August 2021, US imported 31,591 MT of DC which was an increase by 27% as opposed to the same period in 2020. In terms of value, the increase was even higher reflecting a higher price of DC in 2021. It is expected that global market of DC will gradually recover following a recovery in global economic condition.

Figure 1. USA and European Union Imports of DC (MT), 2020-2021

On the other hand, supply of DC is starting to improve as production and transport are getting better. Export supply of DC from Philippines, the largest exporting country, improved to level of 72,683 MT during the first half of 2021. The export volume level up by 2% compared to the same period in 2020. It should be noted that Philippines experienced a lower export of DC in 2020. The country shipped 145,200 MT of DC to global market, a drop of more than 10% compared to 2019’s volume. Other main supplying countries, Indonesia and Sri Lanka also had positive signal to boost their exports of DC. The two countries shipped higher volume of DC to global market until the third quarter of 2021. Indonesia sent 90,804 MT of DC, an increase of 12% as opposed to last year’s volume. Indonesia kept its positive trend from previous year. In 2020, DC export from Indonesia grew by 17%. Meanwhile, Sri Lanka also experienced a growth during the period of January-August 2021. Sri Lanka shipped 21,812 MT of DC to global market. The export rose by 11% compared the export volume a year earlier. It is worth noting that Sri Lankan export of DC dropped by more than 40% as Indian Government imposed import duties for DC.

Figure 2. Export Volume (MT) of DC from Philippines, Indonesia and Sri Lanka, 2020-2021

During January-June 2021, Philippines shipped more than 42 thousand tons of DC to Europe and US market. The export volume was accounted for more than 50% of DC exports from the Philippines confirming the traditional market for Philippines’ DC. In Asia, China was a growing market for DC from the Philippines.

Figure 3. Export Destination of DC from Philippines, January-June 2021

Meanwhile, Singapore was still the main hub for DC from Indonesia. During January-August 2021 18,989 MT of DC was shipped to Singapore.  It constituted more than 20% of the total export volume of DC from Indonesia during the period. Other major destinations include Germany, Russia, Netherlands, Brazil, and Turkey.

Figure 4. Export Destination of DC from Indonesia, January-August 2021

Price of desiccated coconut remained strong until the third quarter of 2021. In September 2021 price of DC from Philippines (FOB US) was 13% higher as opposed to last year’s price. The positive trend of the price started from the last quarter of 2019 when the price increased from USD1,628/MT in September to US$1,830/MT in December 2019 in the Philippines. Similarly, price of DC from Indonesia showed a positive trend since Augusts 2019. In September 2021, the price has reached US$2,363/MT which was 17% higher compared to last year’s price. Meanwhile, in Sri Lanka, price of DC showed a decreasing trend in the third quarter of 2021. Price of DC from Sri Lanka in September 2021 was US$2,577/MT which was lower by 2.5% compared to the price a year earlier.

Figure 5. Monthly Price of Desiccated Coconut (US$/MT), January 2011- September 2021