Market Review of Dessicated Coconut
Market Review of Desiccated Coconut
Global market of desiccated coconut (DC) showed a recovering trend in 2021 after facing many challenges during last one and half year due to Covid-19 pandemic which caused delays in shipments and disruption in production. Imports of the products by the main importing region such as European Union and US was increasing during 2021. US imports of desiccated coconut jumped by 30% from 41,056 tons in 2020 to 53,568 tons in 2021. Similarly, demand of desiccated coconut by European countries was increasing as well. European countries received 116,284 tons of desiccated coconut during the period of January-November 2021 which was 8% higher as opposed to the previous year’s volume.
Figure 1. USA and European Union Imports of DC (MT), 2020-2021
Following the higher demand, supply of DC was improving as production were getting better. Export supply of DC from Philippines, the largest exporting country, increased to level of 149,107 MT during January-November 2021. The export volume went up by 10% compared to the same period in 2020. It should be noted that Philippines experienced a lower export of DC in 2020. Other main supplying countries, Indonesia and Sri Lanka was also showed a positive signal of recovering. During January-December 2021, Indonesia sent 139,934 tons of DC to global market which was 9% higher compared to the previous year’s export volume. Indonesia kept maintaining a positive trend of DC export in the last three years. Moreover, Sri Lanka shipped 36,116 tons of DC to global destinations. The export volume was 22% higher than 2021’s export volume.
Figure 2. Export Volume (MT) of DC from Philippines, Indonesia and Sri Lanka, 2020-2021
European countries and US are still the major destinations for desiccated coconut. During January-November 2021, Philippines shipped more than 91 thousand tons of DC to Europe and US market. The export volume was accounted for more than 60% of DC exports from the Philippines. In Asia, China was a fastest growing market for DC from the Philippines.
Figure 3. Export Destination of DC from Philippines, January-November 2021
Meanwhile, Asia and Europe are the major destinations for DC from Indonesia. Singapore is the main hub for DC from Indonesia. During January-December 2021 30,276 MT of DC was shipped to Singapore. It constituted for more than 21% of the total export volume of DC from Indonesia during the period. In Europe, Germany, Russia, and Netherlands were the largest importing countries during the year. They received 13,250 tons, 10,328 tons, and 7,740 tons respectively.
Figure 4. Export Destination of DC from Indonesia, January-December 2021
Price of desiccated coconut remained strong during the year of 2021. Average price of DC from Philippines (FOB US) was US$2,521/MT which was 14% higher as opposed to last year’s price. The highest price was US$2,548/MT in November 2021 and the lowest was US$2,495/MT in September 2021. Similarly, price of DC from Indonesia showed a positive trend since Augusts 2019. During 2021, average price of DC from Indonesia was US$2,350/MT which was higher by 17% as opposed to the previous year’s price. Likewise, in Sri Lanka, price of DC showed an increasing trend during the year of 2021. On average, price was 6% higher compared to the preceding year’s price.