MARKET REVIEW OF COCONUT OIL
Global demand of coconut oil in the first half of 2020 weakened caused by the Covid-19 pandemic and price effect. Import demand of coconut oil by European countries plunged by 6% from 419,230 tons in January-May 2019 to only 393,435 tons in January-May 2020. Similarly, US import of the oil also fell from 427,162 tons during January-June 2019 to 418,144 tons from January to June this year. The current pandemic has apparently adversely affected the global trade including global trade of coconut oil apart from the price effect. It is worth noting that global demand for coconut oil strengthened last year. Global import of coconut oil in 2019 was 2.04 million MT which rose by 6% compared to previous year’s imports. Imports of coconut oil by US, the largest importing country, during January-December 2019 was 0.471 million MT which lowered by 2% opposed to the previous year’s volume. Total imports of lauric oils by US decreased in 2019 to 0.814 million MT which 58% of it was coconut oil. Meanwhile European countries imported 0.657 million MT of coconut oil in 2019 which was 5% higher compared the previous year’s volume. Netherlands was the main importing countries from Europe.
In Asia, Malaysia and China were recorded as the main importing countries for the oil. Malaysia imported 115,127 MT and China brought in 55,389 MT of the oil. Other Asian countries which had a significant demand for coconut oil were South Korea, and Japan. As demand weakening, export of the oil to global market was decreasing in the first half of 2020. Philippines’ export of the oil dropped to 474,153 tons during January-June 2020 or lower by 21% as opposed to the previous year’s volume. Meanwhile, another main exporting country, Indonesia, sent 350,254 tons to global market in the first seven month of 2020. The export volume slipped by 5% compared to the volume in 2019 for the same period. European countries and US are still major destinations for coconut oil both from Philippines. During the first half of 2020, 58% of the Philippines’ total export was sent to Europe and 18% was shipped to US. Meanwhile, coconut oil from Indonesia was mainly sent to Asian countries. During January-July 2020, more than 52% of Indonesian coconut oil shipped to Asian countries with Malaysia, China, and South Korea as major destinations. Malaysia imported