February 2020

Price of desiccated coconut (DC) had been showing an improvement in the final quarter of 2019. A rising trend of DC price had been obserbed since October 2019 in Philippine when price of DC went up from USD1,628/MT in September to US$1,698/MT in October. Meanwhile, the rebound of DC price in Indonesia and Sri Lanka happened earlier. In Indonesia, the price started to increase in August 2019 when the price increased by US$15/MT and it was steadily improving to US$1,550/MT in December. Similarly, in Sri Lanka DC price regained to US$1,615/MT in August 2019 after reaching the lowest level in December 2012 at US$1,420/MT in July 2019. The improvement in DC price was trigerred by an expected lower production of the product in the next few years.

Global demand on desiccated coconut (DC) from Philippines, the largest exporting country rocketed amid a low price of the product. In the period of January-November 2019, Philippine’s export of desiccated coconut (DC) showed an increasing trend following the positive trend in the last three years. The official figure from the Philippines Statistics Authority showed that the export of DC in the period of January-November 2019 was 133,710 MT which was 14.6% higher than previous year’s volume for the same period. The lower price of DC has given a room for importers to boost their orders to accumulate stocks. Meanwhile, an increase in coconut production made it possible for DC manufacturers to maximize their production capacity to fulfill an increasing demand. It should be noted that Philippines experienced an increase in export volume in three consecutive years from 2016 to 2018. The export of DC from the country rose by 35.6% in 2016, by 26% in 2017 and by 11.2% in 2018. In the first half of 2019, America and Europe were still major destinations for DC from the Philippines, accounting for more than 60% of the total export. USA was the main destination for Philippines DC. It absorbed 36,770 MT or 27.5% of the total export of DC from Philippines. In Europe, Netherlands was the main hub receiving 21,668 MT of Philippines DC. Meanwhile from Asian countries, China, Thailand and Japan were among the largest importing countries of DC from the Philippines.

A similar trend occurred in Sri Lanka. Sri Lankan export of DC rocketed benefiting from an unusual low price. Sri Lankan export of DC jumped by 94% in the period of January-December 2019. The export volume soared from 25,556 MT during January-December 2018 to 49,667 MT over the same period of 2019. The increase reversed the negative trend in the previous years. In 2018, export volume of DC from Sri Lanka was 25,556 MT or dropped by 13% opposed to 2017’s volume. India is the main importing country of DC from Sri lanka. The country brought in 20,527 tons of DC in 2019. The volume was more than 40% of Sri Lanka’s total DC export. In total, Asian countries imported 28,775 MT from Sri Lanka, accounting for 58% of the country’s total export of the commodity. Other main importing countries were USA, Egypt, Canada and Iraq which imported 3,733 MT, 2,909 MT, 2,765 MT and 1,751 MT respectively. In 2019, total export of DC from Indonesia was 98,742 tons. The export was lower by 10.6% compared to the same period of last year. This is the first time in the last four years, Indonesia experience a decline in the export volume of DC. The volume was comparable to the export volume in 2017. It should be noted that in the period of 2016-2018, Indonesia experienced an increasing trend in export volume of DC. In 2017, BPS-Indonesian Statistics Agency recorded that export volume of DC from Indonesia during the period was 98,038 MT which was higher by 23.7% compared to the 2016’s volume and in 2018 the export went up to 109,179 MT. Increase in supply of DC from Philippine and Sri Lanka with a competitive price has put a pressure to DC export from Indonesia since the three countries share the market destinations of DC. During the period, Asia and Europe were still the main market for DC from Indonesia. Singapore is the main hub for Indonesian DC manufacturers. 21.3% of total DC export from Indonesia was sent via Singapore. In total, Indonesia exported 44,013 MT of DC to Asian countries. UAE, China, Iran, and Saudi Arabia were the other major importing countries from Asia. Meanwhile, Europe was also a large market for DC from Indonesia. 38.5% of DC total export from Indonesia was shipped to European countries. Major importing countries from Europe include Russia, Germany, Netherlands, UK, Poland and Turkey. From American continent, Brazil was the main destination for Indonesian DC. The country imported 5,169 MT of Indonesian DC constituting 5.2% of the total export.