Global crisis to depress coconut oil exports this year

MANILA, Philippines - The Philippine Coconut Authority (PCA) is expecting lower exports of coconut oil this year in the aftermath of the global economic crisis.

In an interview with reporters at the opening of the 23rd National Coconut Week and 8th Coconut Festival in SM Megamall, PCA deputy administrator Arturo J. Liquete admitted that the coconut industry agency is no longer confident of hitting its original export projection of 1.2 million metric tons of coconut oil for 2009.

Most likely, Liquete said, “we might be able to export only 800,000 MT.”

He noted that based on first semester figures, coconut oil exports have dropped 45.4 percent to 272,523 MT with an export value of $189.468 million compared to the previous export level of 499,125 MT with an export value of $615.879 million in the comparative first half of 2008.

Liquete noted that while coconut oil exports fell in the first four months of this year, a slight glimmer of a turnaround was noted by the PCA in May as coconut oil exports rose to 55,554 MT from the April volume of 32,079 MT.

Compared to the May 2008 exports of 46,132 MT, Liquete pointed out there was a 20.42 percent increase in the May 2009 export of 55,554 MT.

Liquete also explained that while volumes may increase, the value of the exports continues to decline.

Based on data gathered by the PCA, the average price of coconut oil has fallen to $656.89/MT as of June this year from an average price of $745.78/MT in January.

Coconut oil is used in the production of various food products, cosmetics and biofuels.

Coconut oil exports is among the Philippines’ top 10 agricultural exports.

Aside from coconut oil, the country also exports other coconut products such as copra (dried coconut meat), dessicated coconut, coco shell charcoal, activated carbon, coco chemicals and a few other products such as coco coir.

Exports of all coconut products reached 144,386 MT as of June this year with an export value of $78.739 million.