Coco oil exports up 82% in January

MANILA, Philippines - Coconut oil shipments went up in January from a year ago level due to strong demand from traditional overseas markets, according to the United Coconut Association of the Philippines (UCAP).

Data from UCAP showed an 81.35-percent increase in coconut oil shipments to 115,186 metric tons (MT) in January from 63,517 MT in January 2012.

“Demand continues to pick up due to improved requirement from our markets and also with the high demand last December,” said UCAP executive director Yvonne Agustin.

The bulk or 80 percent of the country’s coconut oil shipments go to the US and Europe.

Agustin noted that market demand is shifting away from palm kernel oil to coconut oil because of narrowing price differentials. Palm kernel oil is coconut oil’s main competitor in the world market.

Last month, CNO was priced at an average of $818 per MT, while palm kernel oil was at $790 per MT.

Despite the devastation caused by typhoon Pablo in major coconut producing areas of Davao and Campostella Valley last December, the volume of coconut oil shipments, which traditionally accounts for the majority of coconut product exports, rose by 3.7 percent to 851, 913.18 MT in 2012 from 821, 445.37 MT in 2011.

The value of coconut oil shipments for 2012, however, fell sharply by 30. 25 percent to $982.32 million from $1.41 billion in 2011.

The average world market price of coconut oil in 2012 fell by 32.75 percent to $1,153.08 per MT from $1, 714.54 per MT in 2011.

The drop in prices in the international market was attributed to lower demand for most vegetable oils for the greater part of the year. The world market price of coconut oil reached a low of $781 per MT.

Demand was low because of the weak economy in prime markets such as United States, Netherlands and Germany.

Agustin said coconut oil shipments targets for this year is under review and will be announced next week.