PH’s coconut oil exports to slightly increase
US Department of Agriculture (USDA) said the country’s coconut oil export will only slightly increase this year as some markets shift to cheaper imported palm oil and amid improved copra supply.
Based on the Global Agricultural Information Network (GAIN) report of USDA, the agency said the Philippines, which is the world’s top coconut oil (CNO) exporter, will see its exports increasing by 14 percent for the market year (MY) 2017 to 2018.
This will slightly slowdown for the market year 2018 to 2019.
“[CNO exports] should increase modestly (3 percent) to 1.08 million tons in MY 18/19 as a result of substitution of CNO with cheaper imported palm oil and improved copra supply,” USDA said.
CNO is the top Philippine agricultural export. USDA said the country’s post revised CNO production will go up by 165,000 tons to 1.645 million tons in MY 17/18, and it projects MY 18/19 production to expand further to 1.7 million tons due to a recovery in copra output.
Overall domestic CNO consumption, however, is expected to decline by 20,000 tons from the previous market year to 580,000 tons in MY 17/18 and remain at this level in MY 18/19 as a result of substitution for more competitively priced palm oil.