Desiccated coconuts: Philippines struggle with double burden

May 26, 2020 at 11:32 AM , Der AUDITOR
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MANILA. In addition to the difficulties caused by the coronavirus pandemic, producers in the Philippines are currently having to cope with the effects of typhoon "Ambo". This double burden raises some problems.

Annual load

The Philippines are one of the countries that are hit hardest by tropical storms every year. Typhoon "Ambo" is currently raging over the island state and has already claimed four lives and caused damage of over 20 million USD. In general, the inhabitants of the country are well prepared for the annual storm season, so that there are at most short interruptions in coconut harvesting and production. This year, however, with the Covid-19 pandemic, producers face a double burden that is difficult to cope with.

Lockdown vs. Evacuation

One of the many problems is that the country is currently still under the lockdown declared by President Duterte in April. This means that around 50 million people are theoretically only allowed to leave their homes in exceptional cases. So far almost 12,000 Filipinos are infected with the virus. The authorities are now faced with the question which of the two disasters threatens more human lives; the evacuation centres may currently only be half occupied and the evacuees must wear face masks. Tens of thousands who would normally have been evacuated are still in their homes.

Prices continue to decline

How the storm will affect coconut production is currently difficult to estimate. The infrastructure was already disrupted by the corona pandemic in advance, making it impossible for many workers to reach the factories. Storm damage is likely to exacerbate this situation. "Ambo", however, is likely to have less impact on the crop estimates, as the eight to nine typhoons that hit the Philippines each year are already included in the estimates. The personnel issue poses much greater problems for factory owners. Prices on the European spot market have fallen slightly as buyers are hesitant due to the great uncertainties. For example, fine desiccated coconuts, low fat, with origin in Indonesia, currently cost EUR 1.27 per kg EXW Poland.

Desiccated coconuts

Quality

EUR/mt

Fine, low fat, Indonesia, EXW Poland

1,270

Medium, low fat, Indonesia, EXW Poland

1,445

Medium, high fat, Indonesia, EXW Poland

1,890

Fine, high fat, Sri Lanka, FCA Spain

2,170

Trade sources

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