Desiccated coconuts: production has declined sharply

April 27, 2020 at 10:28 AM , Der AUDITOR
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MANILA. Almost all growing countries have to deal with stricter regulations due to the corona pandemic, with the exception of Indonesia, where production is largely unaffected due to weaker measures. In the Philippines, transport problems continue to be a major difficulty.

Transport problems interferes with work in factories

Producers in the Philippines are still struggling with the weakened infrastructure, both in terms of workers, some of whom cannot get to the factories, and in terms of the transport of goods. As a result, not all processors can be supplied with farmgate goods. According to T.M. Duché's experts, the container terminal in Manila is working at full capacity again, but there are still almost 3,000 unclaimed containers at the port, which are now being distributed to other shipyards. At the same time, there is still a shortage of containers suitable for foodstuffs to ship the coconut products.

Differently pronounced controls

As the Covid-19 pandemic has suddenly brought factors into play that were never considered before, it is difficult to say in which direction the market will develop. In Sri Lanka, production has almost come to a standstill and, when the stock destined for the domestic market is deducted, there will hardly be any goods available for export. In Indonesia, however, production continues at a fairly high level because the country has initiated relatively weak controls due to the coronavirus. However, the market players there fear that this might soon change. In comparison, controls and regulations in the Philippines have been tightened to such an extent that most factories have had to cut back their production significantly and some have even had to close down temporarily, leaving only limited supplies for sale. Prices on the European spot market are currently still relatively stable; desiccated coconugs, fine, high fat from Sri Lanka, for example, are traded for EUR 2.25 per kg.

Desiccated coconuts

Quality

EUR/mt

Fine, low fat, Indonesia, EXW Poland

1,345

Medium, low fat, Indonesia, EXW Poland

1,485

Fine, high fat, Sri Lanka, FCA Spain

2,250

Trade sources

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