MANILA, Philippines - Exports of coconut oil (CNO) went up 44 percent to 61,800 metric tons (MT) in February from 42,854 MT a year ago due to higher copra production and strong demand from traditional markets, the United Coconut Association of the Philippines (UCAP) said.
“There was an increase in copra supply as well as fresh demand from the US and Europe. Their inventories may have been exhausted or there is requirement for more end products,†said UCAP Executive Director Yvonne Agustin.
The US is the country’s biggest buyer of CNO, gobbling up 80 percent of total shipments.
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.
Agustin said the coconut industry has also began tapping new markets for exports of refined, bleached, and deodorized (RBD) coconut oil used for cooking.
She said countries such as Pakistan and Bangladesh have begun importing RBD coconut “in small volumesâ€.
CNO export has been on the uptrend since January.
Volume of shipments in January rose year-on-year because of strong demand from traditional overseas markets.
The Philippine Coconut Authority (PCA) estimates that exports are expected to reach 925,000 MT this year, roughly the same volume as last year.