MANILA, Philippines – The country’s coconut oil exports fell 28 percent in the first nine months of the year following the tightness in raw material supply due to the lingering effects of the dry spell.
The United Coconut Association of the Philippines (UCAP) said coconut oil exports reached 472,353 metric tons (MT) from January to September, down 27.8 percent year on year.
In September alone, exports declined to 77,766 MT from 80,406 MT in the same month a year ago.
September’s shipment volume was also slightly lower than the ideal average monthly shipment of 80,000 MT.
UCAP said there was a tightness in copra, the raw material for making coconut oil, as a result of the recently-concluded El Niño phenomenon which resulted in lower coconut oil production for the period.
Prices of coconut oil averaged at $1,527 per MT in September, higher than the palm kernel oil’s $1,402 per MT.
The coconut oil industry is expected to bounce back in the last quarter on the back of the foreseen La Niña that will prevail over the large part of the Philippines.
UCAP earlier said there would be significant improvement from last year but emphasized that there was a very low base comparison.
This year, the industry has set a lower export target of 750,000 MT primarily due to the drought.
In 2015, coconut oil exports slipped 1.5 percent to 843,710 MT.
Despite the weakness in demand, the industry was able to exceed the full-year shipment target of 804,000 MT.