Coco oil export earnings seen at new record high

MANILA, Philippines — The country’s export earnings from its coconut oil will hit a new high this year, surpassing last year’s record $2.22 billion,  as prices of the prized commodity continue to surge amid tight global supply and growing demand, the Philippine Coconut Authority (PCA) said.

PCA said the increase in this year’s coconut oil export receipt is driven by the higher demand for vegetable oil in the global market.

Demand for vegetable oils, of which coconut oil is part of, has been growing this year due to increasing global demand amid tight supplies of certain products from key-producing countries, according to the PCA.

Despite accounting for only two to three percent of the global vegetable oil market, coconut oil price is greatly influenced by the movement in the prices of other vegetable oils such as palm oil and soybean oil.

The average price of coconut oil abroad in May hit a record high of $2,742 per metric ton, according to the World Bank.

The country’s total earnings from coconut oil exports last year reached $2.22 billion, about 88 percent higher than the $1.18 billion recorded in 2023, based on Philippine Statistics Authority (PSA) data.

In the first four months of the year, the country’s coconut oil exports rose by almost 63 percent year-on-year to $973 million from $598 million last year.

The country has been earning $243 million from coconut oil exports on the average from January to April.

PCA’s optimism on coconut oil export receipts comes at a time that the domestic coconut industry is facing threats from coconut scale insect (CSI) infestation, locally known as cocolisap.

The agency attached to the Department of Agriculture revealed that 516,962 coconut trees across 3,600 hectares in eight regions have been infested by CSI. However, the PCA said 355,859 trees have been already treated.

PCA assured farmers that the current CSI infestation remains at a manageable level, with some officials noting that the extent of the infestation “pales in comparison” with the 2014 infestation that impacted over 2.4 million trees mostly in Region 4A.

PCA administrator and CEO Dexter Buted said the CSI infestation is not a threat on a national level, describing the status as only “sporadic.”

The PCA has allocated P94 million for the control of various pests hounding the coconut industry this year, with P60 million going to be used to address CSI infestation.

Based on its estimates, PCA said the current CSI infestation has resulted in the loss of 14 million coconuts with an estimated value of as much as P280 million.

CSI infestation has been recurring in certain areas of the country and has been exacerbated by the prolonged dry spell last year caused by the El Niño phenomenon.

The PCA is undertaking a comprehensive approach to address the current infestation by using biocontrol agents, leaf pruning as well as establishment of checkpoints to monitor the transport of coconuts as well as planting materials in concerned areas.

Insured coconut farmers affected by the CSI infestation will get P50,000 per hectare in indemnification, according to the PCA.