The Philippines is likely to have missed its target of exporting 850,000 metric tons (MT) of coconut oil (CNO) in 2014 due to “much larger than anticipated” damage caused by Supertyphoon Yolanda, the United Coconut Association of the Philippines (Ucap) said on Monday.
Aside from the havoc wreaked by Yolanda on coconut farms, Ucap Executive Director Yvonne Agustin said natural biological stress to coconuts have also contributed to the “severe” disruption of local copra supply.
“There’s a continued tightness in supply of copra, which is the raw material for coconut oil. Recovery for the sector may take as much as four years, depending on the amount of replanting and rehabilitation to affected coconut-producing areas,” Agustin said in a telephone interview.
Earlier, the Philippine Coconut Authority (PCA) said over 34 million trees have been damaged by Yolanda in Samar, Leyte, and in Western Visayas. This comprises 10 percent of 340 million coconut trees in the country.
The PCA said it would take four to five years before typhoon-stricken areas could contribute to production. Biological stress is common to coconut trees, and usually occurs after three consecutive years of good harvest.
In November 2014 CNO exports reached 58,030 MT, or 43.7 percent higher than the 40,370 MT recorded in the same period a year ago.
“We have made improvements in terms of shipment. But if you will remember, we have a low baseline over the past two years. Also, the November shipments were still much lower than our average monthly shipment of 80,000 MT,” Agustin said.
In the 11 months to November, shipments of CNO reached 751,608 MT, or 25.8 percent lower than the figure recorded in the same period a year ago.
Agustin attributed the “slower than expected” exports volume to the wider gap in prices of CNO and its competitor palm kernel oil. Buyers usually shift to cheaper alternatives when CNO becomes more expensive.
Prices of CNO averaged $1,186 per MT in November 2014, much higher than palm kernel oil at $973 per MT.
Coconut oil, which is used in food, cosmetics and energy-related products, is one the Philippines’s top dollar earners.
Currently, the Philippines exports over 70 percent of its coconut oil produce. Europe and the United States account for 80 percent of outward shipments of CNO.
Alladin S. Diega / Correspondent