Market Update 2nd April 2020

What We Know & What We Don’t Know.

It’s uncertain times at the moment and there is a lot of misinformation, confusion and unknowns, so here are some facts, based on actual on the ground information.

Coconut in the Philippines.

Some of the larger plantations are likely to close, as workers struggle to get to work with no transport. Primex’s northern factory have shuttered operations for now for the same reason.

We are not sure what will happen with raw nuts, but it is unlikely they will be harvested till larger plantations reopen. This means there will not be a massive oversupply when factories reopen. Smaller farms will continue to harvest, so there will still be a smaller initial supply of nuts.

When will things reopen?

Some believe that factories and plantations could reopen after Easter. This is because the Philippines does not have the same economic backing that the West has. Closing business and stopping income for longer than Easter, will put a massive strain on an already poor population and may cost more lives and that may not be an option for the Philippines government.

Coconut Supply in the UK and EU.

We are doing business now for July-Sep and buyers have been warned that shortages with shipments won’t likely end till at least July, which means they might not get supply Aug – Sep if they don’t commit soon.

Get in touch with us to discuss your requirements.