Market Update 18th February 2025

Desiccated coconut prices are holding firm in the export market, ranging from $0.80 to $1.70 per pound FOB, reflecting steady demand from major importers like the USA, Europe, and Asia. In the domestic market, prices in Manila have slightly eased to PHP 5,242–5,533 per 100-pound bag, following strong increases in previous weeks.

Coconut oil prices have risen further, with CIF Rotterdam prices reaching $1,970 to $2,040 per metric ton, a noticeable increase from previous weeks. This price surge is attributed to tight copra availability in key producing regions and stronger competition with other vegetable oils like palm and soybean oil. The price premium of coconut oil over palm kernel oil has widened again, averaging $194.98 per metric ton, as coconut oil continues to command a stronger market presence.

Increased Processing Capacity: Thai Coconut Public Company Limited is setting up a coconut milk production facility in the Philippines, which will likely drive further demand for desiccated coconut as a key raw material.

Buyer for Franklin Baker? Following the recent news that Franklin Baker closed a major production facility in Davao in October, Philstar Global (but no other news sources) has reported that Metro Pacific Agro Ventures Inc. is exploring the possibility of acquiring Franklin Baker. Metro Pacific Group acquired a 34.76-percent stake in Axelum Resources Corp for P5.3 billion in late 2023.

Government Initiatives in Coconut Production: The Philippine Coconut Authority (PCA) is rolling out a large-scale planting initiative in Davao, which is expected to stabilise copra and desiccated coconut supplies

Sri Lanka’s Expansion Plans: Sri Lanka has announced the planting of 2.5 million coconut trees in 2025, which could impact global supply dynamics for desiccated coconut.