Market Update and News 25th March 2025

As we long suspected, Franklin Baker is in the process of being acquired. The plant that closed in October has quietly reopened, according to our sources in the Philippines, who passed it last week, and it is in production. We have also seen exports from Franklin Baker increase in February after a decline in previous months.

The news story was reported on MSN and Philstar sites as follows.

Metro Pacific Investments Corp, through its subsidiary Metro Pacific Agro Ventures Inc. is progressing with its acquisition of Franklin Baker Co. for P1 billion. MPIC Chairman Manuel V. Pangilinan confirmed that the deal is expected to be finalised this year.

“That will push through. We’re already actually using them as our OEM because Axelum needs capacity, so we asked them to produce products for Axelum. So we’re using their capacity already,” MPIC chairman, president and CEO Manuel V. Pangilinan said.

The final details are not known, but it is suspected that some production facilities may be consolidated as part of the buyout.

Market Prices

We are observing a shortage of raw materials at certain production facilities, as Copra seems to be claiming the lion’s share of these materials, driving up local prices.

Over the past week, the prices of desiccated coconut on the export market have remained relatively stable, ranging from $0.80 to $1.75 per pound FOB. This stability reflects strong demand from major markets such as the USA, Europe, and Asia.

Coconut oil prices have risen sharply, with CIF Rotterdam prices now between $2,060 and $2,140 per metric ton. This trend is driven by tight supply and rising prices for other vegetable oils like palm and soybean. The premium for coconut oil over palm kernel oil has surpassed $300 per metric ton, indicating strong demand. Factors such as Malaysia’s recent coconut imports to stabilize local supply also influence these prices. Coconut oil remains a highly sought-after commodity, and its prices are expected to stay competitive.