Philippines Coconut Market Update End April 2025

What’s Happening With the Philippines’ Coconut Industry Prices

Coconut Oil Prices

Coconut oil prices continue to rise in Rotterdam this week, demonstrating strong upward momentum despite a general decline in vegetable oil prices. Sellers initially set offers between $2,550 and $2,647.50 per metric ton (MT) CIF, and prices increased as the week progressed.

A single trade was recorded at $2,400 per MT CIF, which is an increase from the $2,350 per MT noted two weeks ago.

By the end of the week, sellers’ closing prices ranged from $2,555 to $2,650 per MT CIF, reflecting a sustained bullish trend driven by limited supply and strong demand.

Desiccated Coconut

Desiccated coconut prices have remained stable internationally, ranging from 145 to 185 cents per pound FOB, with no changes for the third consecutive week.

The trade of desiccated coconut continues to be supported by strong export volumes, which have increased by 6% year-on-year across major producing countries in 2024 compared to the previous year.

The Underlying Issue

In the domestic market of the Philippines, prices for desiccated coconut have slightly decreased, closing at PHP 5,119 to PHP 5,403 per 100-pound bag, down from the previous week’s range.

Most manufacturers were hoping that local prices would have dropped further at this point, and realistically, it does look like the drop may not come until later in the year (if at all).

Coconut trees stressed by 2024’s El Niño are expected to produce smaller yields in 2025 due to the lag between flowering and harvest (a 12–14 month cycle). Production in early 2025 is projected to remain 10–20% below pre-El Niño levels. at 2.56 MT from 2.90 MT.

We are also hearing about shortages at some plants, whether this is down to actual supply or price is debatable.

Container Shipping Update: Freight Rates Continue to Rise

– (Source Drewrys Price Index)  

According to Drewry’s latest Container Freight Rate Insight, container shipping prices have continued to rise sharply through April 2025. The Drewry World Container Index (WCI) increased by another 4% last week, reaching $3,200 for a 40ft container, nearly double the rates observed at the beginning of 2024.

These increases are primarily attributed to ongoing equipment shortages in Asia, strong seasonal demand, and continued security disruptions in the Red Sea, which force carriers to take longer and more expensive routes around Africa. Rates from Asia to Europe and the US West Coast have experienced the most significant surges, with spot prices from Shanghai to Rotterdam now exceeding $4,200 per container, up 10% month-on-month.

Industry analysts expect container rates to remain elevated at least through the second quarter of 2025. Many exporters of coconut oil and desiccated coconut are already incorporating these higher logistics costs into their FOB offers, which could potentially squeeze margins if prices stabilise in destination markets.