Philippines Coconut Market Update – 19th August 2025

Desiccated Coconut Pricing 

The Philippine desiccated coconut market continues to reflect strength as global demand for tropical ingredients remains robust.

Domestic processors report that high-quality, fine-grade desiccated coconut is currently trading at approximately PHP 115–120 per kilogram (around USD 2.04–2.13), representing a modest uptick of about 3 % over the past quarter.

This rise is attributed to tightening inventories in key export destinations, especially in Europe. Lower-grade shredded varieties are following suit, holding steady around PHP 85–90 per kilogram (USD 1.50–1.60).

Coconut Oil Trends 

Last week’s news of a price drop appears to be more of a blip and only affected certain trades. We are hearing rumours of some producers with full tanks and farmers who need to sell before the typhoon season, which may push prices down in the short term.

Virgin coconut oil is now commanding prices between PHP 300–320 per litre (USD 5.30–5.65), up roughly 5 % on a year-on-year basis. Refined, bleached, and deodorised (RBD) coconut oil remains more affordable—at PHP 230–250 per litre (USD 4.05–4.40)—but is following a similar upward drift. This is tied to both strong export demand and elevated feedstock costs, as fresh coconut supply tightens seasonally.

The Broader Supply Outlook 

Underlying both product categories is a backdrop of supply constraints. The current lean coconut harvest, compounded by logistical bottlenecks and fluctuating fuel prices, are applying upward pressure on processing input costs.

Stable domestic demand and cautious inventory restocking behaviour among key international buyers are helping to temper price volatility—for now.

Asia–Rotterdam Container Freight

As of 14 August 2025, Drewry’s World Container Index—a composite measure of eight major East-West routes—has decreased by 3% to USD $2,350 per 40 ft container, signalling a continuation of a protracted downtrend after earlier volatility. This easing is mirrored in intra-Asia routes: the Intra-Asia Container Index dropped by 9% in early August to USD $592 per 40 ft box—the lowest level observed since November 2024. While specific Shanghai–Rotterdam spot rates for August haven’t been publicly released, trends suggest realignment towards these softened levels.

For Philippine exporters shipping desiccated coconut or coconut oil, this provides some relief in logistics costs, although margins remain exposed to potential tariff shifts or capacity changes.

Outlook and Strategic Considerations 

Looking ahead, some industry watchers advise vigilance. Should global container freight rates continue their decline, it could provide a timely boost to export competitiveness, particularly for high-value coconut products.

Yet, policy uncertainties (such as potential new tariffs) and possible carrier adjustments in capacity may reverse the current easing trend. Exporters and processors would do well to monitor container rate indices closely and consider locking in competitive freight contracts where possible.

We have added a AI generated podcast for this newsletter. Click below to listen – we hope you enjoy