Coconut Market Bulletin – Mid April 2025

The Philippine coconut sector is undergoing significant changes in early 2025, particularly with notable price increases for both coconut oil and desiccated coconut. As of April 2025, coconut oil prices have surged to $2,408.50 per metric ton CIF Rotterdam, up from $1,287.86 in March 2024. This substantial increase is attributed to a tightening global supply and rising demand. The Philippine Coconut Authority (PCA) expects prices to continue to increase in the short term.

Desiccated coconut prices have also seen an increase, with export prices ranging from $0.80 to $1.75 per pound FOB. This increase follows a period of relatively stable pricing and is driven by strong demand from key markets such as the USA, Europe, and China.  However, supply constraints are emerging, with reports indicating limited availability of Philippine desiccated coconut products and delays in deliveries of up to a month. 

Shipping costs from Asia to Europe have decreased, with Drewry’s World Container Index dropping 3% to $2,192 per 40ft container, 79% below the pandemic peak but still 54% higher than the 2019 average. However, backhaul rates to East Asia have plummeted, with some forwarders quoted as low as $1 per container.

In the U.S., new tariffs introduced by President Trump include a 10% baseline on all trading partners and up to 50% for certain nations, with a 32% tariff on Indonesian imports. These tariffs are expected to increase costs for imported goods, including coconut oil.

The combination of rising product prices, fluctuating shipping rates, and new tariffs presents challenges for the coconut industry.