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Manila, Philippines — The Philippine Coconut Authority (PCA) has said the country's revenue from coconut oil exports will reach a new record this year, surpassing last year's high of $2.22 billion, as prices continue to rise amid tight global supplies and stronger demand.
The authority said the increase in coconut oil export revenue this year is being driven by growing demand for vegetable oils in global markets.
It explained that demand for vegetable oils – including coconut oil – has risen this year due to supply shortfalls of some products in major producing countries.
Although coconut oil accounts for only 2 to 3% of the global vegetable oil market, its prices are heavily influenced by movements in the prices of other oils such as palm oil and soybean oil.
According to the World Bank, the average global price of coconut oil in May reached $2,742 per metric tonne – the highest level ever recorded.
Data from the Philippine Statistics Authority (PSA) showed that the country's coconut oil export revenue last year totalled $2.22 billion, up 88% from 2023, when revenue stood at $1.18 billion.
In the first four months of this year, coconut oil exports rose 63% year-on-year to $973 million, compared with $598 million in the same period last year.
Average monthly export revenue between January and April stood at around $243 million.
These positive projections come at a time when the domestic coconut industry faces threats, most notably an outbreak of the coconut scale insect, locally known as "cocolisap" (CSI).
The authority reported that around 516,962 coconut trees across 3,600 hectares in eight regions have been affected by the pest, though 355,859 trees have already been treated.
The authority stressed that the infestation remains manageable, noting that the current situation is not comparable to 2014, when the pest affected more than 2.4 million trees, most of them in Region 4A.
PCA Administrator and Chief Executive Officer Dexter Buted said the current infestation does not pose a nationwide threat, describing it as "scattered".
The PCA has allocated 94 million pesos this year to combat pests threatening the coconut industry, including 60 million pesos earmarked specifically for tackling the CSI outbreak.
The authority estimates that the current infestation has resulted in the loss of 14 million coconuts, valued at approximately 280 million pesos.
The rise in pest outbreaks in some areas has been attributed to the prolonged drought the country experienced last year due to the El Niño phenomenon.
The authority is pursuing a comprehensive strategy to combat the current infestation, including:
The authority will also provide compensation to insured farmers affected by the infestation, amounting to 50,000 pesos per hectare.
Source: Al Mal Forum