Coco oil exports up 3% in 2018-2019
Source: The Manila Times Time:2018-04-11 08:42:58
The Philippines’ coconut oil (CNO) exports are expected to increase by 3 percent this year and next, the United States Department of Agriculture (USDA) said.
In the Global Agricultural Information Network (Gain) report made by the Foreign Agricultural Service (FAS) in Manila, the USDA said exports would rise to 1.08 million tons in 2018 to 2019, a 30,000-ton increase from 1.05 million tons in 2017 to 2018.
The hike is “a result of substitution of CNO with cheaper imported palm oil and improved copra supply,” it added. This substitution intensified in recent years, according to the FAS.
The FAS projects that coconut oil production will expand to 1.7 million tons, saying this is “consistent with the projected increase in copra production, as a result of the return to more normal weather conditions.”
Overall domestic coconut oil consumption, however, is expected to decline by 20,000 tons to 580,000 tons, and remain at this level because the commodity is substituted for palm oil.
Considered the country’s top agricultural export, coconut oil is used as raw material in making margarine, shortening, milk fat substitutes, biscuits, and crackers.
Average price of coconut oil in the world market fell below $1,200 as of March.