Coconut market update, Chelmer Foods

Date: 6th April 2023 Category: Latest News
Coconut market update, Chelmer Foods

Mundus Agri. In the Philippines, some growers are holding back their raw materials because they do not want to accept the low prices offered by processors. The latter will have to increase their offers but at the same time face high production costs. 


Growers demand higher prices.

The biggest problem is the rising cost of energy and the availability of skilled workers. Meanwhile, the supply of raw coconuts is becoming increasingly limited as growers refuse to sell their goods at the low prices that processors are now offering. In order to regain more coconuts, processors will inevitably have to increase their offers while continuing to face high production costs - for now, it remains to be seen how this situation will develop.

Tight supply

Exports reports that the extended holidays will limit market activity over the next two weeks. Producers will temporarily stop their work, which will further tighten the supply. Export prices are still stable, but experts predict increases in the near future. Suppliers are also reporting high demand, which is putting additional pressure. Prices for coconut oil have softened slightly, mainly due to other edible oil markets such as soybean and sunflower oil. Many factors play an important role here, such as the high crop in Ukraine and also the unstable banking sector.