Desiccated Coconut Market Report
Market for Desiccated Coconut
During the first quarter of 2021, raw material supply (not just DC, but all nuts and dried fruit) has been particularly problematic, especially from Southeast Asia. We've all heard about the dramatic increase in freight prices. Fortunately, this appears to be stabilising. However, the shipping companies have provided us with a new problem: huge delays. When material is booked, we see containers being rolled over to next vessels, and when eventually on board, we see that vessels take weeks.
As a result of these lengthy delays, demand for "spot Europe" products has skyrocketed. Material from the Philippines, in particular, is in high demand. European buyers looking for spot material contact us on a regular basis. Since late last week, the DC market in Sri Lanka has shown firmness after many weeks of ease. Last week, the cost of fresh coconuts also jumped. For the New Year holidays, all DC mills will shut down production around April 12th. The recommencement of production will take place only after April 20th. During April, this disruption will result in a supply shortage, which will inevitably affect prices.
COVID-19 is being detected in an increasing number of people in the Philippines. Numbers are higher than they were when the pandemic broke out last year. The Philippine government is now enforcing stricter measures, which are likely to disrupt operations.
And it's clear that the Philippine producers are still behind on their deliveries. Up to 6/8 weeks, depending on the manufacturer. There is also no indication that shippers will be able to catch up in the next two to three months.
Recently, Indonesia has had a lot of success in the Middle East (Ramadan sales). As a result, the cost of goods from this source has risen. Medium cut, in particular, is significantly more expensive now than it was a few weeks ago. The supply is normal, and exports are only delayed due to a lack of containers/space on ships, not because of production issues.