The Philippines aims to boost its coconut export revenues to $3 billion by 2026, led by stronger harvests and a crucial tariff exemption in the US market.
The United Coconut Association of the Philippines (UCAP) expects export earnings to reach $2.6 billion in 2025, on par with the previous year’s figures. However, improved yields and the US policy change are expected to push revenues higher in the following year.
“The US has exempted Philippine coconut oil from the 19% tariff, so we expect 2026 to be a good year for our coconut farmers and the coconut industry as a whole,” UCAP chairman Marco Reyes said at the World Coconut Congress on Wednesday.
Reyes noted that the industry’s output is set to grow as productivity improves. New hybrid varieties can produce 150 to 200 nuts per tree annually, more than triple the current average of 42 nuts.
Fertilization programs, particularly salt fertilization, are expected to raise yields starting next year. These initiatives complement President Ferdinand Marcos Jr.’s call to plant 100 million coconut trees, which is expected to have a “multiplier effect” on long-term supply and farmer incomes.
Data from the Philippine Statistics Authority (PSA) show that coconut exports totaled $2.66 billion in 2024, with coconut oil, desiccated coconut, and copra meal as the main contributors. Coconut oil alone accounted for $2.2 billion.
Growth continued in the first half of 2025, with coconut oil exports hitting $1.38 billion, making it the country’s fifth-largest export commodity by value. Europe is the top destination, receiving about half of total shipments, while the US absorbs 25 percent to 30 percent.
Turkey has also emerged as a growing market. Turkish Ambassador to the Philippines Niyazi Evren Akyol said Ankara intends to increase coconut imports from Manila to meet rising demand.
“We import a lot of coconuts and coconut oil, actually. That is the biggest agricultural item we source from the Philippines. There is great demand for it, so we are buying as much as we can find,” Akyol said.
Reyes said about 70 percent of coconut exports remain crude coconut oil, a low-value product used in cooking oil, cosmetics and personal care. He said local refining and exporting higher-value products could raise industry revenues to as much as $4 billion.
The shift to value-added exports relies heavily on private sector investment, with companies like Chemrez investing in facilities for specialty coconut products. Another example is Franklin Baker, which was recently acquired by the group of Manuel Pangilinan.
