Coconut oil exports dropped 31 percent in the first four months from a year ago, on continued low supply of raw materials, the United Coconut Association of the Philippines said Tuesday.
Ucap executive director Yvonne Agustin said based on preliminary data, coconut oil exports reached 209,982 metric tons in January-to-April, down from 308,050 MT in the same period last year.
“There is a continued tightness of copra, the raw material for making coconut oil, as a result of the El Niño. This resulted in lower CNO production for the period,” said Agustin.
Data showed that in April alone, coconut oil exports slightly went down to 54,500 MT from last year’s 54,776 MT.
Agustin said prices of CNO averaged 1,580 per MT in the four-month period, while palm kernel oil prices averaged $1,289 per MT.
“The dry weather condition has been felt in most of the coconut areas in the country. Copra production has been weak, since late last year as El Niño strengthened,” Agustin said.
Agustin said the country’s coconut oil industry was expected to bounce back in the second half due to a more favorable weather.
“There will be a significant improvement from last year. But we have to remember that we have a very low base comparison,”Agustin said.
Agustin earlier said exports of coconut oil were expected to drop 11 percent in 2016 to 750,000 MT from 840,000 MT last year, because of the impact of the drought.
Data from the Philippine Statistics Authority showed coconut oil imports reached $251.2 million in the first four months, down by 40 percent from $415.9 million in the same period last year.