The month’s figure brought coconut oil exports in the first five months of the year to 601,615 tons from 193,029 tons on year last year. Ucap is a confederation of associations and organizations involved in the various activities of the coconut industry. Ucap executive director Yvonne Agustin said the surge in coconut oil exports indicated a growth in demand from major markets like the United States and Europe. She said the better quantity and quality of available copra, the dried coconut meat used as raw material for making coconut oil, also contributed to higher exports.
The dry spell in the first half of the year, however, is expected to take its toll on coconut oil exports. “Based on actual production by farmers, coconut oil exports are expected to contract by the second semester due to the effect of the El Niño phenomenon on coconut trees,” CIIF Oil Mills Group vice president Henry Lao said, without citing figures.
The government is optimistic of meeting the coconut production target of 3.07 million tons in copra terms this year, on efforts to increase output and supply the mandated 1 percent to 2 percent bio-diesel blend of 100,000 to 200,000 tons.
Don't expect much change in Coconut oil prices in the near term