Coco oil exports drop 60% — UCAP

Coconut oil exports fell by as much as 59.6 percent last May due to the lingering effects of the dry spell during the summer of 2010, the United Coconut Association of the Philippines (UCAP) said Friday. Coconut oil exports last month reached only 52,958 metric tons (MT), compared with 130,921 MT a year earlier. "The industry is still reeling from the negative effects of El Niño. The lack of water and moisture affected the productivity of coconut trees," said UCAP director Yvonne Agustin. Coconut oil export has been on a continued decline in the last six months, particularly due to the tight supply of copra or dried coconut meat, from which coconut oil is sourced, Agustin said. "Although we see that there could be a chance that production may improve in the second semester, but it will not be enough to wipe out (production) losses. The improvement in the amount of rainfall will be beneficial to coconut, but to a certain level only," she added. Projections for the year look dim as the industry expects a 30-percent decline in coconut oil export to 900,000 MT, from 1.3 million MT last year. Agustin said it is too early to say if coconut and copra production could bounce back next year. — JMT/VS, GMA News