In Sri Lanka, the government restricted palm oil imports, thereby increasing local demand for coconut oil and causing an increase in prices along with the impact of the Covid-19 outbreak and high international demand in the coconut market.
Coconut factories operate at low capacity and some of them are closed due to lockdowns and travel restrictions, which is another reason for delays in shipments in addition to the global container shortage crisis.
Unfortunately, the challenges in the coconut market are not limited to Sri Lanka, but also to the Philippines and Indonesia. Except for vessel owners who benefit from higher freight rates, none of the parties in the market are happy with these conditions. Most order shipments are more than a month behind schedule, and producers in coconut producing countries are withdrawing their offers from the market to catch up with current orders.
Very high spot product prices convert into higher replacement prices and the problems are getting worse for the coconut market. With stocks depleted in the EU and US, prices will remain high for coconut derivatives, at least until the new year.
If you need more information or have demands for Organic and Conventional Coconut products or any other products we supply, please feel free to call or email us.