The El Nino is seen wreaking havoc on coconut oil production estimated to weaken by at least 15 percent this year to around 1.57 million metric tons from 1.85 MMT in 2023.
The bulk or 75 percent of copra crushing in the Philippines is exported but because of the El Nino weather disruptions, coconut oil production for export this year were to drop to only around 900,000 MT from last year’s 1.14 million MT.
These are numbers compiled by the United States Department of Agriculture (USDA) whose officials said that as a result of reduced coconut production this year, called “sandaw” by coconut farmers in the Visayas, soybean meal imports were to increase to meet expanding demand for animal feed inputs.
The Philippines is a top producer and exporter of coconut oil serving as key ingredient in food, cosmetics, cleaning and medical products. Coconut oil production is export-oriented and only around 25 percent is retained for domestic consumption.
The USDA’s Foreign Agricultural Service on Monday said that because of lower coconut oil production, palm oil imports were to rise 5 percent to 940,000 MT this year from 895,000 MT.
The bulk of palm oil production is used for food processing, as cooking oil, in margarine production, shortening and non-dairy creamer and in consumer products like soap, cosmetics and medical products.
The USDA said palm oil is preferred over other vegetable oils as it is cheaper, more durable and more resistant to pressure and high temperature.
Soybean meal imports were seen rising significantly higher down the line as well. Soybean meal is a major protein source in livestock and aqua feed formulations accounting for 15 percent up to 40 percent share of raw material inputs. A small portion of import is used for curd production.
The USDA’s said the country’s soybean meal imports for market year 2024-2025 is seen reaching 3.2 million MT, a 4 percent rise from previous year’s 3.03 million MT.
