Desiccated coconut fine

Extreme weather events across all major coconut-growing regions in Asia at the end of November and beginning of December have significantly impacted the market for desiccated coconut fine. An unusual sequence of cyclones, typhoons and widespread flooding has caused extensive damage in Sri Lanka, Indonesia, Malaysia, southern Thailand, the Philippines and Vietnam. The consequences range from destroyed infrastructure and large-scale evacuations to numerous casualties.

International reports describe this as one of the most severe regional weather crises in decades, with increasingly visible effects on supply chains and logistics throughout the region. While the full extent of the crop damage is still being assessed, the market faces a clear risk of lower yields, combined with port disruptions, transport bottlenecks and rising logistics costs. Shipment delays and further cost increases cannot be ruled out.

Market experts emphasise that this is a multi-origin weather event, rather than an isolated supply shock. Should a decline in production be confirmed, increased price volatility is expected in the coming period.

At present, export prices for desiccated coconut have remained stable for the thirteenth consecutive week, albeit at levels that are already 73.5% higher than in November 2024. At the same time, freight rates from Asia to major European ports, including Rotterdam, continue to rise, adding further pressure to the market.

We are currently well stocked, which should help mitigate potential short-term delays. Nevertheless, given the evolving situation, the market outlook remains firm, with supply and logistics risks likely to persist in the near term.