Demand for organic coconuts and other materials out of Southeast Asia continues to rise due to the increasing threat of 2024 weather events hitting the Philippines and the surrounding area.

Entire Coconut Portfolio:

With demand having stabilized to the upside in the last two quarters, the last 60 days have brought further demand on the Southeast Asian-imported coconut ingredients due to building fears of a likely severe El Nino season.

Most affected by the surge in demand are the ‘regular’ set of coconut commodities primarily hailing from the Philippines and Sri Lanka: Desiccated Coconut (Flakes, Chips, Shreds), Coconut Oil, and Coconut Flour. Demand and price will continue to rise for these materials as Filipino producers struggle to keep up with the increased demand paired with the upcoming storms. Buyers should expect price increases of 10-20% off the year’s lows to remain over the next couple of months, if not through the end of the year and storm season.

To a lesser degree but also affected in our portfolio are the alternate origin materials, specifically Vietnamese coconut milk powder, and Indonesian coconut sugar. Buyers can expect increases of 5-10% off the year’s pricing lows on these materials over the following 3-6 months minimum.

We also anticipate longer lead times due to production backup from the increased demand; please expect up to 4 weeks of additional lead time on origin shipments.

Demand and price have risen aggressively for three industrial ingredients in the US Market: Organic Virgin Coconut Oil, Organic DC Medium, and Organic Coconut Flour. If your company regularly purchases these items, please reach out to discuss rising prices and what we can best do to remedy the environment.

What this Means to Buyers:

We advise that all buyers stock up on necessary supplies to cover at least the next three months and through July. With freight remaining at manageable levels post-Middle East volatility, we advise clients to contract all needs through summer, allowing us to lock in pricing before any additional increases. The less optimistic picture and continued threat would be the continuation or increased risk of geopolitical issues in the Middle East, paired with any additional domestic economic changes, which could extend demand-increased pricing further than the predicted 5-20%.

For larger volume buyers, we advise buyers to confirm orders as soon as possible for any shipments departing in the next 90 days or planned to arrive in the next 120. Peak demand will likely hit during this period and into the fall baking season.

To help combat the recent spike, TCC and its partners are offering discounts on pallet-volume contracts for the next four months and through the summer. Please contact our team if interested, and we can develop a custom quotation for your company.

Thanks for reading! If you have questions about this market update, please reach out! You can contact us here.

Demand for organic coconuts and other materials out of Southeast Asia continues to rise due to the increasing threat of 2024 weather events hitting the Philippines and the surrounding area.

Entire Coconut Portfolio:

With demand having stabilized to the upside in the last two quarters, the last 60 days have brought further demand on the Southeast Asian-imported coconut ingredients due to building fears of a likely severe El Nino season.

Most affected by the surge in demand are the ‘regular’ set of coconut commodities primarily hailing from the Philippines and Sri Lanka: Desiccated Coconut (Flakes, Chips, Shreds), Coconut Oil, and Coconut Flour. Demand and price will continue to rise for these materials as Filipino producers struggle to keep up with the increased demand paired with the upcoming storms. Buyers should expect price increases of 10-20% off the year’s lows to remain over the next couple of months, if not through the end of the year and storm season.

To a lesser degree but also affected in our portfolio are the alternate origin materials, specifically Vietnamese coconut milk powder, and Indonesian coconut sugar. Buyers can expect increases of 5-10% off the year’s pricing lows on these materials over the following 3-6 months minimum.

We also anticipate longer lead times due to production backup from the increased demand; please expect up to 4 weeks of additional lead time on origin shipments.

Demand and price have risen aggressively for three industrial ingredients in the US Market: Organic Virgin Coconut Oil, Organic DC Medium, and Organic Coconut Flour. If your company regularly purchases these items, please reach out to discuss rising prices and what we can best do to remedy the environment.

What this Means to Buyers:

We advise that all buyers stock up on necessary supplies to cover at least the next three months and through July. With freight remaining at manageable levels post-Middle East volatility, we advise clients to contract all needs through summer, allowing us to lock in pricing before any additional increases. The less optimistic picture and continued threat would be the continuation or increased risk of geopolitical issues in the Middle East, paired with any additional domestic economic changes, which could extend demand-increased pricing further than the predicted 5-20%.

For larger volume buyers, we advise buyers to confirm orders as soon as possible for any shipments departing in the next 90 days or planned to arrive in the next 120. Peak demand will likely hit during this period and into the fall baking season.

To help combat the recent spike, TCC and its partners are offering discounts on pallet-volume contracts for the next four months and through the summer. Please contact our team if interested, and we can develop a custom quotation for your company.

Thanks for reading! If you have questions about this market update, please reach out! You can contact us here.

Demand for organic coconuts and other materials out of Southeast Asia continues to rise due to the increasing threat of 2024 weather events hitting the Philippines and the surrounding area.

Entire Coconut Portfolio:

With demand having stabilized to the upside in the last two quarters, the last 60 days have brought further demand on the Southeast Asian-imported coconut ingredients due to building fears of a likely severe El Nino season.

Most affected by the surge in demand are the ‘regular’ set of coconut commodities primarily hailing from the Philippines and Sri Lanka: Desiccated Coconut (Flakes, Chips, Shreds), Coconut Oil, and Coconut Flour. Demand and price will continue to rise for these materials as Filipino producers struggle to keep up with the increased demand paired with the upcoming storms. Buyers should expect price increases of 10-20% off the year’s lows to remain over the next couple of months, if not through the end of the year and storm season.

To a lesser degree but also affected in our portfolio are the alternate origin materials, specifically Vietnamese coconut milk powder, and Indonesian coconut sugar. Buyers can expect increases of 5-10% off the year’s pricing lows on these materials over the following 3-6 months minimum.

We also anticipate longer lead times due to production backup from the increased demand; please expect up to 4 weeks of additional lead time on origin shipments.

Demand and price have risen aggressively for three industrial ingredients in the US Market: Organic Virgin Coconut Oil, Organic DC Medium, and Organic Coconut Flour. If your company regularly purchases these items, please reach out to discuss rising prices and what we can best do to remedy the environment.

What this Means to Buyers:

We advise that all buyers stock up on necessary supplies to cover at least the next three months and through July. With freight remaining at manageable levels post-Middle East volatility, we advise clients to contract all needs through summer, allowing us to lock in pricing before any additional increases. The less optimistic picture and continued threat would be the continuation or increased risk of geopolitical issues in the Middle East, paired with any additional domestic economic changes, which could extend demand-increased pricing further than the predicted 5-20%.

For larger volume buyers, we advise buyers to confirm orders as soon as possible for any shipments departing in the next 90 days or planned to arrive in the next 120. Peak demand will likely hit during this period and into the fall baking season.

To help combat the recent spike, TCC and its partners are offering discounts on pallet-volume contracts for the next four months and through the summer. Please contact our team if interested, and we can develop a custom quotation for your company.

Thanks for reading! If you have questions about this market update, please reach out! You can contact us here.