The Philippines, one of the largest coconut exporters in the world, has been hard hit by the Covid-19 pandemic. Much like other countries, companies in the Philippines have had to take precautions to ensure the safety of their staff, resulting in reduced production capacity. However, unlike other countries, the Philippines has also been hit by a slew of devastating typhoons this year. Three back-to-back typhoons produced widespread flooding of coconut crops, resulting in a shortage of raw materials for production of coconut goods.
Further stressing coconut imports, is a global shortage of shipping containers. With exports from China surging (due to increased demand for PPE, appliances, etc.), along with Covid-19 related handling cuts in Europe and the US, the average container turnaround times have more than doubled. In addition, port congestion on the US West coast is causing delays in container pickups. In turn, containers waiting to return to their destinations are also in a holding pattern. All of this has resulted in huge increases in transportation costs and lead times.
What does this mean for the coconut industry?
Consumers can expect to see higher prices and increased lead times on coconut products across the board due to decreased availability and increased shipping costs. Prices are expected to remain high until production delays catch up in the first half of 2021.
Here at The Coconut Cooperative, we remain vigilant in working with our trade partners to keep pricing as competitive as possible, while also ensuring the quality of our products remains intact.
If you have questions about the availability or pricing on any of our organic coconut products, please contact us at firstname.lastname@example.org.