In Kuala Lumpur, Malaysia, a reduction in coconut availability has affected Eid al-Fitr celebrations. Mr. Fahmi Faat, a local restaurant manager, noted a decrease in fresh coconut milk supply, impacting the preparation of traditional dishes like beef rendang. "Fresh coconut milk was very limited during Eid," he stated. This shortage is attributed to adverse weather conditions affecting major coconut-producing nations, leading to reduced global supplies and increased prices.
Countries such as the Philippines and Indonesia are contemplating export restrictions to manage local supply. The Philippines, the world's largest coconut producer, anticipates a 20% decline in output by 2025 due to extreme weather conditions. "The main reason behind the low supply is climate-driven," noted Mr. Henry Raperoga of Axelum Resources. The Philippine Coconut Authority is discussing strategies to retain more coconut oil for domestic use.
Indonesia, the second-largest producer, is considering measures like export bans and levies to stabilize local prices, which have surged by 150% recently. In Sri Lanka, wholesale prices have doubled over the past year due to weather and disease-related crop shortfalls. The government has allowed coconut kernel imports to alleviate market pressure.
Global demand for coconut products continues to rise, driven by their appeal as lactose-free and plant-based options. Related products, including coconut oil and milk, are gaining traction due to wellness trends. The International Coconut Community projects a slight increase in coconut oil consumption to 3.23 million tons by 2025.
The US Department of Agriculture predicts coconut oil stockpiles to reach a four-year low by the end of the 2024-25 season. This scarcity has led to a doubling of coconut oil prices since 2023, reaching a three-year high of US$2,658 per ton. In Malaysia, some traders have paused operations, prompting consumers to consider alternatives like cooking cream or yogurt.
Restaurant manager Fahmi remains unconvinced by substitutes, emphasizing, "Coconut milk is the heartbeat of Malaysian food." The challenge persists for those reliant on coconut as a staple ingredient.
Source: The Straits Times