LET’S NOT GIVE UP ON THE GLOBAL BATTLE FOR OUR COCONUT OIL MARKET SHARE
LET’S NOT GIVE UP ON THE GLOBAL BATTLE FOR OUR COCONUT OIL MARKET SHARE
When I read a recent commentary of Dr. Fermin D. Adriano in The Manila Times titled “Philippine agriculture’s continuing demise”, I felt both concern and resolve. He warns that our agriculture is “at a critical crossroads,” and without reforms, we risk losing not just market share — but livelihoods.
Let’s take one specific pillar: our coconut industry, particularly coconut oil. The Philippines may lose part of the U.S. market to Malaysian palm oil, which now enjoys zero tariffs. But while we might lose a few percentage points, we must not lose everything. We can still fight back — and we must.
The stakes are high
According to the Philippine Coconut Authority (PCA), the country’s coconut-oil exports suffered a 39.5 percent drop in 2022. Globally, the coconut-oil market is projected to grow from USD 5.9 billion in 2022 to USD 7.4 billion by 2027 — but we will not automatically share in that growth.
Palm oil, produced cheaply and efficiently, yields roughly four times more oil per hectare than coconut. That’s a big cost advantage — but not an unbeatable one. As Dr. Adriano points out, agriculture must be anchored on “productivity, efficiency, competitiveness, and sound trade policies.”
How do we fight back?
1. Reframe coconut oil as the healthier choice.
Health-conscious consumers are turning toward plant-based, functional foods. The PCA reports strong growth for virgin coconut oil (VCO) and other coconut-based products. Coconut oil, rich in lauric acid, offers clear nutritional advantages over many generic vegetable oils. We should brand it as a premium health oil, not a mere commodity.
2. Move up the value chain.
Our dependence on exporting crude coconut oil exposes us to global price swings. Instead, we should focus on value-added products — VCO, coconut milk beverages, oleochemicals, and cosmetics. As Dr. Adriano emphasizes, sustainable growth lies in productivity and competitiveness, not in raw commodity exports.
3. Mobilize government and industry.
We need an aggressive marketing campaign led by the Department of Foreign Affairs (DFA) and Department of Trade and Industry (DTI) to promote Philippine coconut oil worldwide. At the same time, we must defend our farmers through a task force that protects them from dumping, subsidies, and unfair trade practices. “What is missing,” Dr. Adriano says, “are leaders who understand the dynamics of the agricultural economy, both domestic and international.”
4. Create a Coconut Industry War Room.
This is no ordinary trade dispute — it’s a full-scale global marketing war. We need a coordinated task force of the PCA, DTI, DA, cooperatives, and exporters to monitor market shifts, enforce standards, fight dumping, and promote branding. Weak institutions have long held back our agriculture; this is where reform must start.
Questions for policymakers
Are we promoting coconut oil as a premium health product, not just a cooking oil?
Why do we still rely on crude exports instead of high-margin finished goods?
Do we have hard data on how zero tariffs for palm oil affect our farmers and exporters?
Are we building enough local capacity to process, refine, and brand coconut products?
What concrete steps are in place to shield 3 million Filipino coconut farmers from price swings?
The numbers speak
The Philippines exports about USD 2 billion in coconut products yearly, sustaining roughly 3 million farmers. Yet locally, coconut oil sells for around ₱140 per liter versus palm oil’s ₱99 — a gap that drives consumers toward palm. And while production may rise in 2025–26, exports are expected to remain flat due to higher domestic biodiesel demand and increased palm imports.
Globally, coconut oil accounts for only around 2 percent of total vegetable-oil supply. That makes us vulnerable — but also defines our opportunity. In a world flooded with cheap oil, quality can be our differentiator.
Yes, we might lose some market share, but we must not surrender the coconut-oil market — either globally or locally. We have something our competitors don’t: a long coconut heritage, diverse island production, and a health-conscious niche eager for natural oils.
As Dr. Adriano stresses, “the agriculture sector needs investments in productivity, efficiency, competitiveness.” That’s exactly the mindset our coconut industry needs. Let’s not be complacent. Let’s mobilize the DFA and DTI for global branding, empower farmers through a dedicated task force, and push for high-value coconut products like VCO.
Let’s position coconut oil as the healthier, higher-value alternative to palm oil — because it truly is. If we fight back smartly, we can reclaim and even expand our share of this vital market.
Let’s not give up. Not on our farmers. Not on our coconut heritage. And not on the global battle for our coconut-oil market share.
RAMON IKE V. SENERES
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