DTI: Exports down 2% in August, but coconut oil trade going up

The Department of Trade and Industry (DTI) said Wednesday the country’s export sales saw a decline in August, but exports of coconut oil has continued to increase year-to-date.

Citing preliminary data from the Philippine Statistics Authority, the DTI said the Philippines registered $6.4 billion in export sales in August, down 2% from $6.5 billion in the same month last year.

The Trade department said exports “were dragged by the year-on-year decline in exports of electronic products, other mineral products, machinery and transport equipment, and chemicals, which comprise 66.5% share of the country’s total exports in August 2022.”

Nonetheless, year-to-date export sales amounted to $51.2 billion, up 4.4% or $2.2 billion higher than the same period last year.

“[C]umulative export growth was driven by higher sales generated from coconut oil, other mineral products, chemicals, other manufactured products, and electronic products,” the DTI said.

Moreover, it said that coconut oil ranked as the country’s fastest-growing export commodity group, recording a 96.2% year-to-date growth with cumulative export sales reaching $1.6 billion from January to August this year.

Export earnings from coconut oil in August alone also increased to $168.2 million, up 26.6% year-on-year from to $132.9 million.

“Overall, coconut oil exports have consistently been increasing at double-digit growth rates compared to three time periods: 2021, 2020, and the pre-pandemic average from 2017 to 2019,” the DTI said.

The Trade department said that based on Fortune Business Insights’ Regional Forecast and COVID-19 Impact Analysis on Coconut Derivatives for 2020-2027, “several positive outcomes supported the coconut derivative market growth during the COVID-19 outbreak, which includes the rising awareness of the benefits of coconut oil usage.”

“In the Philippines, scientists have also started studying virgin coconut oil (VCO) as a potential treatment for coronavirus,” it said.

It added that the rapid spread of veganism globally has also resulted in increased demand for plant-based products, including coconut oil and coconut milk which are becoming considered globally as alternatives to animal fats and animal milk, respectively. 

Based on the International Trade Centre's Export Potential Assessment, the Philippines has the potential to expand its exports of coconut products to $2.1 billion, it said.

“The DTI has been at the forefront in promoting the coconut sector in international markets. Under the Coconut Farmers and Industry Development Plan (CFIDP), the Department has been assisting coconut farmer enterprises in entering/growing their presence in global markets through the implementation of extensive market research and strategies for the promotion of coconut products,” said Trade Secretary Alfredo Pascual.  

“We are confident that with the right set of marketing strategies, coconut products will gain more traction in international markets, especially as more markets discover the numerous health benefits of coconut products, particularly coconut oil,” the Trade chief said.  —LBG, GMA News