Market Report

We have moved beyond peak growing season in many coconut growing regions, but supply remains strong.  Although production tends to slow down at this time of the year, many mills still find themselves with capacity to spare.  Disruptions due to the fallout of Covid, which plagued the supply chain over the last 18 months, seems to be in its final throes and we are beginning to see a return to pre-pandemic transit times.      Demand continued to remain low throughout Q3 as fear of a recession continued to loom and many found themselves with large inventories built up through 2022. ...

Inventory levels have stabilized for most part, but with continued concerns over long-term stability. Disruptions and congestion at ports are still the primary concern. Coconut yields in major growing regions are strong as we hit peak growing season. The demand for coconut has declined due to many distributors and manufacturers looking to lower overall inventory levels as global recession looms. This unfortunately is causing many mills to lower capacity.   There is some concern that issues may arise when inventories need to be replenished.  The crop yields will be lower and production capacity may struggle to ramp up to capacity needed. ...

 Market Update:   Inventory levels have reached short term stability but still mid-long-term range uncertainty Coconut yields in major growing regions as well as production capacity continued to stay strong through the first quarter of 2022 and look to continue into Q2-Q3      Shipping is still at the forefront of supply concerns. Transit times from Asia-Pacific to North America remain at 2-3 month transit times as we are now experiencing further disruptions due to war in Ukraine as well as port lockdowns in Shenzhen and Shanghai due to COVID protocol around outbreaks in China. The possibility of US west coast...

This market update breaks down how we are closing out 2021 and how the coconut market is looking heading into 2022: Inventory should begin to stabilize. Coconut yields slowly increased into the latter half of 2021 Shipments are at 2-3 months transit times caused by delays due to weather related events, labour shortages, equipment shortages, port/railyard congestion Coconut production remained high through the rest of 2021 Reliable shipping will continue to be an issue as we approach Chinese New Year and is likely to continue through Q2 2022 Pricing remains high but stable. Some factors to consider for pricing: Slow recovery from...