THE Philippine Coconut Authority (PCA) is banking on other markets to absorb coconut exports, with shipments to the US expected to slacken in response to the 19% tariff imposed on Philippine goods.
“There are bigger markets than the US,” PCA Administrator Dexter R. Buted said, citing Europe and the United Arab Emirates (UAE).
Speaking to reporters on the sidelines of the opening ceremony of the COCONUT Philippines Trade Fair, Mr. Buted also noted the potential of Japan and China to absorb some Philippine shipments.
Demand in China and Japan, he said, centers on young coconut and coconut water.
In Europe, “there is demand for virgin coconut oil and desiccated coconut, which they use for pastries, bread, and chocolates,” he added.
He added that the demand for coconut water has surged 1,000%, noting that a Philippine company has secured a P15-billion contract to supply coconut water to a global brand for five more years.
He said that while the US market cannot be completely ruled out, diversification will help maintain the country’s position as a top global exporter of coconut.
Trade Secretary Ma. Cristina A. Roque said negotiations with the US concerning reciprocal tariffs are still ongoing.
“For coconut, we’re still negotiating with the US, so nothing is final yet. The coconut industry is very important for us, and definitely we need to really find or strengthen the market for this,” she said.
To help mitigate the impact of the 19% tariff, she said the Department of Trade and Industry (DTI) has reached out to manufacturers.
“We’ve already reached out to the various manufacturers and industries, she said, noting that talks have taken place without providing details.
“We have 29 DTI offices all over the world and 21 trade offices. Let’s take advantage of this. To the businessmen out there who are affected, the DTI is here for you to help you and to assist you,” she added.
She said support will take the form of finding more markets and buyers for Philippine exports.
“We are encouraging more people to really get into the coconut business because it is a star product. Globally, there is a huge market, and locally, there is also a big demand,” she said.
“We really hope that we can grow this market, because wherever I go, they really want coconut, especially from the Philippines,” she added. — Justine Irish D. Tabile