General Information

Cocos nucifera is the scientific name of common coconut. Cocos means "spectre,goblin" or "grinning face" and Nucifera means "bearing nuts". This very tall palm tree is always an inviting symbol of the tropics. The coconut palm is widely distributed throughout Asia, Africa, Latin America, and the Pacific Region. Its center of origin is still under debate. However, its name was recorded in Sanskrit in early history.

The ripe fruit of the coconut palm has a hard shell covered by a fibrous outer coat and contains an edible kernel with the coconut in the center. The shell itself is lined with a layer of rich white "meat", and the hollow at the center is filled with a thin, slightly sweet liquid that can be used as a beverage. The dried meat, called copra, is then subjected to pressing or extraction. The residue is known as copra meal. People call coconut a variety of names, which reflect its usefulness to societies - Tree of Life, Tree of Abundance, Tree of heaven. Almost every part of coconut palm is used. It is a primary source of food, drink, fuel, animal feed, and shelter.

World Market Overview

The coconut industry is currently experiencing a crisis due to an oversupply. This has resulted in an easing in prices for both coconut oil and copra. Indeed, world coconut oil prices fell US$10 per ton this week in a market devoid of buying interest. According to Dow Jones newswires, Manila-based traders quoted coconut oil for December-January 2001 delivery at US$350 per ton on a cost, insurance and freight (c.i.f) basis (Rotterdam), down from $360 per ton a week ago. In the Philippines, the leading exporter of coconut oil, the National Food Authority will start buying copra in Q1, 2001, to try and stabilize prices.

Trend
Coconut oil and copra prices will likely continue to fall until Q1, 2001 due to a lack of consumer demand globally. The substitution of coconut oil with palm oil is another factor which is affecting the demand for coconut oil on a global basis.

Thai Market Overview

Production
In 1995, the total production area was around 2.096 million rais, the production was roughly 1.413 million tons, a decrease from 1994, which has 2.116 million rais of production area and 1.435 million tons of production. It was almost 95% and 153% higher than the previous year. Most volumes were use in the country.

Markets
Main exports are shelled coconut, coconut oil and desiccated coconut. Thailand's important markets of Shelled coconut and coconut oil are Hong Kong and Taiwan. During the period of 1991-1995, Thailand can export coconut and their products much more because the coconut production of two biggest producers, Philippines and Indonesia, declined. As such, Thailand can export shelled coconut and coconut oil in much higher volume than the previous year.