By Luzi Ann Javier
Bloomberg

EXPORTS of coconut oil from the Philippines, the world’s biggest supplier, plunged 45 percent this month as the global recession sapped demand for the commodity from chemical makers, an executive said.

Shipments fell to 33,000 tons from 59,505 tons a year ago, said Yvonne Agustin, executive director of United Coconut Associations of the Philippines Inc.

Sales in the January to February period slumped 68 percent to 57,292 tons, she said, citing preliminary data from members.

Slowing global demand for coconut oil, the Philippines’ biggest agricultural export, may curb farmers’ income, pushing them deeper into poverty after fertilizer costs more than doubled last year.

Coconut oil averaged $734 a ton in January, down 43 percent from a year ago, according to data from the Foreign Agricultural Service at the US Department of Agriculture.

“There was reduced demand due to a slowdown in operations at oleo-chemical producers as a result of the global recession,” Agustin said in a telephone interview yesterday.

Oleo-chemicals, made from vegetable oils, are used in soaps and beauty products.

The contract for delivery in March and April fell to $670 a ton on Feb. 26, against $675 on Feb. 23, according to the Asian and Pacific Coconut Community comprising 15 producing countries that account for about 90 percent of global supply.