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View all search resultsSurging coconut exports squeeze local processing industry
Indonesia’s coconut exports are surging, raising concerns among industry groups that domestic processing businesses are being squeezed by limited raw material supply.
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A man peels coconuts before drying them in Dolo Barat, Central Sulawesi, on Feb. 11, 2014. (Antara/Zainuddin)
T
he Indonesian Coconut Processing Industry Association (HIPKI) has said fresh coconut exports, particularly to China, are absorbing a large proportion of the national output, leaving little for local manufacturers despite signs of improving coconut production.
HIPKI deputy chairman Amrizal Idroes said the value of fresh coconut exports in July amounted to around US$52 million, up almost 150 percent year-on-year (yoy).
“Most of the increased production is sold as raw material abroad, especially to China,” he told Kontan on Monday.
Exports of processed coconut products also showed strong growth. Shipments of desiccated coconut rose more than 85 percent to $32 million, while coconut milk exports climbed to nearly $36 million, up around 50 percent yoy.
Desiccated coconut is coconut meat that has been grated or shredded and then dried.
However, coconut water concentrate exports fell by 32 percent yoy to just $2 million, with processors unable to secure enough of the fruit.
“Coconut water processors are running short of supply, because most fresh coconuts have already been exported,” Amrizal explained, noting mounting pressure on coconut-based industries
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