‘Mideast war, El Niño may weigh on coconut industry’

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

May 8, 2026 | 12:00am

MANILA, Philippines —  ^{Coconut farmers may face multiple challenges this year as surging shipping costs due to the war in the Middle East and the incoming El Niño weather phenomenon, would weigh heavily on the local industry.}

Confederation of Coconut Farmers’ Organizations of the Philippines president Charlie Avila said the closure of the Strait of Hormuz has put a strain on the domestic coconut industry, where millions of local farmers rely on for their livelihoods.

“A Middle East war happens again but leading this time to the closure of the Strait of Hormuz which is crucial for Southeast Asian coconut supply-chain economics,” he told The STAR.

He added that the closure has led to increased war-risk surcharges and diversions for coconut exports, causing delays in ocean freight and affecting the supply chain.

Avila called for better utilization of the country’s coconuts, noting that countries like Indonesia have already surpassed the Philippines.

“Increase domestic utilization of coconut and its many products. It must compete with the world in using its own coconuts,” he said.

He said the Philippines had immediately felt the full weight of its long over dependence on imported fuels.

“The government is talking about energy self-reliance by the production and greater utilization of biofuels. Talk is not difficult. Implementing much-talked-of programs is,” he added.

The war in the Middle East which began in late February had caused global oil supply to tighten due to the closure of the Strait of Hormuz, a vital passageway where 20 million barrels of oil pass through per day.

Avila added that US tariffs on Philippine goods have caused further pressure on the domestic coconut industry.

“The 19 percent US reciprocal tariff on Philippine goods continues to pressure the 25 to 30 percent of Philippine coconut volume shipped to North America,” he said.

According to the Philippine Coconut Authority (PCA), the war in the Middle East, coupled with the incoming El Niño, could slightly affect coconut exports, despite a potential increase in production.

PCA administrator and CEO Dexter Buted said there could be a 12-percent decline in the country’s coconut exports, despite production increasing to up to 17 billion coconuts from 15.3 billion last year.

He added that the agency has implemented fertilization measures to mitigate the impact of the incoming El Niño on local production.

“We would like to double by investing more in the fertilization project because if we are going to fertilize, the first year of applying fertilizer, that will give us 25 percent additional yield,” Buted said.

Earlier forecasts stated that this year’s El Niño could be one of the strongest recorded in over 10 years, further affecting an already strained domestic production.

The Philippine is one the world’s biggest exporters of coconuts and its by-products, including copra, coconut oil and desiccated coconuts for the food and biodiesel industries, with markets in the US and Europe.