MARKET INFORMATION

It is broadly estimated that between 70-80% of Sri Lanka’s coconut production is used for domestic consumption and only a small balance is left as surplus for exports.  With domestic demand being very price inelastic even a 10-20% change in crop (due to droughts etc.) can have a significant impact on exportable surplus of coconuts. Thus, Sri Lankan prices of coconut experience severe price fluctuations and this has also resulted in Sri Lanka switching to more value added exports such as Desiccated Coconut and Coconut Milk Powder. 

TOTAL AREA UNDER COCONUT IN SRI LANKA - 442,402 hectares (Approximately 80% bearing)

 TOTAL PRODUCTION  & DOMESTIC CONSUMPTION
(In Million Nuts)

Year

Production

Domestic Consumption*

% of the
Domestic Consumption

1998

2,522

2,053

81.40

1999

2,828

2,063

72.94

2000

3,096

2,126

68.66

2001

2,769

2,322

83.85

2002
2,398
2,089
87.11
2003
2,562
1,922
75.02
2004
2,591
2,082
08.36
2005
2,515
2,048
81.43

Estimate 2006

2,850

2,200

*Based on estimated usage per person. 

EXPORT QUANTITIES

Year

Exports (MT)

(1000 Nuts)

Coconut Oil

DC

Copra

Cnut. Cream &

Fresh Nuts

Milk Powder

1998

2,667

     45,235

     8,992

2,397

17,535

1999

3,622

     62,949

     11,212

3,102

22,999

2000

4,656

     82,735

     14,563

3,834

29,025

2001

3,436

     49,874

     15,037

3,776

27,515

2002

2,585

     28,557

     13,281

4,064

23,679

2003

2,473

     42,234

     17,546

4,587

34,527

2004
2,095
54,098
15,050
5,366
41,356
2005
1,426
33,377
16,857
5,700
40,602

Estimate 2006

1,575
45,000
20,000

During the last decade, Sri Lanka’s main export has been Desiccated Coconut (DC) and on average has been the second largest producer of DC in the world. In the year 2000 it emerged as the largest producer due to a bumper crop. 

EXPORT QUANTITY OF DC REGION WISE IN YEAR 2005.

REGION

QTY (MT)

EUROPE

      7.724

AFRICA including UAR

       7,324

MIDDLE EAST

      13,567

ASIA

        1,653

AMERICA

         994

MAJOR MANUFACTURERS OF DC IN YEAR 2003.

SRI LANKA

       46,142

PHILIPPINES

     102,127

INDONESIA

       40,000

Last update June 2004

MARKET OUTLOOK    

Although 2004 was predicted to be a good crop in Sri Lanka, the severe drought from December ‘03 to February ‘04 saw many “Button nut” falling and as a result the 3rd & 4th quarter crops are expected to be very poor.

Prices from March have been dominated by oil which has been consistently selling above DC prices in the local market. Oil mills are now back in operation after a long lapse.

Despite this, thus far DC production has been very healthy and prices too have remained steady with India now emerging as Sri Lanka’s largest buyer of DC. It is widely predicted that India will continue to buy DC for the remainder of the year mainly due to a crop shortage in India.