Coconut product manufacturers are bracing themselves for the likelihood of another year of tight supplies and high prices. Ongoing strength in coconut oil prices means that the bulk of raw nuts continue to be sold into this sector, as they pay higher prices for coconut than Dried/Shredded Coconut or Coconut Milk products producers. Further exacerbating the short supply is strong demand from beverage manufacturers who have been successful in introducing new coconut flavored beverages.
Over 50% of Thai coconut acreage were destroyed by insect infestation last summer, followed by drought and then floods, hampering farmers’ attempts to replant the lost fields. Adding to the historic raw material prices, the value of the Thai Baht has strengthened against the US dollar. Recently a major canner has declared a form of Chapter 11 Bankruptcy to put a further strain on supplies of Thai Coconut Milk.
There are varying qualities of Coconut Milk which is determined by the fat content so be aware of what you’re actually buying.