Capacity still main issue for coco industry after tariff break

THE coconut industry stands to gain the most from the recent US tariff concessions, though analysts said the extent of these gains will depend on industry capacity and regional competition.

- By Vonn Andrei E. Villamiel

In an executive order, the US exempted from tariffs more than 200 agricultural commodities that it does not produce in large quantities, As such, some Philippine agricultural goods will no longer be subjected to the 19% reciprocal tariff.

Coconut and its derivatives are the Philippines’ top agricultural export to the US. In 2024, the Philippines exported P558 million worth of coconut oil to the US, accounting for 4.6% of the total, according to the Philippine Statistics Authority.

Charles R. Avila, president of the Confederation of Coconut Farmers’ Organizations of the Philippines, said the tariff exemptions are a “crucial relief to farmers and exporters.”

Mr. Avila told BusinessWorld via Viber that when Philippine exports, including coconut products, were charged higher tariffs, the initial response was to find alternative markets.

“Our immediate reaction, then, was that the US is not the only market there is for coconut. Europe has been big for the longest time and will be shifting now from oil palm to coconut products ... there’s also Asia ready to gobble up anything coconut,’ he said.