El Niño and the Soaring Price of Coconuts: A Climate Wake-Up Call

How El Niño is Driving Up Global Coconut Prices: What Exporters and Buyers Need to Know

In recent months, the global coconut market has experienced a sharp increase in prices — and a major contributing factor is El Niño, a climate phenomenon known for disrupting agricultural production across tropical regions. As one of the top producers of coconuts, Indonesia is directly impacted, and so are international buyers and industries that depend on coconut-based products.

What is El Niño and How Does It Affect Coconut Production?

El Niño is a natural weather pattern that causes higher-than-average sea surface temperatures in the Pacific Ocean. Its impacts include:

• Droughts in Southeast Asia

• Reduced rainfall affecting coconut-growing regions

• Water stress that lowers fruit development and harvest volume

• Delayed harvesting due to prolonged dry seasons

For coconut farmers, this means lower yields, higher costs of irrigation, and a longer time to achieve harvest maturity.

The Impact on Global Coconut Prices

As supply tightens due to climate-related disruptions, coconut prices have surged across the board — including:

• Coconut Sugar: Limited sap flow from coconut flowers affects sugar production

• Desiccated Coconut: Smaller nut sizes reduce output

• Coconut Charcoal & Cocopeat: Raw material shortage impacts downstream industries

• Frozen Coconut Meat & Coconut Oil: Increased processing costs and scarcity

This price volatility is especially challenging for international buyers relying on long-term contracts or bulk supply.

Indonesia’s Position in the Market

Indonesia remains a top global supplier of coconut and its derivative products. However, producers are now facing dual challenges: climate risks and global market pressure. While prices rise, maintaining product quality, consistency, and certification is critical to stay competitive.

What Should Buyers & Partners Do?

• Secure contracts early to lock in prices

• Build long-term supplier relationships with trusted exporters

• Consider product substitutions or mixing coconut origin sources

• Plan inventory and shipping windows in advance

At PT Linggau Jaya Eksportir, we continue to support our buyers with transparency, fair pricing, and sustainable sourcing — even amidst climate disruptions.

Conclusion

The El Niño phenomenon is a stark reminder of how closely agriculture and climate are connected. Coconut buyers and stakeholders must stay informed, adapt to change, and collaborate with reliable producers to ensure sustainability in the coconut supply chain.