Despite 2.5 million acres of new coconut plantings in the last 10 years, global production is stagnating as a result of declining productivity, according to a report from the Organization for Economic Cooperation and Development.
The downward trend, mainly due to aged palms as well as pests and diseases, pushed spot prices to a record $2,000 per metric ton in May, according to data compiled by Bloomberg.
Worldwide production of coconut, concentrated in Indonesia, the Philippines and India, stands at 16 million metric tons, according to Fairfood, a nonprofit organization based in the Netherlands. Coconut is in about one in every 20 products, from shampoo to Bounty candy bars, sold at supermarkets, the group said.